Aurangzeb acknowledges KP concerns, pledges support on NFC allocations

Federal Minister for Finance and Revenue, Muhammad Aurangzeb acknowledged on Tuesday the issues raised by Khyber Pakhtunkhwa and pledged the Finance Division’s support in facilitating their rightful allocations under the National Finance Commission (NFC) and other relevant heads discussed, in line with applicable rules, agreed frameworks, and due process.

The minister said this during a meeting with Advisor to theKhyber Pakhtunkhwa Chief Minister for Finance Muzamil Aslam, as per a statement by the Finance Division.

The two held discussions on a range of fiscal and development matters, including the “timely release of funds under key development heads for merged districts, outstanding requirements linked to rehabilitation and support for temporarily displaced persons, and the broader framework of provincial entitlements and allocations, including those related to the NFC”.

The Khyber Pakhtunkhwa team underscored the operational and development priorities of the merged districts, stressing the need for predictable and timely releases to sustain ongoing schemes and meet urgent needs.

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They also highlighted pending obligations concerning displaced families and related commitments requiring coordinated resolution.

Aurangzeb listened to the issues raised by the delegation and reaffirmed the government’s commitment to cooperative federalism and constructive engagement with the provinces.

“The minister noted that effective coordination and timely reconciliation of accounts, where required, remain essential for smooth and transparent releases, and emphasized that the Federal Government remains mindful of the unique development and security-related challenges faced by Khyber Pakhtunkhwa, particularly in the merged districts,” the press release said.

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They also reviewed ongoing work and consultations on NFC-related matters, including the need to sustain momentum on technical discussions and sub-group engagements to advance consensus on key issues.

The press release said that both sides agreed to continue close coordination through relevant forums and technical channels to address outstanding matters on priority and to ensure that fiscal arrangements and releases support development objectives, service delivery, and stability.

“The meeting concluded in a positive spirit, with a shared understanding to maintain regular engagement and to work jointly toward timely resolution of issues in the national interest.”