National Finance Commission: KP Cabinet approves allocation to hire counsel

PESHAWAR: The provincial cabinet of Khyber Pakhtunkhwa approved an allocation of Rs.30 million for engaging the services of a law firm or private legal counsel to pursue the province’s case relating to the National Finance Commission (NFC) before the competent constitutional forum.

The meeting of the 54th meeting of the provincial cabinet was held here on Monday with Chief Minister Muhammad Sohail Afridi in the chair. Besides, provincial ministers, advisors and special assistants, the administrative secretaries of the provincial departments also attended.

Recognizing that the matter involves a continuous and long-term legal process, the Cabinet authorised the Finance Department to independently select and engage law firms or private legal counsel, as and when required, and process all contractual obligations at the departmental level to ensure timely action and avoid procedural delays.

The decision is aimed at strengthening the province’s legal efforts to secure its constitutional and financial rights under the NFC Award through all available legal avenues.

Briefing the media on the important decisions taken during the 54th meeting of the Provincial Cabinet, Minister for Information and Public Relations Shafi Jan said that the Cabinet approved an amendment to Schedule-IV of the Khyber Pakhtunkhwa Letters of Administration and Succession Certificates Rules, 2021, granting a complete waiver of all prescribed fees for obtaining Letters of Administration and Succession Certificates by the legal heirs of martyrs.

The exemption will apply to the families of martyrs of the Armed Forces, Police, and Paramilitary Forces, as well as civil servants who embraced martyrdom while performing official duties and civilians martyred in armed conflict or terrorist incidents.

The decision reflects the provincial government’s commitment to supporting the families of those who made the ultimate sacrifice for the nation by easing the legal and financial burden associated with succession-related matters.

The Minister said that the Cabinet approved the transfer of two kanal of state land situated at Mouza Ratta Kulachi, Tehsil and District D.I. Khan, in favour of NADRA, subject to the payment of Rs. 84 million, applicable taxes, mutation charges, and completion of all codal formalities, for the construction of a Regional NADRA Office.

He further said that the Cabinet approved the constitution of the Debt Management Committee under Section 11(4) of the Khyber Pakhtunkhwa Fiscal Responsibility and Debt Management Act, 2022. The Committee will formulate policies for the effective functioning of the Debt Management Unit in accordance with the provisions of the Act.

The Provincial Cabinet also approved the establishment of the Digital Governance Enablement Unit (Digital-GEU) in the Finance Department. The Digital-GEU will serve as a permanent unit to sustain and enhance the use of digital workspaces across government departments.

According to the Minister, the Cabinet approved the Khyber Pakhtunkhwa Public Resources for Inclusive Development (PRID) Programme with a financing envelope of USD 200 million. The programme will introduce reforms in revenue mobilization, improve the efficiency and prioritization of public expenditures, and strengthen the province’s fiscal and service delivery data ecosystem.

The Provincial Cabinet approved the extension of the Khyber Pakhtunkhwa Government Educational and Training Institutions Ordinance, 1971, to the newly established Model School Battagram.

The Cabinet also approved the closure of the Driving School of the Transport Department and the placement of its existing staff in a Driving School Cell/Unit to be established within the Directorate of Transport. The new unit will regulate existing and future private-sector driving schools using the existing human resource strength.

The Minister said that the Cabinet approved the closure of the Agriculture Department’s project titled “Water Conservation in Barani Areas of Khyber Pakhtunkhwa” and sanctioned the payment of outstanding liabilities amounting to Rs. 26.995 million incurred under various project interventions.

It also approved the release of Rs. 2.773 million to clear the salaries of project employees up to June 30, 2025. The decision will facilitate the formal completion of the project while ensuring the settlement of all pending financial obligations.

The Cabinet approved a set of amendments to the Khyber Pakhtunkhwa Health Care Commission Act, 2015, aimed at enhancing the effectiveness of the legislation and strengthening the institutional role of the Health Care Commission. The proposed amendments are intended to improve the Commission’s regulatory framework, enabling it to more effectively oversee healthcare standards and ensure the delivery of quality health services across the province.

The Cabinet approved the allocation of Rs. 151.734 million for the transitional period from July 1 to December 31, 2026, and fixed a budget ceiling of Rs. 174.495 million for the period from January 1 to June 30, 2027, to ensure the uninterrupted functioning of Government General Hospital Nishtarabad, Peshawar.

It also approved the extension of the existing operational contract until December 31, 2026, while directing that the hospital be outsourced through the Health Foundation during the six-month transition period, or earlier if the process is completed before the deadline.

The decision is aimed at ensuring the continued delivery of quality healthcare services at the 100-bed multi-specialty public hospital established under the Khyber Pakhtunkhwa Human Capital Investment Project (KP-HCIP) with financial assistance from the World Bank in June 2020.

The Cabinet also approved the establishment of a Medical College in the existing building of the Regional Professional Development Center (Male), Jamrud, District Khyber.

On the recommendations of the Cabinet Standing Committee, the Cabinet approved the extension of the Revised Shuhada Package, 2025, currently admissible to police personnel, to the personnel of the Narcotics Control Wing of the Excise, Taxation and Narcotics Control Department.

The package will become applicable upon the formal notification of the Narcotics Control Wing as a uniformed force. The decision aims to ensure that personnel serving in frontline narcotics enforcement receive the same welfare and compensation benefits as other uniformed law enforcement personnel in recognition of the risks associated with their duties.

The Cabinet approved the engagement of a senior constitutional counsel, in addition to the Advocate General, to ensure effective representation and prosecution of the pending Civil Petition for Leave to Appeal (CPLA) before the Supreme Court concerning the Federal Excise Duty (FED) on unmanufactured tobacco.

The Cabinet further directed the Law, Excise, Agriculture, and Finance Departments to jointly examine and submit proposals on alternative levy mechanisms, including the imposition of an agricultural cess or the introduction of an appropriate regulatory framework, consistent with the Province’s legislative competence, for the Government’s consideration.

The Provincial Cabinet also approved the Pakhtunkhwa Highway Authority Budget estimates for FY 2025-26.

The Minister said that the Cabinet approved a mechanism for the purity testing and valuation of gold recovered by NAB in the Kohistan financial scandal through a registered assayer.

It was informed that while implementing the previously approved framework for the receipt, custody, valuation and disposal of Kohistan scandal assets, it became necessary to determine the precise operational procedure followed by the Federal authorities for handling recovered material described as “said to be gold” prior to its monetization. In this regard, the Administration Department initiated consultations with the State Bank of Pakistan and Pakistan Mint, Lahore, to ensure that the valuation and disposal process is carried out in accordance with established standards and procedures.

The Cabinet also approved the Khyber Pakhtunkhwa Commerce and Trade Statistics Rules, 2026, under Rule 19(1)(a) of the Khyber Pakhtunkhwa Government Rules of Business, 1985.

Concluding the briefing, the Minister said that the Cabinet approved the release of additional funds amounting to Rs. 5,499.997 million to provide compensation to 6,900 additional GRC-verified Temporarily Displaced Persons (TDP) families from Tirah. The approved funds will also cover the payment of the monthly food support allowance to eligible families in accordance with their prescribed entitlement.

Copyright Business Recorder, 2026