Centre owes Rs532bn in head of merged district uplift to KP

PESHAWAR: Special Assistant to Chief Minister of Khyber Pakhtunkhwa on Information and Public Relations, Shafi Jan said that despite commitment to provide Rs.100 billion annually for the uplift of the merged districts of erstwhile Fata, the federal government had withheld funds.

The federal government has released only Rs. 168 billion over the past seven years, leaving Rs. 532 billion still outstanding.

In a statement issued here on Tuesday, he pointed out that record levels of borrowing in Pakistan’s history have occurred during the tenure of the present government. Highlighting fiscal disparities, Shafi Jan termed the federal government’s resource distribution as deeply unfair. He stated that while billions of rupees have been allocated for projects in Punjab, only Rs. 550 million has been earmarked for Khyber Pakhtunkhwa under the Public Sector Development Program (PSDP).

He strongly criticized the federal government’s performance and the ongoing severe load-shedding in the country, stating that widespread and prolonged power outages across Khyber Pakhtunkhwa and the rest of the country are clear evidence of federal mismanagement. He noted that unannounced and extended load-shedding continues across the province, with rural areas enduring up to 20–22 hours of daily outages. Despite producing more electricity than its own requirements, Khyber Pakhtunkhwa is facing acute electricity and gas shortages.

Shafi Jan stated that the people of Khyber Pakhtunkhwa gave an overwhelming mandate to Imran Khan, and is now being “penalized” through excessive load-shedding, further worsening their daily lives. He added that the suspension of gas supply to CNG stations has severely impacted low-income groups and the transport sector.

He further said that Chief Minister Sohail Afridi has taken serious notice of the suspension of CNG supply and directed immediate action.

Criticizing federal policies, Shafi Jan said that poor decision-making has led to a downturn across all sectors, particularly industry. He added that under the current “Form-47 government,” anti-people policies have resulted in factory closures and a sharp decline in foreign investment.

Copyright Business Recorder, 2026