Due to nonpayment of net hydel profits KP facing financial crises
Tariq Saeed Peshawar
Interim Chief Minister Khyeber Pakhtunkhwa Azam Khan has pledged to take up the NFC award, NHP , release of tribal districts funds and other issues with the federal government adding the care-taker set-up will make every possible efforts to get the due rights and share of the province.
The decision was taken during a meeting with the interim Chief Minister in the chair. The meeting reviewed the economic situation and financial matters of the province. During a briefing the interim chief minister was informed that the province was facing financial difficulties due to non-payment of net hydel profit and delay in transfer of funds from the federal government. The meeting discussed and reviewed various matters related to current economic condition and financial situation with special focus on the budgeted transfers withheld by the federal government.
The CM was informed that due to delay in release of funds under various federal transfers by the Federal Government and nonpayment of net hydel profits, the provincial government is facing financial constraints. Currently, the federal government owes billions of rupees to the Khyber Pakhtunkhwa province which has resulted in an adverse impact on the ongoing development and welfare activities in the province especially merged areas.
Briefing about the financial constraints due to non-transfer of the budgeted shares by the federation and other related matters, it was informed that the federal government has allocated a grant of only Rs 60 billion for newly merged districts for fiscal year in 2022-23 against a minimum current budget requirement of Rs 89.5 billion for salary and non-salary expenditures. Similarly, Rs. 50 billion have been allocated for development projects in the merged districts, out of which only 5.50 billion rupees have been released during the first six months of the year.
Moreover, the share of Khyber Pakhtunkhwa fixed in the National Finance Commission award is not being given, while Rs 61.89 billion are also due with the federal government on account of Net Hydel Profit (NHP). It was informed on the occasion that the actual Own Source Revenue of the province has increased more than double in the past three years but it is not enough to meet the requirements, and the province mostly depends on the federal transfers.
The caretaker Chief Minister said that the financial matters of the province related to federation would be taken up at federal level adding that care-taker set up will make every possible effort to get the due rights and share of the province. However, he directed the concerned authorities to implement the austerity policy of the government in latter and spirit adding that the government cannot afford unnecessary and unjustified use of available resources.
He said that all issues especially development funds of the merged districts will be taken up with the prime minister. He directed the concerned department to ensure implementation of austerity drive as the province could not afford unnecessary expenses. He said that concrete steps should be taken for judicious utilization of the available resources and good governance.