PESHAWAR: Describing the financial situation of Khyber Pakhtunkhwa as precarious, the caretaker chief minister has asked the federal government to pay pending dues to the province including funds for the development of tribal districts.

“If KP is given access to its rightful dues under various heads promised and enjoined by the Constitution, the precarious economic position of the province could be averted and profuse malaise curtailed,” the caretaker chief minister, Mohammad Azam Khan, wrote in a letter addressed to the caretaker prime minister, Anwaarul Haq Kakar.

The letter, a copy of which is available with Dawn, said that the solution to militancy, poverty, backwardness, illiteracy, absence of infrastructure and other ills was the revival of economic activities in the province.

Mr Khan told PM Kakar that the revision of the National Finance Commission (NFC) award following the merger of the erstwhile Fata into KP, development funds for the merged districts, net hydel profit and provision of 100MMCFD gas to the province were some of the heads.

Writes letter to prime minister, terms financial situation of KP precarious

He said that following the 25th Amendment and merger of erstwhile Fata into the province, the seventh NFC award required correction. It will result in an increase in KP’s share from 14.62 per cent to 19.6 per cent.

The increase in the province’s share corresponds to the monetary figure of Rs262 billion for the fiscal year 2023-24.

Mr Khan said that the federal government had allocated only Rs123 billion to the province, leaving a shortfall of Rs139 billion, during the mentioned period.

He remained the prime minister that the federal government needed to fulfil its commitment made on March 2, 2017, about giving a share of three per cent in NFC award (Rs100 billion) annually to merged districts to bring them at par with the rest of the country.

“Against Rs500 billion due since 2018, the federal government has allocated a mere Rs103 billion so far, leading to a shortfall of Rs397 billion,” the letter said. At the same time, Mr Khan reminded PM Kakar that an outstanding payment of Rs1.5 trillion was pending against the federal government under NHP since 2016.

He said that on November 20, 2014, the Economic Coordination Committee decided in a meeting to allocate 100MMCFD gas for setting up thermal power projects in the province and accordingly a memorandum of understanding was signed between the KP and federal governments.

He said that KP’s industrial sector consumed 40MMCFD gas. he said 100MMCFD gas should be relocated from the power sector to KP’s industrial sector.

He requested the caretaker prime minister to facilitate KP in expanding the wheeling of power under ‘Pehur Model’ to offset its locational disadvantage and promote economic activities.

The chief minister told the prime minister that the Pakhtunkhwa Energy Development Organisation (PEDO) produced about 165 megawatts of hydroelectricity and it had successfully

undertaken supply of power through wheeling from its 18 megawatts Pehur hydropower station and selling units of electricity through an open competitive bidding process successfully since April 2019.

“I trust that you will agree with me that the proposals contained in my request constitute adherence to the special provisions encapsulated in Chapter 3 Part V of the Constitution. The special provisions propound a roadmap out of the present financial quagmire for the province,” he said.

Mr Khan stated that the KP residents suffered for too long as a result of non-adherence to the special provisions of the Constitution and any further delay would jeopardise the harmony and peace in KP, particularly the newly merged districts.

Published in Dawn, September 4th, 2023