PESHAWAR: The Khyber Pakhtunkhwa government on Friday alleged that the federal government had not released Rs8.46 billion under the Accelerated Implementation Plan (AIP) for development projects in the province’s merged tribal districts during the second quarter of the current fiscal.

Adviser to the chief minister on finance Muzzamil Aslam told Dawn that as per the federal government’s Funds Release Policy 2024-25, 20 per cent of the money allocated under the Public Sector Development Programme (PSDP) would be released in the second quarter (Oct-Dec 2024).

“Until now in this fiscal year, 20 per cent requested funds amounting to Rs8.46 billion of the total AIP allocation of Rs42.3 billion has not been given to us,” he said.

The Federal Funds Release Strategy for Development Budget in the financial year 2024-25 declares that funds for development budget will be authorised by the planning, development and special initiatives division out of PSDP allocations for the current fiscal year for approved projects with 15 per cent for the first quarter, 20 per cent for the second, 25 per cent for the third and 40 per cent for the fourth.

Mr Aslam said that the federal government should release those funds under its Release Policy 2024-25.

He said that the federal government had released AIP funds for the first quarter of the current fiscal year but didn’t do so for the second quarter.

The CM’s aide also said that under the non-development current expenditure for the merged tribal districts with a total allocation of Rs104 billion, just Rs66 billion had so far been released, leaving an amount of Rs40 billion pending.

He added that together with AIP funds, the Centre’s act resulted in a huge financial gap for the province.

Mr Aslam said that the province was footing that bill from its own sources.

He alleged that federal minister for planning and development Ahsan Iqbal got removed the deputy chairman of the Planning Commission Dr Jehanzeb, who ensured the release of first quarter funds.

“Now, Ahsan Iqbal is calling the shots and has stopped the release of funds meant for KP,” he said.

Mr Aslam alleged that Ahsan Iqbal had done the same thing in 2022.

“Denial of funds for the merged tribal districts is unacceptable as these funds are the right of the province. Both the prime minister and federal finance minister should take its notice because such acts are harmful for the country’s interests,” he said.

CM aide alleges province’s economic achievements being undermined

The CM’s adviser said that there were complaints of marginalisation in merged tribal districts.

He said that the KP government was offsetting the denial of federal funds for the region from its own resources.

“Right now, both the federal and provincial governments have to meet the targets set under commitments with the International Monetary Fund,” he said, adding that the Federal Board of Revenue is struggling to achieve its targets.

Mr Aslam added that in such a situation, if there were “some ups and downs,” the province would not be responsible for it.

He criticised the federal government for “undermining KP’s economic accomplishments to conceal Punjab’s bad governance” and said that KP’s good economic performance should not be “tarnished.”

Published in Dawn, December 14th, 2024