PESHAWAR: Khyber Pakhtunkhwa has claimed it has actively reduced its debt and deposited Rs30 billion in its debt management fund.

In a video statement issued here, adviser to the KP chief minister on finance and interprovincial coordination Muzammil Aslam said that the provincial government had deposited a substantial amount of Rs30 billion in the debt management fund, with plans to contribute an additional Rs30-40 billion, depending on the financial landscape.

He said that the debt management fund could accommodate up to 10 per cent of KP’s total debt of Rs725 billion. “We [KP] have already initiated transfers and are committed to reducing our financial liabilities, setting a benchmark for other provinces and the federal government,” he said.

CM aide says Rs30bn transferred to debt management fund

Mr Aslam highlighted KP’s recent key accomplishments, including the allocation of Rs20 billion each to pension and gratuity funds over the past six months, alongside generating Rs3-4 billion in profits through efficient fund management.

He also said KP had secured three months’ worth of advance salary funds, marking a significant improvement from past challenges in salary disbursements.

The adviser also said that the provincial government was steadfast in its goal to eliminate debt and stabilise the economy in line with the vision of PTI founder Imran Khan and under the leadership of Chief Minister Ali Amin Khan Gandapur.

He criticised the federal government for its “unsustainable” financial policies and noted that the national debt had surged to Rs70,400 billion.

“The federal government borrowed Rs1,248 billion in November 2024 alone, surpassing KP’s total debt of Rs725 billion accumulated over 77 years,” he said.

Mr Aslam added that the country’s debt had grown by Rs27,000 billion since April 2022.

He urged the federal government to adopt more responsible fiscal practices, drawing lessons from KP’s success in debt reduction and financial stewardship.

Published in Dawn, January 8th, 2025