The Khyber Pakhtunkhwa (KP) government and federal authorities have agreed on a framework to address delays in the release of development funds, particularly those allocated for the province’s merged tribal districts, according to Adviser to the Chief Minister on Finance, Muzzammil Aslam.
During a press conference, Aslam revealed that Chief Minister Ali Amin Gandapur had raised concerns over the delayed release of Accelerated Implementation Programme (AIP) funds in a meeting with Federal Planning and Development Minister Ahsan Iqbal. Both sides agreed to establish a joint mechanism to resolve the issue, with KP providing relevant data to the federal government.
The discussions aligned with the National Economic Transformation Plan 2029-2025 (Uraan Pakistan), which focuses on five key sectors: exports, equity, e-Pakistan, energy and infrastructure, and climate change.
Minister Iqbal acknowledged the concerns and assured that the federal government would fully support KP’s development agenda despite political differences. He emphasized that both administrations remained committed to economic stability and growth.
Chief Minister Gandapur reaffirmed KP’s dedication to the initiative, highlighting that political disagreements would not hinder the province’s role in national development. He reported a budget surplus of Rs169 billion and the establishment of a Rs70 billion debt management fund in the first half of the fiscal year.
He also underscored KP’s private sector investments, including Rs15 billion in industrial zones and Rs200 million in loans under the Insaf Rozgar Scheme, which has created over 137,000 jobs.
However, Gandapur criticized the Public Sector Development Programme (PSDP) fund distribution, calling it inequitable. He pointed out that of the Rs36 billion allocated for seven projects in KP, only Rs2.65 billion had been budgeted, with just Rs1 billion released. In contrast, Sindh received Rs49.2 billion, Punjab Rs7.1 billion, and Balochistan Rs23.81 billion.
He also emphasized the importance of the Chashma Right Bank Canal project for KP’s food security, stating that while Rs17.51 billion had been allocated in the budget, no funds had been disbursed. The KP government has committed Rs60 billion to the project, with Rs500 million already released for land acquisition.
Gandapur urged the federal government to increase PSDP allocations for KP and ensure timely fund releases for ongoing projects, stressing the need for equitable distribution to support the province’s development goals.
