PESHAWAR: Khyber Pakhtunkhwa Chief Minister Muhammad Sohail Khan Afridi has sent a formal letter to the Prime Minister of Pakistan, Mian Shahbaz Sharif, expressing serious concerns over the federal government’s ongoing failure to disburse constitutionally owed financial amounts.
In the letter, the Chief Minister emphasises that Khyber Pakhtunkhwa is facing a severe financial and administrative crisis due to the federal government’s non-payment of monthly allocations under the National Finance Commission (NFC) award, net hydel profits, oil and gas royalties, and funds designated for merged districts in a timely and complete manner.
The provincial budget for the fiscal year 2025-26 was prepared based entirely on constitutionally guaranteed financial rights. However, contrary to these obligations, the federal government’s disbursement of funds has consistently fallen below the required levels. Khyber Pakhtunkhwa is entitled to Rs 658.4 billion under the NFC, yet only Rs 604 billion has been released so far, resulting in a shortfall of Rs 54.4 billion.
This fiscal gap has adversely affected the province’s cash management, hindered budget implementation, and severely impacted service delivery in critical sectors such as health and education.
The Chief Minister further expressed deep concerns regarding the situation in the merged districts, stating that while Rs 292 billion was allocated in the provincial budget for these areas, only Rs 56 billion has been disbursed by the federal government so far. This delay is greatly undermining the development process, access to basic amenities, and the stability goals of the state.
The letter also highlights that Khyber Pakhtunkhwa is on the front lines in the fight against terrorism and is bearing high national costs, including those related to flood disasters, rehabilitation measures, and support for temporarily displaced persons. However, these national financial burdens are being disproportionately shouldered by the province.
The Chief Minister has urgently requested that the federal government release all outstanding dues immediately and without conditions, particularly the monthly instalments of NFC funds, net hydel profits, oil and gas royalties, and allocations for merged districts, as mandated by the constitution. He warns that further delays will exacerbate the financial strain on the province and undermine its governance capacity.
Given the severity of the situation, the Chief Minister of Khyber Pakhtunkhwa has called for immediate and personal attention from the Prime Minister.
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