PESHAWAR: In a comprehensive briefing on the provincial exchequer’s performance, Muzammil Aslam, Advisor to the Chief Minister on Finance, declared that Khyber Pakhtunkhwa has successfully navigated its way out of a severe economic crisis.
Speaking to the media in Peshawar, Aslam highlighted that the province’s financial health has improved to the point where it now maintains the capacity to pay up to four months of salaries in advance.
The Finance Advisor provided a detailed breakdown of the provincial government’s spending, stating that despite being mired in security challenges and terrorism, the administration has prioritised public relief and social safety nets. He noted that while the federal policy remains focused on the repatriation of Afghan refugees, the Khyber Pakhtunkhwa government has not abandoned them, allocating Rs 1.7 billion for their support. Additionally, the province has cleared Rs 55 billion in outstanding dues for the Health Card program and allocated Rs 12.8 billion for a comprehensive Ramadan relief package.
Addressing the impact of federal economic policies, Aslam warned that if the recent price hike of Rs 55 per unit continues throughout the year, it will drain approximately Rs 1,500 billion from the pockets of the general public. In contrast, he pointed out that the provincial government has actively worked to shield citizens from inflation, specifically citing the decision to freeze BRT fares despite an estimated cost of Rs 6 billion, and the provision of Rs 3.6 billion in relief specifically for motorcyclists.
On the subject of security and administrative efficiency, the Advisor revealed that Rs 155 billion has been earmarked for security, including Rs 16 billion for police risk allowances and Rs 3.8 billion for the Counter-Terrorism Department (CTD), with promises of further funding. He also contrasted the provincial government’s active governance with other provinces, noting that the KP cabinet has held 49 meetings compared to 33 in Punjab.
Aslam also raised concerns regarding the federal government’s unfulfilled financial obligations. He stated that the province had to spend Rs 16 billion from its own pocket for Accelerated Implementation Programs (AIPs) and Rs 15.7 billion for Temporarily Displaced Persons (TDPs)—responsibilities that technically fall under the federal mandate. He further asserted the province’s right to a stronger voice in the National Finance Commission (NFC), demanding two dedicated committees to represent Khyber Pakhtunkhwa’s interests.
