PESHAWAR: The Khyber Pakhtunkhwa government is facing severe economic challenges after the merger of FATA in Khyber Pakhtunkhwa and the non-provision of its due share in the National Financial Commission (NFC) award.
An additional burden of billions of rupees was inflicted on the provincial treasury from the merged districts of FATA, as the provincial government compiled data on financial difficulties released. In addition to the burden of billions of rupees on the provincial treasury from the merged districts of FATA, financial and administrative difficulties have badly affected the Governance in the Khyber Pakhtunkhwa government.
According to the details, the Khyber Pakhtunkhwa government has compiled comprehensive data on the financial and administrative problems of the merged districts, which has made it clear that after the merger of FATA with Khyber Pakhtunkhwa, the additional burden of billions of rupees has increased on the provincial treasury.
According to the documents, Khyber Pakhtunkhwa’s NFC share before the merger was 14.6 percent, which should have been 18.96 percent after the merger. However, the province is facing severe financial difficulties as it got only 13.26 percent share. The merger of FATA resulted in a 1.71% increase in the province’s population, putting an additional burden of Rs134 billion annually on the provincial budget.
The report further states that the merger resulted in a 2.29% increase in the poverty rate in the province, adding a burden of Rs180 billion. In addition, there is a shortage in many important sectors, including revenue collection, and the grants provided by the federation have been declared insufficient.
Sources said that at least Rs61 billion was required for the ongoing expenses of the merged districts since 2016, while the provincial government spent Rs68 billion from its own resources between 2021 and 2024. The actual expenses of the merged districts in 2024 were Rs 97 billion, but the federation allocated only Rs 62 billion.
According to sources, due to financial difficulties, the provision of development projects and basic amenities in the merged districts has been affected, causing difficulties for the people. The provincial government has started planning for further steps in this regard to reduce financial pressure and provide better facilities to the public.
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