PESHAWAR: Khyber Pakhtunkhwa (KP) Finance Advisor Mazamil Aslam urged the federal government to pay immediate attention as the province is undergoing a harsh financial crisis.
Mazamil Aslam stated that the delay in and reduction of federal funding has already put the province in a very tight financial spot, making it very difficult, if not impossible, to attain the target of a PKR 157 billion surplus for fiscal years 2025 and 2026.
The Finance Advisor stated that the central government released less money than what was planned during the first half of the year 2025-26, which had a particularly negative impact on the provincial financial system. Out of the total allocated amount of PKR 292 billion for the merged districts, the amount that was released in the last six months was only PKR 56 billion, thereby putting a lot of the development projects that were being funded at that time underfunded.
Moreover, he narrated that the federal government had a short release of PKR 127 billion, PKR 19 billion was given for direct transfers instead of the budgeted PKR 115 billion, and the province received only PKR 76 billion less than its NFC share, with hydel profit receipts of PKR 18 billion in contrast to the projected PKR 106 billion.
Mazamil Aslam pointed out that the federal shortfall in releases, which is continuous, is detrimental to development activities, and he added that it has already cost the provincial government PKR 46 billion which is released from its limited resources just for crisis management.
The KP government has asked the federal authorities to see to it that the funds are disbursed in full and on time so that there are no interruptions in the development of provincial projects and the provision of public services.
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KP govt seeks detailed expenditure reports from all provincial departments
The Khyber Pakhtunkhwa government has sought details of expenditure from all provincial departments for the revised budget for the current financial year 2025-26 and has made it clear that unnecessary expenditure, additional demands, and unauthorized financial liabilities will not be included in the revised estimates.
In a letter issued by the Khyber Pakhtunkhwa Finance Department to the Senior Member Board of Revenue, all Administrative Secretaries, Registrar Peshawar Raha Court, and Secretary Provincial Ombudsman, detailed instructions have been issued to the provincial concerned officials, and it has been stated that the Khyber Pakhtunkhwa government has started the formal process of preparing the revised estimates for the financial year 2025-26.
According to an official letter issued by the Khyber Pakhtunkhwa Finance Department, all provincial departments, affiliated institutions, and sub-offices have been directed to submit complete details of their current expenses, liabilities, and financial requirements under the prescribed schedule.
According to the Finance Department, only those expenses will be included in the revised budget that are in strict accordance with government rules. The letter clarified that unnecessary expenses, additional demands, and unauthorized financial liabilities will not be included in the revised estimates. For this purpose, the departments have been instructed to provide all financial details with authentic records and documentary evidence.
According to the document, the revised estimates have sought separate details of salaries, financial assistance, vehicle expenses, petrol and lubricants, utility bills, and other items. Similarly, in case of unavailability of government accommodation, it has been made mandatory to provide NOC related to rented accommodation, approval of the competent authority, and other relevant certificates.
The Finance Department has clarified that all types of financial payments will be acceptable only under the rules and regulations, while the responsibility for expenses made without permission or in violation of the rules will lie with the concerned office or office.
