Federal govt rejects KP dues claim, cites PKR8.4 trillion transfers

WEB DESK: The federal government has said it has transferred Rs8,404 billion (Rs8.4 trillion) to Khyber Pakhtunkhwa over the past 15 years, countering claims by the provincial leadership that large sums remain unpaid.

Citing official financial documents, the Ministry of Finance said KP received the funds between 2010 and November 2025, contradicting what it described as a long-running narrative that the federation owes the province around Rs2,200 billion.

According to the ministry, Rs5,867 billion has been transferred to KP since 2010 under the National Finance Commission (NFC) Award, representing the province’s full share. Officials stressed that NFC transfers are made regularly every 15 days and that there are no outstanding arrears. As recently as December 17, 2025, KP received Rs46.44 billion under the NFC framework.

In addition, the province has received Rs705 billion since 2010 as an extra 1% share to compensate for the impact of terrorism. KP has also been paid Rs482.78 billion through straight transfers, including royalties, gas development surcharge (GDS), and excise duties.

For the newly merged districts, the federal government said it has transferred Rs704 billion from its own share since 2019, while an additional Rs117.166 billion has been provided in recent years for internally displaced persons (IDPs).

Under the federal development programme, Rs115 billion has been released for KP-based projects. Separately, Rs481.433 billion was disbursed to beneficiaries in KP between 2016 and 2025 through the Benazir Income Support Programme.

Financial experts noted that funds under the Public Sector Development Programme (PSDP) are not automatic provincial dues but are released based on project progress and financial performance. Presenting delayed PSDP releases as NFC arrears, they said, reflects a misunderstanding of budgetary rules.

The finance ministry said these figures “fully refute” claims that KP’s financial rights have been withheld, adding that work is under way to strengthen the NFC system, including steps toward establishing the 11th NFC Award and enhanced provincial consultations.