PESHAWAR: The Khyber Pakhtunkhwa and federal governments have agreed on a framework to resolve the development funds related issues of the province and its merged tribal districts, said adviser to the chief minister on finance Muzzammil Aslam on Wednesday.
Addressing a news conference here, Mr Aslam said the chief minister raised the issues related to the merged tribal districts, including delay in the release of the Accelerated Implementation Programme funds, in the meeting with federal planning and development minister Ahsan Iqbal.
“We [centre and KP] have agreed on a framework to resolve the issues, with the province sharing information with the federal government,” he said.
Minister Iqbal, who was also present on the occasion, said he discussed the development related issues of the province with the chief minister and his aide on finance, and both sides agreed to resolve the issues through a joint mechanism.
Gandapur takes up delay in AIP funds release with federal minister Iqbal
He said the federal government would support the provincial government’s development programme in all manners.
“Though we diverge politically, we both work for the interests of the state,” he said.
The federal minister said that interests of both KP and federal governments were tied to a stable, peaceful and prosperous Pakistan.
He said that talks with the provincial government were productive as he discussed issues with the chief minister and his team.
“Experts from both the province and the centre will sit together to align their priorities with five Es outlined in the Uraan Pakistan initiative,” he said.
Mr Iqbal said KP had great potential in tourism and mining, and was the gateway to the Central Asian markets.
He said the federal government had put the economy on track again in a short time, prompting leading global credit rating firm Moody’s to change the outlook of Pakistani banks from stable to positive.
On the occasion, aide to the CM Aslam said the federal government’s development priorities were already aligned with the Uraan Pakistan programme.
He, however, said it was very crucial for the trickle-down of economic indicators in the life of the common man.
“During the meeting, our chief minister stressed the revision of the National Finance Commission Award so that the province could receive its share resulting from the population increase after the Fata merger,” he said.
Mr Aslam also said the chief minister highlighted the issue of greater coordination in abolishing tax exemption for tribal districts and Malakand division.
Also, a consultative workshop on the National Economic Transformation Plan 29-2025 (Uraan Pakistan) was held at the Chief Minister’s House, according to an official statement.
Chief Minister Ali Amin Khan Gandapur was the chief guest at the event, which was attended by federal ministers Ahsan Iqbal and Amir Maqam, provincial cabinet members, parliamentarians, and senior officials from both provincial and federal governments.
The Uraan Pakistan programme focuses on five key sectors for the country’s sustainable economic development — exports, equity, E-Pakistan, energy and infrastructure and environment and climate change.
Mr Gandapur said that KP was moving forward with Uraan Pakistan.
“Despite political differences, we are determined to contribute to Pakistan’s economic development. These differences will not stop us from working for the stability and economic progress of Pakistan,” he said.
The chief minister said the establishment of law and order was most essential, as it formed the foundation of development.
He added that Khyber Pakhtunkhwa had significantly contributed to Pakistan’s development and would continue doing so.
Mr Gandapur said in the first six months of the current financial year, the province achieved a budget surplus of Rs169 billion and established a debt management fund of Rs70 billion.
He added that the province had successfully met the IMF target, while investments were witnessed in productive sectors.
The chief minister said significant progress had already been made, aligned with the Uraan Pakistan programme, and that the province would lead in that effort nationwide as well.
Touching upon major initiatives of the provincial government, he said Rs15 billion of private investment had been secured for industrial zones.
Mr Gandapur said under the Insaf Rozgar Scheme, entrepreneurs were provided loans amounting to Rs200 million, which created employment opportunities for more than 137,000 individuals.
He said for the timely completion of development projects in tribal districts, the remaining funds should be released on an emergency basis.
“Under PSDP, out of Rs36 billion allocated for seven projects in the province, only Rs2.65 billion has been allocated, while only Rs1 billion has been released so far. While new projects have been reflected for other provinces in PSDP, no new projects have been given to Khyber Pakhtunkhwa,” he said.
The chief minister said compared with other provinces, Khyber Pakhtunkhwa received a very small share of PSDP funds compared with Sindh’s Rs49.2 billion, Punjab’s Rs7.1 billion and Balochistan’s Rs23.81 billion.
He called for an increase in the allocation of PSDP funds for the province and for the timely release of funds for the completion of PSDP projects.
Mr Gandapur also said the Chashma Right Bank Canal project, which was crucial for the province’s food security, had neither received appropriate funding nor had the construction of the connecting canals been carried out.
He said although Rs17.51 billion had been allocated for the project in the current fiscal, no funds had yet been released.
“Our government will contribute Rs60 billion from its own resources for this project, with Rs500 million already released for the required land,” he said.
The chief minister complained that details of the project’s alignment had not been shared by the centre with the province, and the timelines agreed by Wapda for their activities had not been adhered to.
He also said the federal government promised to allocate Rs17.5 billion for the project but only Rs2.5 billion had been earmarked in the current PSDP, and even that amount had not been released.
Mr Gandapur announced his government’s support for the Uraan Pakistan development agenda while demanding equal investment and funding alongside the province.
Published in Dawn, March 13th, 2025
