Newly merged districts ‘under-financed’
Exchange Companies Association president anticipated that the rupee would partially recoup losses over the next couple of days on expectations of easing political tensions. Photo: afp
K-P tribal districts struggle with under-financing as promised funds fall short, resources lacking.
The Department of Finance organized a seminar in Peshawar to address the financial challenges faced by the newly merged tribal districts of Khyber-Pakhtunkhwa (K-P).
The event aimed to foster consensus among government stakeholders, politicians, and cabinet members on finding short and long-term solutions to the funding issues.
During the seminar, K-P Finance Secretary Muhammad Ayaz emphasized the need for equitable financial allocation for the merged areas in the National Financial Commission (NFC) Award, in line with the Constitution. He expressed concern over the dwindling releases of funds promised under the Accelerated Implementation Programme (AIP) by the federal government.
He highlighted the federal government’s mammoth development promise to the MAs, saying AIP is a significant step in the right direction yet fund releases under the AIP have been dwindling over time.
Dr Musharraf Rasool Cyan, a member of the K-P NFC, presented research highlighting the implications of the 2018 Amendment, which grants fiscal rights to the merged areas. The study revealed that the promised amount of Rs100 billion was not provided, and budget releases fell short, depriving residents of their constitutional rights.
Under the AIP, only Rs3 billion of the allocated Rs30 billion has been released this year, despite the fiscal year coming to an end. The current NFC award was determined pre-merger when the population of the merged areas was five million less than the ex-FATA region.
The research further indicated that Balochistan, with comparable human development indicators, received more than double the per capita funds to address similar deprivation issues in the merged areas.
Himayat Ullah Khan, K-P Advisor to Chief Minister on Finance, Energy, and Power, stressed the need to raise this issue on various forums and encouraged collaboration between political leadership, bureaucracy, academia, and the media to garner public support.
“The MAs are a critical region, currently at a critical point. As an advisor on both energy and finance, I can say unequivocally that the surest means of stabilization is through the fulfillment of the government’s promise of not just developing these areas – but developing them at an accelerated pace.”
Former senator Farhatullah Babar, Qaumi Watan Party Provincial Chair Sikandar Hayat Sherpao, and other participants pledged to pursue the issue regardless of political affiliations.
Published in The Express Tribune, June 21st, 2023.