K-P to seek royalties to repay loans
Loan growth for govt was 19.3% against 7.9% for private sector. PHOTO: REUTERS/FILE
The Khyber Pakhtunkhwa (K-P) government, led by the PTI, has prepared its case for demanding royalties from the federal government for oil, gas, power, and other outstanding dues to repay foreign loans.
Addressing the inaugural ceremony of a sports gala at the Peshawar Press Club, Adviser to the CM on Finance Muzammil Aslam said on Wednesday that the province is burdened with a loan of Rs630 billion.
"We will present our case with evidence before the federal government. If we receive our due share from the federal government, it could provide us with some relief from the loan," he added.
Aslam said the province owes a loan of Rs630 billion to foreign lenders and hopes to repay a significant portion of this loan through payments that the federal government is supposed to make to the province.
The adviser highlighted that besides the remaining dues related to electricity, oil, and gas royalties, the province also deserves additional payments due to the increase in its size after the merger of the formerly Federally Administered Tribal Areas (Fata) with it.
Aslam emphasized that a significant portion of the provincial budget is allocated towards pension payments and salaries to government officials. However, he claimed that the provincial priorities are evolving under the leadership of K-P Chief Minister Ali Amin Gandapur.
"We are allocating funds for security, salaries' payments, and then for developmental projects. We are also focusing on increasing the province's revenue. Projects for cheap electricity are underway, and work is being done on some new projects as well.
"We will also hold discussions with the Water and Power Development Authority (WAPDA) regarding electricity supply. There is potential for significant revenue in the fields of minerals, timber, and tourism, on which work is being carried out," he added.