Don't expect IMF compliance if you don't provide due funds: K-P Advisor to federal govt

Khyber Pakhtunkhwa's (KP) Finance Advisor, Muzammil Aslam, has said that if the province does not receive its due funds, then the federal government should not expect K-P to fulfill commitments made to the IMF.

Muzammil, talking to a local news channel, said that the province was supposed to receive Rs 400b from the federal government this year for the merged districts, but only 70 billion rupees were allocated, combining the AIP and the budget.

He questioned how much of this amount would actually be disbursed, noting that an update on the situation would only be provided by June 30, 2025.

Muzammil further criticised the federal budget allocations, pointing out that while the budget for Kashmir was increased by 50% and for Gilgit-Baltistan by 37%, the budget for the tribal districts saw no increase at all.

He expressed his frustration, stating that the federal government is being unjust and has been informed of this.

The K-P Finance Advisor also stressed that the province should receive funds proportional to the increase in salaries.

However, the federal government responded by saying that this matter would be reviewed next year, citing ongoing discussions with the IMF.

Muzammil further added that without the necessary funds, KP would struggle to manage the surplus promised to the IMF, especially if the province does not receive its due electricity profits and royalty payments.

He highlighted that the federal government has been slow in releasing these payments for the past two years.

He added that while the revenue estimate for last year was 70 billion rupees, it is projected at 93 billion rupees for this year. Aslam emphasised the need for a new NFC (National Finance Commission) award, stating that KP should receive its share according to the new NFC, but accused the federal government of hindering this process.