K-P reduces debt pile, sets benchmark

Finance adviser Muzammil urges Centre to follow suit

PESHAWAR:

Advisor to the Khyber-Pakhtunkhwa Chief Minister on Finance and Interprovincial Coordination, Muzammil Aslam, has underscored K-P's historic achievement in becoming the first province to actively reduce its debt.

The provincial government has deposited a substantial amount of Rs30 billion into the Debt Management Fund, with plans to contribute an additional Rs30–40 billion, depending on the financial situation.

In a press statement issued on Tuesday, Muzammil Aslam elaborated that the Debt Management Fund can accommodate up to 10 per cent of K-P's total debt of Rs725 billion.

The province has already initiated transfers and remains committed to reducing its financial liabilities, setting a benchmark for other provinces and the federal government.

He highlighted K-P's recent key accomplishments, including the allocation of Rs20 billion each to pension and gratuity funds over the past six months, alongside generating Rs3–4 billion in profits through efficient fund management.

Additionally, K-P has secured three months' worth of advance salary funds, marking a significant improvement from past challenges in salary disbursements.

The advisor also emphasized that the K-P government is steadfast in its goal to eliminate debt and stabilize the economy, aligning with the vision of PTI founder Imran Khan and under the leadership of Chief Minister Ali Amin Khan Gandapur.

He criticized the federal government for its unsustainable financial policies, noting that Pakistan's national debt has surged to Rs70,400 billion. He revealed that the federal government borrowed Rs1,248 billion debt in November 2024 alone, surpassing K-P's total debt of Rs725 billion accumulated over 77 years.