Centre owes Rs74b to K-P in net hydel profit

PESHAWAR:

The Khyber-Pakhtunkhwa Assembly was informed on Tuesday that the federal government owed the province Rs74,287 million in net hydel profit.

The K-P Assembly met with Deputy Speaker Sorriya Bibi in the chair.

Over the last five years, the province received Rs76,578 million, and for FY2024-25, the Finance Department estimated Rs111,303 million of which only Rs28,500 million has been received so far.

The provincial government clarified that the merged districts (former FATA) were not allocated a specific share in the NFC (National Finance Commission) because at that time they were not part of the province.

However, the 2016 FATA Reforms Committee recommended that 3% of the federal divisible pool be allocated annually for these districts.

Under the 25th Constitutional Amendment, a 10-year development plan was approved for the merged districts, promising Rs100 billion annually to K-P, but full payments have not been made.