K-P walks out of NFC meeting

Adviser to the Khyber-Pakhtunkhwa Chief Minister on Finance Muzammil Aslam announced on Thursday that the Khyber-Pakhtunkhwa government has walked out of a National Finance Commission (NFC) meeting after its demand to include the share of merged tribal districts in the province's allocation was rejected.

Speaking during the pre-budget discussion in the Khyber-Pakhtunkhwa Assembly, Aslam said that following the merger of the former Federally Administered Tribal Areas (FATA) with K-P, the province's rightful share in the NFC Award has increased from 14.6 per cent to over 16.7 per cent. "We presented our position clearly in the NFC meeting, but it faced strong opposition. As a result, we decided to stage a walkout," he stated.

Aslam emphasized that the NFC issue is not a party matter but concerns the entire province. "After the merger, we are shouldering additional responsibilities in security, policing, infrastructure, and development for the tribal districts, yet the federation has not adjusted our share accordingly," he added. He noted that the province has been managing its expenditures within its own resources while the federal government withholds due funds, including shares from various taxes estimated at Rs90 billion.

The adviser highlighted that the province's economic situation has improved since 2024, but this does not mean complacency. "The budget size this year will depend on the federal government's performance. The better the federation does in revenue collection, the larger the provincial share will be," he said. Aslam announced that preparations for the upcoming budget have begun, and this time the opinions of assembly members will be incorporated.

He recalled that the 7th NFC Award in 2009 set K-P's share at around 14.6 per cent, without accounting for tribal areas. The 10th NFC Award saw only one meeting. "We have demanded that the merged districts' population, poverty, and area be factored in, pushing our share beyond 16 per cent. We are not asking for charity but our legitimate right under the formula," Aslam asserted, calling for a united provincial front to press the case.

The session, which marked the start of pre-budget debates, also saw sharp criticism from the opposition. Pakistan Peoples Party (PPP) lawmaker Ahmad Kundi accused the provincial government of failing to effectively advocate for K-P's case.