Unreleased funds: K-P warns of boycotting NFC award meeting

Demands share of net hydel profit, CSF and PSDP funds meant for it.

PESHAWAR:

The provincial government has threatened to boycott the next meeting of the National Finance Commission (NFC) Award if the federal government fails to release Khyber-Pakhtunkhwa’s pending share.

Addressing a news conference at the Peshawar Press Club on Tuesday, Minister for Finance Muzaffar Said said although the federal government has made several promises, it has yet to give K-P a total of Rs6 billion as its share in the net hydel profit for fiscal years 2013-2014 and 2014-2015. Said added K-P has also been deprived of its share of the Coalition Support Fund (CSF).

According to the minister, the federal government has announced development projects for smaller provinces in the past, but has always failed to take practical steps. “Only a small amount is released while the rest of the amount meant for the Public Sector Development Programme (PSDP) goes to the federal government and larger provinces,” said Said.

Giving details of some previous allocations, the finance minister said in 2010-2011, only Rs9.4 billion of the total Rs663 billion PSDP was spent on K-P. In 2011-2012, only 4.11% of the Rs730 billion PSDP was spent in K-P, while only 2.26% was spent in 2012-2013. “Details of the total expenditure for fiscal years 2013-2014 and 2014-2015 are yet to be provided by the government,” he added.

Said demanded the PSDP allocated for K-P for 2014-2015 be spent in the province and its various pending funds be released. “K-P has been at the frontline in the war against militancy, but the federal government has failed even to release its share of the CSF.

“We demand the federal government to allocate two-thirds of the total CSF amount to K-P in order to revive its economic condition and stop its youth from diverting towards militancy and extremism.”

The finance minister also stressed K-P’s right to collect excise duty on oil production. According to Said, the militancy-affected province could generate Rs20 billion annually by collecting duties on the resource since it produces 50% of the country’s oil. He claimed the federal government was refusing to allow the imposition of the excise duty, which is a violation of the Constitution.

Meagre resources

Speaking about other issues plaguing the province and burdening its fledgling economy, Said pointed out K-P has been hosting internally displaced persons (IDP) for years and Afghan refugees for decades, and that is an additional burden on its resources.

“The province spends more than Rs71 billion annually on the welfare of Afghan refugees,” he said, demanding that the federal government immediately release Rs2.7 trillion (from 1980 to 2015) to K-P since taking care of refugees is its responsibility.

Shifting his attention to funds spent on IDPs from the tribal areas, the minister said Fata’s law and order is directly affecting the province’s law and order. He added 13% of the province’s resources are utilised on the welfare of people displaced from tribal areas, which amounts to Rs52 billion.

“We demand that all funds and pending dues be paid to the province or we will not attend the meeting to be held for deciding the NFC Award,” warned Said.

Published in The Express Tribune, March 11^th, 2015.