Centre, K-P bridge gaps over merged districts funds

Rs7b authorised, but dispute persists over Rs15b for TDPs The federal and Khyber-Pakhtunkhwa governments on Tuesday mended their differences over the release of funds for merged districts, but remained at odds over the provision of an additional Rs15 billion sought by the provincial authorities for temporarily displaced persons (TDPs). Following a tense meeting between K-P Chief Minister Sohail Afridi and Prime Minister Shehbaz Sharif a day earlier, the political arch-rivals appeared to be bridging their differences over the release of non National Finance Commission (NFC) funds. Finance Adviser to the K-P chief minister, Muzzammil Aslam, separately met with Finance Minister Muhammad Aurangzeb and Planning Minister Ahsan Iqbal. The K-P government demanded the immediate disbursement of funds under the annual development plan and the Accelerated Implementation Programme (AIP) for the merged districts of the province. Planning Minister Ahsan Iqbal said that his ministry had already authorised the release of Rs7 billion, asking the K-P officials to take up the matter with the federal finance ministry for immediate disbursements. However, there was a lack of commitment from the federal government to provide the additional Rs15 billion that K-P is seeking to meet the needs of the population temporarily displaced from various regions due to intelligence-based operations to flush out terrorists. The K-P government has demanded that the federal government provide Rs15 billion for the provision of services and food to the temporarily displaced persons from Bajaur, Khurram and Tirah Valley, said Muzzammil Aslam after meeting with the federal cabinet ministers. Aslam, however, said that the finance ministry told him that it did not have additional funds due to fiscal constraints. "We have already spent Rs10 billion on TDPs in this fiscal year, and another Rs15 billion are needed but the provincial government is facing fiscal constraints too," said the finance adviser. It had been decided to initially pay Rs265,000 per displaced family to about 19,000 households, said Muzzammil. Aslam said that he also sought Rs4.5 billion for the ongoing expenses at Bakakhel Camp in North Waziristan, which continues to be operational and is catering to 2,000 displaced families. The finance adviser said that another 15,000 displaced families from North Waziristan are residing with host families. He said the monthly allowance of Rs20,000 for 17,000 families amounts to Rs348 million per month, which the K-P government has been bearing since 2022. The adviser said that Rs19 billion in expenses had been incurred by the K-P government in the past, and an additional Rs10.4 billion was spent this fiscal year due to Bajaur and Tirah Valley operations. However, no releases have been made by the federal government, he added. The federal government has denied any large-scale operation in any part of K-P but said that intelligence-based operations were ongoing, averaging 200 such operations daily across the country. Due to harsh weather conditions, the large-scale military operations have not been launched. The K-P government drew attention to pending obligations in respect of displaced families and other related commitments that require streamlined coordination and resolution, according to a statement issued by the Ministry of Finance after the meeting. The provincial government also apprised the federal authorities about the financing needs of the merged districts, which are the direct responsibility of the Centre. The complete current budget estimate for FY 2025-26 stands at Rs143 billion, excluding TDPs. In contrast, the federal government has allocated only Rs80 billion for the current expenditure budget, which is even less than the actual expenditure of the last fiscal year in these districts. But Iqbal said that during the four-year tenure of the PTI, the newly merged districts' annual funding remained frozen at Rs24 billion, which he said has increased to Rs28 billion per annum under the present government. The planning minister also ruled out any discrimination against the K-P government and said that the actual releases were higher than those made during the PTI tenure. The planning minister said that there would be joint ownership of the Accelerated Implementation Programme (AIP) for the development of merged districts, but the steering committee would be chaired by K-P Chief Minister Sohail Afridi. Iqbal said that the K-P government has been asked to convene the meeting of the steering committee to approve new projects for the fourth quarter. He maintained that the federal government wanted to fund youth-focused, high-impact projects in these merged districts. We have agreed to disburse funds for the AIP, including Rs7 billion for the training of police, said Iqbal. The planning minister said that out of the annual Rs16.8 billion allocation under the annual development plan, the money has already been...

Centre, K-P bridge gaps over merged districts funds

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