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KP CM’s aide says Centre withholding funds for merged districts

Bureau report
Sunday, Feb 16, 2025

PESHAWAR: Adviser to the KP Chief Minister on Finance and Interprovincial Coordination Muzzamil Aslam, has written to the federal minister for finance, detailing the withheld funds and expenditures for the merged districts.

According to a handout, he stated that the KP government had spent an additional Rs 40.6 billion beyond the funds allocated by the federal government to maintain services in the merged districts. This amount includes expenditures from the fiscal year 2019-20 to 2024-25.

Furthermore, under the Accelerated Implementation Programme (AIP), the KP government has incurred extra expenses of Rs 19.9 billion, which have been borne by the province over the past seven years.

“In the fiscal year 2023-24, the federal government allocated Rs 66 billion for the merged districts, while the KP government spent Rs 88.1 billion, with an additional Rs 22.1 billion spent from its resources”, Muzzamil Aslam added.

He said similarly, in the fiscal year 2024-25, the federal government released Rs 44 billion so far, while the KP government’s expenditures had reached Rs 54.4 billion, with an additional Rs 10.4 billion spent.

The finance adviser reiterated concerns about the withheld funds for the merged districts, stating that the provincial government had been filling the gap using its own resources.

Despite repeated reminders to the Ministry of Finance, the adviser alleged that the funds were being withheld on Prime Minister Mian Shehbaz Sharif’s instructions.

He emphasized that the merged districts had been facing significant challenges, including backwardness and law and order issues, which necessitated increased funding rather than a halt.