In a continuous struggle to overcome financial challenges, the Finance Department of Khyber Pakhtunkhwa has entered into an overdraft for the eighth consecutive month. Concerns have also been raised about the increasing overdraft in the coming month due to the allocation of funds for development projects.
The caretaker government had previously sent a letter to the federal government, requesting over Rs2 billion in additional funds to address the province’s financial difficulties and meet pending obligations. However, no progress has been made on this request so far.
Sources revealed that during the previous PTI-led government’s tenure, the provincial government had also faced difficulties in receiving timely funds from the federal government, which forced them to resort to borrowing. As a result, the volume of borrowed contracts has now exceeded one trillion rupees.
The Finance Department confirmed that funds have been allocated by the caretaker provincial government for development projects, exacerbating the financial difficulties of the province. The department has entered into an overdraft for the eighth time in the current fiscal year, and although the payment is made later on, it incurs interest payments.
Furthermore, the delay in the transfer of funds from the center has also contributed to the need for an overdraft. However, this time, the provincial government released funds for development programs in May, further exacerbating the crisis.
In response to the situation, the Finance Department has expressed regret over providing additional funds for development programs and emphasized that the priority now lies in ensuring the payment of salaries to government employees in May.
This ongoing financial crisis has raised concerns about the stability of the caretaker government and its ability to effectively manage the province’s financial affairs. Stakeholders are calling for immediate action to address the situation, and the center was asked to provide the province’s due share to prevent further deterioration of the province’s financial health.