PESHAWAR: Federal government has decided to provide a special financial package to Khyber Pakhtunkhwa (KP) to address its financial crisis and assist in managing current expenditures and resolving fund issues until the elections.Â
Sources of the Ministry of Finance have confirmed the federal government’s commitment to tackling the financial crisis through this special package, with work already underway. As part of the special package, the federal government will allocate the remaining budgetary dues of 23.8bn rupees to the Khyber Pakhtunkhwa government. Both the federal and provincial governments are actively working together to ensure the prompt payment of these dues.
Although the Finance Department sources have indicated that the federal government is not fully prepared to make all the payments at once, they will be paid to some extent and will provide assistance to the province in managing its expenses for at least the next four months.Â
The inclusion of employee salaries, pensions, and other expenditures in the budget is expected to lead to an increase in the overall budgetary allocation. With the province requiring more than 5bn rupees per month, the timely payment of these dues holds significant importance for maintaining the province’s financial stability.
