- Shafi Jan says hydropower royalties, windfall levies, and excise duties not fully transferred
- Says merged districts shortchanged by Rs1.375 trillion since FY 2018–19, pointing out IDP rehabilitation funds delayed
PESHAWAR: Special Assistant to Khyber Pakhtunkhwa (KP) Chief Minister on Information Shafi Jan on Sunday challenged the federal government’s claims regarding provincial transfers, calling them incomplete and misleading, and highlighting that major financial dues owed to KP remain unpaid.
In a statement, he stated that the federal government owes the province nearly Rs4 trillion, with delayed payments spanning several years, while key revenues, including hydropower royalties and windfall levies, have yet to be fully transferred.
Mr Jan pointed out that excise duties on petroleum, gas, and tobacco were not being accurately reflected in KP’s share, despite the sector being devolved to the provinces. He also criticized the non-revision of the 7th National Finance Commission (NFC) Award after the merger of the erstwhile tribal districts, which has cost KP roughly Rs1.375 trillion since FY 2018–19.
Highlighting the funding gap in merged districts, he said that against the promised Rs700 billion under the Annual Development Programme, only Rs168 billion had been released, while 2025 expenditures for these districts were slashed by over Rs50 billion. On internally displaced persons (IDPs), Mr Jan noted that the announced Rs17 billion for rehabilitation had not yet been released, forcing the provincial government to spend over Rs11 billion from its own resources.
Calling for full transparency, he demanded that the federal government disclose complete details of PSDP allocations, NHA projects, and subsidies for all provinces, emphasizing that equitable resource distribution and fiscal federalism were impossible without it.
Reacting to a recent Dawn report, Mr Jan described federal claims of economic recovery as inconsistent with ground realities, citing deteriorating GDP growth, human development, and employment indicators. He highlighted Pakistan’s fall to 168th place on the Human Development Index and its low ranking on women’s rights as evidence of failed central policies and excessive federal control.
He warned that unless human development, public welfare, and women’s rights are prioritized in policymaking, the country’s economic and social decline would continue, calling the report a clear exposure of the false federal narrative and a wake-up call for urgent reforms.
