Aurangzeb assures KP CM of full support as centre-province financial issues persist

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Tuesday assured Khyber Pakhtunkhwa Chief Minister Sohail Afridi of his “full support” in resolving the province’s legitimate financial concerns, as efforts continue to ease tensions between the federal government and provincial leadership over fiscal matters.

The assurance came during a meeting held at the Finance Division, according to a statement shared by the finance ministry on social media. The interaction followed a high-level moot chaired a day earlier by President Asif Ali Zardari, which was attended by Prime Minister Shehbaz Sharif and chief ministers from all provinces, including Afridi.

Afridi’s participation in the presidential meeting was viewed as particularly noteworthy given the political differences between his party, the Pakistan Tehreek-i-Insaf (PTI), and the ruling coalition at the Centre. Observers see the back-to-back engagements as part of a broader attempt to rebuild institutional coordination amid mounting economic pressures.

During Tuesday’s meeting, held in what officials described as a “cordial and constructive atmosphere,” the KP chief minister briefed the finance minister on a range of economic and fiscal challenges facing the province. These included concerns over delayed federal transfers, development financing gaps, and resource constraints affecting governance and service delivery.

Aurangzeb, in response, reaffirmed the federal government’s commitment to supporting provincial administrations and pledged to facilitate solutions to outstanding issues through dialogue and coordination. He emphasised that resolving intergovernmental financial concerns was essential for maintaining economic stability and ensuring equitable development across the country.

The meeting comes against the backdrop of persistent grievances raised by the KP government regarding the release of funds under the National Finance Commission (NFC) framework, particularly allocations meant for the province’s merged tribal districts. Since assuming office in October last year, Afridi has repeatedly alleged that the Centre has delayed or withheld constitutionally mandated funds, affecting development initiatives and administrative functioning in the region.

Last week, the KP government formally urged the federal authorities to revisit the NFC resource distribution formula, proposing interim discretionary grants for provinces until a consensus could be reached on revising the mechanism. The call reflects growing concerns among smaller provinces about fiscal imbalances and the need for a more responsive revenue-sharing model.

Earlier engagements between Afridi and Prime Minister Shehbaz Sharif have also highlighted the importance of cooperative federalism, with both sides acknowledging the need for better coordination on financial matters. In a letter sent in January, the KP chief minister had pressed for the “full and unconditional” release of outstanding dues, terming delays a violation of constitutional commitments.

Tuesday’s meeting signals a possible thaw in centre-province relations, with both sides indicating willingness to engage constructively. However, analysts note that tangible progress will depend on timely fiscal transfers, policy adjustments, and sustained political consensus to address longstanding structural challenges in Pakistan’s federal financial framework.