PESHAWAR: Special Assistant to the Chief Minister for Information and Public Relations, Shafi Jan, on Sunday claimed that federal government figures on transfers to provinces were misleading, as major financial dues of Khyber Pakhtunkhwa (KP) remain unpaid. He said the federal government owes KP nearly Rs4 trillion, including delayed royalties on hydropower and unaccounted windfall levies.
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Mr Jan pointed out that excise duties on petroleum and gas were not reflected in the provincial share, while federal collection of tobacco excise continued despite the sector being devolved to provinces. Referring to the merger of former tribal areas, he said the 7th National Finance Commission (NFC) Award had not been revised, costing KP approximately Rs1.375 trillion since FY2018-19.
He added that under the Annual Development Programme, only Rs168 billion of the promised Rs700 billion for merged districts had been released. Current and development expenditures for 2025 in merged districts were cut by over Rs50 billion, and the announced Rs17 billion for IDP rehabilitation had not yet been disbursed, despite the province spending more than Rs11 billion from its own resources.
Calling for transparency, Mr Jan demanded that the federal government publish full details of PSDP allocations, NHA projects, and provincial subsidies. He argued that without transparency, equitable resource distribution and fiscal federalism were impossible.
He criticised claims of economic recovery, saying key indicators like GDP growth, human development, and employment were deteriorating. Pakistan’s ranking of 168th on the Human Development Index and its low standing on women’s rights, he said, reflected decades of failed policies and excessive centralisation weakening the provinces.
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Mr Jan said the report exposed a false federal narrative and warned that unless human development, women’s rights, and public welfare were prioritised, the country’s decline would continue.