The federal government has transferred over Rs8,404 billion to Khyber Pakhtunkhwa (KP) in the last 15 years. This includes NFC, PSDP, and special allocations. Officials say the data refutes claims that large arrears or withheld funds exist.
From 2010 to November 2025, KP received Rs5,867 billion under the National Finance Commission (NFC) system, which distributes revenue shares to provinces regularly. On December 17, 2025, Rs46.44 billion was released under NFC allocations. Officials emphasized that there is no backlog of payments.
Read more: KP CM urges federal government to release funds under NFC
Additional support for KP included Rs705 billion for counter-terrorism and security-related needs, Rs482.78 billion through royalties, excise, and other straight transfers, and Rs704 billion for newly merged districts since 2019. Internally displaced persons (IDPs) received Rs117.166 billion, while Rs115 billion went to federally funded PSDP development projects.
Experts clarified that PSDP funds are performance-based and depend on project progress. Delays occur only if projects are incomplete. They stressed that treating PSDP funds as arrears is a misinterpretation of financial rules.
Read more: KP CM accuses federal government of Rs 5,300 billion corruption
The Finance Ministry confirmed it will continue KP’s financial support. Measures include strengthening NFC, forming subgroups, and consulting provinces. Officials emphasized assistance will continue for KP’s security, reconstruction, integration, and development priorities.