PESHAWAR: The Khyber Pakhtunkhwa government is facing a severe financial crisis because of the ongoing “cold war” between the provincial and the federal governments.
The government employees’ salaries have been stopped as the federal government has halted provision of funds to the province. However, the KP government has assured that salaries will be released by next week.
Sources said that federal government has delayed payment of funds the province, creating difficulties for the province. However, the federal government transferred some funds to the province on Friday evening, but since there was not enough cash in the bank account, salaries could not be released on 30 September. There is a possibility that employees will receive salaries on next Tuesday.
On the other hand, KP Minister of Finance and Health Taimur Saleem Jhagra said that salaries will be paid next week without further delay.
According to financial institution sources, KP is facing a severe financial crisis for the past six months, which is dependent on the federal government for more than 80% of its financial requirements. For several months KP has been experiencing a cash shortage which has also affected the process of salaries payments. Moreover, several important development programs are also facing delay due to lack of funds release.
