PESHAWAR: The Khyber Pakhtunkhwa (KP) government said that the federal government has released just 10% i.e. Rs5.5 billion of the allocated development funds to tribal districts.
The central government had allocated Rs55bn for the current financial year but so far 10% fund has been transferred while the KP government has spent Rs8bn on different development projects in tribal districts.
The KP government officials said that it was expected that the center will transfer atleast Rs25bn to the tribal belt, but according to the finance department of the province, only Rs5bn were released as the first tranche, while Rs 500 million in the second tranche. On the other hand, despite weak financial position the Khyber Pakhtunkhwa government has spent Rs8bn in the tribal districts.
The provincial government sources stated that all development projects in tribal districts are stopped due to of lack of funds as the provincial government is spending its resources on payment of salaries. Because of delay in fund release by the federal government, development projects across KP has affected. But, Minister of Finance, Taimur Salim Jhagra, has said there is no reality in the opposition’s allegations of bankruptcy.
Jhagra informed the KP government has reduced expenditures due to non-transfer of funds from the federal government, which is also affecting the payment of salaries as the province is facing financial difficulties. Jhagra has said that KP is facing enormous financial challenges but “reports of default are mere speculations”.
The employees of various institutions in the province have staged protests gatherings against non-payment and delay of salaries during the last few months. But the finance minister said that only projects employees have not been salaries as work on projects is stopped since the center has stopped the province’s funds.
