PESHAWAR: In light of the financial crisis faced by the Khyber Pakhtunkhwa (KP) government, the Finance Department has imposed new conditions on administrative bodies to continue funding development projects with 100% expenditure before releasing additional funds.
According to sources, international aid agencies have provided funds for various developmental projects to the provincial government. However, in response to their financial crisis, the provincial government has chosen to withhold these allocated funds rather than disbursing them for the designated projects. The policy for the disbursement of development funds now dictates that only 25% of the funds provided by aid agencies are released. Several administrative bodies have requested the release of additional funds to support ongoing projects.
The Finance Department clarified that until the already allocated funds are not fully utilized (100% expenditure), further funds will not be made available. It is evident that the provincial government is facing severe financial difficulties, and as part of their efforts to address this, they have requested the federal government to expedite the disbursement of the National Finance Commission (NFC) installment for salaries and pension payments as well.
