PESHAWAR: The Khyber Pakhtunkhwa (KP) government has laid out two conditions for the federal government including the release of outstanding electricity payments and increased funding for merged districts, which are crucial for its support to meet the International Monetary Fund (IMF) targets.
Provincial Finance Minister Syed Muzammil Aslam emphasized that the federal government owes KP Rs 158 billion for electricity dues and needs to disburse an additional Rs 144 billion for the development of the merged districts.
Despite a significant 60% salary increase over two years, the allocated Rs 66 billion for these districts remains inadequate, according to Aslam.
Aslam highlighted that KP is grappling with severe electricity shortages and is willing to aid in meeting the IMF’s objectives.
However, he stressed that the federal government must fulfill these financial obligations first. He urged prioritization of these payments and the necessary funding for the merged districts.
This demand arises as KP faces financial difficulties amid an ongoing energy crisis and escalating economic challenges. While the provincial government has repeatedly sought its rightful share from the federal budget, persistent funding and resource allocation disagreements have stalled negotiations.
The IMF has imposed stringent conditions on Pakistan for financial aid, demanding fiscal discipline and structural reforms. KP’s alignment with these conditions hinges on receiving adequate support from the federal government, which has been lacking to date.
