Khyber Pakhtunkhwa’s Chief Minister Muhammad Sohail Afridi said on Sunday that the federal government owes the province more than Rs 4,500 billion in unpaid funds, asserting that funds due under constitutional allocations, hydel power revenues and promised support for the merged tribal districts remain outstanding. Afridi made the remarks while addressing a Parents’ Day event at Girls Cadet College Mardan, calling for the immediate release of Rs 850 billion to support key sectors such as energy, education, health and social services.
Afridi argued that although the merged tribal districts have been administratively absorbed into KP, their financial integration is incomplete, which he described as a violation of the Constitution, and said delays in funding have hampered development projects. He also highlighted that Khyber Pakhtunkhwa supplies some of the country’s cheapest electricity while federal agreements have contributed to rising power tariffs.
The chief minister emphasised that human development and public welfare remain top priorities for his provincial government despite resource constraints, and reiterated the need for a fair distribution of financial resources to ensure sustained growth and improve services for citizens across KP.
Meanwhile, the federal Ministry of Finance has disputed claims of large outstanding liabilities, stating that National Finance Commission (NFC) funds are disbursed regularly and there are no arrears, though the debate over financial transfers continues.