Shared fiscal responsibilities: KP wants Centre to honour commitments

PESHAWAR: The provincial cabinet on Saturday said the Khyber Pakhtunkhwa government would agree to the proposed budget surplus of Rs178 billion only if the federal government fulfills its commitment about resolving the financial issues of the province.

An official handout said Chief Minister Ali Amin Gandapur chaired the 10th meeting of the cabinet at the Civil Secretariat here. Ministers, advisers, special assistants, Senior Member Board of Revenue, additional chief secretaries and relevant administrative secretaries attended the meeting.

The meeting was told that a memorandum of understanding (MoU) about shared fiscal responsibilities for the financial year 2024-25 was to be signed between the federal government and all the provincial governments.

The cabinet approved communicating the provincial government’s stance to the federal government, stating that the Khyber Pakhtunkhwa government will agree to the proposed budget surplus of Rs178 billion only if the federal government fulfilled its commitment to resolving the province’s financial issues as discussed with the federal finance secretary.

The MoU on shared fiscal responsibilities was initially presented in the provincial cabinet meeting held on June 27, 2024. After due consideration, the cabinet nominated the adviser to chief minister on finance to address the financial issues of Khyber Pakhtunkhwa with the federal government. As a result, a delegation from the Khyber Pakhtunkhwa government met with the secretary Finance Division on July 2.

While debating the draft of the Gandhara Corridor Act 2024 proposed by the federal government, the provincial cabinet on Saturday said it was a provincial matter as the Gandhara Corridor was a cultural heritage of Khyber Pakhtunkhwa. The cabinet approved the decision to communicate its reservations to the federal government about the proposed legislation. The cabinet has approved the forwarding of two resolutions from the provincial assembly to the federal government. Resolution No. 02, presented by MPA Muhammad Yameen, calls for the immediate release of former prime minister Imran Khan and other political prisoners. Resolution No. 04, introduced by MPA Ahmad Kundi, addressed the issue of Palestine, urging the federal government to advocate for international awareness and action on the conflict in Palestine and to strive for convening an OIC meeting on this matter.

A detailed report from the cabinet’s ministerial committee, which was formed to investigate the engagement of private testing agencies by various departments and offices of Khyber Pakhtunkhwa in violation of government orders, was presented to the provincial cabinet. The cabinet approved the committee’s recommendations. The ministerial committee, chaired by the Minister for Local Government, Elections, and Rural Development, was established by the provincial cabinet on March 28, 2024.