KP cries foul as Centre increases NFC Award shares

PESHAWAR: In the first quarter of the current financial year, the federal government increased the NFC award revenues for all four provinces.

However, the data shows that Khyber-Pakhtunkhwa (KP) and Balochistan received a much smaller share of this increase compared to Punjab and Sindh, which has prompted strong objections from the PTI government.

Punjab received an additional Rs122 billion and Sindh Rs50 billion, compared to the last year, while KP received approximately Rs30 billion and Balochistan about Rs7.5 billion more. According to the fiscal operation report, Khyber Pakhtunkhwa received Rs287,147m in the first quarter, compared to Rs257,222m last year, an increase of Rs29,925m, or approximately Rs30 billion, representing 12 per cent growth in NFC award funds.

Punjab led in this increase. The province received Rs882,326m this quarter compared to Rs759,837m last year. Punjab’s share increased by Rs122,490m, or approximately Rs122.49 billion, marking a 16.10pc increase.

Sindh received Rs441,556 million, up from Rs391,276m last year, an increase of Rs50,180m, or about Rs50.2 billion, representing 13pc growth. Balochistan received Rs164,258 million this quarter compared to Rs156,810m last year. This represents an increase of Rs7,448million, or approximately Rs7.45bn, equal to 5pc increase.

Commenting on these figures, Adviser to the Chief Minister on Finance Muzzammil Aslam said that KP was being treated like a stepchild. He stated that the province is not receiving its full share of funds and that pending dues have surged to Rs2,200 billion.

He added that KP’s deprivations are continuously increasing, while backwardness in the merged districts is worsening. The federal government has failed to fulfil its annual promise of Rs100 billion for the merged districts, causing major development projects to stall. He further noted that the NFC Award remains unresolved, negatively affecting the financial rights of the provinces.

Muzzammil Aslam also stated that giving KP fewer funds compared to Punjab is a blatant violation of the province’s rights. He warned that this not only slows down development but also further deteriorates conditions in the merged districts.

However, a senior federal government officer rejected the KP government stance, stating that the allocation of funds to all provinces under the NFC Award has been carried out transparently and within the legal framework.

In the current fiscal year, more funds have been provided to all provinces compared to last year to better support development projects and meet public needs. The federal government has always ensured that provinces receive their due financial allocations, and in the current fiscal year, all provinces have been given their appropriate shares. The government remains committed to cooperating with the provinces and ensuring the effective completion of development projects.