KP CM writes to PM Shehbaz over non-release of federal funds

Khyber Pakhtunkhwa Chief Minister Sohail Afridi has written a letter to Prime Minister Shehbaz Sharif, expressing serious concern over the non-payment of federal funds to the provincial government under the National Finance Commission (NFC) Award.

According to the text of the letter, the provincial government is facing a severe financial and administrative crisis due to the federal government’s failure to release monthly NFC funds on time and in full. The chief minister stated that Khyber Pakhtunkhwa’s total entitlement under the NFC Award stands at Rs 658.4 billion, but only Rs 604 billion has been released so far, leaving a shortfall of Rs 54.4 billion.

The letter further highlighted that Rs 292 billion was allocated in the provincial budget for the merged districts, while only Rs 56 billion has been released by the federal government to date, creating serious challenges in meeting development and administrative needs in those areas.

Chief Minister Afridi pointed out that Khyber Pakhtunkhwa is currently the frontline province in the fight against terrorism and is also bearing significant national responsibilities, including expenses related to flood disasters, rehabilitation efforts and the care of temporarily displaced persons.

The chief minister urged the federal government to immediately release all outstanding arrears fully and unconditionally. He warned that any further delay would increase financial pressure on the province and adversely affect governance and service delivery.