‘KP has placed Rs150bn in Debt Management Fund for repayment of loans'
PESHAWAR: The Khyber Pakhtunkhwa government has put Rs150billion in Debt Management Fund to timely ensure repayment of the hovering debts of the province.
Speaking at a post-budget press conference here on Saturday, Advisor to Finance and Interprovincial Coordination Muzammil Aslam informed that a Debt Management Fund was created to ensure timely repayment of government's loans and improve financial stability.
He added the total volume of KP debts stand near Rs709billion, which will be gradually repaid through this debt management fund. KP Finance advisor said the government is gaining daily profit Rs60million through putting Rs150Billion in the Debt Management Fund.
In fiscal year 2024-25, according to budget documents, the provincial government repaid a significant Rs 49 billion in outstanding loans, which included Rs 18 billion in mark-up. He hoped the KP will achieve income of Rs17 to Rs18 Billion from Debt Management Fund.
Advisor Finance said the government has no plan to get new loans in the next financial year 2025-26. He, however, said the government would gain a loan, if in case of launching any new project in the province.
Flanked by Secretary Finance Amer Sultan Tareen and other administrative secretaries and senior officers of all departments concerned, Muzammil Aslam said KP had never received full payment on head of NFC and Net hydel profit. He said the KP government is expecting to receive full payment of Rs 70 Billion from the centre in the next fiscal year. Finance advisor explained the Federal government was giving Rs 3Billion on monthly basis to KP on head of payment of net-hydel.
Responding to various queries of reporters, Muzammil Aslam said KP government has increased its annual development financing upto Rs 153Billion. He said the government has offered 30 forms of allowances to government employees. Out of secretariat employees' disparity allowance increased by 30 percent, he said. He said salaries of police were equalized to Punjab police, besides a 10 percent increase made in police salaries.
To another question, Muzammil Aslam said 810 development schemes worth Rs 500Billion have been included in the FY 2025-26. In the current financial year, he said the government had allocated Rs 156Billion for settled areas. He added that over Rs 145Billion had so far been released for settled districts in the outgoing fiscal year.
Out of allocated Rs 41Billion, he explained over Rs 26Billion had so far been released for merged districts under Accelerated Implementation Program (AIP) in the current fiscal year. In the outgoing fiscal year, Muzammil Aslam furthermore said KP had received Rs 74Billion out of Rs 143Billion on head of foreign assistance and grants.
Finance advisor said the government has allocated Rs 278Billion through its own resources for various development schemes in the next fiscal year. He said professional tax will be imposed on those who are earning Rs 40,000/month. He said the period of throw forward has been reduced to 5.1 year from 10 years. He said funds for public sector universities have been increased from Rs 3Billion to Rs10Billion.
Of the total budgetary allocation, Muzammil said the government is spending 36.5 percent of the budget on education and health sector.
To a question regarding imposition of tax on erstwhile Fata and Pata, he said tax was imposed on demand of the business community of Khyber Pakhtunkhwa. He said the federal government has imposed sales tax on former Fata and Pata, and it has maintained exemptions of income tax and withholding tax in these regions.
KP Advisor on Finance on the occasion criticized the federal and Punjab governments for not allowing him to meet with PTI patron in chief and founder Imran Khan. He said his meeting with party founder Imran Khan to hold discussion on the budget proposals.
He said the federal government has duty to arrange a meeting with PTI founder Imran Khan. We wanted to take the device and directions from Imran Khan on the budget proposals. He said this issue was also raised by Chief Minister Ali Amin Gandapur, who was allowed to meet with Imran Khan. He, however, said the government will take any decision after consultation with party founder Imran Khan and other leadership.
Copyright Business Recorder, 2025
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