Stalled NFC Funds Hindering Development of Merged Districts, Says KP Chief Minister

Dec 20, 2025 | Economy

PESHAWAR: Khyber Pakhtunkhwa Chief Minister Sohail Afridi on Friday said delays in the release of funds under the National Finance Commission (NFC) award by the federal government were hampering development and uplift initiatives in the merged tribal districts.

Addressing a provincial cabinet meeting in Peshawar, the chief minister said the non-disbursement of the due share for the current fiscal year had created serious financial constraints for the province, particularly affecting development projects in the former tribal areas. He added that despite these limitations, the provincial government was making efforts to ensure continuity of development and welfare programmes so that residents of the merged districts did not face further hardships.

During the meeting, Mr Afridi also strongly criticised the treatment of former prime minister and Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan, his wife Bushra Bibi, and his sisters, calling the actions of the federal and Punjab governments “inhumane and undemocratic.” He alleged that the use of water cannons containing harmful chemicals against peaceful political workers and party leaders had resulted in health issues.

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The chief minister urged the federal government to prioritise economic stability rather than political confrontation, stating that key economic indicators such as growth, agriculture, and industrial output were showing a downward trend. He also announced that he had initiated regular field visits and directed provincial ministers and senior officials to conduct fortnightly visits to their respective districts to improve service delivery and restore public trust.

Briefing journalists after the meeting, Special Assistant to the Chief Minister on Information Shafi Jan said the cabinet approved several measures related to governance, socio-economic development, and law and order. Among the key decisions was the approval of the proposed Ehsaas Rehribaan (Street Vendors) Livelihood Protection Act, 2025, which will be presented to the provincial assembly. The bill aims to safeguard the rights of street vendors by allocating designated business spaces and providing access to government loan schemes. More than 140,000 people in the province are associated with street vending.

The cabinet also approved the creation of a new district, Upper Swat (Bar Swat), with Matta as its headquarters, and constituted a committee to address smog in Peshawar. Proposed measures include the introduction of electric rickshaws, plantation drives, and administrative reforms.

To strengthen security, the cabinet approved Rs17 billion for the Counter-Terrorism Department, with Rs7 billion to be released immediately, and Rs14 billion for the Special Branch. Additional approvals included the Promotion of Digital Payments Bill, 2025, land allocation for health and labour projects, and the establishment of new governance and service delivery units.

The meeting was attended by cabinet members and senior provincial officials.

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