PESHAWAR: Khyber Pakhtunkhwa Chief Minister’s Special Assistant on Information and Public Relations Shafi Jan on Sunday said the federal government’s figures regarding transfers of funds to the provinces were misleading, claiming that major financial dues owed to Khyber Pakhtunkhwa remained unpaid.
In a statement issued here, Mr Jan said the federal government owed the province nearly Rs4 trillion, with payments delayed over several years. He said royalties on hydropower generation had not been transferred in full, while the windfall levy had not been included in straight transfers to the province.
He further stated that excise duties imposed on petroleum and gas were not being reflected in the provincial share, and alleged that the federal government continued to collect excise duty on tobacco despite the sector having been devolved to the provinces.
Referring to the merger of the erstwhile tribal areas with Khyber Pakhtunkhwa, Mr Jan said the 7th National Finance Commission (NFC) Award had yet to be revised to reflect the new administrative structure. As a result, he claimed, the province had received approximately Rs1.375 trillion less since the fiscal year 2018-19.
He also pointed out that against the promised allocation of Rs700 billion under the Annual Development Programme for the merged districts, only Rs168bn had been released so far. According to him, both current and development expenditures for the merged districts were reduced by more than Rs50bn in 2025.
Mr Jan added that the announced Rs17bn for the rehabilitation of internally displaced persons had not yet been released, while the provincial government had already spent more than Rs11bn from its own resources to address related needs.
Calling for greater transparency, the chief minister’s aide urged the federal government to make public detailed information regarding Public Sector Development Programme (PSDP) allocations, National Highway Authority projects and subsidies for all provinces. He said that without transparency, the principles of fiscal federalism and equitable distribution of resources could not be ensured.
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Commenting on the federal government’s claims of economic recovery, Mr Jan said these assertions did not align with ground realities. He referred to a recent report published in this newspaper, which highlighted economic, social and human development challenges faced by the country. He attributed these issues to what he described as ineffective federal policies.
Jan said that excise duties imposed on petroleum and gas were not being reflected in the provincial share.https://t.co/Dnjg3PVVZ2
— Dawn.com (@dawn_com) December 22, 2025
According to Mr Jan, key indicators such as GDP growth, human development and employment continued to show declining trends. He said the report indicated that economic growth had steadily weakened over the past four decades, with negative growth recorded for two consecutive years.
He also cited Pakistan’s ranking on the Human Development Index and indicators related to women’s rights as areas of concern, calling for greater focus on human development, public welfare and balanced centre-province relations.
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