The Federal Finance Division has assured Khyber Pakhtunkhwa (KP) of full support in securing its rightful allocations under the National Finance Commission (NFC) and other related fiscal heads, according to applicable rules and agreed frameworks. The commitment was made during a high-level meeting between Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and Mr Muzamil Aslam, Advisor to the Chief Minister for Finance, Government of Khyber Pakhtunkhwa, held at the Finance Division in Islamabad.
The discussions focused on a wide range of fiscal and development matters, including the timely release of funds for key development projects in the merged districts, pending obligations for the rehabilitation and support of temporarily displaced persons, and the general framework of provincial entitlements and allocations. The KP delegation highlighted operational priorities and the urgent need for predictable funding to sustain ongoing initiatives and address immediate requirements on the ground.
The delegation also raised concerns over pending commitments related to displaced families, emphasizing the need for streamlined coordination between federal and provincial authorities to ensure timely resolution. Senator Aurangzeb acknowledged these concerns and reaffirmed the federal government’s commitment to cooperative federalism and constructive engagement with provinces. He underscored the importance of effective coordination and timely reconciliation of accounts for transparent and accountable fund releases.
The meeting also reviewed ongoing technical discussions and sub-group engagements aimed at reaching consensus on outstanding NFC-related issues. Both sides agreed to maintain close coordination through formal forums and technical channels, prioritizing unresolved matters to ensure fiscal arrangements and fund releases continue to support development objectives, service delivery, and regional stability.
The Finance Division highlighted its awareness of KP’s unique development and security-related challenges, particularly in the merged districts, and pledged proactive engagement to facilitate timely disbursement of funds. The positive outcome of the meeting reflected a shared commitment to regular dialogue and joint efforts to address fiscal and development priorities in the national interest.
This engagement reinforces the federal government’s approach to cooperative federalism, ensuring that provincial needs are addressed while maintaining transparent and effective mechanisms for fund allocation and utilization. With continued coordination, KP is expected to receive enhanced support for ongoing projects, development schemes, and initiatives for displaced populations, strengthening the province’s socio-economic resilience and long-term growth prospects.
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