Khyber Pakhtunkhwa (KP) has made history by becoming the first province in Pakistan to actively reduce its debt burden. Muzammil Aslam, Advisor to the KP Chief Minister on Finance and Interprovincial Coordination, announced this achievement on Tuesday, highlighting the province’s commitment to financial discipline and sustainability.
In a significant move, the KP government has deposited Rs. 30 billion into its Debt Management Fund, with plans to contribute an additional Rs. 30–40 billion, depending on the financial landscape. Aslam explained that this fund is designed to manage up to 10% of KP’s total debt, which currently stands at Rs. 725 billion. The initiative marks a critical step toward reducing financial liabilities and sets an example for other provinces and the federal government.
In a video statement, Aslam outlined several of KP’s recent financial achievements. Over the past six months, the province allocated Rs. 20 billion each to pension and gratuity funds, while earning Rs. 3–4 billion in profits through effective fund management. These efforts have not only strengthened KP’s fiscal position but also ensured better resource utilization.
Additionally, KP has secured advance funds to cover three months of salaries, a major improvement over previous challenges in salary disbursements. This proactive approach demonstrates the provincial government’s dedication to financial stability and employee welfare.
Muzammil Aslam emphasized that these measures align with the vision of PTI founder Imran Khan and are being implemented under the leadership of Chief Minister Ali Amin Khan Gandapur. He reaffirmed the KP government’s steadfast commitment to eliminating debt and stabilizing the provincial economy.
The Advisor also criticized the federal government for its unsustainable financial policies, citing alarming statistics. Pakistan’s national debt has soared to Rs. 70,400 billion, with a staggering Rs. 1,248 billion added in November 2024 alone—an amount surpassing KP’s total debt accumulated over 77 years. Aslam further revealed that the country’s debt has increased by Rs. 27,000 billion since April 2022, underscoring the urgent need for responsible fiscal management at the federal level.
Drawing attention to KP’s success, Aslam urged the federal government to adopt more prudent financial practices. He pointed out that KP’s strategy of creating dedicated funds and generating profits through effective management could serve as a model for addressing the country’s growing debt crisis.
KP’s achievement not only highlights the province’s leadership in financial stewardship but also sets a new benchmark for fiscal responsibility in Pakistan. By actively reducing its debt and prioritizing long-term economic stability, KP has demonstrated that proactive and disciplined financial policies can yield tangible results, even in challenging economic circumstances.
This historic milestone reinforces KP’s position as a pioneer in fiscal management and offers valuable lessons for other provinces and the federal government in tackling the country’s mounting debt challenges.