KP Chief Minister Sohail Afridi Appeals to Prime Minister Over Federal Transfer Failures
In a significant development, Chief Minister Khyber Pakhtunkhwa, Sohail Afridi, has penned a detailed letter to the Prime Minister of Pakistan, raising grave concerns about the persistent failure to release constitutionally mandated federal transfers. This issue has precipitated an acute fiscal and governance crisis for the province, threatening its stability and service delivery.
Constitutional Entitlements and Budgetary Framework
The Chief Minister emphasized that the Provincial Budget for Fiscal Year 2025–26 was meticulously framed and approved based on clear constitutional fiscal entitlements. These include:
- Net Hydel Profit
- Oil and Gas Royalties
- Post-merger National Finance Commission shares
- Regular monthly transfers under the NFC Award
Afridi stressed that these are binding fiscal obligations, not discretionary assumptions, and their withholding undermines the core principles of cooperative federalism.
Severe Financial Shortfalls and Their Impact
Contrary to commitments, actual releases have consistently fallen short of budgeted levels. The Chief Minister highlighted that against Khyber Pakhtunkhwa’s NFC entitlement of Rs658.4 billion from the federal divisible pool, the province has received only Rs604 billion to date, leaving a substantial shortfall of Rs54.4 billion. This is not a minor accounting variance but a material breach that has:
- Impaired cash management
- Disrupted budget execution
- Constrained service delivery across critical governance sectors
Crisis in Merged Districts and National Priorities
The impact has been most severe in the Merged Districts, where development, stabilization, and state consolidation are recognized as national priorities. Despite a provincial allocation of Rs292 billion, federal releases amount to only Rs56 billion so far. This severe and continuing gap has:
- Undermined essential public services
- Hindered development interventions in historically marginalized areas
- Eroded the objectives of the merger
- Weakened national cohesion
Additional Burdens and National Responsibilities
Chief Minister Afridi also underscored that Khyber Pakhtunkhwa remains on the frontline of counter-terrorism efforts while simultaneously shouldering extraordinary expenditures from:
- Flood response and rehabilitation
- Management and support of Temporarily Displaced Persons
He noted that these are national responsibilities, yet the financial burden continues to be borne disproportionately and unsustainably by the province.
Call for Immediate Corrective Action
In view of these circumstances, the Chief Minister urged the federal government to take immediate corrective action, including the full and unconditional release of all outstanding federal dues. This should cover:
- Routine monthly NFC transfers
- Net Hydel Profit
- Oil and Gas Royalties
- Allocations for the Merged Districts
Afridi insisted that these releases must be made strictly in accordance with constitutional provisions and agreed fiscal arrangements. He cautioned that any further delay would only compound the province’s fiscal stress and weaken governance capacity at this critical juncture.
