To present a budget surplus, KP has agreed.

To present a budget surplus, KP has agreed.

Khyber Pakhtunkhwa

The Khyber Pakhtunkhwa (KP) provincial administration in Pakistan has committed to propose a surplus budget for the fiscal year 2023-24; however, this agreement is contingent upon the settlement of debts owed to the state. The choice was taken after consulting with the federal government, which is currently in talks with the International Monetary Fund (IMF), and which has urged provincial governments to present surplus budgets in order to fulfil the IMF’s expectations. The choice was made after consultation with the federal government.

KP administration

The Chief Secretary of the KP administration, Nadeem Aslam Chaudhry, has stated that the province administration is dedicated to providing help to the federal government by presenting a surplus budget and cutting the budget for development. The federal government has made contact with all of the provinces in order to tell them about the current conditions imposed by the IMF and has asked for all of the provinces’ cooperation in order to fulfil these obligations. In response to this, KP has conceded that they will reduce its spending, refrain from recruiting additional staff that is not necessary, and reduce their budget for development.

current state of affairs

Given the current state of affairs, Chaudhry emphasised that cutting the budget for the growth of the country is a necessary action. According to what he said, there is no other way to help the federal government and satisfy the requirements set forth by the IMF other than to take these steps. The government of the province is aware of the significance of working together with the government of the federal territory, and it is willing to make any necessary adjustments to facilitate this cooperation.

National Finance Commission

However, Chaudhry also brought up the matter of outstanding debts owed to the KP government, in particular bringing up the net hydel profit. There have been delays and inconsistencies in the payment of net hydel profit, despite the fact that payments from the National Finance Commission have been made on a consistent basis. In order to find a solution to this problem, the central government and the provincial administration have been having conversations about it.

hydel profit

Chaudhry disclosed that the government of KP has requested Rs57 billion in payment for net hydel profit from the government of the federal government. There have been recent payments of Rs1.5 billion and Rs2 billion paid, however there is still an outstanding amount that is large. Before the presentation of the budget, the chief secretary voiced their optimism that the federal government will provide an additional payment of two billion rupees.

provincial government

The payment of all outstanding debts is of the utmost significance to the provincial government since it has a direct impact on the government’s capacity to maintain financial stability and carry out development projects in the province. The money that are owing to KP, which also include the net profit from the hydropower project, play an essential part in resolving the financial requirements of the people in the province and realising their goals. As a result, the provincial government is working closely with the federal government to facilitate the prompt payment of these fees and contributions.



the government of the KP has indicated that it will abide by the request of the federal government to submit a budget that includes a surplus for the upcoming fiscal year in order to satisfy the requirements of the IMF. However, the completion of overdue payments owed to the province, specifically the hydel profit net, is a precondition for the implementation of this agreement. The provincial government is dedicated to providing support to the federal government, and it has high hopes that the overdue bills will be paid on time. This will allow the provincial government to operate efficiently and effectively, which is essential for the completion of successful development projects.

To present a budget surplus, KP has agreed.
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top