Centre agrees to resolve 'financial matters'
A meeting for the 11th National Finance Commission (NFC) has been scheduled for August, and the Center has also agreed to resolve outstanding financial matters concerning the merged tribal districts, which are administratively integrated but still face economic challenges.
Addressing a post-budget press conference in Peshawar on Saturday, Aslam revealed that K-P has presented its largest-ever budget, amounting to Rs2,119 billion. He noted that the province is on track to generate Rs93 billion from its own resources. "Whether the federation provides funds or not, we are committed to spending on the tribal areas from our own treasury," he declared. Aslam emphasized a shift away from reliance on federal support, announcing plans to construct the Peshawar-DI Khan Motorway independently.
He defended the provincial government's economic performance, recalling criticism when the current administration took office last year amid concerns of an empty treasury. "Today, we have presented a Rs157 billion surplus budget," he said, highlighting timely salary payments and increases of 10 per cent in salaries and seven per cent in pensions for government employees in the new fiscal year. The minimum wage has also been raised to Rs40,000.
Aslam contrasted K-P's development budget of Rs547 billion with the federal government's Rs1 trillion-plus allocation, pointing out that despite being a smaller province, K-P has managed substantial development spending. He acknowledged that while the province remains under debt — currently at Rs680 billion — loan repayments have been made and a dedicated repayment fund established.
He clarified that any current inflows under debt are part of previously agreed contracts, and there are no plans for new borrowing unless required for a major project.
Criticizing the center for sidelining K-P, he stated that only Rs550 million have been allocated to the province this year. "Despite minimal federal cooperation and receiving Rs90 billion less under NFC allocations, we increased our development budget," he noted. K-P also allocated Rs20 billion from its own funds to the tribal districts, demonstrating its commitment to inclusive development.
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