PESHAWAR: The Khyber Pakhtunkhwa government has rejected a proposed deduction of Rs6.4 billion from the province’s federal financial transfers.
Chief Minister Sohail Afridi said the federal government had sought an additional amount from Khyber Pakhtunkhwa before the provincial budget. The provincial government had linked the release of the additional funds to a meeting with PTI founder Imran Khan and his approval.
Afridi said the KP government neither approved nor agreed to the proposed deduction of Rs6.4 billion.
He said the additional federal grant had also not been included in the provincial budget for the 2026-27 financial year.
The chief minister said the matter was not merely a political dispute but concerned the province’s constitutional and financial rights. He maintained that Article 164 of the Constitution does not give the federal government the authority to unilaterally deduct money payable to a province.
According to Afridi, any such deduction requires a clear constitutional or legal basis as well as the consent of the provincial government.
He said the Finance Department had clearly conveyed its disagreement with the proposed deduction in a letter issued on August 13. Written instructions were also issued that no deduction should be made without the province’s consent.
Afridi said Finance Adviser Muzammil Aslam immediately met the relevant officials of the Accountant General KP. The Accountant General of Pakistan Revenues was also directed not to record or implement any transaction without the clear consent of the provincial government.
The chief minister said the provincial government had decided to prepare a summary and ordinance under the 7th National Finance Commission (NFC) after the province did not receive its share for six months.
He said the provincial government did not sign the memorandum of understanding concerning the additional amount because a meeting with the PTI founder was not arranged.
Afridi said the KP government had already approached the Federal Constitutional Court to seek its constitutional rights under the National Finance Commission.
He made it clear that the provincial government would not compromise on its NFC rights.
The chief minister further said the federal government had no authority to unilaterally deduct money on the basis of an unapproved memorandum of understanding.
He vowed that the provincial government would use every legal and constitutional avenue to protect its rights and defend every rupee of its financial share.
Afridi also said that if the Federal Board of Revenue (FBR) achieved its Rs15.26 trillion tax collection target, Khyber Pakhtunkhwa’s share would amount to approximately Rs175 billion.
He added that providing the merged districts with their rightful share under the 11th NFC was also one of the provincial government’s conditions.
