Khyber Pakhtunkhwa’s economy grew by 7.7 percent, according to the Planning and Development Department, Finance Adviser Muzammil Aslam told the provincial assembly on Monday while responding to questions on budget proposals.
Speaking during the budget session, Aslam said ending tensions in the region was a major diplomatic success for Pakistan and stressed the need for all provinces to work together on financial issues with the federal government.
He suggested the formation of a parliamentary committee to pursue outstanding dues owed to the province by the federation.
Referring to allocations for the merged districts, he said the federal government had earmarked Rs56 billion for the areas in the next fiscal year.
The finance adviser said the province had borrowed only $1 billion during the PTI government’s tenure and that arrangements had already been made for repayment of those loans.
He said budget surpluses were generated through increased revenue collection and savings, adding that government employees had been receiving their salaries on time for the past two years.
Recalling recent challenges, Aslam said the province had provided immediate relief during floods from available resources and later introduced a Rs2,000 subsidy for motorcyclists following the Iran conflict.
He said Punjab depended on federal resources for 85 percent of its finances, while Sindh relied on the federation for 75 percent. He added that all provinces would face financial difficulties if federal transfers were disrupted.
Aslam said Khyber Pakhtunkhwa was losing tax revenue because of the closure of the Pakistan-Afghanistan border and called for the establishment of WAPDA, OGRA and Sui Northern offices in the province.
The adviser said the province had around 675,000 government employees and 200,000 pensioners. He added that digital reforms had improved governance, with most official work now being carried out electronically and the e-summary system replacing the traditional movement of files.
According to Aslam, 58 percent of the provincial budget is spent on the health, education and police sectors, while the overall salary bill, including allowances, has increased by 17 percent.
He also said taxes had been reduced during the past three years and noted that salaries of provincial assembly members remained lower than those of lawmakers elsewhere in the country.
During the session, Aslam urged the speaker to address concerns regarding lawmakers’ remuneration, saying members of the Khyber Pakhtunkhwa Assembly received the lowest salaries in the country.
