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PESHAWAR— Muzammil Aslam, the Advisor to the Chief Minister on Finance for Khyber Pakhtunkhwa (KP), has categorically affirmed the provincial government’s unwavering support for the Federation and the Armed Forces in the ongoing national fight against terrorism. However, he also voiced deep frustration regarding the lack of financial cooperation and the federal government’s alleged intention to reduce provincial budgets.
Speaking to Geo News, Aslam highlighted that KP is the only province to have formulated its own Provincial Action Plan to combat militancy effectively. He insisted that while political disagreements exist, the provincial government remains “on the same page” with the federal authorities concerning security. He refuted claims suggesting a lack of provincial support, citing the release of 7 billion rupees to the police force, specifically allocated for purchasing bulletproof vehicles to enhance their capacity against terrorists.
Aslam assured that the KP government is actively compensating civilians who suffer losses during intelligence-based operations, emphasizing the province’s commitment to protecting its populace during security drives.
Financial Burden of Afghan Refugees and Federal Non-Cooperation
Addressing the issue of Afghan refugees, the Finance Advisor stated that the KP government seeks the dignified repatriation of all refugees. He disclosed a striking figure: 80 percent of the refugees who have left Pakistan so far originated from KP. Crucially, he claimed that the provincial government bore the entire cost of their repatriation without receiving “a single rupee of cooperation” from the Federal Government. The management of refugees migrating from other provinces to KP is currently being handled jointly by law enforcement agencies, the Interior Ministry, and the Provincial Interior Department.
The Debt to KP: Financial Grievances
Muzammil Aslam was sharply critical of the Federal Government’s financial management, warning that it is planning to slash provincial budgets while being heavily indebted to KP. He stated that the Federal Government has withheld funds meant for Internally Displaced Persons (IDPs). The KP government is currently paying 400 million rupees monthly to IDPs and has disbursed 3.5 billion rupees to displaced persons from areas like Bajaur and others.
He further lamented that out of two expected installments of the Annual Development Program (ADP) in the first four months, “not a single rupee” has been released. The core of their dispute, he added, is the inclusion of the newly merged districts (formerly FATA) into the National Finance Commission (NFC) Award. Aslam highlighted a significant shortfall: KP received 65 billion rupees less in NFC funds and 40 billion rupees less in development funds from the Federation in the first four months, stressing that these financial hurdles impede the province’s ability to develop and effectively address the security challenges it faces.

