Khyber Pakhtunkhwa’s Financial Advisor Muzzammil Aslam Warns Federal Government Over Budget Dues
Muzzammil Aslam, the Chief Financial Advisor to the Chief Minister of Khyber Pakhtunkhwa (KP), has issued a warning to the federal government of Pakistan, led by Prime Minister Shehbaz Sharif. Aslam stated that KP would not be able to fulfill its commitments to the public if the federal government does not clear its dues.
In an interview, Aslam emphasized that the central government should not hold KP accountable for meeting its budget targets if it fails to provide the necessary funding. Earlier this year, the KP government announced a PKR 1,754 billion budget for the fiscal year 2024-25, with a surplus of PKR 100 billion. The budget includes PKR 1,654 billion in expenditures and anticipates receiving PKR 1,754 billion in revenue.
The expected revenue includes around PKR 1,212 billion from the federal government through Federal Tax Assignment, 1% of the divisible pool related to the war on terror, and direct transfers from royalties, surcharges on oil and gas, windfall levies, and net hydel profit.
There have been ongoing disputes between the provincial and federal governments over clearing KP’s dues. KP Chief Minister Ali Amin Gandapur has even threatened to march on Islamabad. Additionally, KP has not agreed to sign a Memorandum of Understanding (MoU) with the central government regarding the surplus budget, which is a requirement due to a seven-billion-dollar loan deal between Islamabad and the International Monetary Fund (IMF).
Last month, the KP cabinet stated that it would accept the proposed budget surplus of PKR 178 billion only if the federal government addresses the province’s financial crisis. Despite increases in the budgets for Pakistan-occupied Gilgit-Baltistan and Pakistan-occupied Jammu and Kashmir, the budget for KP was not increased by Prime Minister Shehbaz’s government.
Doubts Revealed
Khyber Pakhtunkhwa -: Khyber Pakhtunkhwa (KP) is a province in Pakistan. It’s like a big area with its own local government, similar to how Indian states have their own governments.
Financial Advisor -: A Financial Advisor is someone who helps manage money and budgets. In this case, Muzzammil Aslam helps the Chief Minister of KP with financial decisions.
Federal Government -: The Federal Government is the main government of a country. In Pakistan, it is led by the Prime Minister and makes decisions for the whole country.
Prime Minister Shehbaz Sharif -: Shehbaz Sharif is the current Prime Minister of Pakistan. He is like the head of the government, similar to the Prime Minister of India.
PKR -: PKR stands for Pakistani Rupee, which is the currency used in Pakistan. It’s like how we use Indian Rupees (INR) in India.
Budget -: A budget is a plan for how to spend money. The KP government has planned to spend PKR 1,754 billion for the year 2024-25.
MoU -: MoU stands for Memorandum of Understanding. It’s a document that shows an agreement between two parties, like a promise to do something.
IMF -: IMF stands for International Monetary Fund. It’s an organization that helps countries with money problems by giving them loans.
Islamabad -: Islamabad is the capital city of Pakistan. It’s like New Delhi is the capital of India.