Khyber Pakhtunkhwa Chief Minister Sohail Afridi has formally warned that continued delays in the release of federal funds are pushing the province toward a serious fiscal and governance crisis. In a detailed letter addressed to Prime Minister Shehbaz Sharif, the chief minister urged immediate intervention to ensure the release of all constitutionally guaranteed dues, including National Finance Commission transfers, royalties, and payments for merged districts.
Since assuming office last year, CM Afridi has repeatedly raised concerns over what he describes as a persistent failure by the federal government to meet its binding financial obligations to Khyber Pakhtunkhwa. In his letter, he stated that delays in routine transfers have disrupted budget execution, weakened cash management, and slowed down development and social sector projects across the province.
The chief minister emphasized that the FY 2025–26 provincial budget was prepared strictly in line with constitutional entitlements, including net hydel profit, oil and gas royalties, post merger NFC shares, and regular monthly transfers. These were not assumptions, he said, but mandatory fiscal commitments. However, actual disbursements have consistently fallen short.
According to the letter, against an entitlement of Rs658 billion from the federal divisible pool, the province has so far received only Rs604 billion, creating a Rs54 billion shortfall. CM Afridi noted that this gap has directly affected service delivery in critical governance sectors.
He also highlighted the alarming situation in the merged districts, where Rs292 billion was allocated at the provincial level, but only Rs56 billion has been released so far. The chief minister warned that this funding gap has undermined development efforts in historically marginalized areas and weakened the objectives of the merger process.
CM Afridi further stressed that Khyber Pakhtunkhwa remains a frontline province in counter terrorism operations and continues to shoulder heavy national responsibilities, including flood rehabilitation and support for displaced populations. He argued that placing this financial burden on the province without timely federal support is unjust.
Concluding the letter, the chief minister warned that any further delay would deepen fiscal stress and erode governance capacity at a critical time.
