PESHAWAR: Chief Minister Khyber Pakhtunkhwa Muhammad Sohail Afridi raised concerns regarding provincial financial rights, gas distribution and development funding during a high-level meeting with Federal Minister for Planning Ahsan Iqbal and a federal negotiation team.
The meeting focused on key issues expected to be discussed at the upcoming National Economic Council (NEC) session, including fiscal transfers, development projects and resource allocation between the federation and provinces.
According to officials, both sides exchanged views on ongoing concerns related to federal funding, development programs and approval processes for major infrastructure projects.
Concerns over development funds
During the meeting, the chief minister expressed reservations over what he described as insufficient financial allocations for Khyber Pakhtunkhwa.
He stated that funding under the Annual Indicative Programme (AIP) had been reduced from Rs37 billion to Rs27 billion. He also said allocations for the merged districts had declined from Rs66 billion to Rs56 billion.
The chief minister further alleged that the National Finance Commission (NFC) share for the merged districts had not been released for several years, describing the matter as a significant concern for the province.
He warned that continued disagreements over financial allocations could complicate the provincial government’s participation in the upcoming NEC meeting.
Gas share and development projects discussed
Muhammad Sohail Afridi also raised the issue of natural gas distribution, stating that Khyber Pakhtunkhwa produces more than 500 million cubic feet per day (MMCFD) of gas while consuming approximately 150 MMCFD.
He argued that the province should receive a greater share of the gas it produces and described the current arrangement as unfair.
The chief minister additionally highlighted delays in approvals for several development projects, including the issuance of No Objection Certificates (NOCs) related to engineers working on the Swat Dam project.
Federal government assures follow-up
Responding to the concerns, Ahsan Iqbal assured the provincial leadership that issues raised during the meeting would be conveyed to the prime minister and relevant federal forums for consideration.
According to officials, the planning minister also stated that the National Highway Authority would issue the NOC for a bus terminal project within 24 hours.
Both sides agreed to continue dialogue on outstanding issues, with discussions expected to continue ahead of upcoming federal and provincial planning meetings.
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