Adviser to the Chief Minister on Finance Muzzammil Aslam said Wednesday that Khyber Pakhtunkhwa produces 70 percent of the country’s total hydel power generation, against Punjab’s 30 percent, yet the federal government paid KP only Rs71.5 billion over the past three years under net hydel profit, compared to Rs177.7 billion paid to Punjab.
In a statement, Aslam said Punjab received Rs106.2 billion more than KP between 2024 and 2026, despite KP’s considerably higher share of hydropower generation. He said continued violation of Article 151 of the Constitution by the Punjab government, combined with the federal government’s own ongoing violation of Article 161(2), has left Khyber Pakhtunkhwa denied full payment of its constitutional right to Net Hydel Profit (NHP) for the past three years.
He said Punjab’s continued violation of Article 151 has also created obstacles to inter-provincial wheat transportation, contributing to a sharp rise in wheat prices both within KP and nationally. According to Pakistan Bureau of Statistics data, wheat prices have risen by up to 85 percent this year.
Aslam explained that under Article 161(2) of the Constitution, net profits from a hydroelectric power station belong to the province in which it is located, meaning the province bearing the environmental, social, and economic impact of hydropower generation is constitutionally entitled to its Net Hydel Profit.
He said that during 2024-2026, 12 hydropower plants in Khyber Pakhtunkhwa generated a combined 61.2 billion units of electricity, compared to just 23.5 billion units from Punjab’s hydropower plants over the same period. Despite this, he said, the federal government paid Punjab an additional Rs106.2 billion under the same head, while KP was denied its legitimate constitutional entitlement. “This situation indicates a clear imbalance in the distribution of resources by the federal government and an unusual tilt in favour of the Punjab government,” he said.
Aslam said the perception that Prime Minister Shehbaz Sharif is directing additional resources toward strengthening the Punjab government has only grown stronger as Khyber Pakhtunkhwa continues to face delays in receiving what it is constitutionally owed. He said this unequal distribution of federal resources is deepening a sense of injustice among the people of Khyber Pakhtunkhwa and affecting their economic rights.
He said the provincial government’s unequivocal demand is that KP immediately receive its legitimate constitutional entitlement, with the outstanding Rs106.2 billion under Net Hydel Profit released without further delay. He called for the matter to be placed before the Council of Common Interests without delay, to ensure fair, constitutional distribution of resources and protection of Khyber Pakhtunkhwa’s rights.
