Khyber Pakhtunkhwa Chief Minister Sohail Afridi has written to Prime Minister Shehbaz Sharif, warning that the federal government’s continued delay in releasing constitutionally mandated funds has pushed the province into a serious fiscal and governance crisis.
In his letter, Afridi said KP’s budget for the current fiscal year was prepared strictly on the basis of its constitutional entitlements, including NFC transfers, net hydel profit, oil and gas royalties, and funds promised for the merged districts. These, he stressed, were binding obligations, not discretionary grants. However, actual releases have consistently fallen short, with even routine monthly NFC transfers being withheld — a move he said undermines the spirit of cooperative federalism.
According to the chief minister, KP was entitled to Rs658.4 billion under the NFC but has received only Rs604 billion so far, leaving a shortfall of Rs54.4 billion. The impact has been most damaging in the merged districts, where development and stabilisation efforts have stalled due to meagre federal releases.
Afridi also highlighted that the funding squeeze comes at a time when KP is bearing the brunt of counter-terrorism operations, flood recovery, and the care of displaced populations — all national responsibilities.
He urged the prime minister to intervene personally and ensure the immediate, full, and unconditional release of all outstanding federal dues, warning that further delays would deepen fiscal stress and weaken governance at a critical moment.
