PESHAWAR: Despite the approval of Rs317 billion for Khyber Pakhtunkhwa’s (KP) Annual Development Programme (ADP) for fiscal year 2020-21,the KP Finance Department has failed to release funds for nine provincial departments.
According to sources, the delay in the release of funds by the KP Finance Department is adding to the pressure faced by some of the major departments in the province.
The department whose funds have been withheld include, the department of Auqaf, Hajj, Religious and Minorities Affairs for which Rs372 million were allocated in the ADP. Similarly, Department of Agriculture, Fisheries, Livestock with an allocation of Rs10.12 billion, Department of Secondary Education with an allocation of Rs11.68 billions, Department of Energy and Power with an allocation of Rs8.7 billion, Department of Environment with an allocation of Rs30 million, Department of Higher Education with an allocation of Rs449 million, Department of Housing with an allocation of Rs6.5 billion and Department of Special Initiatives with an allocation of Rs4.5 billion all await release of funds by the KP Finance Department.
According to sources in the KP Finance Department the provincial government is facing financial difficulties which has led to a delay in the release of funds for provincial departments.
The cost of development projects in the province is expected to increase due to the delay in the release of funds by the KP Finance Department.
In case of shortage of funds from the federal government, the KP government is expected to get loans from banks to cover its budget deficit which would further increase the financial burden on the provincial government. The KP government had earlier already obtained Rs300 billion from banks for various development projects.