PESHAWAR: Khyber Pakhtunkhwa is in a financial crisis due to an ongoing tussle with the federal government, putting the province in a deficit of Rs20 billion, Profit learnt on Wednesday.
According to Provincial Finance Minister Taimur Khan Jhagra, the province’s account is in negative as the federal government has stopped supplying it with funds, adding that KP is also paying interest to the centre due to this reason.
Jhagra said that on one hand, the federal government has imposed a cut on the budget of tribal districts whereas the province is facing severe financial problems due to the non-payment of Rs60 billion in the net profit of electricity.
“The provincial government is paying the price of confrontation with the center. KP is facing serious difficulties in getting its share under the National Finance Commission (NFC). The provincial government currently doesn’t have the required amount to pay salaries and meet the current expenditure,” he said.
According to the finance minister, the provincial government may also face difficulties in carrying out relief activities in flood-hit areas of the province.
