PTI-led KP govt about to inherit financial calamity

PESHAWAR: After a year of severe crisis, starting from dissolution of the assembly to extending the caretaker’s tenure, the people of Khyber Pakhtunkhwa (KP) have decided their fate rather unanimously. The new government is most likely to be formed by Pakistan Tehreek-e-Insaf (PTI) which faces the daunting task of reviving KP, which, like the rest of Pakistan, is reeling under financial and administrative turmoil. 

Amongst the top priorities of the new government would be the restoration of government employees' salaries, revival of the sanitation companies over 70 tehsil municipal administrations which have gone bankrupt, consolidation of the staggering losses incurred by the Peshawar Bus Rapid Transit (BRT), establishment of medical teaching institutes/hospitals, and the revival of health card.

Apart from this, following the dissolution of the KP Assembly in January 2023, the caretaker government has delayed the payment of government employees' salaries, citing unavailability of funds.

Similarly, funds for stressed water and sanitation companies were also withheld, and during this same period, the subsidy amount for BRT was halted, while funds for TMA and other universities were also discontinued.

According to sources within the caretaker provincial government, these difficulties were faced due to the federal government's failure to provide funds. However, for the new government, managing the financially-stricken provincial government will be the biggest challenge.

Despite forming a clear majority in the KP provincial assembly, there is concern about conflicts with the federal government that does not bode well in obtaining additional funds, especially when the centre itself is short on cash. In such a scenario, managing the financially and administratively troubled province will be the biggest challenge for the new government.

According to experts, from 2018 to 2023, both the KP governments under the PTI, especially after the vote of no confidence in 2022 had to resort to borrowing from local banks due to a decrease in provision of net hydel profits and transfers of other resources to the province. 

Now, if Pakistan Muslim League-Nawaz and Pakistan Peoples Party form the federal government, the biggest challenge for the successful candidates supported by Pakistan Tehreek-e-Insaf in KP will be the revolving economic crisis of the province.