KP rejects NFC extension over delayed funds for merged districts

The Khyber Pakhtunkhwa (KP) government has formally conveyed to the federal government its refusal to accept an extension of the seventh National Finance Commission (NFC) Award until outstanding funds for the province’s newly merged districts are fully disbursed.  

According to a media report, Adviser to the Chief Minister KP Muzammil Aslam has written a letter to the Federal Finance Minister Muhammad Aurangzeb, making it clear the provincial government would not support an extension without due consideration of its population and geography, as required under the 25th Constitutional Amendment. 

The letter highlighted the province’s financial burden in integrating the merged districts, previously administered by the federal government, into KP’s governance and financial framework.  

It also referred to a September 5 jirga meeting led by Chief Minister Ali Amin Gandapur, where all participants demanded prompt release of funds owed to these districts. 

The letter emphasized that the NFC, a constitutional mechanism for equitable resource distribution, was not being applied effectively for KP's 6.1 million residents in these newly merged areas, placing significant financial strain on the province.