Khyber-Pakhtunkhwa (KP) has made history by becoming the first province to actively reduce its debt burden as the provincial government has deposited Rs30 billion into the Debt Management Fund and plans to add another Rs30-40 billion, according to Muzammil Aslam, Advisor to the Chief Minister on Finance and Interprovincial Coordination.
Highlighting recent accomplishments, Aslam revealed that the Debt Management Fund is designed to manage up to 10% of KP’s total debt of Rs725 billion, Aslam stated in a press release.
He said that KP has allocated Rs20 billion each to pension and gratuity funds over the past six months, alongside generating Rs3-4 billion in profits through efficient fund management.
Additionally, the province has secured three months’ worth of advance salary funds, marking significant improvement from past challenges in salary disbursements.
“The province is committed to reducing its financial liabilities and setting an example for other provinces and the federal government,” he said.
Criticizing the federal government’s financial policies, Aslam noted that Pakistan’s national debt has ballooned to Rs70,400 billion, with Rs1,248 billion borrowed in November 2024 alone—an amount surpassing K-P’s total debt accumulated over 77 years.
