PESHAWAR – The Khyber Pakhtunkhwa (KP) government has once again failed to fully utilise its proposed development funds for the fiscal year 2024-25, forcing a massive Rs150bn cut in its annual development programme.
Despite expressing optimism about spending over Rs100bn in May and June, the provincial authorities face significant hurdles due to a persistent rift with the federal government that has triggered a major funding shortfall. The financial crunch has hit development schemes the hardest.
The provincial government had allocated Rs416bn for development projects during the current fiscal year. However, it now aims to utilise only Rs271bn by year-end, a target that remains difficult to achieve, according to official estimates.
For the settled districts, the government initially earmarked Rs297bn in development outlay. During the first 10 months of the fiscal year, it managed to spend Rs134.58bn. Authorities now hope to disburse an additional Rs82bn over the final two months, a goal widely viewed as highly ambitious.
If achieved, this would raise the total spent in settled areas to Rs217bn, yet it would still leave Rs80bn in unutilised funds.
The government had also set aside over Rs119bn for the merged tribal districts. However, in the first 10 months, it spent only Rs32.87bn. Officials plan to spend another Rs21.47bn by the end of June. Even if this target is met, total spending will reach just Rs54.33bn, falling short by Rs65bn.
Overall, the provincial administration plans to release Rs104bn in development funds over the final two months. Yet, by fiscal year-end, a total cut of Rs150bn from the proposed development budget appears inevitable.
