Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Khan Gandapur has stated that the provincial government has not taken a single rupee in new loans over the past year and has instead repaid Rs50 billion in existing debt.
Addressing a press conference on Sunday, he said that when he assumed office, the provincial treasury had funds sufficient for only 15 days of salaries. However, through financial discipline and revenue generation, KP has managed to present a budget surplus of Rs169 billion over the past year.
Without imposing additional taxes, the province increased its revenues by Rs55 billion, cleared Rs72 billion in outstanding payments, and allocated Rs30 billion for development initiatives. A Debt Management Fund was also established with an initial allocation of Rs30 billion, which will be increased to Rs50 billion by year-end.
Gandapur highlighted the province’s hydropower potential, which is being developed to expand electricity production. By 2028, KP aims to generate substantial electricity for its own use. A Rs18 billion transmission line project is underway to supply cheaper electricity to industries, which is expected to boost industrial growth and create jobs.
He said that the provincial government will distribute Rs20 billion in financial aid during Ramadan to low-income families. Scholarships and stipends have been doubled, while Zakat payments have been raised from Rs12,000 to Rs25,000. The financial assistance for dowries has been significantly increased from Rs25,000 to Rs200,000.
To ensure financial stability, the government has established endowment funds for universities and Water and Sanitation Services Companies (WSSCs) to reduce their dependence on subsidies. Gandapur expressed confidence that by the end of the year, these institutions would achieve financial independence.
Regarding financial disputes with the center, he reminded that KP had not received its due share in the National Finance Commission (NFC) Award since the merger of the former tribal areas in 2018. He warned of large-scale protests involving all political parties, citizens, and government employees if the issue remained unresolved.
The chief minister also claimed that the federal government owed KP over Rs2 trillion in net hydel profits and billions more under the accelerated development program for the merged districts and security operations.Â
He argued that if the province received its rightful dues, it could strengthen its police force and address grievances in the tribal areas. He warned that delays in financial transfers were eroding public trust, which could impact counterterrorism efforts.
