Federal govt owes KP Rs74 billion in hydel profits

Province has received only part of allocated funds, including merged districts share

The Khyber-Pakhtunkhwa Assembly on Tuesday was informed that the federal government has yet to transfer Rs74,287 million in net hydel profits to the province.

Deputy Speaker Sorriya Bibi chaired the Assembly session. Officials noted that over the past five years, K-P received Rs76,578 million, while for fiscal year 2024-25, the Finance Department had estimated Rs111,303 million, of which only Rs28,500 million has been disbursed so far.

The provincial government clarified that the merged districts, formerly part of FATA, were not allocated a separate share under the National Finance Commission at the time of merger. 

The 2016 FATA Reforms Committee had recommended that 3 per cent of the federal divisible pool be earmarked annually for these districts.

Following the 25th Constitutional Amendment, a 10-year development plan was approved for the merged districts, promising K-P Rs100 billion per year. However, full payments under this plan have yet to be made.

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