KP Cabinet Approves Debt Management Fund

PESHAWAR, (UrduPoint / Pakistan Point News - 18th Sep, 2024) The Khyber Pakhtunkhwa cabinet here on Wednesday approved establishment of a Debt Management Fund and formulation of its rules.

In view of the fact that surging debt servicing costs and the adverse impact of depreciation of rupee, this fund is essential to manage the province’ debt obligations effectively and ensure the financial sustainability.

Invoking Section 36 (1) of the Khyber Pakhtunkhwa Public Financial Management Act, 2022, finance department has devised the creation of the Debt Management Fund which is long-term economic stability. The approval of this initiative will be instrumental in safeguarding our province’s financial future.

The Debt Management Fund will invest unutilized balance from the Government Treasury into low-risk instruments. The Fund Shall not only create a revenue source that offsets growing debt obligations, but also result in optimal cash management, ensuring the province can better manage its financial obligations and ensure that substantial fiscal space is available to prioritize expenditure on service delivery.

The draft Khyber Pakhtunkhwa Debt Management Fund Rules, 2024 for governing the control, management, utilization and oversight of the proposed Debt Management Fund too were approved during the meeting.

The Provincial cabinet also approved policy guidelines for Khyber Pakhtunkhwa's participation in the carbon market. Key points of agreement include: 5% Deduction at Source for Nationally Determined Contributions (NDCs); Correspondent Adjustment Fund (CAF): 12% of net revenues generated from carbon credit sales will be allocated to CAF. Of this, 50% will be transferred to the province where the project is based, and the remaining 50% will go to the Pakistan Climate Change Fund or other climate initiatives across the country in consultation with the province and; 1% administrative cost to be charged by the Ministry of Climate Change, subject to endorsement by other provinces.

The provincial cabinet approved a recurring grant of Rs 1.5 billion for public sector universities in Khyber Pakhtunkhwa. Since 2018, the Higher Education Commission's (HEC) annual grants to universities in the province have been frozen.

Following the 18th amendment, higher education has become a provincial responsibility, requiring the province to independently fund its universities. Despite substantial efforts over the past four years to increase self-generated income – achieving 84.5% growth – the revenue generated internally remains inadequate to meet the rising financial demands of the universities. Older universities, in particular, are grappling with unresolved liabilities relating to pensions and salaries.

It also approved the constitution of an academic search committee for the appointment of vice chancellors in public sector universities. Prof. Dr. Kausar A Malik will serve as the convener of the Committee, along with other members which include Prof. Dr. Anwar ul Hassan, Prof. Dr. M Aslam Baig and Prof. Dr. Sara Safdar. A performance evaluation committee for vice chancellors in public sector universities was also constituted for a period of two years. The committee will include Dr. Shafiq ur Rehman, Prof. Dr. Zahir Shah and Prof. Dr. Muhammad Akmal.

The cabinet approved the unfreezing of the ADP project for the establishment of the Government Degree College Boi, Abbottabad. It also approved the replacement of a condemned vehicle for the District Court Kurram and an additional grant of Rs 9,934,000 for the purchase of a vehicle for the official use of an Honorable Judge of the Peshawar High Court.

The cabinet conditionally sanctioned Secretariat Performance Allowance for the employees of the Solicitor’s Wing of the Law Department, in compliance with the judgement of the High Court in writ petition. It is pertinent to mention here that presently four posts of officers and 22 posts of officials exist in the Solicitor’s office against which two officers and 15 officials are working.

Aggrieved from the decision of the Finance Department over stoppage of allowance the employee of Solicitor’s Wing filed writ petition which was allowed by the High Court vide order dated 23rd April 2015.

It also conditionally approved the salary and privileges arrears of Aqal Badshah, Ex-Provincial Ombudsman, at par with the salary of a High Court Judge, based on the rates prevailing during his tenure. This is subject to the final decision of a CPLA filed in the Supreme Court of Pakistan.

The cabinet approved the transfer of 11 kanal of state land to the Health Department for the upgradation of the Rural Health Center (RHC) Nizampur to a Category-D Hospital in District Nowshera.

The cabinet endorsed the recommendations of the 5th meeting of the Cabinet Supervisory Committee (CSC) regarding outsourced hospitals in different districts.

Ex-post facto approval was granted for the release of funds to implementing partners. It also approved the revival of two previously frozen health schemes as ADP projects for the current financial year. These include the upgradation of BHU to RHC in Swat, as well as upgrading Maidan Hospital in Dir Lower from Category D to C.

The cabinet approved a non-ADP scheme amounting Rs.3.1475 billion for the recovery of maternal and child healthcare equipment in flood affected areas of Hazara division of Khyber Pakhtunkhwa. The objective of the project is to strengthen the diagnostic and treatment system in the target facilities and improve the regional referral system through the provision of medical equipment which are necessary to provide maternal and child health services at the primary, secondary and tertiary health facilities which are located in flood affected surrounding areas. The project will be implemented with a financial support of 3.

06 billion from Japan International Cooperation Agency (JICA).

The cabinet approved the training program for nurses from the Health Department at Chester University, UK.

The cabinet approved a grant of Rs 166.154 million for 8 Model Schools located in the merged districts at Ghallanai, Mamad Gat, Miranshah, Zam Tank, Wana, Parachinar, Sadda Kurram, and Bajaur. It also approved Funds amounting 8.638 million for the renovation of the Model school at Ghallani, Mohmand.

The cabinet approved a one-year extension for the “Literacy for All” program in the merged districts, with a total cost of PKR 223.872 million. The program, which began in 2015, aims to eradicate illiteracy and achieve universal Primary education by enrolling out-of-school children. The extension will be from July 1, 2024, to June 30, 2025. Additionally, the cabinet approved an exit strategy, under which centers will be rationalized and converted into Taleem Card scheme.

A provision of Rs 30.594 million was approved as land compensation for the Government Polytechnic Institute Mansehra under a non-ADP scheme.

The cabinet approved amendments to the Khyber Pakhtunkhwa Land-use and Building Control Act, 2024, following a diagnostic review of the 2021 Act and the prevailing legal and regulatory framework for local government and urban development in the province.

The cabinet approved the transfer of state land to the Local Government Department for the construction of the TMA Lahor office building in Swabi under an ADP scheme.

The cabinet approved the de-notification of the Khyber Pakhtunkhwa Tehsil Local Government (Private Housing Schemes Management and Regulation) Rules 2021 and Khyber Pakhtunkhwa Model Building By-laws Rules 2017. Under section 52 of Land Use and Building Control Act 2021, it is the mandate of the Land Use & Building Control Council to make regulations.

Accordingly, the Khyber Pakhtunkhwa Housing Societies Regulations, 2024 and Khyber Pakhtunkhwa Building Regulations, 2024 have been drafted. The Land Use & Building Control Council in its third meeting on 3rd June 2024 has approved the said regulations. After approval of the ibid regulations, it is imperative that the Government shall de-notify the Khyber Pakhtunkhwa Tehsil Local Government (Private Housing Schemes Management and Regulation) Rules 2021 and Khyber Pakhtunkhwa Model Building By-laws Rules 2017, frame under Khyber Pakhtunkhwa Local Government Act, 2013.

The cabinet authorized the Tehsil Chairman of Sarai Naurang Tehsil Local Government to sign an agreement with Bagcilar Municipality of Istanbul, Turkiye, to establish a sister city relationship. The Ministry of Foreign Affairs, Islamabad, has already granted the No Objection Certificate (NOC) for this agreement.

The cabinet approved a special compensation package of Rs 14.87 million for the 119 victims of the fire incident that occurred at Nothia Bazar, Peshawar. The compensation will be provided to those identified in the damage assessment report prepared by the Deputy Commissioner of Peshawar.

It approved a non-ADP scheme, with a budget of PKR 30 million, for the construction of a Flood Protection Wall (FPW) to safeguard agricultural land, village settlements, and Pak Army posts near Hassue Khel Bridge along the Tochi River in Tehsil Mirali, District North Waziristan.

The cabinet approved the appointment of Malik Haroon Iqbal as new Chairperson for the Environmental Protection Tribunal, Peshawar, for a three-year term following the resignation of the previous chairperson, effective August 31, 2023.

The cabinet granted approval for signing the Financing Agreement, Channeling Agreement, and a separate agreement related to the KFW-assisted project for Digital Governance in Khyber Pakhtunkhwa and the re-notification of 20 kanals of land from a food godown near Haji Camp Bus Stand, GT Road, Peshawar, for the establishment of the Gandhara Digital Complex, an initiative aimed at advancing digital governance and innovation in the province.

The cabinet approved the appointment of Nasir Khan as Chief Executive Officer of Khyber Pakhtunkhwa Oil and Gas Company Limited for a period of three years. This decision was taken in terms of Rule 5(2) of the Public Sector Companies (Corporate Governance Rules), 2013, read with Policy Framework of the Provincial Government regarding CEOs of Public Sector Companies 2022.

The cabinet approved removal of members of search and nomination council Khyber Pakhtunkhwa Health Foundation; enhancement of cost for the schemes construction of 12.5 kilometer road from Saidgi village to Dewgar Saidgi Tehsil Ghulam Khan Sub division Miranshah and Rehabilitation of 20 kilometer Tall to Boya Miransshah sub-division and the illumination of archeological sites Takht Bhai and Jamal Ghari with costing 25.346 million and costing 191.785 million respectively.

The cabinet also approved a Rs.30 million grant in aid for the Lahore High Court Bar Association.

The cabinet approved amendments in the procedure of appointment of Chairman for District Development Advisory Committees in the province. The cabinet approved grant in aid of Rs.10 million for Khyber Pakhtunkhwa Urban Mobility Authority.

The cabinet has allowed the Excise and Taxation Department to re-initiate the recruitment process for required staff through Testing Service as per the orders of the court.

It also approved the Khyber Pakhtunkhwa Workers Compensation Rules, 2024 and amendments to the Khyber Pakhtunkhwa Mines and Minerals Appellate Tribunal Rules, 2022.

The cabinet approved the construction of a Rest House at Shangla Top, District Shangla, on the NAB confiscated land under a non-ADP scheme amounting rupees 39.224 million.