KP Govt Presents Surplus Budget Of Rs169bn Despite Economic Challenges: CM

PESHAWAR, (UrduPoint / Pakistan Point News - 16th Mar, 2025) Chief Minister of Khyber Pakhtunkhwa, Ali Amin Khan Gandapur on Sunday claimed that when his government assumed office, the provincial treasury only had enough funds to cover 15 days of salaries.

However, through effective financial management, the government has presented a surplus budget of Rs. 169 billion over the past year.

Without imposing any new taxes, provincial revenues have increased by Rs. 55 billion, Rs. 72 billion in outstanding payments have been cleared, and an additional Rs. 30 billion has been allocated for development projects.

Speaking at a press conference on Sunday evening, where he outlined the government’s one-year performance, the Chief Minister said that the province was burdened with Rs. 752 billion in debt when they came to power. Yet, over the past year, not a single rupee in new loans was taken.

Instead, Rs. 50 billion of existing debt has been repaid. He added that the provincial government has established a Debt Management Fund with an initial allocation of Rs. 30 billion, which will be increased to Rs. 50 billion by the end of this year.

The chief minister highlighted that the government is focusing on sectors with high potential. He pointed out the vast net hydel power generation capacity within the province, which is now being harnessed.

By 2028, the province aims to significantly increase its own electricity production. A transmission line project worth Rs. 18 billion is underway to supply this electricity at lower rates to local industries, which will foster industrial growth and create job opportunities.

During Ramazan, the provincial government will disburse a Rs. 20 billion package to support deserving households. Over the past year, all scholarships and stipends have been doubled. The zakat payment has been raised from Rs. 12,000 to Rs. 25,000, while the financial assistance provided for dowries has been increased from Rs. 25,000 to Rs. 200,000.

The chief minister said that endowment funds have been established to make deficit-running institutions financially independent, including universities and Water and Sanitation Services Companies (WSSCs).

He expressed confidence that by the end of the year, these institutions will be standing on their own feet.

Gandapur stressed that the increase in provincial revenues was not due to new taxes but was a result of plugging financial leakages and improving governance.

He also addressed the issue of incomplete development projects that were dragging on for years, leading to ballooning costs and losses to the public exchequer. "We have identified these projects and prioritized their completion within this fiscal year," he said.

He emphasized that his government’s performance is based on facts and records, without any exaggeration, and credited his team and cabinet members for their contributions.

Commenting on the security situation in KP, Gandapur revealed that he has consistently advocated for dialogue with Afghanistan to ensure lasting peace in the region.

He lauded the KP police and citizens for being on the front lines against terrorism and warned that unnecessary criticism against police force would not be tolerated.

Gandapur reminded that despite the merger of the former tribal areas in 2018, KP still has not received its due share in the National Finance Commission (NFC) Award.

He claimed that over Rs. 2 trillion outstanding arrears was still pending as net hydel profits and billions more under the accelerated development program for the merged districts etc.

"If we are granted our constitutional rights, we will be able to strengthen our police force and address the grievances of the merged districts," Gandapur said.

In response to a question on police strengthening, Gandapur admitted that historically, the police had been neglected. However, under his leadership, efforts are underway to provide the force with modern weapons, vehicles, and equipment.

Regarding the repatriation of Afghan refugees, he said, "Afghans are our neighbors and will remain so. Their return should be conducted respectfully and in line with Pashtun traditions, ensuring that necessary resettlement arrangements are made inside Afghanistan."