Centre, K-P Narrow Differences on Merged Districts Funds, Rs15bn TDP Dispute Lingers

ISLAMABAD:

The federal government and Khyber-Pakhtunkhwa (KP) authorities have eased tensions over funding for the province’s merged districts, authorising the release of Rs7 billion. However, a key dispute remains unresolved, with Islamabad declining to commit an additional Rs15 billion sought by KP for the support of temporarily displaced persons (TDPs).

The breakthrough followed high-level engagements, including a recent meeting between Prime Minister Shehbaz Sharif and KP Chief Minister Sohail Afridi, as well as separate discussions by KP Finance Adviser Muzzammil Aslam with Finance Minister Muhammad Aurangzeb and Planning Minister Ahsan Iqbal.

KP has been pressing for immediate disbursement of funds under the Annual Development Plan (ADP) and the Accelerated Implementation Programme (AIP) for the merged districts. Planning Minister Ahsan Iqbal confirmed that Rs7 billion had already been approved and advised the province to coordinate with the finance ministry for prompt release.

Despite this progress, the federal government cited fiscal constraints in response to KP’s demand for Rs15 billion to cater to families displaced by intelligence-based security operations in Bajaur, Kurram and Tirah Valley. According to Aslam, KP has already spent Rs10 billion on TDPs this fiscal year and faces mounting financial pressure.

KP officials said around 19,000 displaced families were to receive an initial payment of Rs265,000 each, while ongoing costs include Rs4.5 billion for the Bakakhel Camp in North Waziristan and monthly stipends of Rs20,000 for families living with host communities. Since 2022, the province has borne these expenses largely on its own.

Federal authorities maintained that no large-scale military operations are underway, though intelligence-based operations continue nationwide. They acknowledged KP’s security and development challenges but stressed the need for procedural coordination and reconciliation of accounts.

The Centre also highlighted that funding for merged districts has increased compared to previous years, rejecting claims of discrimination. Both sides agreed to continue engagement through technical and political channels to resolve outstanding financial issues, including KP’s claims related to non-NFC arrears and hydel profit.