Centre Assures KP of Support on NFC Fund Releases

The federal government on Tuesday assured Khyber Pakhtunkhwa of support on pending National Finance Commission-related releases and other fiscal matters, including funding needs for merged districts.

The assurance was given during a meeting between Finance Minister Senator Muhammad Aurangzeb and KP Chief Minister’s Advisor on Finance Muzamil Aslam at the Finance Division in Islamabad.

Officials said the meeting focused on the timely release of funds under key development heads for the merged districts, requirements linked to rehabilitation and assistance for temporarily displaced persons, and broader issues related to provincial fiscal entitlements.

The KP delegation highlighted operational and development pressures in the merged districts, stressing that predictable and timely fund releases are essential to sustain ongoing projects and meet urgent needs on the ground.

The delegation also raised concerns over pending obligations related to displaced families and emphasized the need for improved coordination to resolve outstanding issues.

The finance minister reaffirmed the federal government’s commitment to cooperative federalism and constructive engagement with the provinces. He assured the KP team that their rightful claims under the National Finance Commission and other relevant heads would be facilitated in line with agreed frameworks, rules and due process.

Aurangzeb noted that effective coordination and timely reconciliation of accounts remain critical for smooth and transparent fund releases. He added that the federal government remains mindful of the unique development and security challenges faced by Khyber Pakhtunkhwa, particularly in the merged districts.

The meeting also reviewed ongoing consultations on NFC related matters, including the need to maintain momentum in technical discussions and sub group engagements to build consensus on outstanding issues.

Both sides agreed to continue close coordination through technical and institutional channels to address priority matters and ensure that fiscal arrangements support development objectives, service delivery and stability.

The meeting concluded with an understanding to maintain regular engagement and work jointly toward timely resolution of fiscal issues in the national interest.