Peshawar: Federal government rejected what it called misleading claims by Khyber Pakhtunkhwa chief minister Sohail Afridi over revenue sharing and resource distribution, saying official records show the province has received its full share under the National Finance Commission (NFC) award along with substantial additional federal support over the past 15 years.
Federal officials said the allegations divert attention from governance challenges in the province and do not reflect the actual flow of funds from Islamabad to Peshawar.
Federal government rejects NFC shortfall claims
The dispute centres on repeated assertions by the Khyber Pakhtunkhwa chief minister that the province was denied its due share under the NFC award, including an alleged shortfall of Rs2.2 billion. Federal authorities said the claim is unfounded and that KP has received 100% of its entitlement.
According to government documents, transfers to KP through the NFC award, federal programs and special allocations have exceeded Rs8.4 trillion since 2010.
Breakdown of transfers since 2010
Officials said KP received Rs5.867 trillion between July 2010 and November 2025 under the Seventh NFC Award alone. In addition, Rs705 billion was provided as an extra 1% share to support the war on terror, starting in 2010.
Direct transfers, including oil and gas royalties, gas development surcharges, and excise duty on natural gas, amounted to Rs482.78 billion during the same period, the documents show.
Support for welfare, merged districts and IDPs
Federal spending under the Benazir Income Support Programme totalled Rs481.43 billion in KP between fiscal years 2016 and 2025, covering both unconditional and conditional cash transfers.
Since 2019, Islamabad has transferred Rs704 billion for the newly merged districts, formerly part of the tribal areas, while an additional Rs117.17 billion was provided in different years to support internally displaced persons.
Most recently, the federal government released Rs46.44 billion to KP on Dec. 17, 2025, as part of the province’s fortnightly NFC instalment, officials said.
Officials cite sustained federal backing
Summarising the figures, federal authorities said KP has received more than Rs8.4 trillion over the past 15 years, averaging roughly Rs560 billion annually with about Rs825 billion paid over and above the province’s basic NFC entitlement through additional heads and support programs.
Government officials argued that the data demonstrates consistent federal financial backing for KP and contradicts claims of discrimination in resource allocation.
Political tensions persist
The sharp exchange reflects ongoing tensions between the federal government and the KP administration over fiscal management, security challenges, and development priorities. While KP leaders have blamed Islamabad for governance and security shortcomings, federal officials insist the record shows sustained financial support and say accountability now lies with the provincial government over how the funds are utilised.
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