PESHAWAR: Special assistant to the chief minister for information and public relations Shafi Jan on Sunday said the figures released by the federal government regarding transfers to the provinces were misleading as major financial dues of KP remained unpaid.

In a statement issued here, he said the federal government owed KP nearly Rs4 trillion, payment of which had been delayed for years. “Royalties on hydropower generation have not been fully transferred, while the windfall levy has not been included in the straight transfers,” he added.

Mr Jan said that excise duties imposed on petroleum and gas were not being reflected in the provincial share, while the federal government continued to collect excise duty on tobacco despite the sector already devolved to the provinces.

Referring to the merger of the erstwhile tribal areas, he said that the 7th National Finance Commission (NFC) Award had still not been revised, resulting in KP receiving approximately Rs1.375 trillion less, since the fiscal year 2018-19. He added that against the promised Rs700 billion under the Annual Development Programme for the merged districts, only Rs168bn had been released so far.

Shafi says major financial dues of KP remain unpaid

He said that in 2025, both current and development expenditures for merged districts were cut by more than Rs50bn, adding that the announced Rs17bn for the rehabilitation of internally displaced persons had yet to be released, while the provincial government had already spent over Rs11bn from its own resources.

Calling for transparency, the chief minister’s aide demanded that the federal government make public complete details of PSDP allocations, NHA projects and subsidies for all provinces, saying that without transparency, fiscal federalism and equitable resource distribution were not possible.

He said that the federal government’s claim of economic recovery was against the ground realities, adding that a recent report published in this newspaper highlighted Pakistan’s economic, social and human decline, which he described was outcome of the ‘failed policies’ of the federal government.

Mr Jan said key indicators, including GDP growth, human development and employment continued to deteriorate, adding that over the past four decades, economic growth had steadily declined, with negative growth recorded for two consecutive years.

According to Mr Jan, the report showed that while the country’s population continued to grow rapidly, the federal government had failed to provide employment, basic services and a dignified standard of living, adding that Pakistan’s fall to 168th place on the Human Development Index was a serious indictment of federal governance.

He added that Pakistan’s ranking near the bottom globally on women’s rights reflected a failure of state priorities besides excessive centralisation had weakened the provinces, the consequences of which were now evident in the form of national decline.

Shafi Jan said the report had exposed what he termed a false federal narrative, adding that facts could no longer be suppressed. He emphasised that unless human development, women’s rights and public welfare were placed at the centre of policymaking, the country’s decline would not be reversed.

Published in Dawn, December 22nd, 2025