Peshawar/Islamabad, January 26, 2026: Khyber Pakhtunkhwa Chief Minister Sohail Afridi on Monday wrote to Prime Minister Shehbaz Sharif, criticizing the federal government for what he described as a “persistent failure” to release constitutionally guaranteed funds to the province and demanding the full and unconditional release of all outstanding federal transfers.
Since taking office in October 2025, Afridi has repeatedly raised concerns over delayed federal allocations for KP, particularly funds earmarked for the merged districts under the National Finance Commission (NFC).
In his latest communication, the KP CM stated: “I am compelled to place on record the deep and mounting concern of the government of Khyber Pakhtunkhwa regarding the persistent failure to release constitutionally guaranteed federal transfers.” He added that this failure “has now translated into an acute fiscal and governance crisis for the province.”
Afridi emphasized that KP’s 2025-26 budget was framed strictly based on clear constitutional entitlements, including net hydel profits, oil and gas royalties, post-merger NFC shares, and regular monthly NFC transfers. “These were not discretionary assumptions but binding fiscal obligations,” he noted, adding that actual federal releases have consistently fallen short of budgeted levels.
Of particular concern, Afridi said, is the withholding of routine monthly NFC transfers, calling it a practice “that finds no sanction in the Constitution and strikes at the core of cooperative federalism.” He maintained that while KP is entitled to Rs658.4 billion under the NFC, only Rs604 billion has been released so far, creating a shortfall of Rs54.4 billion.
The Chief Minister highlighted the impact on the merged districts, where development and stabilization remain national priorities. Despite a provincial allocation of Rs292 billion, federal releases have amounted to just Rs56 billion, undermining essential public services and eroding the objectives of the merger.
Afridi also noted that the province is bearing disproportionate costs related to counter-terrorism operations, flood response, rehabilitation, and support for temporarily displaced persons, describing the financial burden as “extraordinary and unavoidable.”
The KP CM urged the federal government to take immediate corrective action, including the unconditional release of all pending federal dues—particularly routine NFC transfers, net hydel profits, oil and gas royalties, and allocations for the merged districts—in strict accordance with constitutional provisions and agreed fiscal arrangements.
“Any further delay will only compound the province’s fiscal stress and weaken governance capacity at a critical juncture,” Afridi warned, urging Prime Minister Sharif to give the matter urgent and personal attention.
