The Khyber Pakhtunkhwa government refused to pay 6.4 billion
rupees in federal financial transfers, following instructions from the
federation.
According to Chief Minister Sohail Afridi, the federation
had demanded additional funds from Khyber Pakhtunkhwa before the budget was
submitted. Had the Federal Revenue Board (FRB) reached its target of 15.26
billion rupees, Khyber Pakhtunkhwa's share would have been 175 billion rupees.
The allocation of additional funds was contingent upon a meeting with the
founder of PTI.
Chief Minister Sohail Afridi stated that granting the merged
districts a legitimate share in the 11th National Finance Commission was also a
condition. The federation accepted the conditions for granting the merged
districts a share, and this was incorporated into the National Finance
Commission's procedures. If the required participation was not received within
six months, a summary and an ordinance would be issued under the 7th National
Finance Commission.
Sohail Afridi states that the memorandum of understanding
for the additional amount was not signed due to the inability to meet with PTI
founder Imran Khan, and that this additional federal grant amount was not
included in the provincial budget for fiscal year 2026-27.
According to Sohail Afridi, on August 5, the Finance
Ministry proposed a direct deduction of 6.4 billion rupees owed to Khyber
Pakhtunkhwa. The Khyber Pakhtunkhwa government neither approved nor accepted
the proposed deduction. The Finance Department made its opposition to the
deduction clear in a letter dated August 13.
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