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KP Ignored in Federal Budget, Says Finance Advisor Muzammil Aslam
Muzammil Aslam blasts federal govt for allocating just Rs 550M to KP in dev budget, while KP sets Rs 547B itself. “We’ve moved past blame politics.”
ND
by News Desk
2025-06-14
KP Ignored in Federal Budget, Says Finance Advisor Muzammil Aslam

Finance Advisor Muzammil Aslam has accused the federal government of ignoring Khyber Pakhtunkhwa (KP) in its development budget for FY2025–26, claiming that the province was allocated a mere Rs 550 million, despite contributing significantly to the country’s economy.

Speaking at a post-budget press conference, Aslam said this year marked a historic financial performance for the KP government, despite limited cooperation from the federation.

“We demanded inclusion and fair treatment in the federal development budget. Since we were ignored, we decided to increase our own development budget,” he said.

While the federal government allocated Rs 1,000 billion in its Public Sector Development Programme (PSDP), only a negligible share was earmarked for KP, Aslam pointed out.

Aslam also responded to skepticism about the health card scheme, saying,

“People questioned how we would sustain the health card. But we chose to move beyond blame politics and focus on delivering.”

Highlighting the province's fiscal strategy, he stated:

·       KP’s total revenue for the year is estimated at Rs 2,000 billion.

·       The development budget has been set at Rs 547 billion—nearly half of the federal development budget.

·       KP has already repaid Rs 150 billion of old debt, and the remaining Rs 170 billion was inherited from previous administrations.

He emphasized that any debt acquired was being channelled directly into development projects, not operational expenses.

Aslam’s remarks underline a growing sense of provincial marginalization, particularly in KP, where political and economic tensions with the federal government have continued to simmer. The KP government’s decision to ramp up its own development budget reflects an assertive push for fiscal independence and provincial empowerment.

 
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