The Khyber Pakhtunkhwa (KP) government has asked the federal government to release net hydel profit to the province to avert a default like situation.
Sources privy to the meeting between KP Finance Minister Taimur Saleem Khan Jhagra and Federal Minister for Finance and Revenue Shaukat Tarin, informed that the province is facing a liquidity crunch, and that is why the provincial minister has asked for the release of Rs. 50 billion outstanding amount on account of net hydel profit to the province.
According to the provincial government’s budget documents presented in the KP Assembly in June 2021, KP received Rs. 19 billion net hydel profit against the projected amount of Rs. 58.3 billion in FY 2020-21 and Rs. 74.7 billion is estimated against net hydel profit for FY 2021-22.
Sources in the provincial capital say that the federal government has not given any net hydel profit to the province in the last year, and the provincial government is relying on the overdraft from the banks.
KP Finance Minister Taimur Saleem Khan Jhagra was contacted and sent questions regarding this development but he didn’t answer till the filing of this story.
The Ministry of Finance issued a press release regarding the meeting and said that the provincial minister briefed the finance minister about the financial performance of the KP government and highlighted the ongoing projects in the province.
According to the press release, Tarin was briefed regarding steps taken to mitigate the inflationary pressures in the province. The federal minister was informed that the provincial government is set to establish over 100 sasta bazaars in the province to provide subsidized essential commodities to the citizens.
The press release said that the federal minister appreciated the efforts of the KP finance minister and ensured full support and cooperation of the federal government.
