PESHAWAR:Khyber Pakhtunkhwa Department of Finance organized a seminar to address the financing requirements for the development of the Merged Areas to build a consensus among those willing to take forward the needs of the province.
The seminar, held in Peshawar, brought together key government stakeholders, politicians, and provincial cabinet members for a dialogue on the under-financing experienced by the merged areas (MAs) and the possible short and long-term solutions.
In his opening remarks, KP Finance Secretary Muhammad Ayaz emphasized the need for discourse on pursuing an equitable financial share for the MAs in the National Financial Commission (NFC) Award post-merger and ensuring that it is compliant with the Constitution of Pakistan.
He highlighted the federal government’s mammoth development promise to the MAs – the Accelerated Implementation Programme (AIP), saying it is a significant step in the right direction. Yet, fund releases under the AIP have been dwindling over time.
Dr. Musharraf Rasool Cyan, a member of the KP NFC, in his presentation, discussed the often-overlooked implication of the 2018 Amendment, which grants the MAs equitable fiscal rights to public resources under the NFC, the body responsible for the distribution of public revenue in Pakistan.
Dr. Cyan’s research demonstrated that since the merger, not only the promised sum of Rs. 100 billion was not provided, but releases against budgets fell well short of what was allocated, depriving residents of the region of their constitutional right.
For the MAs, under the AIP, a sum of Rs. 30 billion was allocated this year, of which only Rs 3 billion have been released as the financial year ends.
The current NFC award was decided pre-merger when the population of the province was five million less than the inhabitants of ex-FATA.
The human development indicators of the MAs are comparable to Balochistan, but as of 2018, according to the research, Balochistan was receiving more than twice the funds per capita for solving the same problems of deprivation in the MAs.
Concluding the discussion, Himayat Ullah Khan, KP Advisor to Chief Minister on Finance, Energy and Power, reiterated the need to raise the issue of pursuing the due NFC share for the development of the MAs on various forums.
He pushed for improved collaboration between the political leadership and the bureaucratic system, as well as academia and the media community, to build public opinion and fulfill the promises made to people of the MAs at the time of the merger.
“The MAs are a critical region, currently at a critical point. As an advisor on both energy and finance, I can say unequivocally that the surest means of stabilization is through the fulfillment of the government’s promise of not just developing these areas – but developing them at an accelerated pace.”
Former senator and veteran politician Farhatullah Babar, Qaumi Watan Party Provincial Chair Sikandar Hayat Sherpao, KP’s caretaker Minister for Excise and Taxation Manzoor Afridi, and caretaker Minister for Local Government Advocate Sanwal Nazir were among those who participated in the discussion and pledged to take the issue forward irrespective of political affiliation.