ISLAMABAD: The federal government of Pakistan has transferred approximately Rs8.4 trillion to Khyber Pakhtunkhwa (KP) since July 2010, according to data released by the Ministry of Finance.
Official financial data has contradicted the KP chief minister’s long-standing claim of Rs2.2 trillion in pending federal dues, showing that the federal government has transferred Rs8,404 billion (Rs8.4 trillion) to the KP government between 2010 and November 2025, according to the Ministry of Finance.
The figures indicate that 100% of KP’s share under the National Finance Commission (NFC) Award—amounting to Rs5,867 billion—has been released since 2010, with no outstanding arrears.
Under the NFC mechanism, provinces receive funds regularly every 15 days. Most recently, the federal government released Rs46.44 billion to KP under the NFC on December 17, 2025.
In addition, KP has received Rs705 billion since 2010 under the additional 1% NFC share granted to compensate for the burden of terrorism.
The province has also been paid Rs482.78 billion through straight transfers, including royalties, Gas Development Surcharge (GDS), and excise duties.
For the newly merged districts, the federal government has transferred Rs704 billion from its own share since 2019. Moreover, Rs117.166 billion has been provided over recent years to support internally displaced persons (IDPs).
Under the federal development programme, Rs115 billion has been released for KP-based projects. Separately, Rs481.433 billion reached beneficiaries in KP through the Benazir Income Support Programme (BISP) between 2016 and 2025.
Financial experts clarify that PSDP funds are not automatic provincial dues but are released based on project progress and physical and financial performance. Presenting delayed or unutilized PSDP funds as NFC arrears or federal liabilities, they say, reflects a misinterpretation of fiscal rules and budgetary discipline.
Experts conclude that these figures fully refute claims that the federal government has withheld KP’s financial rights or owes the province a large unpaid amount.
The Ministry of Finance said the federal government is taking concrete steps to further strengthen the NFC framework, including the establishment of the 11th NFC Award, formation of sub-groups, and enhanced provincial consultations.
The federal government reiterated that its priority remains to provide transparent, fair, and performance-based financial support to Khyber Pakhtunkhwa in addressing challenges related to security, rehabilitation, integration, and development.
