Differences between the federal government and Khyber Pakhtunkhwa over the redistribution of resources under the National Finance Commission have not been resolved, sources said.
The KP government is dissatisfied over not receiving what it says are required resources for the merged tribal districts and has decided to approach the Federal Constitutional Court soon.
Sources said the provincial government is concerned that funds have not been provided for the merged tribal districts.
Officials said around 6.1 million people of the former tribal areas have been merged with Khyber Pakhtunkhwa, increasing the province’s financial responsibilities.
Constitutional court may be approached
According to sources, the KP government has decided to take the matter to the Federal Constitutional Court. Once consultations are completed, the provincial government may approach the court next week, sources added.
Sources said the provincial government has also taken the IMF into confidence on the issue. According to the KP government, if additional resources are not provided by the federation, maintaining financial discipline will become difficult.
Expenses rise due to security, merged districts
The provincial government has complained that its expenses have increased due to the merged districts and security-related needs. KP has also raised concerns about receiving less money from the federation despite the added financial burden.
Sources said a letter has also been written to the Federal Ministry of Finance to increase KP’s share in the NFC. The province wants its share revised in line with the additional population and responsibilities after the merger of former tribal areas.
Finance Ministry calls key meeting
The Federal Ministry of Finance has called an important meeting of provincial finance ministers, sources said. The meeting will include a detailed discussion on the fiscal position between the federation and the provinces.
Sources said the new fiscal year budget and progress in NFC working groups are also expected to come under discussion. The issue of resource redistribution under the NFC remains central to the ongoing dispute between the federation and Khyber Pakhtunkhwa.
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