ISLAMABAD: According to official data issued by the Ministry of Finance, the federal government transferred Rs 8,404 billion (Rs 8.4 trillion) to the Government of Khyber Pakhtunkhwa (KP) between 2010 and November 2025.
The disclosed figures challenge the recurring claim by the Chief Minister of Khyber Pakhtunkhwa that Rs 2,200 billion in federal payments remain outstanding.
Details of Federal Disbursements
NFC Share (2010–2025):
KP has received its entire NFC entitlement amounting to Rs 5,867 billion. Officials confirmed that NFC transfers are made fortnightly, leaving no pending arrears.
On 17 December 2025, KP received Rs 46.44 billion under the NFC mechanism. 1% Additional Share for
Since 2010, KP has been provided Rs 705 billion to offset the financial burden of terrorism.
KP received Rs 482.78 billion in royalties, Gas Development Surcharge (GDS), excise duties, and other straight transfers since 2010.
From 2019 onwards, the federal government transferred Rs 704 billion from its own share for the development of the newly merged districts.
Support for Internally Displaced Persons (IDPs), An additional Rs 117.166 billion was allocated over recent years for IDP-related needs.
Rs 115 billion was released for KP-based projects under the Public Sector Development Programme (PSDP).
Benazir Income Support Programme (BISP), Between 2016 and 2025, Rs 481.433 billion reached KP beneficiaries directly through BISP.
Economic experts noted that PSDP allocations are performance-linked, not guaranteed provincial entitlements. Fund releases depend on:
Project execution
Physical progress
Financial utilization
Projects showing minimal or no progress do not qualify for automatic funding. Labeling unreleased PSDP funds as NFC arrears or federal dues, experts say, reflects a misreading of fiscal and budgetary rules.
Analysts conclude that the financial data disproves assertions that the federal government has withheld KP’s due funds or that large unpaid amounts remain.
The Ministry of Finance stated that steps are underway to further strengthen the NFC
Initiating the 11th NFC Award
Creating specialized sub-committees
Expanding consultations with provinces
The federal government reaffirmed its commitment to providing transparent, equitable, and performance-based financial support to Khyber Pakhtunkhwa, particularly in areas of security, post-conflict recovery, regional integration, and development.
