Islamabad – The federal government has issued detailed financial data rejecting allegations by the Chief Minister of Khyber Pakhtunkhwa (KP) that the province has been denied its due share of funds, stating that more than Rs8,404 billion (Rs8.4 trillion) has been transferred to the KP government over the past 15 years.According to official documents released by the Ministry of Finance, the federal government provided a total of Rs8,404 billion to Khyber Pakhtunkhwa between 2010 and November 2025 under various heads.
The data shows that under the National Finance Commission (NFC) Award alone, KP received its full 100 percent share amounting to Rs5,867 billion during this period.The Ministry of Finance clarified that NFC transfers are made regularly every 15 days and that there are no outstanding arrears.It added that as recently as December 17, 2025, the federal government released Rs46.44 billion to the KP government under the NFC framework.
The documents further reveal that since 2010, Khyber Pakhtunkhwa has received an additional one percent share under the NFC Award to compensate for the financial burden of terrorism, totaling Rs705 billion to date.In addition, the province received Rs482.78 billion under straight transfers since 2010, including royalties, Gas Development Surcharge (GDS), and excise duties.For the newly merged tribal districts, the federal government transferred Rs704 billion from its own share between 2019 and the present.
The federal government also provided Rs117.166 billion in additional funds over recent years for internally displaced persons (IDPs) in Khyber Pakhtunkhwa.Under the federal Public Sector Development Programme (PSDP), Rs115 billion has been released for development projects in the province.Separately, under the Benazir Income Support Programme (BISP), an amount of Rs481.433 billion was disbursed directly to the public in Khyber Pakhtunkhwa between 2016 and 2025.The Ministry of Finance emphasized that PSDP funds are not automatic entitlements for provinces, but are released based on project progress and physical and financial performance.It noted that projects with limited or no progress do not qualify for automatic disbursements, and funds are released in phases subject to performance benchmarks.
The ministry stressed that presenting delays in PSDP funding as NFC arrears or federal liabilities reflects a serious misinterpretation of fiscal discipline and budgetary rules.According to the federal government, the released figures, comprehensively refute, the narrative that KP’s financial rights have been withheld or that substantial federal dues remain unpaid.The government reiterated its commitment to strengthening the NFC system through practical measures, including the formation of the 11th NFC Award, establishment of sub groups, and continued consultations with provinces.