KP likely to contribute Rs180bn to federal fiscal target

The Khyber Pakhtunkhwa (KP) government has indicated its willingness to contribute to the federal government's ambitious fiscal target of Rs1.2 trillion

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has indicated its willingness to contribute to the federal government’s ambitious fiscal target of Rs1.2 trillion for the upcoming financial year, according to officials familiar with the matter.

Sources in the provincial Finance Department said KP is prepared to play its part if all provinces collectively agree to support the federation’s fiscal framework. Officials noted that the province’s potential contribution is estimated at around Rs180 billion, which would form part of the federal government’s broader effort to secure Rs1.2 trillion from provincial governments.

The issue is expected to be discussed in detail during the meeting of the National Economic Council (NEC), scheduled to be held today under the chairmanship of Prime Minister Shehbaz Sharif. The meeting is considered crucial as the federal government finalizes budgetary arrangements and seeks provincial cooperation to meet key economic and fiscal objectives.

According to preliminary information, Punjab and Sindh have already expressed their willingness to contribute their respective shares toward the federal target. Khyber Pakhtunkhwa is expected to formally present its position during the NEC session, where provincial representatives will discuss financial commitments and development priorities for the next fiscal year.

Sources said the KP government’s stance will be presented by the Adviser to the Chief Minister on Finance. Senior provincial officials and representatives have traveled to attend the NEC meeting, where a final decision regarding the province’s contribution is likely to be made.