KP CM warns govt over province's energy, resource rights

Peshawar - Chief Minister Khyber Pakhtunkhwa Sohail Afridi has said the province's hydropower, oil, gas and LPG resources are making a significant contribution to meeting Pakistan's overall energy requirements. However, despite being a major contributor to the country's energy supply, the people of Khyber Pakhtunkhwa continue to be denied their rightful share and due benefit from the province's own resources, a situation that is no longer acceptable, he said. He expressed these views while presiding over a meeting of the Energy and Power Department. The meeting was briefed in detail on ongoing development projects of the Energy and Power Department, energy generation, the provincial transmission and grid system, natural resources, outstanding federal dues and other key matters concerning the province's energy sector. The meeting was informed that Khyber Pakhtunkhwa contributes more than 70 percent of the country's total hydropower generation to the national grid. However, in the absence of a provincial transmission line following the 18th Constitutional Amendment, the province is compelled to sell the electricity it generates to the federal government. The Chief Minister said that while Khyber Pakhtunkhwa was making such a substantial contribution to the country's energy requirements, outstanding Net Hydel Profit (NHP) dues payable by the federal government under the AGN Kazi formula had exceeded Rs2,300 billion. The meeting was further informed that, under the earlier interim arrangement, more than Rs78 billion in regular NHP payments also remained outstanding against the federal government. The meeting was informed that despite producing more than 70 percent of the country's hydropower, Khyber Pakhtunkhwa had received less in NHP payments than Punjab. During the past three years, Khyber Pakhtunkhwa received Rs87.7 billion in NHP payments, compared with Rs160.8 billion received by Punjab. CM Afridi said delays in NHP payments and disproportionate disbursements were adversely affecting the province's fiscal position. The meeting was informed that Khyber Pakhtunkhwa had approached the Council of Common Interests (CCI) on the issues of five percent annual indexation of NHP, outstanding arrears, late-payment surcharge and the mechanism for direct payments. The meeting was informed that Khyber Pakhtunkhwa was establishing its own provincial transmission and grid system to ensure reliable electricity transmission and meet the requirements of the industrial sector. The province was also strengthening its transmission, regulatory and distribution systems at the provincial level. The Chief Minister directed that the provincial transmission line project be presented at an investors' conference. He said the project was highly profitable and that a number of countries were interested in investing in it. The meeting was informed that the overall portfolio of energy projects being developed by the Pakhtunkhwa Energy Development Organization (PEDO) stood at approximately 7,890 MW. PEDO's 224 MW of operational projects generated Rs8.829 billion in revenue during fiscal year 2025-26. Chief Minister Sohail Afridi said that despite the province's natural resources and energy production, failure to ensure that the people of Khyber Pakhtunkhwa received their due benefit from these resources constituted a violation of their constitutional rights. The meeting was informed that, under Article 158 of the Constitution, Khyber Pakhtunkhwa had priority in the use of natural gas produced within the province. The meeting was further informed that Khyber Pakhtunkhwa accounted for 48 percent of the country's total crude oil production. It was recommended that the federal excise duty levied at the wellhead in Khyber Pakhtunkhwa be paid to the province in accordance with Article 161 of the Constitution. The meeting was informed that Khyber Pakhtunkhwa currently produced 850 tonnes of LPG per day against provincial daily consumption of 600 tonnes. The province accounted for 38 percent of Pakistan's total LPG production. The meeting recommended that 10 percent of LPG production be allocated to Khyber Pakhtunkhwa under the LPG Policy 2016. The briefing noted that an allocation of 75 tonnes of LPG per day, representing the 10 percent share, could meet the annual requirements of approximately 245,000 households. It was further informed that allocating 10 percent of LPG production to the province could save approximately 2,440 hectares of forest annually. The Chief Minister directed that all matters concerning the province's constitutional and financial rights be taken up with the federal government through a strong and formal institutional process, and that every available constitutional and legal avenue be pursued for their resolution. Tags: warns govtprovinceenergyresource