KP CM rejects Rs6.4b federal deduction, vows legal challenge

Peshawar - Chief Minister Khyber Pakhtunkhwa Sohail Afridi has rejected the federal government's decision to deduct Rs6.4 billion at source from the province's federal fiscal transfers for July, terming the move unconstitutional and without any legal or constitutional basis. He said the provincial government had neither consented to the deduction nor approved any arrangement with the federal government for the payment of the additional amount, and would challenge the move before every available legal, constitutional and institutional forum. KP Excise teams seize 36kg hashish, 1.5kg ice in Peshawar, Charsadda Sohail Afridi said that, before the federal budget for the current financial year was finalised, the federal government had sought additional funding from Khyber Pakhtunkhwa, as it had from other provinces. If the Federal Board of Revenue (FBR) achieved its tax collection target of Rs15,260 billion, the province's share under the proposed arrangement would have been approximately Rs175 billion, he added. The Chief Minister said he had made his agreement to the proposed arrangement conditional on a meeting with and approval from his leader, Imran Khan. He said another condition was that the merged districts should receive their constitutional and legitimate share under the 11th National Finance Commission (NFC) Award. Kundi urges cadets to pursue education, character-building According to Mr Afridi, the federal government had agreed to provide the merged districts their due fiscal share within six months and the commitment had been incorporated into the proceedings of the National Economic Council (NEC). He said it had also been agreed that, if the due share was not provided within six months, the matter would be taken up under the 7th NFC through a summary to the Prime Minister and the President, followed by promulgation of an ordinance in accordance with the Constitution. Sohail Afridi said that, as he had not been allowed to meet Imran Khan, the provincial government had neither approved nor signed a memorandum of understanding (MoU) with the federal government concerning the proposed additional funding. KP govt launches drive to enrol 2.6m out-of-school children Consequently, he said, the amount had not been incorporated into the Khyber Pakhtunkhwa budget for FY2026-27 and no allocation had been made for the proposed arrangement. Despite this, the Ministry of Finance on August 5 instructed the relevant authorities to deduct Rs6.4 billion at source from the federal fiscal transfers due to Khyber Pakhtunkhwa for July, he said. The Chief Minister noted that the instructions had been issued on the day the provincial government held a public gathering in Peshawar to protest against what it described as the three-year imprisonment of Imran Khan. Seven terrorists killed in Kharan intelligence-based operation He said the deduction had been ordered without prior consultation with the provincial government, which had neither approved nor consented to it. Sohail Afridi said the Khyber Pakhtunkhwa Finance Department had conveyed the provincial government's position to the Accountant General, Khyber Pakhtunkhwa, through a letter dated August 13, making it clear that the government did not consent to the proposed deduction. He maintained that the issue was not merely a matter of political disagreement but concerned the constitutional and fiscal rights of the province. Any deduction from Khyber Pakhtunkhwa's constitutional fiscal entitlement, he said, must have a clear constitutional or legal basis and could not be made without the province's consent. The Chief Minister said Finance Adviser Muzammil Aslam, on his instructions, had immediately met relevant officials of the Accountant General's office in connection with the matter. Following the meeting, a formal letter was also issued, urging the authorities to refrain from making the Rs6.4 billion deduction or taking any related action without the provincial government's consent. He added that the Khyber Pakhtunkhwa government had already filed a petition before the Federal Constitutional Court seeking enforcement of what it described as the province's constitutional right under the National Finance Commission framework. Sohail Afridi reiterated that his government would not compromise on Khyber Pakhtunkhwa's constitutional, fiscal or NFC-related rights and would resist what it considered any unconstitutional action by the federal government. He said the provincial government would pursue every available legal, constitutional and institutional avenue to protect its rights and defend what he described as every rupee of Khyber Pakhtunkhwa's rightful fiscal share. Tags: rejectsfederaldeductionvows