KP Budget: A bloated salaries and pension bill

The province of Khyber Pakhtunkhwa has been facing a severe cash crunch for the last year because the centre is not fully paying its net hydel profits (NHP) and has also stopped funds committed for the erstwhile tribal areas. The previous government of PTI in the province was forced to borrow Rs285 billion from the State Bank of Pakistan under the ‘Ways & Means’ facility to pay salaries and pensions to its employees on time. It had repeatedly accused the PDM coalition led by the Noon League of ‘victimising’ the PTI administration by stopping funds for political reasons. The situation has somewhat changed since federal assistance seems to have increased. It is evident from the fact that the caretaker setup hasn’t borrowed any money from the central bank to pay its salary and pension bill after March.