Khyber Pakhtunkhwa Chief Minister Accuses Federal Government of Massive Corruption

Claims of misappropriation of PKR 5.3 trillion; provincial development and NFC funds under spotlight

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Peshawar, Pakistan – Khyber Pakhtunkhwa (KP) Chief Minister, Muhammad Sohail Afridi, has accused the federal government of misappropriating PKR 5,300 billion (around USD 18 billion) in public funds. He made the remarks during a ceremony at the Engineering University in Peshawar. Consequently, Afridi highlighted serious concerns over transparency and provincial funding.

Allegations of Corruption

CM Afridi criticized the federal government for using taxpayers’ money to buy overseas properties, including luxury flats and islands. Moreover, he said these purchases violated public trust and diverted funds from essential domestic needs.

This is our people’s money. Therefore, it should serve public welfare, not foreign assets, Afridi said.

His remarks add pressure on the federal government, which has not responded publicly. As a result, scrutiny of Islamabad’s spending practices could intensify.

NFC Shares and FATA Merger Funds

Afridi also raised concerns over KP’s share in the National Finance Commission (NFC) award, particularly after the merger of the former Federally Administered Tribal Areas (FATA) with the province.

Under the NFC formula, KP’s share should have risen to 19% after the merger. However, Afridi claimed the province has not received about PKR 35 billion annually for the past seven years. Consequently, the shortage has caused severe financial difficulties.

The NFC award distributes revenue between Pakistan’s federal government and its provinces. Furthermore, disputes over provincial shares, especially after administrative changes like the FATA merger in 2018, have fueled tensions with Islamabad.

Provincial Development Initiatives

CM Afridi also chaired a meeting of Peshawar parliamentarians. In the session, they discussed over PKR 100 billion in development projects, including infrastructure, healthcare, and education initiatives.

Afridi promised a grand meeting to finalize the plans soon. In addition, he emphasized the need for rapid urban development to improve living standards.

Peshawar’s growth is key for KP. Therefore, we will ensure the city develops efficiently, Afridi said.

Broader Context

Pakistan continues to face persistent corruption concerns. According to Transparency International’s 2024 Corruption Perceptions Index, Pakistan ranks 150th out of 180 countries. This ranking highlights ongoing challenges in governance and accountability.

KP’s push for its NFC share reflects broader provincial demands for financial autonomy. Experts say delayed funding has slowed development projects and strained public services.

Moreover, Afridi’s allegations and development plans show growing tension between the federal and provincial governments. As a result, the dispute over funds could affect services for millions of people in KP.

As Pakistan struggles with inflation and fiscal deficits, these financial debates are likely to intensify. Therefore, the federal government’s response could influence political relations and the delivery of public services.

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