The Khyber Pakhtunkhwa (KP) government has requested an additional Rs40 billion for the tribal areas in the upcoming fiscal year 2024-25 budget from the federal government.
According to details, the KP government has formally asked the federal government to allocate ₹106 billion for the tribal districts in the new financial year's budget. This issue is set to be discussed in the upcoming Executive Committee of the National Economic Council (ECNEC) meeting in Islamabad.
Sources within the provincial finance ministry indicate that the federal government has not increased the budget for the tribal areas. Finance Advisor Muzamil Aslam will represent the KP government at the ECNEC meeting. A comprehensive press conference regarding KP's economic situation is expected from the finance advisor following the meeting.
The provincial finance ministry has requested additional funds for the tribal areas in the new fiscal year's budget and has written to the federal finance minister, but no response has been received yet.
Sources further explain that salary increases of 35 percent and now 25 percent have significantly raised the expenditure budget for the tribal areas.
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Last year, Rs. 66 billion was allocated for the tribal districts, and the same amount has been allocated for the current fiscal year. The provincial finance ministry points out that while the budget for Gilgit-Baltistan increased by 52% and the budget for Kashmir by 34%, the budget for the tribal areas remained stagnant.
The lack of budget increase for the tribal districts may exacerbate existing problems. Even during the current financial year, Rs. 22 billion has not been released. The tribal areas require ₹144 billion, but only ₹66 billion has been allocated, necessitating an additional Rs. 40 billion.
Thus, there is a need to allocate Rs. 106 billion in the next financial year's budget. The tribal areas are currently facing significant law and order issues, yet funds have not been released for counter-terrorism efforts. This critical matter will be raised at the ECNEC meeting.
