KP finance adviser says debt reduced

PESHAWAR: Adviser to the Chief Minister on Finance and Interprovincial Coordination, Muzammil Aslam, has claimed Khyber Pakhtunkhwa has become the first province to reduce its debt.

The provincial government has deposited a substantial amount of Rs 30 billion into the Debt Management Fund, with plans to contribute an additional Rs 30 - 40 billion, depending on the financial landscape, he said in a video message on Tuesday as per a handout.

Muzammil Aslam elaborated that the fund could accommodate up to 10 percent of KP’s total debt which he put at Rs 725 billion.

He said the KP had already initiated transfers and remained committed to reducing its financial liabilities, setting a benchmark for other provinces and the federal government.

The adviser highlighted KP’s recent accomplishments, including the allocation of Rs 20 billion each to pension and gratuity funds over the past six months, alongside generating Rs 3–4 billion in profits through efficient fund management.

Additionally, he added, KP had secured three months’ worth of advance salary funds, marking a significant improvement from past challenges in salary disbursements.

He emphasized that the KP government was steadfast in its goal to eliminate debt and stabilize the economy, aligning with the vision of Pakistan Tehreek-e-Insaf founder Imran Khan and under the leadership of Chief Minister Ali Amin Khan Gandapur.

The advisor criticized the federal government after accusing it of having unsustainable financial policies.

He said Pakistan’s national debt had surged to Rs 70,400 billion. He claimed that the federal government took Rs 1,248 billion debt in November 2024 alone, surpassing KP’s total debt of Rs 725 billion. Muzammil believed that the country’s debt had swelled by Rs 27,000 billion since April 2022.