Khyber-Pakhtunkhwa is facing severe financial crisis for the last so many years. Rather than stabilising, the crisis is deepening due to spiraling energy costs, unchecked inflation, a volatile border policy with Afghanistan and persistent threat of terrorism. These challenges have collectively eroded the province's fiscal capacity and stalled both its economic growth and social development.

The situation is further exacerbated by structural issues. The Newly Merged Districts (NMDs), with a population of 24.149 million, and Malakand Division, home to 10 million people, have rising expectations for basic services. Yet, with a limited taxable population and chronic tax evasion, the burden is disproportionately borne by the rest of the province. This fiscal imbalance hampers the government's ability to invest in education, healthcare and infrastructure development - areas that fall squarely within the provincial domain under the Constitution.

While the Constitution entrusts provinces with responsibility for social services and development, these obligations remain unfulfilled due to the federal government's delays and reluctance in releasing constitutionally mandated funds - particularly under the Net Hydel Profit (NHP) mechanism as per the AGN Qazi Methodology.

To break this deadlock and enable meaningful development, K-P, like other provinces, is fully justified in demanding the convening of the 11th National Finance Commission (NFC).........

© The Express Tribune