Peshawar: Khyber Pakhtunkhwa (KP) has become the first province in Pakistan to actively reduce its debt, according to Muzammil Aslam, Advisor to the KP Chief Minister on Finance and Interprovincial Coordination.
The provincial government has deposited PKR 30 billion into the Debt Management Fund, with plans to contribute an additional PKR 30–40 billion, depending on the financial situation.
In a video statement released on Tuesday, Aslam explained that the Debt Management Fund can accommodate up to 10% of KP’s total debt of PKR 725 billion. The province has already initiated transfers and remains committed to reducing its financial liabilities.
Aslam also highlighted recent achievements, including the allocation of PKR 20 billion each to pension and gratuity funds over the past six months and generating PKR 3–4 billion in profits through effective fund management. Additionally, KP has secured advance funds for three months’ worth of salaries, marking a significant improvement over previous challenges in salary disbursements.
The Advisor emphasized KP’s commitment to eliminating debt and stabilizing the economy under the leadership of Chief Minister Ali Amin Khan Gandapur and in alignment with the vision of PTI founder Imran Khan.
He also criticized the federal government for its unsustainable financial policies, pointing out that Pakistan’s national debt has reached PKR 70,400 billion, with PKR 1,248 billion added in November 2024 alone. Aslam noted that this amount exceeds KP’s total debt of PKR 725 billion accumulated over 77 years. He further stated that the country’s debt has increased by PKR 27,000 billion since April 2022.
Aslam urged the federal government to adopt more responsible fiscal practices, citing KP’s success in debt reduction as a model for other regions and the federal government to follow.
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