Rs8.4 trillion paid to KP: Official figures knock down Rs2,200bn dues narrative

A fresh set of official financial figures has reignited the debate over federal funding for Khyber Pakhtunkhwa (KP), sharply challenging the long-standing claim that the province is owed Rs2,200 billion by the federation.

According to detailed documents released by the Ministry of Finance, the federal government has transferred Rs8,404 billion (Rs8.4 trillion) to the KP government between 2010 and November 2025. The data presents a comprehensive breakdown of payments made under various heads, effectively undercutting the narrative of massive unpaid dues.

The largest portion of these transfers comes through the National Finance Commission (NFC) Award. Since 2010, KP has received Rs5,867 billion as its 100 percent NFC share, the ministry confirmed.

Officials emphasized that NFC funds are released every 15 days without interruption, leaving no pending arrears. As a recent example, KP received Rs46.44 billion on December 17, 2025, under the NFC mechanism alone.

Recognizing KP’s role on the frontline of the war on terror, the federation has also provided an additional 1 percent share since 2010. This special allocation has so far amounted to Rs705 billion, specifically to help the province manage security-related and post-conflict challenges.

Royalties, merged districts, and IDPs

Beyond NFC transfers, KP has received substantial amounts through other channels:

Rs482.78 billion under straight transfers, including royalties, Gas Development Surcharge (GDS), and excise duties
Rs704 billion transferred from the federal share for the newly merged districts since 2019
Rs117.166 billion provided for Internally Displaced Persons (IDPs) over the past several years

These figures reflect targeted federal support for some of KP’s most complex social and administrative challenges.

Development funds and social protection

Under the Public Sector Development Programme (PSDP), KP projects have received Rs115 billion. Financial experts clarify that PSDP allocations are not automatic liabilities. Funds are released in phases, based strictly on project progress and verified financial and physical performance.

In addition, the Benazir Income Support Programme (BISP) delivered Rs481.433 billion directly to beneficiaries in KP between 2016 and 2025, providing critical relief to millions of low-income households.