ISLAMABAD, Aug 26(ABC): Khyber Pakhtunkhwa’s Finance Minister Taimur Khan Jhagra Friday withdrew his commitment of providing provincial surplus for this fiscal year, putting the International Monetary Fund’s (IMF) programme at stake.
In a letter to Finance Minister Miftah Ismail, Jhagra said that the provincial government had signed a memorandum of understanding (MoU) in the “greater national interest.”
However, the KP finance minister refused to implement the IMF conditions and cited several reasons for withdrawing the commitment which includes a budget allocation for the former Federally Administered Tribal Area (FATA), commitment to monthly net hydel profits (NHP) transfers, monsoon flooding among other things.
“We estimate that the overall impact of not resolving these issues is actually to create a Rs 100 billion unfunded liability in the Khyber Pakhtunkhwa budget,” stated the letter.
It further added that the monsoon flooding has further worsened the situation of the province and caused destruction in Swat, DI Khan and Tank. “The cost in terms of rescue, relief, rehabilitation and building back is likely to run into the tens of billions,” it stated.
The provincial finance minister said that these conditions without the resolution make it “impossible” to leave a surplus.