The Chief Minister of Khyber Pakhtunkhwa, Muhammad Sohail Afridi, voiced serious concern after a federal high-level meeting on the national and regional crisis was abruptly cancelled without explanation, questioning the federal government’s commitment to cooperative federalism and coordinated policy response. He said the provincial leadership had taken a principled decision to participate in the meeting in the national interest despite deep political differences and sustained political victimization of Pakistan Tehreek-e-Insaf over the last three years.
Pointing to heightened regional tensions involving Iran, Israel and the United States, the Chief Minister warned that implications for Pakistan are significant and far-reaching and lamented that the federal government has not meaningfully engaged Parliament or the public to provide transparent policy direction. He stressed that decisions with national consequences extend well beyond any single family or institution and must include all stakeholders in an open and consultative manner.
On intergovernmental fiscal relations the Chief Minister raised alarm over the stalled committee meeting on the Accelerated Implementation Programme AIP, saying the federal side had informed the province it could not attend. Under the AIP for the merged districts the federal government had committed PKR 100 billion annually for 10 years, yet, he said, only PKR 168 billion of the agreed PKR 700 billion has been released to date, leaving PKR 532 billion outstanding and with no allocation in the current fiscal year. The provincial government has provided bridge financing of PKR 26 billion from its own resources to sustain development activities in the merged areas.
The Chief Minister argued that the share of the merged districts has not been properly reflected in the NFC framework and described this as inconsistent with constitutional provisions. He further stated that around PKR 964 billion due to Khyber Pakhtunkhwa and the merged districts over the past eight years has not been allocated to them, with Punjab reportedly receiving PKR 567.9 billion, Sindh PKR 278.1 billion and Balochistan PKR 118.1 billion instead.
Contrasting provincial austerity measures with federal spending, the Chief Minister noted that Khyber Pakhtunkhwa has implemented sustained reductions in fuel use for public officials, restricted procurement of new vehicles, limited foreign travel pending cabinet approval and shifted toward virtual meetings. He criticized recent federal expenditures, pointing to more than USD 5 billion in new borrowing over seven months and continued high-value spending including procurement of luxury aircraft and hiring pilots on salaries reported at USD 70,000, which he said raise serious questions about fiscal priorities amid rising public hardship.
Highlighting the economic outlook, he said GDP growth has fallen from 6.1 percent before the 2022 change of government to below 3 percent today, with contraction in industrial activity, closures in the textile sector, a trade deficit exceeding USD 20 billion, declining exports, increased outward migration of young people and stress in the agricultural sector affecting farmers’ livelihoods. He pointed to sharply higher fuel prices, noting petrol near PKR 321 per litre compared with around PKR 150 per litre during the previous government even though global oil prices then were in the range of USD 117–120 per barrel versus roughly USD 85 per barrel now.
Chief Minister Muhammad Sohail Afridi reaffirmed that the Government of Khyber Pakhtunkhwa remains committed to national stability and is ready to contribute constructively during crises, but emphasized that the burden of sacrifice must be shared equitably among federating units, especially in financial terms. He urged the federal government and relevant institutions to adopt a more transparent, consultative and inclusive approach by engaging Parliament and the public, and to take timely, coordinated measures to address the country’s evolving challenges.
