Khyber Pakhtunkhwa Urges Federal Government to Pay Rs70 Billion in Hydel Profit Arrears


The Khyber Pakhtunkhwa (KP) government is pressing the federal government/Wapda to settle its outstanding Net Hydel Profit (NHP) dues totaling Rs70 billion. KP Chief Minister Ali Amin Ghandapur recently met with Prime Minister Shehbaz Sharif to address financial challenges faced by the province due to delayed payments from the federal government.

According to KP’s Finance Department, the non-payment of NHP has significantly impacted the province’s ability to meet its financial obligations for current and development expenditures as outlined in its budget. Despite KP residents regularly paying their electricity bills, the province has not received any NHP funds for the past five months, leading to financial strain.

The Finance Department highlighted that the federal government/Wapda’s failure to fulfill its constitutional obligation under Article 161(2) of the 1973 Constitution has exacerbated KP’s financial woes. The province has estimated Rs31.519 billion for FY 2023-24 as NHP, with Rs23.639 billion due for the first nine months of 2024 remaining unpaid.

Additionally, KP is seeking payment of arrears totaling Rs30.715 billion, including 5% indexation from FY 2015-16 to 2022-23, bringing the total outstanding amount to Rs90.081 billion. KP has reiterated its request for the federal government to clear these arrears promptly.

In a related development, KP has also raised concerns about energy wheeling arrangements and Use of System Charges (UoSC) to support the energy sector’s growth in the province. KP’s Advisor to the Chief Minister for Finance, Muzammil Aslam, emphasized the need for improved infrastructure and utilities to boost industrialization and economic development in KP.

The Finance Ministry has initiated inquiries into the NHP payable to KP by Wapda, signaling a potential resolution to the longstanding financial dispute between the federal government and KP.

Story by Mushtaq Ghumman

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