Financial crisis prevents KP from financing 28 projects in the tribal belt

PESHAWAR: Khyber Pakhtunkhwa (KP) government failed to fund 28 Industries Department development projects under ADP [Annual Development Program] in the tribal belt due to the ongoing financial crisis.

The provincial government has allocated 1.3 billion rupees for industry department projects in seven tribal districts in the current fiscal year ADP, of which the department has used only 216 million rupees in the first quarter of the year.

The KP government had included 50 ongoing and new projects for the department in the ADP from which no funds could be released for two of the three projects of the Khyber Pakhtunkhwa Economic Zones Development and Management Corporation (KPEZMDC) . Similarly, no funds were released for the other three Department of Industry projects included in the ADP. The documents show that three projects launched under the public-private partnership (PPP) also failed to receive funds.

According to documents from the provincial finance department, the provincial government was also unable to release funds for 16 of the seventeen projects of the Technical Education and Training Authority (TEVTA), while the funds could only be provided to one project.

Sources from the KP Finance Department said that these projects were launched under the Accelerated Implementation Program (AIP) which also includes Insaf Rozgar Program, Economic Zones in Tribal Districts, Free Microfinance Program and the development of small industry in the tribal belt, for which most of the funds have been provided by the federal government.

According to sources, the provincial government was supposed to release funds for most of these programs, but the federal government stopped the transfer of funds to the province due to a severe financial crisis. Acting Governor and KP Assembly Speaker Mushtaq Ahmed Ghani has made it clear that the province’s financial situation has been deteriorating since the federal government stopped funding the province.

Sources from the Planning and Development Department (P&D) said that currently more than 70% of the projects included in the province’s ADP have been stopped. The sources said that due to financial difficulties, most major plans have been excluded from the province’s current ADP.

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