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Published 20 May, 2025 04:51pm

KP writes to WAPDA over billions in unpaid federal dues

The Khyber Pakhtunkhwa (KP) government has once again written to the federal government over the non-payment of outstanding dues, seeking the release of Rs68.71 billion owed by the centre.

The letter was addressed to the Chairman of the Water and Power Development Authority (WAPDA).

According to the letter, the KP government has yet to receive the full amount of financial dues from the federal government despite multiple reminders. The province is still awaiting Rs68.71 billion in total outstanding payments under various heads.

The letter further detailed that out of Rs37 billion owed for the previous fiscal year, only Rs28 million has been received so far, leaving Rs8.56 billion still pending.

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In addition, the province is awaiting Rs27 billion under the Net Hydel Profit (NHP) category for the period from July 2024 to April 2025. The KP government also noted that annual increments of 5% on NHP, agreed to since 2016, remain unpaid. The cumulative outstanding amount under this head is Rs41.14 billion.

The letter emphasised that clearing these dues would significantly improve the province’s financial condition, especially amid increasing budgetary pressures. The KP government urged the federal authorities to take immediate steps to address the matter.

This is not the first time the provincial government has raised concerns over the delayed release of its constitutional and financial entitlements. The issue of NHP and other intergovernmental transfers has remained a point of contention between the federation and the province for years.

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