KP makes history, becomes first province to pay off debt: Muzzammil Aslam

January 07, 2025 (MLN): Khyber Pakhtunkhwa (KP) has achieved a historic milestone by becoming the first province in Pakistan to actively reduce its debt, according to Muzammil Aslam, Advisor to the KP Chief Minister on Finance and Interprovincial Coordination.

The provincial government has deposited a significant amount of Rs30 billion into the Debt Management Fund, with plans to contribute an additional Rs30–40bn, subject to the financial landscape.

In a video statement issued Tuesday, Muzammil Aslam elaborated that the Debt Management Fund can accommodate up to 10% of KP’s total debt of Rs725bn.

The province has already initiated transfers and remains committed to reducing its financial liabilities, setting a benchmark for other provinces and the federal government.

 He highlighted KP's recent major achievements, including the allocation of Rs20bn each to pension and gratuity funds over the past six months, along with generating Rs3–4bn in profits through effective fund management.

Furthermore, KP has secured advance funds for three months’ worth of salaries, representing a significant improvement over previous challenges in salary disbursements.

KP Advisor on Finance also emphasized that the KP government is steadfast in its goal to eliminate debt and stabilize the economy, aligning with the vision of PTI founder Imran Khan and under the leadership of Chief Minister Ali Amin Khan Gandapur.

He criticized the federal government for its unsustainable financial policies, highlighting that Pakistan’s national debt has soared to Rs70,400bn.

He disclosed that the federal government incurred a staggering Rs1,248bn in debt in November 2024 alone, exceeding KP’s total debt of Rs725bn accumulated over 77 years.

He further pointed out that the country’s debt has increased by Rs27,000bn since April 2022.

The Advisor urged the federal government to adopt more responsible fiscal practices, drawing lessons from KP’s success in debt reduction and financial stewardship.

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