PESHAWAR — Federal tax revenues in Pakistan could fall short by Rs800 billion to Rs1,000 billion in the current fiscal year, according to Khyber Pakhtunkhwa (KP) Finance Adviser Muzzammil Aslam.
In a statement issued from his office on Wednesday, he also said that the Public Sector Development Programme (PSDP) has been reduced by Rs180 billion, further tightening fiscal space at the federal level.
He warned that these developments will have direct financial implications for Khyber Pakhtunkhwa, estimating a revenue shortfall of around Rs120 billion for the province.
Aslam noted that the provincial government has already spent more than Rs10 billion on flood relief operations and Rs15 billion on rehabilitation of Internally Displaced Persons (IDPs). In addition, nearly Rs10 billion has been disbursed as fuel compensation for motorcyclists, farmers, and public transport operators.
He said these combined expenditures have pushed Khyber Pakhtunkhwa’s financial burden to nearly Rs150 billion, with additional relief and rehabilitation costs still ongoing.
The adviser cautioned that continued pressure on federal revenues and development spending cuts could further strain provincial finances and limit fiscal planning in the coming months.
