Centre agrees to resolve 'financial matters'
A meeting for the 11th National Finance Commission (NFC) has been scheduled for August, and the Center has also agreed to resolve outstanding financial matters concerning the merged tribal districts, which are administratively integrated but still face economic challenges.
Addressing a post-budget press conference in Peshawar on Saturday, Aslam revealed that K-P has presented its largest-ever budget, amounting to Rs2,119 billion. He noted that the province is on track to generate Rs93 billion from its own resources. "Whether the federation provides funds or not, we are committed to spending on the tribal areas from our own treasury," he declared. Aslam emphasized a shift away from reliance on federal support, announcing plans to construct the Peshawar-DI Khan Motorway independently.
He defended the provincial government's economic performance, recalling criticism when the current administration took office last year amid concerns of an empty treasury. "Today, we have presented a Rs157 billion surplus budget," he said, highlighting timely salary payments and increases of 10 per cent in salaries and seven per cent in pensions for government employees in the new fiscal year. The minimum wage has also been raised to Rs40,000.
Aslam contrasted K-P's development budget of Rs547 billion with the federal government's Rs1 trillion-plus allocation, pointing out that despite being a smaller province, K-P has managed substantial development spending. He acknowledged that while the province remains under debt — currently at Rs680 billion — loan repayments have been made and a dedicated repayment fund established.
He clarified that any current inflows under debt are part of previously agreed contracts, and there are no plans for new borrowing unless required for a major project.
Criticizing the center for sidelining K-P, he stated that only Rs550 million have been allocated to the province this year. "Despite minimal federal cooperation and receiving Rs90 billion less under NFC allocations, we increased our development budget," he noted. K-P also allocated Rs20 billion from its own funds to the tribal districts, demonstrating its commitment to inclusive development.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
6 hours ago
- Business Recorder
Indian rupee edges lower as dollar sales by foreign banks offset most of greenback demand
MUMBAI: The Indian rupee slipped on Wednesday, as corporate hedging and short-term speculators bolstered demand for the greenback, most of which was met by dollar sales by foreign banks. The rupee settled at 87.0650 to the U.S. dollar against its close of 86.9500 on Tuesday when it climbed the most in over a month, boosted by speculation over Russia-Ukraine peace talks. Traders said foreign banks were active sellers of dollars on Wednesday, limiting rupee depreciation despite significant hedging by importers. A rally in local equities and position squaring also helped the Indian currency recover after recent pressure, traders said. Recent weeks have seen the rupee's direction influenced by news around U.S. tariffs on India, S&P's upgrade of the nation's sovereign credit rating and Prime Minister Narendra Modi's planned tax cuts on goods and services. Foreign portfolio investors turned buyers of Indian assets in the past three sessions after net selling Indian markets in the last few weeks over tariff uncertainties. 'FPIs have turned steady buyers in Indian markets, encouraged by hopes that the U.S. may reconsider its plan to impose an additional 25% tariff on Indian exports,' said Amit Pabari, managing director at CR Forex. Indian rupee to shrug off dollar strength, recent weakening bias on pause The return of foreign inflows comes even as U.S. Treasury Secretary Scott Bessent on Tuesday accused India of profiteering from its purchases of Russian oil during the war in Ukraine. Other Asian currencies traded mixed on the day, while the dollar index was slightly higher at 98.21 as on 1549 IST. Rupee traders will also tune in to Federal Reserve Chair Jerome Powell's speech at Jackson Hole, Wyoming, on Friday, which may provide clues on the U.S.'s interest rate trajectory. 'A signal that cuts may be delayed could strengthen the dollar, while any indication of looser policy may weigh on it and encourage risk-on sentiment,' Pabari added.
Business Recorder
11 hours ago
- Business Recorder
Foreign banks lean against broad dollar demand, pin Indian rupee near 87/dollar
MUMBAI: The Indian rupee was largely flat on Wednesday, holding near 87 per dollar, amid dollar sales by foreign banks, which offset broader demand for the U.S. currency from corporates and short-term speculators. The rupee was at 87.0575 to the U.S. dollar at 10:52 a.m. IST, after trading between 87.1650 and 87.0050 through the session. Traders said foreign banks were active on offers for USD/INR, preventing the pair from pushing higher despite weaker Asian peers and hedging by importers. 'There's no shortage of dollar buyers. However, foreign banks have been hitting offers again, which is most likely driven by client flows,' a currency trader said. 'That's kept it (USD/INR) from moving up, like I had expected.' Fading risks of an upside breakout in USD/INR, a rally in local equities and position squaring have helped the Indian currency recover after recent pressure. In recent weeks, the rupee's direction has been dictated largely by domestic factors. News around U.S. tariffs on India has been a key driver, and more recently by S&P's upgrade of India's credit rating outlook and Prime Minister Narendra Modi's planned tax cuts on goods and services. On tariff-related news, U.S. Treasury Secretary Scott Bessent on Tuesday accused India of profiteering from its purchases of Russian oil during the war in Ukraine. His comments come at a time when U.S.-India relations are strained, with President Donald Trump imposing additional tariffs on New Delhi over Russian oil purchases. The tariffs are set to take effect next Wednesday. Meanwhile, other Asian currencies weakened on the day, while the dollar index inched higher. The key event this week is Federal Reserve Chair Jerome Powell's speech at Jackson Hole, Wyoming, on Friday.
Express Tribune
15 hours ago
- Express Tribune
S&P affirms 'AA+' credit rating for US
S&P Global on Monday affirmed its "AA+" credit rating on the US, saying the revenue from President Donald Trump's tariffs will offset the fiscal hit from his massive tax-cut and spending bill. Trump signed the "One Big Beautiful Bill Act" into law in July after it was passed by the Republican-controlled Congress. The bill, which delivered new tax breaks, also made Trump's 2017 tax cuts permanent. "At this time, it appears that meaningful tariff revenue has the potential to offset the deficit-raising aspects of the recent budget legislation," S&P said in a statement. The US reported a $21 billion jump in customs duty collections from Trump's tariffs in July, but the government budget deficit still grew nearly 20% in the same month to $291 billion. Interest on the public debt also continued to grow, hitting $1.013 trillion in the first 10 months of the fiscal year, an increase of 6%, or $57 billion, over the prior-year period due to slightly higher interest rates and increased debt levels. S&P, which became the first ratings agency to cut the pristine US government rating in 2011, said the outlook on the US rating remains stable. The ratings agency said it expects the Federal Reserve, which Trump has criticised this year for not cutting interest rates, "to navigate the challenges of lowering domestic inflation and addressing financial market vulnerabilities." It projected the country's general government deficit to average 6.0% of GDP during the 2025-2028 period, down from 7.5% in 2024 and from an average 9.8% of GDP in 2020-2023. S&P said it could lower the rating over the next two to three years if already high deficits increase.
