ISLAMABAD: Federal government should not delay transfer of funds to the province of Khyber Pakhtunkhwa, otherwise, it will hit ongoing developmental schemes and widen the budget deficit.
“The provinces gets ninety two percent of its revenue requirements from federal government and the failure of FBR to collect annual target will further hit the transfer of funds, said FPCCI Regional Committee of Industries Chairman Atif Ikram Sheikh stated in a statement.
He informed that federal government has planned to pay Rs 293 billion under different heads but it paid only Rs 136.78 in the first six months while it paid Rs 17.70 billion as net hydel profit which was fixed at Rs 33 billion.
He further added that the situation has a negative impact on the economy of the underdeveloped province which has so far collected Rs 10.78 billion as tax and non-tax revenue against the target of around Rs 50 billion.
The business leader stated that the province is collecting around Rs 7 billion under GST since last three years while non-developmental expenditure has jumped by 26 percent.
“Less than one hundred people pay agricultural tax in the province which indicates lack of capacity among the tax collecting administration which must be improved to reduce dependence on federal transfer,” he said.
He noted that oil and gas and other minerals worth billions of dollars are available in the province which can change the fate of the country and there is an urgent need to exploit these reserves.
