Federal Provincial Thaw Finance Minister Aurangzeb Pledges Support to KP Chief Minister Amid Regional Crisis
By Shahzad Paracha :
ISLAMABAD : In a significant move toward fiscal reconciliation, Federal Finance Minister Muhammad Aurangzeb has assured Khyber Pakhtunkhwa (KP) Chief Minister Sohail Afridi of the federal government’s full cooperation in resolving the province’s legitimate financial grievances. The high-level meeting, held at the Finance Division on Tuesday, March 31, 2026, marks a de-escalation in the long-standing budgetary friction between Islamabad and Peshawar.
The consultative session followed a landmark meeting at the Aiwan-e-Sadr chaired by President Asif Ali Zardari, which included Prime Minister Shehbaz Sharif and all four provincial chief ministers. That session was primarily focused on national stability following global fuel supply disruptions caused by the ongoing Middle East conflict. Notably, the leadership reached a consensus against imposing a nationwide smart lockdown, opting instead for alternative measures to manage the energy crisis.
During the subsequent bilateral talks, Chief Minister Afridi provided a detailed briefing on the economic challenges currently paralyzing KP’s development projects. The Finance Ministry later characterized the atmosphere of the meeting as cordial and constructive, noting that Minister Aurangzeb reaffirmed the federal government’s commitment to facilitating provincial administrations in overcoming their fiscal deficits.
Despite the positive tone, specific points of contention remain on the table. While the federal and KP governments recently moved toward resolving disputes over the release of funds for merged districts, they remain deadlocked over an additional Rs15 billion requested by provincial authorities for the management of temporarily displaced persons (TDPs).
This latest outreach by CM Afridi, which follows a prior meeting with Prime Minister Shehbaz Sharif, is viewed as a strategic effort to bridge the gap over non-National Finance Commission (NFC) funds. As the federal government grapples with the broader economic fallout of regional instability, the resolution of KP’s internal financial demands is seen as vital for maintaining national cohesion.
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