Islamabad: Federal Minister for Finance, Senator Mohammad Ishaq Dar has said that the Federal Government would extend all possible support to KP government in economic uplift of the province. The Federal Government organizations/departments engaged in development works in KP would also be urged to undertaken their obligations with devotion and dedication, he added.
Finance Minister received the KP Chief Minister, Pervez Khattak here on Tuesday to discuss important issues related to the province.
Khawaja Asif, Federal Minister for Water and Power, Shahid Khaqan Abbasi, Federal Minister for P&NR and senior officials from the Federal and KP Governments attended the meeting which lasted for over two hours.
CM KP apprised the Finance Minister of issues related to Ministry of Water and Power, Ministry of Petroleum and Natural Resources, Finance (FBR), Planning and Development.
The Chief Minister at the outset mentioned about outstanding payment of net hydel profit to KP. It was agreed that the issue would be taken up by Ministry of Water and Power on priority basis with inputs from NEPRA and WAPDA to propose workable options. A meeting to this effect would be held in March with due representation from KP. All other issues related to Ministry of Water and Power and KP would be discussed at working level meetings, proposing the way forward.
The Finance Minister the Federal Government appreciated development projects undertaken by the province but there had to be proper consideration and approval by ECNEC which was the right forum for this purpose. The Minister said we would like to initiate a consultative process between the centre and provinces for the purpose of allocation of funds for projects as prioritized by the Provinces themselves.
He also opined that the KP government could surrender projects which it deemed unbeneficial and accordingly the funds could be redirected to other priority areas. The KP side welcomed the suggestion.
CM KP also requested for sovereign guarantees in regard to Hydro or‘ other IPPs owned by the Government of KP for projects above 50 MW by PEDO. It was decided that the Centre will facilitate the province in the matter so that financial close of the projects could be conveniently realized.
The Finance Minister issued instructions to Chairman FBR to liaise with the representatives of KP government and propose workable solutions for all tax related problems.
Chief Minister, Pervez Khattak on this occasion voiced KP’s interest to be incorporated in the energy corridor to benefit from the number of projects being undertaken under it. The Finance Minister expressed support in this regard reiterating that the Federal Government, in true national spirit, deemed this an obligation to extend support to all the provinces.
Both sides agreed on continued engagement to discuss and resolve all outstanding issues.