Peshawar: Khyber Pakhtunkhwa has become the first province in Pakistan to begin repaying its debt, with the provincial government transferring Rs 30 billion into its Debt Management Fund, according to KP Finance Adviser, Muzammil Aslam.

In a statement, Aslam emphasized that while other provinces and the federal government primarily focus on borrowing, Khyber Pakhtunkhwa has initiated a program to pay off its debt. The province has already allocated Rs 30 billion to its Debt Management Fund, marking a significant milestone.

He further noted that the provincial government has the capacity to transfer an additional Rs 30 to 35 billion into the fund, bringing its share to 10% of the total provincial debt of Rs 725 billion.

“We have begun transferring funds today, and depending on the financial situation, more funds will be allocated,” Aslam said. He highlighted that Khyber Pakhtunkhwa has outpaced other provincial and federal governments in debt repayment efforts.

Aslam also added that once the PTI government takes over at the federal level, it will focus on reducing and eventually eliminating the national debt.

Over the past six months, the provincial government has transferred Rs 20 billion each into the pension and gratuity funds, securing an additional Rs 3 to 4 billion in profit on these funds.

Previously, it was common knowledge that the provincial treasury had insufficient funds for salaries, but Aslam proudly stated that now the treasury holds enough to cover three months’ salaries in advance.

“The Chief Minister of Khyber Pakhtunkhwa, Ali Amin Gandapur, had instructed that at least two months’ salary funds should always be available in the treasury,” Aslam added.

He also affirmed that the provincial government is working according to the vision of PTI founder Imran Khan, and under the leadership of Ali Amin Gandapur, Khyber Pakhtunkhwa will not only clear its debt but will also stabilize its economy.

In comparison, Aslam noted that the federal government borrowed Rs 12.248 trillion in November alone, while Khyber Pakhtunkhwa’s total debt over 77 years amounts to Rs 725 billion.

He also pointed out that Pakistan’s national debt has surged to Rs 70.4 trillion, up from Rs 43.5 trillion in April 2022, marking an increase of Rs 27 trillion in just over a year.