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PESHAWAR: The Khyber Pakhtunkhwa government has rejected a proposed deduction of Rs6.4 billion from the province’s federal financial transfers. Chief Minister Sohail Afridi said the federal government had sought an additional amount from Khyber Pakhtunkhwa before the provincial budget. The provincial government had linked the release of the additional funds to a meeting with PTI founder Imran Khan and his approval. Afridi said the KP government neither approved nor agreed to the proposed deduction of Rs6.4 billion. He said the additional federal grant had also not been included in the provincial budget for the 2026-27 financial year. The chief minister said the matter was not merely a political dispute but concerned the province’s constitutional and financial rights. He maintained that Article 164 of the Constitution does not give the federal government the authority to unilaterally deduct money payable to a province. According to Afridi, any such deduction requires a clear constitutional or legal basis as well as the consent of the provincial government. He said the Finance Department had clearly conveyed its disagreement with the proposed deduction in a letter issued on August 13. Written instructions were also issued that no deduction should be made without the province’s consent. Afridi said Finance Adviser Muzammil Aslam immediately met the relevant officials of the Accountant General KP. The Accountant General of Pakistan Revenues was also directed not to record or implement any transaction without the clear consent of the provincial government. The chief minister said the provincial government had decided to prepare a summary and ordinance under the 7th National Finance Commission (NFC) after the province did not receive its share for six months. He said the provincial government did not sign the memorandum of understanding concerning the additional amount because a meeting with the PTI founder was not arranged. Afridi said the KP government had already approached the Federal Constitutional Court to seek its constitutional rights under the National Finance Commission. He made it clear that the provincial government would not compromise on its NFC rights. The chief minister further said the federal government had no authority to unilaterally deduct money on the basis of an unapproved memorandum of understanding. He vowed that the provincial government would use every legal and constitutional avenue to protect its rights and defend every rupee of its financial share. Afridi also said that if the Federal Board of Revenue (FBR) achieved its Rs15.26 trillion tax collection target, Khyber Pakhtunkhwa’s share would amount to approximately Rs175 billion. He added that providing the merged districts with their rightful share under the 11th NFC was also one of the provincial government’s conditions.

German Consul General Thomas E Schultze has extended Independence Day greetings to the people of Pakistan, praising the long-standing friendship between Pakistan and Germany and calling for stronger bilateral relations. In his message marking Pakistan’s 79th Independence Day, Schultze said the occasion was a time to celebrate the country’s creation while recognising the resilience, diversity and ambitions of its people. He noted that Pakistan and Germany will complete 75 years of diplomatic relations on October 15. He described the anniversary as an important milestone in the history of relations between the two countries. Schultze said economic links between Pakistan and Germany predated the establishment of formal diplomatic relations. He recalled that Siemens opened its first office in Lahore in 1922. According to the German diplomat, the relationship between the two countries rests on reliability, trust and sustainability. He said these principles had helped create lasting cooperation and opportunities that benefit both sides. Schultze highlighted the importance of economic ties between the two countries. He said Germany is Pakistan’s largest trading partner and the biggest importer of Pakistani products within the European Union. He also pointed to the significance of the EU’s GSP+ trade arrangement for Pakistan. Around 90 per cent of Pakistan’s exports to the European Union benefit from the scheme and enter the bloc’s market without customs duties, he said. The German consul general also highlighted the role of Pakistani women in the country’s future. He said women across Pakistan were making contributions in leadership, education, entrepreneurship and community development. Their efforts, he added, were helping create opportunities and inspiring younger generations. Schultze also spoke warmly about his experience in Pakistan. Having served in the country since last year, he praised the hospitality and warmth of the Pakistani people. He said Pakistan had gained a special place in his heart and expressed his appreciation for the relationship between the two countries. The German diplomat said he looked forward to working toward further strengthening Pakistan-Germany relations in the years ahead.