PoK accuses Shehbaz govt of slashing development grant, asks to review its decision
May 31, 2022
Muzaffarabad [PoK], May 31 : The government of Pakistan occupied Kashmir (PoK) on Monday accused the Shehbaz Sharif-led federal government of slashing the development grant provided to PoK and warned that it could lead to severe financial system disbalance, if not reviewed.
Speaking at a press conference here, PoK Minister for finance and inland revenue, Abdul Majid Khan alleged that the PoK's development budget, which is provided by the federal government in totality, stood at Rs 28 billion in the ongoing fiscal year, but the federal finance division had unilaterally slashed it by Rs 5.2 billion, Pakistan newspaper, the Dawn reported.
"During the ongoing fiscal year, the federal government was supposed to provide Rs 49.9 billion to PoK as its 3.64 per cent share in the federal taxes pool (variable grant) but that too had been slashed by Rs 4.4 billion," the Dawn quoted the Minister as saying.
The 3.64 per cent share from the federal taxes pool which was agreed under a financial arrangement between Islamabad and Muzaffarabad in 2018 is equalled to Rs 74.32 billion in Financial Year 2022-23, but the federal government had recently informed that it would provide only Rs 60 billion," the Minister said, "This will create a shortfall of Rs 14 billion in our income which we cannot bridge from any other source," he added.
Majid Khan asked the federal government to review the development grant and warned the government that if not reviewed, the government's decision could affect PoK's financial system beyond control.
