| Peshawar: The Khyber Pakhtunkhwa (KP) provincial cabinet has approved the establishment of a ‘Debt Management Fund’ to manage the province’s debt obligations and ensure financial sustainability, according to a news source on September 19.
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Pursuant to the details, the fund will invest unutilised government treasury balances into low-risk instruments, aiming to create a revenue source that offsets growing debt burdens while improving cash management. This initiative follows the Khyber Pakhtunkhwa Public Financial Management Act, of 2022, and includes the approval of accompanying rules to govern the fund’s control and oversight.
The cabinet also expressed concerns over rising debt servicing costs and currency depreciation, making this fund essential for the province’s long-term financial stability.
Additionally, the cabinet approved policy guidelines for KP’s participation in the carbon market, including allocations from carbon credit sales and a 1% administrative charge for the Ministry of Climate Change, subject to other provinces’ endorsements.
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Lastly, it approved a recurring grant of PKR 1.5 billion for public universities in the province, addressing a freeze in Higher Education Commission (HEC) grants since 2018. |
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