70% KP Hydel Power, 48% Crude Oil, 38% LPG resources, KP deprived of its own Resources, CM KP message to Federal Government
Chitral Times Report
PESHAWAR: Chief Minister Khyber Pakhtunkhwa Muhammad Sohail Afridi has said that the province’s hydropower, oil, gas and LPG resources are making a significant contribution to meeting Pakistan’s overall energy requirements. However, despite being a major contributor to the country’s energy supply, the people of Khyber Pakhtunkhwa continue to be denied their rightful share and due benefit from the province’s own resources, a situation that is no longer acceptable. He expressed these views while presiding over a meeting of the Energy and Power Department.
The meeting was briefed in detail on ongoing development projects of the Energy and Power Department, energy generation, the provincial transmission and grid system, natural resources, outstanding federal dues, and other key matters concerning the province’s energy sector. The meeting was informed that Khyber Pakhtunkhwa contributes more than 70 percent of the country’s total hydropower generation to the national grid. However, in the absence of a provincial transmission line following the 18th Constitutional Amendment, the province is compelled to sell the electricity it generates to the federal government.
The Chief Minister said that while Khyber Pakhtunkhwa is making such a substantial contribution to the country’s energy requirements, outstanding Net Hydel Profit (NHP) dues payable by the federal government under the AGN Kazi formula have exceeded Rs2,300 billion. The meeting was further informed that, under the earlier interim arrangement, more than Rs78 billion in regular NHP payments also remain outstanding against the federal government.
The meeting was informed that despite producing more than 70 percent of the country’s hydropower, Khyber Pakhtunkhwa has received less in NHP payments than Punjab. During the past three years, Khyber Pakhtunkhwa received Rs87.7 billion in NHP payments, compared with Rs160.8 billion received by Punjab.
The Chief Minister said delays in NHP payments and disproportionate disbursements were adversely affecting the province’s fiscal position. The meeting was informed that Khyber Pakhtunkhwa has approached the Council of Common Interests (CCI) on the matters of five percent annual indexation of NHP, outstanding arrears, late payment surcharge, and the mechanism for direct payments.
The meeting was informed that Khyber Pakhtunkhwa is establishing its own provincial transmission and grid system to ensure reliable electricity transmission and meet the requirements of the industrial sector. The province is also strengthening its transmission, regulatory and distribution systems at the provincial level.
The Chief Minister directed that the provincial transmission line project be presented at an investors’ conference. He said the project was highly profitable and that a number of countries were interested in investing in it. The meeting was informed that the overall portfolio of energy projects being developed by the Pakhtunkhwa Energy Development Organization (PEDO) stands at approximately 7,890 MW. PEDO’s 224 MW operational projects generated Rs8.829 billion in revenue during fiscal year 2025-26. Chief Minister Sohail Afridi said that despite the province’s natural resources and energy production, failure to ensure that the people of Khyber Pakhtunkhwa receive their due benefit from these resources constitutes a violation of their constitutional rights.
The meeting was informed that, under Article 158 of the Constitution, Khyber Pakhtunkhwa has priority in the use of natural gas produced within the province. The meeting was informed that Khyber Pakhtunkhwa accounts for 48 percent of the country’s total crude oil production. It was recommended that the federal excise duty levied at the wellhead in Khyber Pakhtunkhwa be paid to the province in accordance with Article 161 of the Constitution. The meeting was informed that Khyber Pakhtunkhwa currently produces 850 tonnes of LPG per day against a provincial daily consumption of 600 tonnes.
The province accounts for 38 percent of Pakistan’s total LPG production. The meeting recommended that 10 percent of LPG production be allocated to Khyber Pakhtunkhwa under the LPG Policy 2016. The briefing noted that the allocation of 75 tonnes of LPG per day, representing the 10 percent share, could meet the annual requirements of approximately 245,000 households. It was further informed that allocating 10 percent of LPG production to the province could save approximately 2,440 hectares of forest annually.
The Chief Minister directed that all matters concerning the province’s constitutional and financial rights be taken up with the federal government through a strong and formal institutional process, and that every available constitutional and legal avenue be pursued for their resolution. He made it clear that if the required relief was not provided by the federal government, the matters would be taken before the courts to secure the rights of Khyber Pakhtunkhwa.
