ISLAMABAD: The federal and Khyber Pakhtunkhwa (KPK) governments have resolved all their outstanding issues amicably including net hydel profit for the province, said Minister for Finance Ishaq Dar.
Dar and KPK Chief Minister Pervaiz Khattak signed a Memorandum of Understanding in this regard after final round of talks between the two sides in Islamabad this afternoon.
Speaking on the occasion, the finance minister said as per agreement, the net hydel profit for KPK has been uncapped and the province would receive arrears worth Rs70 billion in four years.
Water and Power Ministry and KPK governments also agreed to hold negotiations to finalize an accord on hydro power issues by 31st of next month. The federation would also pay arrears worthy Rs956 million to the province.
The KPK government has been authorized to allocate 100 mmcf gas per day for electricity generation projects owned by the provincial government or based on public-private partnership.
The two sides also agreed to carry out fresh feasibility study of Chashma Right Bank Lift Irrigation Canal. The issue was pending since 1991. The federal government would fund sixty-five percent of the cost of the project and the KPK Government remaining thirty-five percent. On completion, the project would irrigate three hundred thousand acres of land.
Minister for Water and Power Khawaja Muhammad Asif, on this occasion, said resolution of these decades-long issues augured well for smooth and harmonious relationship between the federation and the province.
He noted that these issues could not be resolved despite the fact that there were either governments of the same parties or coalition partners at the centre and in KPK during the last fifteen years. He said resolution of these issues when two different political parties were in power at the centre and the province was reflective of the fact that politicians are capable of resolving problems provided there is will to do so.
KPK Chief Minister Pervaiz Khattak thanked the Federal Government for its positive attitude. He said the agreement would help resolve problems of people of the province and developmental funding.