PESHAWAR – The Khyber Pakhtunkhwa government continues to face serious challenges in tracking and ensuring transparency in the financial operations of 128 autonomous institutions across the province. These institutions receive direct annual funding of nearly 40bn rupees [$143mn US dollars], which accounts for 4 percent of the provincial budget. However, transparency in the use of these funds remains elusive.
According to the finance department, 70 percent of these institutions receive grants without detailed justification, often under the ‘grant-in-aid’ model. Some institutions even receive funds without being officially included in the budget. This lack of oversight raises concerns about misallocation and inefficiency.
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The Khyber Pakhtunkhwa government had established a Corporate Governance Unit in 2019 to enhance oversight and accountability. However, the unit has remained largely inactive due to inadequate authority, limited resources, and poor interdepartmental coordination. Its policy recommendations are regularly ignored in board appointments, and its data collection system has failed as many institutions do not cooperate.
The finance department’s documents reveal that neither the department nor the concerned administrative units possess accurate data on the financial and non-financial performance of these institutions. This gap has hindered effective budget planning and performance assessment.
Despite receiving billions in funding, most autonomous institutions do not submit utilization reports. As a result, funds continue to flow without evidence of impact or outcomes.
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The Khyber Pakhtunkhwa government has acknowledged the problem but remains unable to implement systemic reforms. Finance officials stress the urgency of reviving the Corporate Governance Unit with real authority and digital tracking systems to ensure accountability.
Until then, public funds will remain vulnerable to inefficiencies and misuse, with the government unable to justify how a significant portion of the provincial budget is being spent.
