“KP Faces Budget Crisis Amid Political Deadlock; Constitutional Emergency Powers May Be Invoked”

Peshawar: A political standoff in Khyber Pakhtunkhwa (KP) has raised fears of a constitutional and financial crisis as the provincial government faces delays in approving the annual budget for the new fiscal year. Legal experts warn that failure to pass the budget by June 30 could trigger federal intervention under Articles 234 and 235 of the Constitution.
The founder chairman of Pakistan Tehreek-e-Insaf (PTI) has halted the KP government’s budget approval process, demanding prior consultation. The budget is scheduled for approval on June 24, but Chief Minister Ali Amin Gandapur, Finance Advisor, and former Finance Minister Taimur Saleem Jhagra have been summoned for talks by the PTI founder.
Constitutional analysts emphasize that it is the government’s duty to have the budget approved by June 30. If the deadline is missed, the governor can ask the Chief Minister to seek a vote of confidence. Additionally, the use of public funds would be frozen from July 1, pushing the province into a financial shutdown.
Legal sources state that failure to approve the budget would reflect poorly on the provincial government. Efforts are underway with constitutional experts to resolve the deadlock, though no breakthrough has been achieved yet.
Provincial Law Minister Aftab Alam said that the government aims to pass the budget on schedule, avoiding any constitutional complications. However, he insisted that no budget will be approved without consultation with the PTI leadership. The Chief Minister has already made a policy statement indicating that the federal government would be responsible if a crisis arises.
The Speaker of the Provincial Assembly also confirmed that budget approval is contingent upon the founder chairman’s consent.
Governor Khyber Pakhtunkhwa Faisal Karim Kundi remarked that the Chief Minister should continue working on the old salary if the budget is delayed, but insisted that the budget must be passed with or without a meeting with the party leadership.
PPP MPA Ahmad Kundi warned that failure to pass the budget would push the province into economic insolvency and that the Constitution provides remedies in such scenarios. He added that even if the assembly fails to pass the budget, it will not necessarily dissolve the legislature.
Sources reveal that the current assembly session was called on members’ requisition, allowing for alternative agenda items, and that the budget could technically still be passed after June 24. Consultations are ongoing between the government, assembly secretariat, and legal departments.
Meanwhile, the KP Assembly has issued a schedule for discussion and approval of departmental grants, a key step toward final budget approval. However, Chief Minister Gandapur has directed government members not to participate in voting on grants, which could delay the process. The Finance Bill is expected to be presented for approval on June 24.