Khyber Pakhtunkhwa (KP) has achieved remarkable progress in revenue generation and fiscal management, recording a 200% increase in mineral royalties this fiscal year.
This milestone was highlighted during a high-level meeting chaired by Chief Secretary Shahab Ali Shah, where officials reviewed the province’s financial performance and future budget plans.
KP’s Strong Revenue Performance in FY25
The Finance Department reported significant improvements in revenue collection, driven by strategic reforms and policy measures. Key achievements include:
- 90.7% of revenue targets met in the first half of FY25, a major jump from last year’s 66%.
- Rs14 billion revenue increase due to over 50 new revenue measures in the finance bill—a 50% rise compared to the previous year.
- 200% surge in mineral royalties, with expectations of further growth.
- Rs100 billion projected from the province’s own-source revenue.
- 35% increase in development funds released compared to last year.
- Rs5.4 billion collected from mines and minerals royalties.
These figures reflect KP’s commitment to strengthening financial discipline and maximizing revenue streams.
Early Budget Preparations and Fiscal Reforms
Chief Secretary Shahab Ali Shah emphasized the need for early budget planning and instructed all departments to assess their financial requirements carefully.
The meeting also introduced a roadmap for governance and fiscal reforms, focusing on:
- Transparency in financial matters.
- Digitization and automation to improve efficiency.
- A two-year rotation policy for officials to enhance accountability.
These reforms aim to streamline operations, reduce corruption risks, and ensure better resource utilization.
Mines & Minerals Department’s Record Growth
The KP Mines and Mineral Development Department has played a crucial role in boosting provincial revenue. Over the past two years, it has:
- Increased revenue collection by 150%, from Rs2.1 billion (2018-19) to Rs5.2 billion (2020-21).
- Issued 2,082 new mining leases, nearly matching the total leases granted before 2018.
- Resolved 371 pending cases, compared to only 294 cases settled before 2018.
Key Initiatives Driving Success
- Mining Cadastral System – A digital platform providing transparency in lease allocation, revenue tracking, and royalty distribution.
- Legal Reforms – Updated laws, including the KP Mines and Mineral Act 2017 and KP Mines Safety Inspection Regulations 2019.
- Regularization of Illegal Mining – Bringing informal mining operations under legal frameworks to increase revenue.
Despite challenges like staff shortages (with one assistant director managing multiple districts), the department has delivered impressive results.
Future Outlook: Sustainable Growth & Economic Stability
KP’s financial progress (KP Mineral Royalties Rise) demonstrates the effectiveness of policy reforms, digitization, and strict fiscal oversight. With continued focus on:
- Expanding mineral royalty earnings
- Enhancing tax collection mechanisms
- Boosting development spending
The province is on track to achieve greater economic stability and improved public service delivery.
Conclusion:
KP Mineral Royalties Rise up to 200% and 90.7% revenue target achievement highlight a successful fiscal turnaround. Through transparent governance, digital innovation, and proactive reforms, KP is setting a strong example for sustainable economic growth in Pakistan.