Khyber Pakhtunkhwa Revenue Declines Over 50% Due to Border Closure

The province of Khyber Pakhtunkhwa has seen a significant 53.02% decrease in revenue because of the prolonged closure of the Pakistan-Afghanistan border since last October. This closure led to a drop in Infrastructure Development Cess collection from PKR 7.42 billion to PKR 3.48 billion during the initial seven months of the current fiscal year, as reported by Dawn.
Seeking federal government assistance, Khyber Pakhtunkhwa’s Chief Minister’s financial adviser, Muzammil Aslam, has reached out to Pakistan’s Commerce Minister Jam Kamal for an urgent meeting involving provincial and federal stakeholders. The meeting aims to address the revenue impact on Khyber Pakhtunkhwa, along with the challenges faced by exporters and traders, such as pending payments and reduced business activities.
Muzammil Aslam highlighted the severe economic repercussions faced by Khyber Pakhtunkhwa due to the prolonged border closure, emphasizing the adverse effects on revenue, economy, and employment. Despite efforts to resume cess collection after a court stay order in November, the cross-border trade suspension has persisted, causing hardships for exporters and traders with stuck consignments and payments.