Peshawar (HRNW)- Khyber Pakhtunkhwa Chief Minister Muhammad Sohail Afridi has said that the province’s hydel power, oil, gas and LPG resources are playing a vital role in meeting Pakistan’s energy needs, but it is no longer acceptable for the people of Khyber Pakhtunkhwa to remain deprived of their rightful share from these resources.
Chairing a meeting of the Energy and Power Department in Peshawar, the Chief Minister was briefed on ongoing development projects, energy production, the provincial transmission and grid system, natural resources and outstanding liabilities involving the federal government.
The meeting was informed that Khyber Pakhtunkhwa contributes more than 70 percent of Pakistan’s total hydel power production to the national grid. However, the province lacks its own transmission system, forcing it to sell the electricity it generates to the federation. Meanwhile, Net Hydel Profit (NHP) arrears have reportedly exceeded Rs2,300 billion.
The Chief Minister expressed concern over delays and disparities in NHP payments, noting that Khyber Pakhtunkhwa received Rs87.7 billion over the past three years compared with Rs160.8 billion received by Punjab. He directed officials to pursue the province’s demands regarding NHP indexation, arrears, late-payment surcharges and a direct payment mechanism through the Council of Common Interests.
The meeting also discussed Khyber Pakhtunkhwa’s plans to establish a provincial transmission and grid system. The Chief Minister directed that the project be presented at an investors’ conference, describing it as a highly profitable investment opportunity.
According to the briefing, PEDO’s energy portfolio stands at around 7,890 MW, while its 224 MW operational projects generated Rs8.829 billion during fiscal year 2025-26.
The Chief Minister further stressed the province’s constitutional rights over its natural resources. Under Article 158, Khyber Pakhtunkhwa has priority in the use of natural gas produced within the province, while it contributes around 48 percent of Pakistan’s crude oil production and 38 percent of total LPG production.
The meeting recommended that 10 percent of LPG production be allocated to Khyber Pakhtunkhwa under the LPG Policy 2016. Officials said the proposed allocation of 75 tons per day could meet the annual requirements of approximately 245,000 households and help prevent around 2,440 hectares of deforestation each year.
Chief Minister Sohail Afridi directed officials to raise all relevant matters with the federal government through strong and formal channels. He said all constitutional and legal avenues should be pursued to protect Khyber Pakhtunkhwa’s financial and constitutional rights, adding that the province would approach the courts if the desired relief was not provided.
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