ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb met Khyber Pakhtunkhwa (KP) Finance Adviser Muzamil Aslam on Tuesday to discuss the release of funds under the National Finance Commission (NFC) and other fiscal matters, in a rare instance of visible engagement despite strained relations between the two sides.

The KP government, led by the opposition Pakistan Tehreek-e-Insaf (PTI) party of the jailed former prime minister Imran Khan, has in the past complained of a lack of financial cooperation from Islamabad.

The talks came amid a rise in militant violence in and around KP’s tribal districts, which were merged into the province in 2018 but continue to face acute development challenges.

“The Khyber Pakhtunkhwa team highlighted the operational and development imperatives in the merged districts and underscored the importance of predictable and timely releases to sustain ongoing schemes and meet pressing needs on the ground,” the finance ministry said in a statement circulated after the meeting.

“The Federal Minister for Finance and Revenue listened to the issues raised by the Khyber Pakhtunkhwa delegation and reaffirmed the Federal Government’s commitment to cooperative federalism and constructive engagement with the provinces,” it added.

The finance minister assured the KP team of the ministry’s support “in pursuing and facilitating their rightful claims for allocations under the NFC and other relevant heads discussed during the meeting, in accordance with applicable rules, agreed frameworks, and due process.”

The ministry said discussions also covered ongoing consultations on NFC-related matters, including technical discussions and sub-group engagements, with both sides agreeing to maintain close coordination through relevant forums to address outstanding issues and support development objectives and service delivery.

The conversation between the KP and federal authorities came only a day after a meeting between Prime Minister Shehbaz Sharif and KP Chief Minister Sohail Afridi in which they discussed closer collaboration on security and development.

The meeting was notable given Pakistan’s deeply polarized political landscape where Sharif’s administration and Khan’s PTI party have mostly hurled accusations against each other, making such institutional engagements rare between them.