ISLAMABAD - The federal government has been accused of reneging on a promise to pay Khyber Pakhtunkhwa 106 billion rupees for its share of profits from its hydroelectric power projects.

The provincial and federal governments had reached an agreement on KP’s share in May this year but Islamabad has repeatedly delayed payment, officials said yesterday (Monday). Now its pledge to pay the money over three years has been referred to the government’s Law Division for a legal opinion which will defer payment once again.

“At first, the federal government was not ready to even discuss the issue but later they linked the net hydel profit payment with signing of the power generation policy 2015,” an official said.

The agreement was included in the official minutes of the May meeting and had the support of the law division. Officials in Khyber Pakhtunkhwa were given further assurances by the federal minister of state for water and power, Abid Sher Ali, when he visited the province in June.

Since then the federal government has stalled payments and sought to reopen the legal status of the agreement despite the earlier support of the Law Division.

KP officials yesterday voiced their growing frustration over the issue and accused the federal government of insincerity.

“Now, ironically, once again the federal government has asked that the matter be sent to the Law Division for their opinion- it’s nothing but waste of time,” the official said.