PESHAWAR: The Khyber Pakhtunkhwa government on Wednesday decided to challenge the federal government`s proposed constitutional amendments in the Supreme Court, saying such a move can`t be made due to the `denial` of parliament`s reserved seats to the Pakistan Tehreek-i-Insaf.

The cabinet, which met here with Chief Minister Sardar Ali Amin Gandapur in the chair, declared that both houses of parliament are currently incomplete because the due reserved seats in the National Assembly and the Senate haven`tbeen given away to the PTI.

It also approved the Debt Management Fund and rules for it.

`In view of the surging debt servicing costs and the adverse impact of the rupee`s depreciation, this fund is essential to manage the province` debt obligations effectively and ensure financial sustainability,` said an official statement.

It said the fund, designed by the finance department and to be created by invoking Section 36(1) of the Khyber Pakhtunkhwa Public Financial Management Act, 2022, would be instrumental in safeguarding the province`s financial future.

According to the statement, the Debt Management Fund will invest unutilised balance from the government treasury into low-risk instruments.

`The Fund shall not only create a revenue source that offsets growing debt obligations, but also result in optimal cash management, ensuring the province can better manageits financial obligations and ensure that substantial fiscal space is available to prioritise expenditure on service delivery.

The cabinet also approved the draft Khyber Pakhtunkhwa Debt Management Fund Rules, 2024, for governing the control, management, utilisation and oversight of the proposed fund.

It expressed `regret` over the povertyalleviationandsocialsafety ministry`s decision to obtain a $118.4 million loan from the Islamic Development Bank for the `Poverty Graduation of Extremely Poor and Flood Affected Households Project` in Khyber Pakhtunkhwa.

The decision was made in light of the province`s current debt burden and the availability of alternative funding sources that offer lower costs and more favorable terms, according to it.

The cabinet also approved policy guidelines for the province`s participation in the carbon market as wellas a recurring grant of Rs1.5 billion for public sector universities in the province.

The Higher Education Commission`s annual grants to universities in the province have been frozen since 2018. Following the 18th Constitutional Amendment, higher education has become a provincial responsibility, requiring the province to independently fund its universities.

Despite substantial efforts over the pastfour years to increase selfgenerated income achieving 84.5 per cent growth the revenue generated internally remains inadequate to meet the rising financial demands of the universities. Older universities, in particular, are grappling with unresolved liabilities relating to pensions and salaries.

The cabinet also approved the formation of an academic search committee for the appointment of vice chancellors to public sector universities.

Prof Kausar A Malik will serve asthe convener of the committee comprising Prof Anwarul Hassan, Prof M Aslam Baig and Prof Sara Safdar.

The cabinet formed the `performance evaluation committee for vice chancellors in public sector universities` for a period of two years. It consists of Dr Shafigur Rehman, Prof Zahir Shah and Prof Mohammad Akmal.

The cabinet approved a non-ADP scheme amounting to Rs3.1475 billion for the recovery of maternal and child healthcare equipment in floodaffected areas of Hazara Division.

According to the official statement, the project is meant to strengthen the diagnostic and treatment system in the target facilities and improve the regional referral system through the provision of medical equipment, which are necessary to provide maternal and child health services at the primary, secondary and tertiary health facilities located in flood-hit surrounding areas. The project will be imple-mented with a financial support of Rs3.06 billion from the Japan International Cooperation Agency.

The cabinet approved a one-year extension for the `Literacy for All` programme in the merged tribal districts, with a total cost of Rs223.872 million.

The programme, which began in 2015, aims to eradicate illiteracy and achieve universal primary education by enrolling out-of-school children.

Its extension will be carried from July 1, 2024, to June 30, 2025.

Additionally, the cabinet approved a strategy under which centres will be `rationalised` and converted into Taleem Card Scheme, according to the statement.

It approved a special compensation package of Rs14.87 million for 119 victims of the fire incident in Nothia Bazaar of Peshawar, saying money will be provided to those identified in the damage assessment report prepared by the district`s deputy commissioner.