The federal government has informed Khyber Pakhtunkhwa (KP) that over Rs8,400 billion in funds have been released to the province over the past 15 years, including allocations under the National Finance Commission (NFC) Award, counter-terrorism support, and development initiatives, officials said.
In an official statement, the Ministry of Finance said the government has ensured timely, transparent, and continuous provision of financial resources to KP to meet provincial needs, strengthen development, and support the province in tackling challenges arising from the war on terror and the integration of former FATA regions.
Under the Seventh NFC Award, KP was allocated 14.62 percent of provincial shares. In recognition of additional burdens due to counter-terrorism operations, an extra one percent from divisible revenues was granted. While the Seventh Award was meant for five years, the Eighth, Ninth, and Tenth NFC Awards were not agreed upon, resulting in the continued implementation of the Seventh Award, including additional funds for counter-terrorism.
The ministry reported that the federal government releases NFC funds to provinces every 15 days. On 17 December 2025, KP received Rs46.44 billion, underscoring Islamabad’s commitment to honoring financial obligations. From July 2010 to November 2025, KP has received Rs5,867 billion from divisible revenues, with Rs705 billion allocated specifically for counter-terrorism efforts.
In addition, direct transfers from the federal government, including oil and gas royalties, development surcharges, and excise duties, have totaled Rs482.78 billion during the same period. Since the merger of former FATA, the federal government has provided Rs704 billion to cover expenses of newly integrated districts. Relief and rehabilitation for internally displaced persons has also been supported with Rs117.166 billion.
Development support over the past 15 years includes Rs115 billion under federal development programs and Rs481.433 billion in unconditional and conditional cash assistance to eligible families through the Benazir Income Support Program between FY2016 and FY2025.
The Ministry of Finance stated that the federal government remains committed to strengthening the NFC system and ensuring fair resource distribution, robust financial federalism, and continuous support to KP. Following the formation of the Eleventh NFC on 22 August 2025, a sub-group has been created to recommend allocations for newly merged districts, with its first meeting scheduled for 23 December 2025 under the leadership of KP’s Finance Minister.
Officials emphasized that supporting KP in security, rehabilitation, integration, and development remains a top priority for the federal government.
