The federal government has released details of the provision of financial resources exceeding 8.4 trillion (84 kharab) rupees to Khyber Pakhtunkhwa since July 2010, according to official data released on Saturday, which affirms its commitment to the province’s financial stability and development amid ongoing security and integration challenges.
This financial transfer is being made under the framework of the 7th National Finance Commission (NFC) Award, which is still in effect due to a lack of consensus on subsequent awards.
Under this long-standing arrangement, Khyber Pakhtunkhwa receives 14.62 percent of the provincial share from the divisible pool. An additional one percent was also allocated to the province to cope with the heavy expenditures associated with the war on terror.
According to official data, the federal government releases these funds to the provinces every fortnight, and no amount is outstanding. Recently, a payment of 46.44 billion rupees was transferred to the government of Khyber Pakhtunkhwa on December 17, 2025.
From July 2010 to November 2025, the province received a total of 5,867 billion rupees as its share in the divisible pool, while a separate 705 billion rupees were provided for counter-terrorism-related expenditures during the same period.
In addition to the NFC allocations, Khyber Pakhtunkhwa received 482.78 billion rupees through direct transfers between July 2010 and November 2025. These funds were derived from heads such as oil and gas royalties, gas development surcharge, and excise duty on natural gas.
Substantial financial support has also been provided outside the NFC framework to meet the province’s unique needs, especially after the merger of the formerly Federally Administered Tribal Areas (FATA).
Since the 7th NFC Award predates the merger, the federal government has covered the expenses of the newly merged districts from its own share, and has transferred 704 billion rupees to Khyber Pakhtunkhwa for this purpose since 2019.
Further assistance includes 117.166 billion rupees provided for the rehabilitation of internally displaced persons and 115 billion rupees allocated for provincial projects through the federal development program over the last fifteen years.
In addition, under the Benazir Income Support Program, cash assistance of 481.433 billion rupees was distributed among deserving families in the province from fiscal year 2016 to 2025.
Efforts are underway to formulate a new NFC Award. The 11th NFC was constituted by the President of Pakistan on August 22, 2025, with its inaugural meeting held on December 4, 2025.
A key outcome of the initial meeting was the decision to form a sub-group tasked with preparing recommendations for integrating the former FATA region and its financial share into the divisible pool.
At the request of the provincial government, the sub-group’s first meeting has been convened for December 23, 2025, to be chaired by the Finance Minister of Khyber Pakhtunkhwa.