Khyber Pakhtunkhwa received Rs799bn in war on terror funds since 2010

Khyber Pakhtunkhwa (KP) has received approximately Rs799.359 billion under the war on terror fund from the 2010-11 fiscal year through September 2026. According to official documents, these federal funds are intended to compensate the province for economic, infrastructure, and financial losses resulting from terrorism.

Under the 7th National Finance Commission (NFC) Award implemented in July 2010, KP is entitled to an additional 1% share of the federal divisible tax pool to account for the security burden and losses associated with militant activity. The annual allocation has seen significant increases, with Rs112.296 billion released in 2024-25 and Rs128.234 billion in 2025-26. For the 2026-27 fiscal year, the allocation is estimated at Rs149.076 billion.

Despite these transfers, sources indicate that the funds lack a separate heading within the provincial Consolidated Fund. Because the money is deposited into the provincial account alongside other revenues, tracking specific expenditures through a dedicated line remains difficult. The KP Finance Department noted that the total allocation size is contingent upon the Federal Board of Revenue (FBR) meeting its collection targets.