ISLAMABAD: Khyber Pakhtunkhwa has received Rs799.359 billion under the war on terror fund from 2010-11 through September 2026, according to official documents.
The federal government provides the funds to compensate the province for economic, infrastructure and other losses linked to terrorism. KP receives the allocation annually, while other provinces also receive funds under the arrangement.
Under the 7th National Finance Commission Award, agreed in December 2009, KP receives an additional 1% share from the federal divisible tax pool because of its security and economic burden.
The allocation has increased significantly in recent years. KP received Rs112.296 billion in 2024-25 and Rs128.234 billion in 2025-26. For 2026-27, the allocation is estimated at Rs149.076 billion, with Rs23.069 billion released during the first two and a half months.
However, the funds do not have a separate head in the provincial Consolidated Fund, making their utilisation difficult to track.
The Finance Department said the allocation depends on Federal Board of Revenue collection targets and is fully released when those targets are achieved.
The funding comes as militant violence continues across KP. The province recorded 475 violence-related fatalities and 151 incidents during the second quarter of 2026, according to a CRSS report cited by Geo.tv.
Police spending has also increased, with the operational budget rising to Rs30.2 billion and sanctioned police posts reaching 139,318.
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