- Under 7th NFC Award, KP receives additional 1% share of FDTP.
- KP received Rs112.2bn in 2024-25 and Rs128.2bn in 2025-26.
- 2026-27 war on terror allocation estimated at Rs149.076bn.
PESHAWAR: Khyber Pakhtunkhwa has received Rs799.359 billion under the war on terror fund from 2010-11 to September 2026, according to official documents, as the province continues to face a persistent threat from militant attacks.
The funds were released by the federal government to compensate the province for economic, infrastructure and other financial losses caused by terrorism, the documents show.
KP receives the federal allocation annually, while other provinces are also provided funds under the same arrangement, according to the Finance Department.
Under the 7th National Finance Commission Award, agreed in December 2009 and implemented from July 2010, KP receives an additional 1% share from the federal divisible tax pool because of the losses and security burden associated with terrorism.
The amount released to the province has increased substantially over the years. KP received Rs112.296 billion in 2024-25, while Rs128.234 billion was released in 2025-26, according to the documents.
For the current financial year, 2026-27, the war on terror allocation has been estimated at Rs149.076 billion. Of this, Rs23.069 billion had been released during the first two and a half months of the fiscal year, the documents show.
However, the funds do not have a separate head in the province’s Consolidated Fund, according to sources. The money is transferred into the provincial account along with other revenues, making it difficult to track its utilisation through a dedicated expenditure head.
The KP Finance Department said the size of the war on terror allocation is linked to Federal Board of Revenue (FBR) collection targets. According to the department, the province receives the full amount when the federal revenue targets are achieved.
The funding figures come against a backdrop of sustained militant violence in the province. A Centre for Research and Security Studies report cited by Geo.tv said KP recorded 475 violence-related fatalities and 151 violent incidents in the second quarter of 2026, making it the country’s worst-affected region during the period.
The security situation has remained volatile in recent weeks.
A militant attack on Kohat Police Lines in September killed 22 people, including 16 police officials, while 13 people, including women and a child, were killed in a suicide attack on an anti-smuggling check post in Dera Ismail Khan later that month, according to Geo.tv reports.
Security forces have also continued intelligence-based operations across the province. In late September, three militants were killed in an operation in North Waziristan.
Other operations in KP have targeted militant positions along the Afghan border, according to security sources and the military’s media wing, Inter-Services Public Relations (ISPR), as reported by Geo.tv.
The latest figures also highlight increased spending on policing in the province. Finance Adviser Muzzammil Aslam said the police operational budget had been increased from Rs15 billion to Rs30.2 billion.
He said the sanctioned strength of the provincial police had also been increased to 139,318 posts.
The additional 1% share was introduced through the 7th NFC Award in recognition of the exceptional security and economic pressures faced by KP.
