KP Receives Nearly Rs800 Billion Under War on Terror Share Since 2010

October 3, 2026

Khyber Pakhtunkhwa has received Rs799.359 billion under the War on Terror fund from 2010-11 through September 2026, according to official financial documents.

The funds are provided through an additional 1% share of the federal divisible tax pool under the 7th National Finance Commission (NFC) Award. The allocation was introduced in recognition of the security and economic burden faced by the province because of terrorism.

Additional 1% Share Under 7th NFC Award

The 7th NFC Award was agreed in December 2009 and came into effect in July 2010. Under the arrangement, KP receives an additional 1% of the divisible pool for losses and responsibilities associated with the War on Terror.

The federal Finance Ministry has also confirmed that this additional allocation remains part of KP's financial transfers under the existing NFC framework.

Annual Allocation Has Increased

The amount transferred to KP has increased significantly in recent years.

According to the latest documents, the province received Rs112.296 billion during 2024-25 and Rs128.234 billion during 2025-26.

For the current financial year, 2026-27, the War on Terror allocation has been estimated at Rs149.076 billion. Of this amount, Rs23.069 billion had been released during the first two and a half months of the financial year.

Funds Linked to Federal Revenue Collection

The KP Finance Department said the size of the annual War on Terror allocation is linked to federal revenue collection targets.

According to the department, the province receives the full amount when the Federal Board of Revenue's collection targets are achieved.

Spending Is Not Tracked Under a Separate Fund Head

Despite the size of the transfers, sources said the War on Terror money does not have a separate head in KP's Consolidated Fund.

Instead, the funds are transferred into the provincial account along with other revenues. This makes it difficult to identify spending through a dedicated expenditure line specifically labelled as the War on Terror fund.

Security Challenges Continue in KP

The latest funding figures come as Khyber Pakhtunkhwa continues to face significant security challenges.

A Centre for Research and Security Studies report cited by Geo News recorded 475 violence-related fatalities and 151 violent incidents in KP during the second quarter of 2026. The province recorded the highest number of such incidents and fatalities in Pakistan during that period, according to the report.

The continuing security situation has also contributed to increased attention to provincial policing and counterterrorism capabilities.

Police Budget Increased

KP Finance Adviser Muzzammil Aslam said the province's police operational budget had increased from Rs15 billion to Rs30.2 billion.

He also said the sanctioned strength of the provincial police had risen to 139,318 posts, reflecting increased spending and staffing requirements for security operations.

What the Rs799 Billion Figure Means

The nearly Rs800 billion figure represents cumulative transfers made under the additional War on Terror allocation since the beginning of the 7th NFC Award framework.

Earlier federal figures showed that KP had received Rs705 billion under the additional 1% share from July 2010 through November 2025. The latest documents extend the period to September 2026 and put the cumulative amount at Rs799.359 billion.

Conclusion: Khyber Pakhtunkhwa has received nearly Rs800 billion through the additional 1% War on Terror share since 2010-11. The allocation remains an important part of the province's federal transfers, while KP continues to face security, infrastructure and financial pressures linked to terrorism.