PESHAWAR: Khyber Pakhtunkhwa (KP) has received Rs799.359 billion from the war on terror fund between 2010-11 and September 2026, official documents show. The money comes as the province continues to deal with a steady stream of militant attacks.
According to the documents, the federal government released the funds to make up for the economic, infrastructure and financial damage caused by terrorism. The Finance Department said KP gets the allocation every year, and other provinces receive money under the same arrangement.
Why KP Gets an Extra 1% Under the 7th NFC Award
The 7th National Finance Commission (NFC) Award was agreed in December 2009 and took effect in July 2010. Under it, KP receives an additional 1% share of the federal divisible tax pool, in recognition of the losses and security burden the province has carried because of terrorism.
Yearly War on Terror Fund Releases Keep Rising
The documents show the annual amount has grown considerably. KP was given Rs112.296 billion in 2024-25 and Rs128.234 billion in 2025-26.
For the current financial year, 2026-27, the allocation is estimated at Rs149.076 billion. Of that, Rs23.069 billion was released in the first two and a half months of the fiscal year.
No Separate Head for Tracking Spending
Sources said the war on terror fund does not have its own head in the provincial Consolidated Fund. The money is deposited in the provincial account together with other revenues, which makes it hard to trace how it is spent through a dedicated expenditure line.
The KP Finance Department said the size of the allocation depends on the Federal Board of Revenue (FBR) collection targets. When those targets are met, the department said, the province receives the full amount.
Militant Attacks in KP Remain a Serious Concern
The figures come amid continuing violence. A report by the Centre for Research and Security Studies said KP recorded 475 violence-related deaths and 151 violent incidents in the second quarter of 2026, the highest in the country for that period.
The situation has stayed tense in recent weeks. A militant attack on Kohat Police Lines in September left 22 people dead, 16 of them police officials. Later that month, a suicide attack on an anti-smuggling check post in Dera Ismail Khan killed 13 people, among them women and a child.
Security forces have kept up intelligence-based operations across the province. In late September, three militants were killed in North Waziristan. According to security sources and the military’s media wing, the Inter-Services Public Relations (ISPR), other operations have targeted militant positions along the Afghan border.
Police Budget Doubled
The data also points to higher spending on policing. Finance Adviser Muzzammil Aslam said the police operational budget has gone up from Rs15 billion to Rs30.2 billion. He added that the sanctioned strength of the provincial police has risen to 139,318 posts.
