Khyber-Pakhtunkhwa has received more than Rs34.88 trillion in federal funds over the past five years, according to official documents presented in the provincial assembly. Between 2021 and 2025, the federal government transferred these funds under the National Finance Commission (NFC) Award and allocations for the War on Terror.
Breakdown of Federal Transfers
During the five-year period, Khyber-Pakhtunkhwa received Rs31.14 trillion under the NFC Award, while Rs3.74 trillion was released under the head of War on Terror. The province's total share in federal funds over this period amounted to Rs36.48 trillion, of which more than Rs34.88 trillion was actually transferred.
Highest Annual Allocation in 2024-25
The province received its highest annual allocation in the 2024-25 fiscal year, when the federal government transferred a total of Rs10.47 trillion. Of this amount, Rs9.35 trillion was disbursed under the NFC Award, and Rs1.12 trillion was provided under the allocation against the War on Terror. This marked a significant increase compared to previous years, reflecting the federal government's continued financial support to the province.
Impact on Provincial Development
The substantial funds have been utilized for various development projects and operational expenses in Khyber-Pakhtunkhwa. The NFC Award transfers are based on a formula that allocates resources to provinces, while the War on Terror allocations compensate for the province's role in counterterrorism efforts. According to official records, the timely release of these funds has helped stabilize the provincial economy and support infrastructure projects.
