Khyber Pakhtunkhwa has received a total of Rs799.359 billion from the federal government under the war on terror share between 2010-11 and September 2026, according to official documents. These funds were provided to help the province recover from economic, infrastructure and other losses caused by ongoing terrorism.
Under the 7th National Finance Commission Award, KP gets an extra 1 percent share from the federal divisible tax pool every year. This special allocation was introduced to recognise the heavy security and financial burden the province continues to carry.
The amount has grown steadily over time. In the financial year 2024-25, KP received Rs112.296 billion. The following year, 2025-26, the release increased to Rs128.234 billion. For the current year 2026-27, the estimated allocation stands at Rs149.076 billion. Out of this, Rs23.069 billion has already been transferred in the first two and a half months.
Finance Department sources noted that the money does not appear under a separate head in the provincial Consolidated Fund. It is mixed with other revenues, which makes it harder to track exactly how the funds are spent. The size of the annual release depends on Federal Board of Revenue collection targets. When those targets are met, the province receives the full amount.
The funding comes at a time when militant violence remains a serious challenge. A recent report showed KP recorded 475 violence-related deaths and 151 violent incidents in the second quarter of 2026, making it the worst-affected region in the country. Recent attacks, including one on Kohat Police Lines and a suicide blast in Dera Ismail Khan, have further highlighted the security pressure.
In response, the provincial government has increased the police operational budget from Rs15 billion to Rs30.2 billion and raised the sanctioned police strength to 139,318 posts. Security forces continue intelligence-based operations across the province, especially near the Afghan border.
The additional 1 percent share remains an important support mechanism for KP as it deals with the lasting effects of terrorism.
