ISLAMABAD: The federal government has ensured timely and sustained transfer of funds to Khyber Pakhtunkhwa (KP) under the National Finance Commission (NFC) Award and Additional Federal Support, the Ministry of Finance said on Saturday.
In a press release, the ministry stated that a total of Rs5,867 billion was transferred to KP between July 2010 and November 2025. The amount includes oil and gas royalty, gas development surcharge, and excise duty on natural gas.
Under the 7th NFC Award, KP’s share was fixed at 14.62 percent of the provincial share in the divisible pool. In view of the extraordinary burden borne by the province during the war on terror, an additional one percent of the undivided divisible pool was allocated exclusively to KP.
The ministry said KP continues to receive its full entitlement, including the additional allocation for the war on terror. Provincial NFC shares are released on a fortnightly basis, and there are no outstanding liabilities in this regard. Most recently, Rs46.44 billion was released to the KP government on December 17, reaffirming the centre’s commitment to timely disbursements.
The statement further noted that the federal government has been financing expenditures of the newly merged districts from its own NFC share. Since 2019, Rs704 billion has been transferred to KP for the newly merged districts, while an additional Rs117.166 billion has been provided over the years to support internally displaced persons.
The ministry added that Rs481.433 billion was disbursed to KP under the Benazir Income Support Programme (BISP) from the 2016 fiscal year to 2025.
