Khyber Pakhtunkhwa (KP) has received more than Rs79,935 crore under the war on terror fund since 2010-11, according to official documents, as the province continues to face terrorist attacks.
The federal government releases the funds to compensate for economic, infrastructure and other financial losses caused by terrorism, the documents show.
The Finance Department said that KP receives the allocation annually under the federal arrangement, while other provinces also receive funds through the same mechanism.
The additional share for KP was agreed under the 7th National Finance Commission Award in December 2009 and came into effect in July 2010 to account for the province’s security burden and losses linked to terrorism.
The amount allocated to KP has risen over the years. The province received Rs11,229.6 crore (Rs112.296 billion) during 2024-25, while Rs12,823.4 crore (Rs128.234 billion) was released in 2025-26, according to the documents.
For the ongoing financial year 2026-27, the allocation has been estimated at Rs14,907.6 crore (Rs149.076 billion). The province received Rs2,306.9 crore (Rs23.069 billion) during the first two and a half months of the fiscal year.
However, reports quoted sources as saying that the funds do not have a separate head in the provincial Consolidated Fund. The amount is transferred into the provincial account along with other revenues, making it difficult to track how it is spent through a dedicated expenditure head.
The KP Finance Department said that the allocation is tied to the Federal Board of Revenue (FBR)’s collection targets. It added that the province receives the full amount when the federal government meets its revenue targets.
The funding comes as KP continues to face terrorist violence. A Centre for Research and Security Studies (CRSS) report cited by a private media outlet recorded 475 violence-related fatalities and 151 violent incidents in the province during the second quarter of 2026.
A terrorist attack on Kohat Police Lines in September killed 22 people, including 16 police officials, while a suicide attack on an anti-smuggling check post in Dera Ismail Khan later that month killed 13 people, including women and a child, according to the private media outlet.
Security forces have also carried out Intelligence-Based Operations (IBOs) across the province. Three terrorists were killed in an operation in North Waziristan in late September, while other operations targeted terrorist positions along the Afghan border, according to security sources and ISPR reports cited by the private media outlet.
