PESHAWAR: The Khyber Pakhtunkhwa Assembly has been informed that the province received more than Rs34.88 trillion from the federal government over the past five financial years under the National Finance Commission (NFC) Award and War on Terror allocations, according to official documents presented in the house.
The figures cover the period from financial year 2020–21 through 2024–25 and outline the federal transfers made to the province under the two major funding categories.
According to the documents, Khyber Pakhtunkhwa received a total of Rs34.88675 trillion during the five-year period. Of this amount, Rs31.1445 trillion was transferred under the NFC Award, while Rs3.74224 trillion was released under War on Terror-related allocations.
The documents indicate that the 2024–25 financial year recorded the highest level of federal transfers during the five-year period.
In that year alone, the province received Rs10.46875 trillion, including Rs9.34579 trillion under the NFC Award and Rs1.12223 trillion under War on Terror funding.
The assembly documents also compared the amount received with the province’s overall entitlement from the federation.
According to the figures presented, Khyber Pakhtunkhwa’s total share from federal transfers over the five years amounted to Rs36.47649 trillion. However, the province actually received Rs34.88675 trillion, leaving an outstanding balance of approximately Rs1.58974 trillion.
The documents state that the outstanding amount relates to pending transfers under both the NFC Award and War on Terror allocations.
The National Finance Commission Award is the constitutional mechanism through which revenues collected by the federal government are distributed among Pakistan’s provinces according to an agreed formula. The transfers constitute a major source of provincial revenue and finance expenditures on public services, infrastructure, education, healthcare, and development projects.
War on Terror allocations are separate federal transfers intended to help provinces, particularly those most affected by militancy and security operations, meet the financial burden associated with counterterrorism efforts, reconstruction, rehabilitation, and maintaining law and order.
The presentation of these figures in the provincial assembly comes amid ongoing discussions regarding fiscal relations between the federation and provinces, including the timely release of constitutionally mandated funds and the settlement of outstanding financial obligations.
The official data provide an overview of the federal financial support extended to Khyber Pakhtunkhwa over the last five years while also highlighting the amount that the province says remains payable by the federal government under the relevant funding mechanisms.
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