PESHAWAR: The Khyber Pakhtunkhwa government has asked the federal government to immediately release Rs267 billion arrears of the merged districts allocation under the current fiscal year.

In a statement issued here on Wednesday, adviser to the chief minister on information and public relations Barrister Mohammad Ali Saif said though Rs350 billion had been earmarked by the federal government for the merged districts, the province received only Rs83 billion in the current fiscal year.

He emphasised that the lack of funds from the federation was severely impacting the ongoing development projects in the merged districts. “These funds are not just financial assistance but a fulfillment of promises made to the people of these areas. The development of the merged districts and their integration into the national mainstream is a collective responsibility,” he said.

Barrister Saif highlighted that the merger of former Fata with Khyber Pakhtunkhwa was a historic decision aimed at bringing these areas into the national fold and addressing their longstanding deprivations. However, the federal government’s lack of seriousness is undermining this critical national initiative, he insisted.

He further stressed that the non-provision of funds was not only halting the development process but also significantly hampering ongoing efforts against terrorism. “Withholding funds meant for the merged districts effectively promotes terrorism, as it is impossible to eliminate extremism without initiating development projects in these areas,” he warned.

He demanded that all pending funds under the NFC Award for the merged districts be immediately released to the Khyber Pakhtunkhwa government so that the development projects can be completed on time and the people can receive their rightful entitlements.

Published in Dawn, June 19th, 2025