PESHAWAR: A multi-party jirga on Friday demanded immediate withdrawal of all federal taxes from the erstwhile Fata and Malakand Division and urged the federal government to fulfil all its financial, development and peace-related promises for the region.

“Failure to accept these demands will prompt a unified response, including constitutional, legal and parliamentary measures as well as peaceful street protests,” warned the jirga in a declaration.

The meeting was chaired by Chief Minister Sohail Afridi and attended by the representatives of the PTI, PML-N, PPP, Jamaat-i-Islami, ANP, Jamiat Ulema-i-Islam-Fazl, Qaumi Watan Party and National Democratic Movement.

According to the declaration adopted by the participants, the jirga members expressed grave concerns over insecurity, human displacement, loss of public lives and property, and unemployment in the erstwhile Fata (now merged tribal districts) and Malakand Division.

Participants include Governor Faisal Kundi, CM Afridi and representatives of ruling, opposition parties

It read that people of those regions had rendered immense sacrifices for peace and national stability but continued to suffer due to a lack of security.

“Development, provision of basic facilities, a 10-year tax exemption, proper representation in the National Finance Commission (NFC) Award and restoration of peace were promised in the Fata-merger agreement. However, the federal government has neither fulfilled its financial commitments nor has it provided the required development resources to ex-Fata and Malakand Division. Also, it has failed to fully restore peace in the region, so in such circumstances, imposing taxes is unjust,” said the declaration.

The jirga also welcomed the announcement of Chief Minister Afridi regarding withdrawal of the collection of all provincial taxes in the tribal districts and Malakand and demanded that the federal government immediately withdraw all federal taxes from the region.

It urged political parties, elected representatives, tribal elders, traders and the general public to join hands for the cause. The jirga members also agreed to raise the issue in parliament.

On the occasion, the chief minister said the provincial government was not imposing any tax in merged districts and that it had decided to withdraw sales tax on services in Malakand.

He added that a high-level delegation would be formed to take up the issue with the federal government, according to a statement issued by his office.

“There will be a strong reaction if the federal government doesn’t withdraw its decision regarding imposition of tax in erstwhile Fata and Malakand,” he said.

The chief minister also said that the provincial government had formulated a provincial action plan against militancy whose implementation could ensure peace within four months.

He added that a separate jirga would be convened over the law and order situation in the province.

Mr Afridi said that he would convene a jirga in Islamabad regarding the province’s financial issues with the federal government.

On the occasion, Governor Faisal Karim Kundi said that the province’s entire political leadership recently got united on the wheat supply and CNG issues.

He said that the government and opposition were always on the same page when it came to the province’s constitutional and economic rights.

Mr Kundi said that the federal government had failed to fulfil its promise to provide Rs100 million annually to the merged tribal districts and that it was not appropriate to impose taxes in the same areas without the fulfilment of promises.

“There is no space for politics over the province’s interests, which instead require unity and joint efforts. We stand with the provincial government on every issue concerning the province’s rights and interests,” he said, according to a statement issued from his office.

ANP leader Mian Iftikhar Hussain told the jirga that it was time to set aside all political differences and focus on the issue of law and order, which was the most important problem facing the province.

“Rooting out militancy from the province should be our top priority,” he said.

Published in Dawn, July 18th, 2026