The Ministry of Planning, Development and Special Initiatives on Tuesday released, with the approval of Prime Minister Shehbaz Sharif, a Rs. 35.968 billion package for the merged districts of Khyber-Pakhtunkhwa under the Accelerated Implementation Program (AIP).
The approval, read a statement, represents a critical step toward the sustained development and uplift of the former FATA region, with an aim to ensure inclusive growth and long-term stability in the region.
The initiative falls under the broader Ten-Year Development Plan for ex-FATA, implemented through the Federal Public Sector Development Program (PSDP) 2024–25. With this latest funding authorization, the total allocation for the AIP Program under the current fiscal year reaches Rs. 42.315 billion.
Planning Minister Ahsan Iqbal emphasized the significance of this investment, stressing it was one of the biggest investments for the uplift of the area. “It’s not just numbers,” he emphasized, “Its hope for families who have waited too long for light, for education, for safety.”
The allocated funds will support a series of transformative projects aimed at bridging development gaps and improving living standards across the region. Key initiatives include the solarization of off-grid households, with Rs. 13.5 billion set aside to provide solar energy solutions to 120,000 households or implement a 50MW utility-scale micro grid, ensuring sustainable and affordable power access.
Additionally, Rs. 7 billion has been allocated for the construction of police stations and police posts, including the transformation of Levies forces, to enhance law enforcement capacity and public safety in the region.
The ministry has earmarked Rs. 2.5 billion for the development of FATA University to strengthen its academic and institutional infrastructure, providing youth from the region with greater access to quality higher education. Additionally, Rs. 13.145 billion, as requested by the Government of Khyber-Pakhtunkhwa, has been authorized to clear outstanding liabilities for ongoing schemes, ensuring the timely completion of critical infrastructure and development projects.
Iqbal reiterated the government’s commitment to inclusive development. “These are real steps toward a better, brighter future. Our message is simple: Newly merged Districts are important priority of the federal government. We look forward to working with KP government above partisan lines for the development of a region, which has suffered greatly due to terrorism.”
This funding package reaffirms the federal government’s resolve to uplift underdeveloped regions and integrate them fully into the national development framework, ensuring equitable growth, improved governance, and social cohesion across Pakistan. The allocated funds may be utilized under supervision of a steering committee headed by KP Chief Minister Ali Amin Gandapur, with the provincial finance minister, a federal minister, secretary Planning and representative of the 11 Corp HQ as members.