The Federal Ministry of Planning, Development, and Special Initiatives has released a major funding package of Rs 35.968 billion for the Merged Districts of Khyber Pakhtunkhwa, under the Accelerated Implementation Programme (AIP), with the approval of Prime Minister Shehbaz Sharif.
This approval, in line with the Prime Minister’s directives, marks a step towards the sustained development and uplift of the Newly Merged Areas (formerly FATA), aiming to ensure inclusive growth and long-term stability in the region, according to a statement issued on Tuesday.
The funding package is part of the broader Ten-Year Development Plan for Ex-FATA, which is implemented through the Federal Public Sector Development Programme (PSDP) 2024–25. With this authorisation, the total allocation for the AIP Programme in the current fiscal year now stands at Rs 42.315 billion.
Federal Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, highlighted the importance of this investment, stating, “We are unlocking Rs 35 billion for the Newly Merged Areas—one of the largest investments for the uplift of the area and the communities have ever seen. It’s not just about numbers; it’s hope for families who have waited too long for light, education, and safety.”
The allocated funds will support transformative projects designed to close development gaps and improve living standards. Key initiatives include solarising off-grid households, with Rs 13.5 billion earmarked to provide solar energy to 120,000 households or implement a 50 MW utility-scale microgrid, ensuring sustainable and affordable power access.
Additionally, Rs 7 billion will be allocated for constructing police stations and posts, as well as transforming Levies forces to strengthen law enforcement capacity and public safety in the region.
A Rs 2.5 billion allocation has been made for the development of FATA University, aimed at improving academic infrastructure and providing better access to higher education for the region’s youth.
Furthermore, Rs 13.145 billion has been authorised, as requested by the Government of Khyber Pakhtunkhwa, to clear outstanding liabilities for ongoing schemes, ensuring the timely completion of critical infrastructure projects.
Minister Ahsan Iqbal reaffirmed the government’s commitment to inclusive development, stating, “These are real steps toward a better, brighter future. Our message is clear: The Newly Merged Districts are a priority for the Federal Government. We look forward to working with the KP government across partisan lines for the development of a region that has suffered greatly due to terrorism.”
