Erstwhile Fata/Pata: Grand jirga participants discuss imposition of taxes

PESHAWAR: A Grand Jirga convened by the Government of Khyber Pakhtunkhwa was held at the Chief Minister’s House in Peshawar to deliberate on the imposition of federal taxes in the merged districts and Malakand Division.

The Jirga was attended by Governor Khyber Pakhtunkhwa Faisal Karim Kundi, Chief Minister Khyber Pakhtunkhwa Muhammad Sohail Afridi, members of the provincial cabinet, senators from Khyber Pakhtunkhwa, provincial presidents and general secretaries of political parties, elected public representatives, members of the National and Provincial Assemblies from the Merged Districts and Malakand Division (erstwhile Fata/Pata), and presidents of traders’ unions from the merged districts and Malakand Division.

The participants held detailed deliberations on the imposition of federal taxes in the merged districts and Malakand Division, considering a range of proposals and recommendations.

All relevant stakeholders were provided the opportunity to present their views and suggestions with a view to evolving a coordinated and broadly supported response.

Addressing the Jirga, Chief Minister Muhammad Sohail Afridi said that primary objective of convening Jirga was to formulate a unified course of action and a collective strategy regarding the imposition of taxes in the Merged Districts and Malakand Division.

The Chief Minister reiterated that the Government of Khyber Pakhtunkhwa is not levying any taxes in the merged districts. He further announced that the provincial government has decided to withdraw the Sales Tax on Services in Malakand Division.

He emphasised that the provincial government’s decision to withdraw provincial taxes was taken in the larger public interest, noting that public welfare remains the foremost consideration in all government decisions.

Expressing appreciation to all political parties and their leadership for demonstrating unity on matters affecting the province, the Chief Minister said that Khyber Pakhtunkhwa is fostering a political culture in which stakeholders from across the political spectrum come together to pursue solutions to issues of public importance.

He announced that a high-level delegation would be constituted to engage the Federal government on the tax matter. He further stated that if the federal government does not reconsider its decision, all political stakeholders in Khyber Pakhtunkhwa will stand united with the people of the province and pursue a collective course of action.

He added that, if required, public protest would be undertaken and the province’s case would also be pursued in Islamabad.

Referring to the broader discussion during the Jirga regarding law and order the Chief Minister stated that the provincial government has prepared a Provincial Action Plan to counter terrorism and clarified that, if implemented, it could help restore peace in Khyber Pakhtunkhwa within four months.

He further announced that a separate Jirga on law and order would be convened shortly to deliberate on the pathway to sustainable peace, institutional responsibilities, and the measures required to improve the security situation.

The Chief Minister also announced that a major Jirga would be convened in Islamabad to advocate for Khyber Pakhtunkhwa’s fiscal rights, including issues relating to the National Finance Commission (NFC) Award, Net Hydel Profit, and other outstanding federal liabilities towards the province.

He said that all relevant political leadership and stakeholders would be invited to participate so that the province’s financial case could be presented in a unified and effective manner.

Copyright Business Recorder, 2026