PESHAWAR: Khyber Pakhtunkhwa Chief Minister Muhammad Sohail Afridi has written to Prime Minister Muhammad Shehbaz Sharif, urging the federal government to defer its proposed withdrawal of tax exemptions for the Malakand Division and merged districts
In his letter, the chief minister warned that the move would undermine commitments made at the time of merger and erode public confidence in the process.
“The people of Khyber Pakhtunkhwa are not opposed to taxation and remain committed to strengthening Pakistan’s economy through a fair, equitable and sustainable taxation system,” he said, adding that the issue was not taxation itself but the proposed withdrawal of tax exemptions in disregard for the commitments made by the federation during the merger process.
The chief minister reminded the prime minister that the merger of erstwhile FATA with Khyber Pakhtunkhwa was founded upon a broad national consensus and accompanied by explicit federal commitments to provide sustained financial support and institutional assistance for the successful integration and development of the region. He said that despite the province’s unwavering commitment to implementing the merger, many of these commitments remain outstanding, while Khyber Pakhtunkhwa continues to shoulder disproportionate financial, administrative and security responsibilities. “The Federation’s committed NFC allocation has yet to materialise,” he maintained.
The chief minister pointed out that the prolonged disruption of legal cross-border trade and transit with Afghanistan has significantly reduced commercial activity, particularly in the border districts whose local economies have historically depended on such trade. He maintained that these challenges have been compounded by persistent locational disadvantages, inadequate infrastructure, limited industrialisation, high transportation costs and energy constraints, all of which continue to impede private investment, employment generation and sustainable economic growth.
Sohail Afridi stated that the tax exemptions applicable to the merged districts and Malakand Division were conceived as transitional measures to promote investment, encourage industrialisation, generate employment and facilitate the economic integration of historically disadvantaged regions.
