PkMAP Rejects Withdrawal of Tax Exemptions for Former FATA, Malakand and Balochistan Regions, Warns of Nationwide Protests

Quetta: The Pashtunkhwa Milli Awami Party (PkMAP) has strongly rejected the federal government’s decision to withdraw longstanding tax exemptions for the former FATA, PATA, Malakand Division, and several districts of Balochistan, warning of nationwide protests against the move.

In a statement issued by the party’s central secretariat, PkMAP condemned the decision included in the federal budget for the 2026–27 fiscal year, under which several previously exempt regions have been brought under the scope of various federal taxes. The party described the measure as “anti-Pashtun, anti-people, exploitative, and colonial in nature,” alleging that it would impose an additional financial burden on already underdeveloped and conflict-affected areas.

The statement said that when the former Federally Administered Tribal Areas (FATA) were merged in 2018, the federal government had pledged, based on the recommendations of the Sartaj Aziz Committee, to provide at least ten years of tax exemptions, annual financial assistance of Rs110 billion, additional allocations under the National Finance Commission (NFC) Award, a four percent quota in government employment, and increased development funding for the region.

PkMAP claimed that these commitments had not been fully implemented over the past eight years. The party argued that despite the lack of promised financial support and development projects, the government has now imposed income tax, sales tax, federal excise duty, withholding tax, customs duties, and other federal taxes on the affected areas.

The party maintained that the former tribal districts and other Pashtun-majority regions have suffered decades of terrorism, military operations, displacement, landmine contamination, economic destruction, unemployment, and poverty. It said the new taxation policy would further worsen economic conditions in areas where infrastructure, trade, investment, and employment opportunities remain severely affected.

PkMAP also argued that the affected regions had historically been granted constitutional and economic concessions due to their geographical challenges, security situation, and longstanding deprivation. The party accused the federal government of ignoring both historical realities and its previous commitments, warning that the decision could further erode public trust and strain relations between the federation and the provinces.

The statement further noted that many districts of Balochistan continue to lack access to basic services, including clean drinking water, electricity, natural gas, healthcare, education, quality roads, industries, and employment opportunities. It also claimed that restrictions on legal and traditional cross-border trade along the Durand Line have already damaged the local economy, and that the imposition of new taxes would further hurt businesses, investment, and livelihoods.

PkMAP demanded the immediate restoration of tax exemptions and warned that if the decision is not reversed, it will launch a nationwide protest movement in coordination with political parties, traders, civil society, and the affected communities.