PM Shehbaz Announces Rs160 Billion Development Package for KP

By Fatima Raza  |  October 22, 2026

PM Shehbaz Announces Rs160 Billion Development Package for KP

Prime Minister Shehbaz Sharif on Thursday announced a Rs160 billion federal development programme for Khyber Pakhtunkhwa during a high-level visit to Peshawar, promising that the Centre would place “all possible resources” behind the province’s recovery. The programme, titled “Badalta, Nikhrta, Mazboot Khyber Pakhtunkhwa” (A Changing, Flourishing and Stronger Khyber Pakhtunkhwa), focuses on underdeveloped areas and districts hit hardest by terrorism. The announcement came after a federal apex committee meeting in Peshawar attended by Field Marshal Syed Asim Munir, KP Governor Faisal Karim Kundi and senior federal ministers — the prime minister’s first visit to the province since emergency and governor’s rule were imposed on October 11.

It is one of the largest single federal commitments for KP in recent years. For the people of the province — especially in the merged tribal districts, who were promised a development dividend when their areas joined KP — the headline figure will matter less than delivery. Every rupee, the prime minister pledged, would be spent on development and prosperity. Here is what was announced, who is responsible for spending it, and what to watch next.

Key Facts at a Glance

What the Rs160 Billion Package Covers

The headline is simple: Rs160 billion in federal money for development projects across Khyber Pakhtunkhwa. The way it is earmarked shows where the priorities lie. According to KP Adviser for Information Samar Haroon Bilour, who briefed ARY News after the apex committee meeting, 70 per cent of the funds will go to the merged tribal districts, with 30 per cent for the province’s other districts. The merged districts were promised accelerated development at the time of their merger into KP, and residents have long complained the promise was never fully honoured. Tribal representatives at the Peshawar meeting told the prime minister that residents had faced problems for 13 years, according to Dunya News, and pledged full cooperation in addressing the province’s challenges.

The programme’s formal title — “Badalta, Nikhrta, Mazboot Khyber Pakhtunkhwa” — was announced through the Prime Minister’s Office statement, as reported by Hum English. On the education front, the concrete announcements include Danish schools in Bajaur, Lakki Marwat and Chitral, and a technical institute in Dera Ismail Khan, as shared by the KP information adviser with ARY News.

On implementation, the prime minister directed officials to speed up delayed projects and ordered that difficulties in completing the federal government’s own projects in KP be resolved, while the governor-led administration will address problems in provincial projects. With the province under governor’s rule, the federal government is now directly answerable for delivery — and it knows it will be judged on results, not announcements.

The Apex Committee Meeting in Peshawar

The package was announced in a carefully chosen setting: a federal apex committee meeting in Peshawar, chaired by the prime minister, bringing together the country’s top civil and military leadership. Dawn reported that the meeting was attended by Field Marshal Asim Munir, KP Governor Faisal Karim Kundi, federal ministers and newly appointed provincial advisers; Hum English further listed Deputy Prime Minister and Foreign Minister Ishaq Dar, Interior Minister Mohsin Naqvi and Finance Minister Muhammad Aurangzeb among the attendees.

Samar Haroon Bilour described the atmosphere as cordial, telling ARY News that the prime minister, the field marshal and other officials had discussed the future course of action, and that Field Marshal Syed Asim Munir had spoken in detail about the threats facing the country. According to the PMO statement cited by Hum English, the committee reviewed the province’s overall situation, measures to improve governance, accountability and public service delivery, and reaffirmed the state’s resolve to eliminate terrorism in all its forms — stressing coordination among state institutions, intelligence sharing and concrete action against militant groups. The prime minister called for a final, decisive effort to eliminate militancy, adding that failure was not an option.

Dawn reported that the prime minister reiterated the emergency and governor’s rule had been imposed “under extreme compulsion”, and promised: “I promise that we will leave no stone unturned in bringing back the happiness and era of progress to this province.” The Centre, he affirmed, “will place all possible resources at your feet” — and would ensure KP “not only matches the other provinces in the race for development” but moves ahead of them.

A New Development Council for 12 Districts

The most concrete institutional announcement of the day was the constitution of the Area Representative and Development Council (ARDC) for 12 districts facing serious security challenges. Dawn reported that the council covers Dera Ismail Khan, Tank, Lakki Marwat, Bannu, Bajaur, Mohmand, Khyber, Kurram, Orakzai, North Waziristan, South Waziristan Upper and South Waziristan Lower, and includes 48 elders and prominent personalities from those districts to ensure local representation. The prime minister met the ARDC members separately in Peshawar, with the field marshal also present.

A note on the numbers, because two outlets reported different figures and both deserve to be stated exactly as reported: Dawn reports that the ARDC includes 48 elders and prominent personalities from the 12 districts. Dunya News and The Nation, meanwhile, report that a 40-member elected tribal council would be given full authority, with federal assistance for development activities and the delivery of justice in tribal areas. These may describe different bodies or different stages of the same plan; either way, both accounts point to tribal representatives getting a formal, empowered role in how development money is spent in the merged areas.

The ARDC session produced the day’s bluntest exchange. According to Dawn, the prime minister noted the remarks of ARDC Chairman Shaukatullah Khan, who stated that “development work is zero, corruption is 100 per cent, and terrorism is at its peak” — and the prime minister responded: “I completely agree with him.” The premier said the ARDC now had an “immense responsibility”. Council members stressed that sustainable peace and security were essential for economic prosperity and reaffirmed their commitment to defeating terrorism and supporting the security forces.

Wheat, Policing and Security Measures

Beyond the money, the prime minister made practical commitments affecting daily life — most immediately on food security. He said the Centre would provide KP “as much wheat as is needed” from the storages of the Pakistan Agricultural Storage and Services Corporation (Passco), warning against hoarding and emphasising: “whatever price the Centre provides wheat at, the common man should get wheat at that very price.” Dunya News and The Nation carried the same commitment.

On security, directives were issued to bolster the Counter-Terrorism Department and complete the long-delayed Safe City projects. Police training and operational capacity are to be improved, with the requirements of the police and the CTD met on a priority basis. Governor Kundi moved on one item immediately, approving the relaxation of the police’s vehicle procurement ban — “within the approved scope and against funds already allocated in the Police Procurement Plan” — which he said would strengthen operational capacity without burdening the provincial exchequer.

The prime minister also raised corruption allegations as part of the accountability push: a Rs100 billion scandal involving drinking-water projects under the Cities Improvement Project, and a separate Rs37 billion fraud case involving the Kohistan District Accounts Office. Both figures were carried by Dawn, Dunya News and The Nation. He pledged that every rupee of public money would be spent on development and prosperity, with alleged misappropriation addressed — signalling that this package will come with federal oversight.

Why This Announcement Matters

Three things make this package significant. First, the scale and the tilt: Rs160 billion is serious money, and directing 70 per cent of it to the merged districts addresses the tribal belt’s biggest grievance — that the merger’s development promises were never honoured. Second, the machinery: between the apex committee, the governor-led Advisory Council and the new ARDC, the federal government is building a delivery structure in the province and betting it can spend faster and more transparently. Third, the sequencing: the package was announced in the same breath as CTD upgrades, Safe City completions and wheat guarantees — development, security and food supply treated as one stabilisation plan.

The economic backdrop sharpens the stakes. The government has been projecting stabilisation at home while pushing outward — from President Zardari’s Germany visit to court trade and investment ties to Pakistan’s fresh GSP+ application to the EU for 2027, which underpins a large share of export earnings. But the backdrop is jittery: the PSX shed over 2,000 points this week as oil spiked past $112 on Houthi attacks on Saudi Arabia. A Rs160 billion development push in this climate is the government backing its stabilisation narrative with cash.

What to watch next: whether the ARDC actually functions, when the Danish schools and the DI Khan technical institute break ground, how the wheat commitment plays out in KP’s markets, and — above all — whether the funds appear as visible projects in the merged districts rather than as line items in press releases.

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