KP CM Urges PM to Defer Malakand Tax Exemption Withdrawal

MALAKAND – (Special Correspondent / Web Desk) – Khyber Pakhtunkhwa Chief Minister Sohail Afridi has formally asked the federal government to withdraw its plan of ending the Malakand tax exemption. In a letter sent to Prime Minister Shehbaz Sharif, he requested that the relief continue until ground conditions truly improve.

The letter, dated July 6, said the exemptions should stay in place until the situation in Malakand and the merged tribal districts gets better. CM Afridi said KP’s government has always supported a fair tax system for the whole country.

He said the matter is not only about tax collection. It is also linked to promises made by the Centre when the former FATA regions joined KP. He added that many of those promises are still unfulfilled, which has placed heavy financial and security pressure on the province.

The KP CM reminded the PM that his province has suffered the most due to terrorism and cross-border tensions with Afghanistan.

He said local trade has slowed down, hurting the economy of border districts.

According to CM Afridi, the tax relief was meant to encourage investment and industry in areas that have long faced neglect. Removing it now, he warned, could scare away investors and hurt local traders even more.

He also mentioned a committee formed in December 2024 to review the matter, saying it barely met and never gave a final decision.

He said no proper consultation was done with the provincial government before the withdrawal decision was made.

The KP Assembly has already passed a resolution demanding a delay in the tax withdrawal. CM Afridi hopes the federal government will consider his request seriously, keeping the bigger national interest in mind.

Last month, Minister Rana Sanaullah had assured opposition leaders that the government would raise the issue with the IMF and try to extend the exemption further.