KP CM urges PM to reconsider proposed withdrawal of tax exemption for MDs, Malakand Division

PESHAWAR, (APP - UrduPoint / Pakistan Point News - 8th Jul, 2026) Khyber Pakhtunkhwa Chief Minister Sohail Afridi has written a letter to the Prime Minister Shehbaz Sharif, urging him to reconsider the proposed withdrawal of tax exemptions for the merged districts (MDs) and Malakand Division.

In his letter, he said the move has caused widespread public concern and that the KP Assembly has already expressed reservations over the proposal.

In his letter said the provincial government supported a fair taxation system and emphasized the importance of ensuring that any policy changes take into account the unique socio-economic conditions of the merged districts and Malakand Division.

Sohail Afridi said the merged districts had joined KP under a framework aimed at supporting their long-term development and integration.

He noted that the province continued to bear significant responsibilities for maintaining law and order, counterterrorism efforts, rehabilitation of affected areas and reconstruction of infrastructure.

The CM said KP, as the country's frontline province in the fight against terrorism, had suffered considerable human, economic and infrastructure losses.

He added that the closure of border trade with Afghanistan, along with underdevelopment, inadequate infrastructure and energy shortages, continued to affect the region's economy.

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Afridi said the tax exemption for the merged districts and Malakand Division had been introduced to promote investment, create employment opportunities and accelerate economic development.

He maintained that the socio-economic conditions that formed the basis for these incentives largely remained unchanged.

The CM said withdrawing the tax exemption at this stage could discourage investment, slow economic recovery and place an additional burden on local businesses.

He also noted that the KP Assembly had unanimously passed a resolution urging the Federal government to defer the proposed tax measures.

Sohail Afridi appealed to the Prime Minister to postpone the proposed withdrawal of tax exemptions for the merged districts and Malakand Division and retain the existing incentives until there was clear improvement in the economic and development indicators of the region.

He expressed hope that the federal government would make a positive decision in the larger public interest.