Why does KP receive an extra 1% NFC share?

Explanation

– Khyber Pakhtunkhwa receives an additional 1% share under the National Finance Commission (NFC) Award to help cover expenses related to the war on terror.
– This special allocation recognizes the province’s disproportionate security and reconstruction burden due to militancy and counter-terrorism operations.
– The NFC Award determines how federal tax revenue is distributed among Pakistan’s provinces.
– This war-on-terror allocation has been a recurring feature of NFC arrangements for KP in recognition of its unique security challenges.