MALAKAND: A grand jirga convened by the Awami National Party (ANP) on Monday unanimously rejected the federal government's decision to impose taxes in Malakand Division and the merged tribal districts (formerly FATA), terming the move unconstitutional and against longstanding commitments made to the region.

The jirga brought together political leaders, lawmakers, lawyers, traders, hotel associations, transporters, chambers of commerce, and representatives of civil society from across Malakand Division.

In a joint declaration issued after detailed deliberations, participants demanded the immediate withdrawal of the tax measures, arguing that the region has suffered disproportionately from militancy, floods, and other natural disasters, resulting in widespread economic losses, displacement, and damage to tourism, agriculture, and local businesses.

The jirga also urged the Khyber Pakhtunkhwa government to abolish the provincial sales tax introduced in Malakand in 2024 and revoke amendments made to the Khyber Pakhtunkhwa Sales Tax on Services Regulation, 2024.

Participants maintained that despite contributing significantly to the country's natural resources, including minerals, forests, and hydropower, the people of Malakand continue to face inadequate healthcare, education, employment opportunities, and infrastructure. They demanded that local communities be given priority in the revenue generated from the region's natural resources and that a substantial share be invested in local development and public services.

The declaration further called for 60 percent of revenue generated from minerals extracted in the merged districts to be spent on the welfare and development of those districts.

The jirga also demanded that electricity produced by seven hydropower projects in Malakand Division be supplied to the region according to its requirements at the same rate at which it is provided to the national grid, describing it as the area's constitutional right.

Participants urged the federal government to ensure a fair distribution of resources among provinces, announce the National Finance Commission (NFC) Award without delay, and release Khyber Pakhtunkhwa's constitutional financial share to support the rehabilitation of conflict-affected areas.

The declaration opposed imposing taxes to meet conditions set by international financial institutions, including the IMF, stating that the people of Malakand and the merged districts should not be made to bear the burden of such commitments.

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The jirga called for the continuation of tax exemptions granted to Malakand Division and the merged districts and stressed that any constitutional, financial, or administrative decisions affecting these areas should only be made after meaningful consultation with elected representatives, political parties, traders, lawyers, and civil society.

It also demanded a special development package focusing on tourism, infrastructure rehabilitation, roads, bridges, communication networks, and public services, along with employment opportunities, industrial incentives, business facilitation, and investment projects for the region.

Reaffirming its commitment to protecting the constitutional, legal, and economic rights of the people, the jirga said all democratic, constitutional, and peaceful means would be used to oppose what it described as unjust policies.

The participants warned that if the federal and provincial governments failed to withdraw the tax measures, they would launch a phased public movement within the framework of the Constitution and the law after further consultations, holding both governments responsible for any consequences.