Tax exemption for industrial units in the former Federally Administered Tribal Areas (FATA) and Provincial Administered Tribal Areas (PATA) of the Malakand Region has been extended for another year. However, the business community in these areas is advocating for an extension of this facility for an additional term of five years. In the federal budget for the financial year 2023-24, the government has extended the tax exemption for FATA and PATA by one year until June 30, 2024. The districts where industrial units are operating include Dargai (Malakand), Swat, Dir, Buner of PATA, and Bara, Mohmand Marble City, Bajaur, North and South Waziristan of FATA. Hundreds of ghee mills, steel mills, plastic factories, power loom mills, and marble factories have been granted tax exemptions on income tax, machinery export, and raw material import. When FATA and PATA were being merged into the Khyber Pakhtunkhwa province, a five-year tax exemption was granted until June 30, 2023. Additionally, through the National Finance Commission, one percent of the divisible pool was allocated by the four provinces and the federal government for the development of the merged districts