Abstract
Having an agrarian economy Federally Administered Tribal Areas (FATA) has
remained one of the world most under-developed areas. It had a tribal system of
governance, known as Pashtunwali. When the previous Nawaz Sharif’s Government
announced the formation of FATA Reforms Committee in 2015, to propose reforms for
FATA, it has two major options i.e. FATA-KP merger and the formation of a separate
FATA province. After, prolonged consultation with all stakeholders, The Committee
proposed FATA-KP merger in its Report, submitted to the government. The Committee
ruled out the possibility of a separate FATA province on the ground that it could not
generate the revenue required to stands as a separate province. In the light of the
Report of FATA Reforms Committee the Government finally merged FATA with Khyber
Pukhtunkhwa through 25th
amendment to the constitution of Pakistan. In this paper it
has been argued that FATA has the potential to generate the revenue, necessary for
running the administration of a separate province. It has the capacity to generate
handsome revenue from minerals, electricity, cross-border trade and tourism.
Niaz Muhammad , Maheen Jamil, Dr. Muhammad Mumtaz Ali Khan . (2020) Understanding Economic Potential of Erstwhile FATA and the Challenges Ahead, Orient Research Journal of Social Sciences, Volume 5, Issue 1.
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