Wahab Afridi

The war on terror in the Ex-fata region resulted in the fleeing of businesses from the region. Once the war ended, the government through parliament merged the autonomous regions of FATA in Khyber Pakhtunkhwa province. However, the merger move was resisted in some regions and the government decided to exempt the FATA region from tax for five years. It was expected that the government would extend the tax exemption status of the FATA region once the five years ended but this was not the case as newspapers reported that the government would open tax offices in Malakand and Ex tribal districts. The federal government's decision to integrate businesses in the FATA region into the formal sector poses a myriad of challenges requiring a delicate balance between regulatory compliance and sustaining their operations. Several key challenges hinder businesses from seamlessly transitioning into the formal sector. One of the primary obstacles is the burden of regulatory compliance. Formal secto...