The 18th Constitutional Amendment was a landmark step in strengthening provincial autonomy. Federalism in Pakistan emphasizes inter-governmental coordination in responsibilities and resources, necessitating resolution of complex issues among the provinces and between the Federation and the Federating Units.

To this end, the Government of Khyber Pakhtunkhwa established the Inter-Provincial Coordination Department, with functions defined under the Khyber Pakhtunkhwa Government Rules of Business, 1985. The Department primarily handles matters relating to the Council of Common Interests (CCI), the apex constitutional body mandated to regulate policies under Part-II of the Federal Legislative List. It plays a central role in protecting provincial interests, including securing Net Hydel Profit, the NFC share, and addressing other critical issues requiring timely resolution.

The Department has also enacted the Khyber Pakhtunkhwa Overseas Pakistanis Commission Act, 2025 to address grievances of Overseas Pakistanis from the province. A dedicated dashboard has been launched through the Ekhtyar App Khyber Pakhtunkhwa, providing efficient redressal mechanisms for over four million Overseas Pakistanis.

The Department remains committed to effective coordination, problem resolution, and inclusive decision-making for the prosperity of Khyber Pakhtunkhwa and Pakistan at large.