FDC was created through an Act in 1977 and reconstituted by FDC Ordinance, 1980, with a nominal capital of Rs. 3.000 million paid by the Government of Khyber Pakhtunkhwa aiming thereby to:-

• Introduce mechanized harvesting to reduce wastage of timber.
• Invest in afforestation activities in the conifer forests.
• •Construct roads and bridges and infrastructure in forest..
• Hire and train professional staff for improved harvesting skills. .
• Arrange for proper marketing of forest produce rather than standing trees.
• Maximize income for the Govt. of Khyber Pakhtunkhwa and forest based communities.
• Introduce flexible financial/administrative system to facilitate scientific harvesting and marketing.
• Establish wood based processing units for value addition.
• Create job opportunities for skilled and unskilled labour at their door step.