Established in 2004, FIDA is licensed under Section 42 of the Companies Ordinance of 1984. It is mainly funded by local donors and other partners on a project to project basis.

FIDA works primarily in Dera Ismail Khan and Tank in Khyber Pukhtunkhwa and South Waziristan in the Federally Administered Tribal Areas of Pakistan, taking a long-term approach to development and social change in this region. FIDA aims to act as a bridge between traditional and modern systems of governance and society. While operating conceptually on an 80 to 120 year timeline, FIDA works towards its long-term objectives in measurable 5-year blocks.