The institution of Public Service Commission, for the first time evolved under article 264,265 and 266 of the Government of India Act 1935. Article 188 of the 1956 Constitution and Article 186 of 1962 Constitution of Pakistan provided for the establishment of Public Service Commission. The Khyber Pukhtunkhwa Public Service Commission is established under article 242 of the 1973 Constitution and is functional under the Khyber Pakhtunkhwa PSC Ordinance 1978.

Under Khyber Pakhtunkhwa PSC Ordinance 1978 and K.P. PSC (Functions) Rules, 1983 read with amendments, the Commission performs the following functions:

Conduct tests and examinations for recruitment to: The civil service of the province and civil posts in connection with affairs of the province in basic pay scales 16 and above or equivalent and Posts in basic pay scale 11 to 15 or equivalent specified in certain Departments of the Provincial Govt (except the District cadre posts):

To advise the Governor - On matters relating to qualifications for, and methods of recruitment to, services and posts referred to in clause (a) - On the principles to be followed in making: - Initial appointments to the services and posts referred to in clause (a) -Appointment by promotion to posts in BPS-17 and above ; and Transfer from one service to another ; and Any other matter which the Governor may refer to the Commission.