Imran Khan's PTI is in talks with independents and small parties to form a coalition government, while rival parties vow to launch a protest 'movement'.
The future of the ruling Pakistan Muslim League-Nawaz (PML-N) party is now in question ahead of July 25 elections.
Residents of the tribal districts are hoping the democratic change will bring improved security, rule of law, economic development and durable peace.
If enacted, a new constitutional amendment would mainstream the Federally Administered Tribal Areas and merge it with Khyber Pakhtunkhwa.
The transfer of power next month will mark only the second time in Pakistan's history that an elected government has completed its tenure.
Local residents have welcomed the army's pledge, which is seen as part of the government's strategy to address recent protests from the Pashtun Tahafuz Movement.
Awaiting the results of the first census in nearly two decades, minorities hope for political inclusion and acceptance.
The first census in 19 years will be the basis for political and funding adjustments and comes one year before parliamentary elections.
The Pakistani cabinet approved recommendations to merge FATA with Khyber Pakhtunkhwa.