The leftists, led by Afzal Bangash and Sher Ali Bacha, then decided to leave the NAP and establish the Mazdoor Kisan Party (MKP).
The National Council of the Party met on 30 June and 1 July 1968 at Royal Hotel, Peshawar, with Professor Muzaffar Ahmed, President of East Pakistan NAP chairing the first session.
The theory advocated by senior NAP leader Bizenjo stated Pakistan was composed of four distinct "nations", the Pukhtun, Baloch, Sindhi and Western Punjabi.
[8] In 1971, in an attempt to avert a possible showdown between the Military and the people of East Pakistan, on March 23, 1971, Khan, along with other Pakistani politicians, jointly met Sheikh Mujibur Rahman.
They offered support to Mujeeb in the formation of a government, but it was already too late to break the impasse as Yahya Khan had already decided on a full scale military crackdown.
[10] In 1972, as the opposition leader, Wali Khan was contacted by Zulfikar Ali Bhutto, who wanted to lift martial law and set up a new constitution.
Public anger amongst ethnic Pashtuns ran high, as almost all the dead and most of the wounded were from the Khyber Pakhtunkhwa and were mostly members of the National Awami Party.
The enraged party workers and followers wanted to parade the dead bodies on the streets in Peshawar and other cities of the province, and provoke a full scale confrontation.
Wali Khan rejected this notion and held back his infuriated party cadres, escorting the dead bodies to Peshawar; he had them buried quietly with their bereaved families.
[15] Following the massacre the Federal Security Force launched a crackdown against the party that led to many senior leaders including Ajmal Khattak to flee into exile to Kabul.
Despite this fact, Sardar Ataullah Mengal as chief minister, moved a resolution in the Balochistan Assembly to do away with the domicile as a qualification and suggested that those who had spent several generations in the province should be treated as locals.
It was later on alleged that the officers were incited to leave through the efforts of PPP[clarification needed] supporters and the then Chief Minister of Punjab Ghulam Mustafa Khar.
However, the final straw was the discovery of arms in the Iraqi embassy in Islamabad and Nawab Akbar Bugti's declaration of the London Plan, that alleged that NAP-led governments in Balochistan and Khyber Pakhtunkhwa was seceding to gain independence from Pakistan.
The Hyderabad case was withdrawn after General Muhammad Zia-ul-Haq imposed martial law in July 1977 and Afghan President Daoud Khan offered to settle all issues with Pakistan if the ban on NAP was lifted and greater autonomy for Pashtuns was introduced.