KP cabinet approves two-day pay cut

PESHAWAR:

The Khyber-Pakhtunkhwa provincial cabinet has given in-principle approval to a voluntary deduction of two days’ basic pay from grade 20 and above to support public relief efforts as the province grapples with the fallout from rising fuel prices and broader economic pressures triggered by the Iran-US conflict.

The decision came during the 50th Cabinet meeting chaired by Chief Minister Muhammad Sohail Afridi via video link on Friday. The finance department has been asked to devise a mechanism to ensure consent of the officers. The move is part of the government’s ongoing austerity drive, where petrol, oil and lubricants (POL) allocations for official vehicles have already been cut by 60 per cent cumulatively.

Addressing the gathering, CM Afridi criticized the federal government for imposing yet another hike in petrol and diesel prices, saying it had placed an additional burden of inflation on the people. He noted that nearly 45 percent of Pakistan’s population, over 100 million people, now live below the poverty line, with the consequences hitting the poor, middle class and upper middle class hardest.

Afridi highlighted the province’s challenges: bearing the brunt of recent floods and cloudbursts without adequate federal support, incomplete financial integration of merged tribal districts and rising terrorism due to what he called failed national policies. The province is also spending its own resources on counter-terrorism and internal security while facing cuts in provincial shares under the National Finance Commission (NFC) award.

The chief minister urged the federal government to present a clear, comprehensive long-term economic policy instead of reactive “firefighting”.

Meanwhile, the Cabinet approved several key decisions to support relief and development: Releasing Rs785 million to the relief department for the purchase of boats and essential equipment ahead of the monsoon season. Approval of budget strategy paper 2026-27 for preparation of next financial year’s budget. In-principle approval for establishment of University of Applied and Modern Sciences in the merged districts; a committee headed by the provincial minister for local government will finalize the details.

Abolition of 55 vacancies as support staff at the College of Agriculture, resulting in monthly savings of Rs9 million.

Approval in principle of Posting and Transfer Guidelines for higher education to address staff shortages in distance schools.

Conditional grant of Rs229 million to Auqaf Department for essential expenditure.

Approval for purchase of land for a sports complex in Parwa, Dera Ismail Khan, financial assistance to KP wheelchair cricketers participating in international events and a special grant for the recent National Bodybuilding Championship in Peshawar.

Appointment of two new members to KP Textbook Board and Rs80 million grant to Mufti Mahmood College in Dera Ismail Khan.

The cabinet also approved additional funds and relief for internally displaced families in Arandu area of ​​Lower Chitral due to border tensions, as well as financial assistance to 27 patients suffering from complex diseases.

Special Assistant to the Chief Minister for Information Shafi Jan briefed the media on these decisions and emphasized the provincial government’s commitment to austerity, public relief and long-term development despite crises at the national level.

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