PESHAWAR:
The Khyber-Pakhtunkhwa provincial cabinet has agreed in principle to a voluntary deduction of two days of basic pay for officers in grade 20 and above to support public relief efforts, as the province grapples with the fallout from soaring fuel prices and broader economic pressures triggered by the Iran-US conflict.
The decision was taken on Friday during the 50th cabinet meeting, chaired by Chief Minister Muhammad Sohail Afridi, via video link. The Ministry of Finance was tasked with devising a mechanism to obtain consent from officers. The move is part of the government’s ongoing austerity drive, under which petrol, oil and lubricants (POL) allocations for official vehicles have already been reduced by a total of 60 percent.
Addressing the meeting, CM Afridi slammed the federal government for imposing a further hike in the prices of petrol and diesel, saying it had imposed an additional burden of inflation on the people. He noted that nearly 45 percent of Pakistan’s population, or more than 100 million people, now lives below the poverty line, with the consequences hitting the poor, middle and upper classes hardest.
Afridi highlighted the province’s challenges: bearing the brunt of recent floods and downpours without adequate federal support, incomplete financial integration of the merged tribal districts and rising terrorism due to what he termed a failure of national policies. The province also devotes its own resources to counter-terrorism and internal security, while facing reductions in provincial shares under the National Finance Commission (NFC) award.
The chief minister urged the federal government to come out with a clear and comprehensive long-term economic policy instead of reactive “firefighting”.
Meanwhile, the cabinet approved several key decisions to support relief and development: Release of Rs 785 million to the Relief Department for the purchase of boats and essential equipment ahead of the monsoon season. Approval of the 2026-27 Budget Strategy Document for the preparation of the budget for the next financial year. Approval in principle for establishment of University of Applied and Modern Sciences in the merged districts; a committee led by the provincial minister of local government will finalize the details.
Removal of 55 vacant support staff positions at the Agricultural University, generating monthly savings of Rs9 million.
Approval in principle of secondment and transfer guidelines for higher education to address staff shortages at remote colleges.
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 special grant for the recent National Bodybuilding Championship in Peshawar.
Appointment of two new members to the KP Textbook Board and grant of Rs80 million for Mufti Mahmood College in Dera Ismail Khan.
The cabinet also approved additional funds and relief for internally displaced families in Lower Chitral’s Arandu region due to border tensions, as well as financial assistance for 27 patients suffering from complex illnesses.
Special Assistant to the Chief Minister on Information, Shafi Jan, briefed the media on the decisions, emphasizing the provincial government’s commitment to austerity, public assistance and long-term development despite crises at the national level.
