PESHAWAR:
The Khyber-Pakhtunkhwa provincial cabinet has approved in principle a voluntary deduction of two days of basic pay for officers grade 20 and above to support public relief efforts, as the province grapples with the fallout from rising fuel prices and broader economic pressures caused by the conflict between Iran and the United States.
The decision was taken during the 50th cabinet meeting, chaired by Chief Minister Muhammad Sohail Afridi, via video link on Friday. The Finance Department has been directed to devise a mechanism to ensure the consent of officials. 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 cut by a cumulative 60 per cent.
Speaking, CM Afridi criticized the federal government for imposing another hike in petrol and diesel prices, stating that this had imposed an additional burden of inflation on the people. He noted that nearly 45 percent of Pakistan’s population, more than 100 million people, now live below the poverty line, with the impact hitting the poor, middle and upper middle classes hardest.
Afridi highlighted the province’s challenges: bearing the brunt of recent floods and cloudbursts without adequate federal support, incomplete financial integration of the 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 to provincial shares under the National Finance Commission (NFC) award.
The Prime Minister urged the federal government to present a clear, comprehensive long-term economic policy rather than 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 fiscal year. Approval in principle for the establishment of the University of Modern and Applied Sciences in the merged districts; a committee headed by the Provincial Minister of Local Government will finalize the details.
Abolition of 55 vacant support staff positions at the Agricultural University, resulting in monthly savings of Rs 9 million.
Approval in principle of Posting and Transfer Guidelines for Higher Education to address staff shortages at remote universities.
Conditional grant of Rs 229 million to Auqaf Department for essential expenditure.
Approval of purchase of land for a sports complex in Parwa, Dera Ismail Khan, financial assistance for 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 grant of Rs 80 million to Mufti Mahmood College in Dera Ismail Khan.
The cabinet also approved additional funds and aid for internally displaced families in the Arandu area of Lower Chitral due to border tensions, as well as financial assistance for 27 patients suffering from complex diseases.
Special Assistant to the Chief Minister on Information, Shafi Jan, briefed the media on these decisions and highlighted the provincial government’s commitment to austerity, public aid and long-term development despite nationwide crises.
