K-P salary hikes tied to federal funds

Advisor to the Khyber Pakhtunkhwa Chief Minister on Finance, Muzammil Aslam, has linked any further salary increases for government employees to the receipt of funds from the Centre.

Addressing the negotiation committee of various government employees’ associations on Thursday, Aslam stated that if the federal government raises employee salaries by more than 10 percent, the provincial government will follow suit. However, this increase is contingent upon the federal government paying the province’s entire tax liability in a lump sum starting from July 1.

The negotiation committee included Roidad Khan, Wazirzada, Naseeruddin, Salim Khan, Afsar Khan, Malik Ijaz, Akhtar Bibi, Ishrat Malik, Rafasit Mehr, Safarash Khan, Abdul Ghafoor, Sirajuddin, Azizullah, and others. During the meeting, various government employee associations presented their demands to the Finance Advisor. Aslam noted that only collective demands would be considered in this session, while individual association demands would be addressed separately from July.

The committee expressed concerns regarding pension reforms. In response, Aslam suggested adopting a pragmatic approach, with work on this issue set to begin after the federal budget is announced. He warned that without reforms, the government might eventually face a choice between paying pensions or salaries.

Aslam provided a detailed briefing on the province’s economic situation, acknowledging the high demands and pledging to address them within available resources. He highlighted the provincial government’s efforts, such as restoring health cards from day one and releasing funds for other relief measures.

He noted that the province’s total income is 6.3 per cent of the total provincial budget, with 93.5 per cent of funds coming from the federal government. Efforts are being made to increase provincial income by reducing expenses and implementing tax reforms.

The Advisor said that if the pension system continues to operate without reforms, the day will come when the government will be forced to choose between two options, either pay pensions or salaries. The Finance Advisor gave a detailed briefing to the negotiating committee on the economic situation of the province and said that the demands are very high, and we will take steps to solve them according to our resources.