K-P cabinet okays two-day salary cut
The Khyber-Pakhtunkhwa provincial cabinet has given in-principle approval for a voluntary deduction of two days' basic salary from Grade 20 and above officers to support public relief efforts, as the province grapples with the fallout of surging fuel prices and broader economic pressures triggered by the Iran-US conflict.
The decision came during the cabinet's 50th meeting, chaired by Chief Minister Muhammad Sohail Afridi via video link on Friday. The Finance Department has been directed to devise a mechanism to secure the officers' consent. The move forms part of the government's ongoing austerity drive, under which petrol, oil, and lubricants (POL) allocations for official vehicles have already been slashed by 60 percent cumulatively.
Addressing the meeting, CM Afridi criticised the federal government for imposing another hike in petrol and diesel prices, saying it had placed an additional burden of inflation on the people. He noted that nearly 45 per cent of Pakistan's population, over 100 million people, now lives 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 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: Release of Rs785 million to the Relief Department for purchasing boats and essential equipment ahead of the monsoon season. Approval of the Budget Strategy Paper 2026-27 for preparation of the next fiscal year's budget. In-principle approval for establishing the University of Applied and Modern Sciences in the merged districts; a committee headed by the Provincial Minister for Local Government will finalise details.
Abolition of 55 vacant posts of support staff at the Agricultural University, yielding monthly savings of Rs9 million.
In-principle approval of Posting and Transfer Guidelines for higher education to address staff shortages in remote colleges.
Conditional grant-in-aid of Rs229 million to the Auqaf Department for essential expenditures.
Approval for land purchase for a sports complex in Parwa, Dera Ismail Khan, financial assistance for K-P wheelchair cricketers participating in international events, and a special grant for the recent National Bodybuilding Championship in Peshawar.
Appointment of two new members to the K-P Textbook Board and Rs80 million grant for Mufti Mahmood College in Dera Ismail Khan.
The cabinet also approved additional funds and relief 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, underlining the provincial government's commitment to austerity, public relief, and long-term development despite national-level crises.