The Khyber Pakhtunkhwa (KP) government has prepared a set of recommendations to impose a financial emergency in the province. One such recommendation is to slash the salaries of government employees by 25% to overcome financial crisis and prevent default.
A high level meeting was held In this regard, in the KP Finance Department. The meeting was supposed to assess the dire financial situation and explore various options to control it.
Several recommendations were discussed during the meeting, with a focus on addressing the financial crisis facing the province. The proposals will be presented to the caretaker chief minister for approval in the coming days.
One of the options discussed in the meeting involves a rollback of the 35% salary increase given to government employees in the current fiscal year. This rollback would result in monthly savings of around Rs 9 billion for the province.
Another option under consideration is a 25% reduction in government employees’ salaries. This will potentially save approximately Rs 8 billion each month. The provincial government is in a tight spot amid the ongoing financial crisis. They are actively exploring the possibility of reducing salaries to alleviate the situation.
The third option on the table involves discontinuing executive allowance, health professional allowance and other similar perks for government employees. This will lead to monthly savings of approximately Rs 2 billion.
It has also been suggested that strict financial discipline will be enforced in provincial government-run MTIs (medical teaching institutions) to manage financial stability.
Pakistan’s economy is currently under stress. The Khyber Pakhtunkhwa (KP) government is considering imposing a financial emergency in the region. Recent times saw political turmoil, and on the economic front, the whole country, especially KP, has been dealing with worst inflation, and it’s been hard for the government to pay public servants.