KP Bans Creation of New Jobs Under New Austerity Policy

The Khyber-Pakhtunkhwa government has implemented an austerity policy for the fiscal year 2024-25.

According to the Finance Department’s policy, the creation of new posts is banned to reduce costs and save money, although posts for development projects can be created with the Chief Minister’s approval.

The purchase of vehicles, except for ambulances, fire brigades, tractors, trucks, buses, passenger vehicles, prisoner transport vehicles, and rescue vehicles, is strictly prohibited. There will be restrictions on official expenditures for foreign education workshops and seminars, and hosting such events in five-star hotels is banned. Restrictions also apply to seeking provincial funding for medical treatment abroad, and contract extensions for employees will not be granted without valid reasons.

Departments must adhere to their allocated budgets and are not allowed to request supplementary or additional grants. To boost provincial revenue, the Provincial Revenue Review Committee will meet regularly under the chairmanship of the Finance Minister.

Temporary employees will only be hired with prior approval from the Finance Department, and no recruitment will be made for positions of employees on leave. Recruitment for vacant positions requires an NOC from the surplus pool, and no development project will be considered without prior clearance from the Finance Department.

The Planning and Development Department will create district and departmental plans for the next three years.

On Wednesday, the K-P government also announced the funds release policy for the current financial year. According to this policy, 25% of funds will be released at the beginning of the financial year for ongoing approved projects, with priority given to cold and hilly areas to complete projects before snowfall.

Interdepartmental funds cannot be exchanged in the first two quarters. For new schemes, 25% of funds will be released at the start of the year, with the remaining funds released later. Funds will be released after administrative approval for revised schemes, and 100% of funds for salaries, utility bills, and fuel will be provided for ongoing expenses.

Funds for wheat subsidies and maintenance will be released on a case-by-case basis. Medical teaching institutions will receive 25% of their funds quarterly, with the final quarter’s funds contingent on availability.

District governments will receive funds quarterly, but the release of development funds from the second quarter will depend on 60% utilization.