PESHAWAR – The Khyber Pakhtunkhwa government has introduced a strict austerity policy for the new financial year. Under this policy, departments cannot create new posts, purchase vehicles, or fund foreign travel and medical treatment.
The official notification makes it clear: no government-funded workshops, seminars, or events will take place in five-star hotels. Departments must limit their spending to the funds already allocated.
The Khyber Pakhtunkhwa austerity policy also directs departments to close all separate bank accounts. They must transfer public funds directly into Account-I to ensure tighter financial control.
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The government has stopped funding maintenance projects for buildings and roads repaired within the last three years. This rule prevents repeat funding for the same sites.
To monitor development schemes, the government now requires departments to submit Monitoring and Evaluation (M&E) reports. It has instructed all autonomous bodies, medical teaching institutions, and public authorities to follow these rules without delay.
The cabinet approved this policy during a recent meeting. It decided that any new appointments for completed projects will need the chief minister’s formal approval.
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However, the policy allows exceptions for specific operational vehicles. Departments may still buy ambulances, fire trucks, tractors, passenger buses, rescue vehicles, boats, and prison vans. All other vehicle purchases remain banned.
The government has also restricted foreign travel. Except for members of the provincial assembly, no official may attend international workshops or training events using public funds.
Additionally, officials cannot receive government-funded medical treatment abroad. If any employee travels overseas while on leave, their department will not cover medical expenses without prior approval from the finance department.
Finally, departments may not appoint anyone to posts not approved under the new austerity framework.
