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Khyber Pakhtunkhwa (KP) Government Contemplates Salary Cuts for Public Servants in the Midst of Economic Challenges

PESHAWAR – Pakistan’s economic landscape finds itself in a state of turmoil, with Khyber Pakhtunkhwa (KP) contemplating the imposition of a financial emergency in the region. Recent times have been marred by political unrest, and the economic challenges faced by the entire country, particularly KP, have resulted in severe inflation, making it increasingly difficult for the government to meet its financial obligations to public servants.

In light of this deteriorating situation, top officials in the region, in collaboration with the Finance Department, are considering drastic measures to avert a looming default crisis. During a meeting led by the interim chief minister, officials proposed the possibility of rolling back the 35% salary increase previously granted to government employees.

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An alternative measure discussed was a 25% reduction in salaries, aimed at saving substantial sums.

Additionally, KP officials are exploring the option of curtailing various allowances and incentives offered to government employees, including executive allowances and health professional allowances. These considerations reflect the government’s efforts to address the economic challenges and ensure financial stability in the region.

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