Peshawar, May 24, 2024 – The Khyber Pakhtunkhwa government on Friday announced a significant 10% hike in the salaries of public servants.
This decision marks a pioneering effort by Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur-led administration, which has rolled out a substantial budget exceeding Rs1.75 trillion for the fiscal year 2024-25.
The announcement came as Khyber Pakhtunkhwa Finance Minister Aftab Alam presented the budget to the House. Alam detailed the financial plan, emphasizing the 10% increase in basic pay for both employees and pensioners. This adjustment aims to alleviate the economic pressures faced by public servants and support them in an inflationary environment.
Moreover, the provincial government declared an increase in the minimum wage, raising it from Rs32,000 to Rs36,000. This initiative is designed to improve the living standards of the lowest-paid workers and stimulate economic activity within the province.
The budget also outlines an ambitious Rs120 billion Annual Development Program (ADP) for the upcoming fiscal year. This program is part of a broader development expenditure plan totaling Rs416.30 billion. The breakdown includes Rs120 billion for the provincial ADP, Rs24 billion for district ADP, Rs36 billion for merged districts ADP, and Rs79.29 billion for the Accelerated Implementation Program (AIP).
Significant allocations were also proposed for various social and infrastructure projects. The government has earmarked Rs12 billion for the Ehsas Employment Program, Youth Program, and Skills Program, targeting job creation and skill development among the youth.
In a bid to address the housing crisis, the finance minister announced the construction of 5,000 new homes under the Ehsas Own House Program, with an allocation of Rs3 billion. Other major initiatives include a Rs10 billion investment in the CRBC Lift Canal project to irrigate three lakh acres of land and the launch of Tank, Chodran, and Daraban dams. Additionally, Rs26.90 billion has been designated for wheat procurement, ensuring food security in the province.
Infrastructure development features prominently in the budget, with Rs6.50 billion allocated for road construction and Rs2.50 billion set aside for emergency works. Key projects include the construction of the Dir and DI Khan motorways under a public-private partnership model and the establishment of a road linking DI Khan with the Hakla motorway. The energy sector will also see significant investment, with the 470-megawatt Lower Spat Gah hydroelectric project.
This comprehensive budget reflects the Khyber Pakhtunkhwa government’s commitment to fostering economic growth, enhancing infrastructure, and improving the quality of life for its residents. By taking proactive measures and prioritizing development, the province aims to set a benchmark for fiscal responsibility and progressive governance.