DLP Report
PESHAWAR
The Khyber Pakhtunkhwa government has introduced a comprehensive austerity package for the financial year 2026-27, directing all provincial departments, autonomous and semi-autonomous bodies to enforce strict financial discipline, improve transparency and ensure efficient utilisation of public resources.
The measures, issued by the Finance Department on the directives of Adviser to the Chief Minister on Finance Muzammil Aslam, aim to strengthen fiscal management, reduce non-essential expenditures, improve revenue collection and promote responsible use of government funds.
Muzammil Aslam said the initiative was aimed at improving accountability mechanisms and ensuring that public resources were used in a transparent, responsible and prudent manner.
Under the austerity policy, the provincial government has imposed a ban on the creation of new posts, unnecessary purchase of official vehicles, and participation in foreign workshops, seminars and training programmes at the expense of provincial funds.
The government has also prohibited official events at five-star hotels and overseas medical treatment funded by the provincial government. However, the Chief Minister may review individual cases and allow exceptions in matters involving public interest or unavoidable circumstances.
The Finance Department has directed all administrative departments, divisional commissioners, deputy commissioners and attached departments to ensure strict implementation of the austerity measures.
According to the notification, all expenditures must remain within the limits of released funds, and no department will be allowed to create financial liabilities before the availability of funds.
All principal accounting officers have been instructed to regularly hold departmental accounts committee meetings to strengthen internal audit mechanisms and improve financial oversight.
To enhance provincial revenue collection, a Provincial Revenue Review Committee, headed by the Finance Minister, will continuously monitor the performance of all revenue-generating departments.
The notification stated that prior approval from the Finance Department would be mandatory for appointments of daily wagers, contingent paid staff, leave vacancies and recruitment against vacant posts. Appointments against dying cadre posts have also been prohibited.
Development projects involving the creation of new posts or the purchase of vehicles, machinery, equipment and furniture will not be considered without prior approval from the Finance Department.
All government departments have been directed to deposit their receipts immediately into Provincial Account-I. Autonomous and semi-autonomous organisations, including medical teaching institutions, will submit details of their reserve funds and procurement plans to the Finance Department every quarter.
The government has also made approval from relevant forums and compliance with prescribed rules mandatory for repair and maintenance projects. All works departments have been instructed to maintain complete digital records of repair projects on the e-portal and submit quarterly internal audit reports to the Finance Department.
Funds allocated for advertisements will only be used for the designated purpose, while the Information Department will maintain a complete record of all government advertisements and publications.
The notification further directed all government institutions, autonomous bodies and medical teaching institutions to ensure implementation of the austerity measures after approval from their respective forums.
Strict monitoring of official vehicles, petroleum and oil (POL) expenses and vehicle maintenance has also been ordered. Departments have been advised to avoid unnecessary travel expenses and hold maximum official meetings through online platforms.
The provincial government has also instructed departments to minimise non-essential expenses, including hospitality arrangements during official meetings, as part of efforts to promote financial discipline and efficient governance.
