PESHAWAR – The Khyber Pakhtunkhwa (KP) government has imposed a ban on the disbursement of salaries and pensions before the 1st of each month.
In an official notification, the provincial Finance Department stated that payments made in the last days of October had caused administrative issues, prompting the new decision.
According to the new directive, salaries and pensions will now be strictly released on the 1st of every month. The Finance Department has instructed all relevant institutions to adhere to this rule without exception to avoid any future complications.
The change aims to streamline administrative processes and ensure smoother financial management within the provincial government. All departments and institutions have been advised to comply with the new regulation to prevent any disruptions in salary payments going forward.
The Finance Department in a notification states: “I am directed to refer to the subject noted above and to state that it has been observed by this Department that salaries through Raast payments have been disbursed from Provincial Account No. 1 (Non-Food) on 27th, 28th, and 29th October, 2025 without prior intimation to this office. This action has created a difficult position for the Provincial Government since the Federal Tranche was not received at that time, resulting In the Provincial Account No. I (Non-Food) balance turning negative.”
“Further attention is Invited to Para 217 of the Federal Treasury Rules, which provides that: “bill for monthly pay and fix allowances of government servants may be signed at any time on the last working day of the month and shall be due for payment the next blocking day.”
“Therefore, in order to maintain a positive cash balance as required under the Memorandum of Understanding (Moil) signed between the Provincial Government, the State Bank of Pakistan, and the Federal Government, I am directed to state that pay and allowances, as well as pensions, may kindly be disbursed on the first working day of each month,” read the notification.
