Peshawar, In a move linked to federal financial policies, the Khyber Pakhtunkhwa provincial government has announced it will match any salary increase over 10 percent granted by the federal government, contingent upon the federal government covering the full tax liability of the province starting from July 1, 2024.

According to Directorate General Information and PRs – Khyber Pakhtunkhwa, Finance Advisor Muzamil Aslam made the announcement during a meeting with the negotiation committee of various government employees’ associations. The meeting, held at the Civil Secretariat Peshawar, included prominent members such as Ishrat Malik, Rafasit Mehr, Shafar Ras Khan, Abdul Ghafoor, Sirajuddin, and Azizullah. Aslam stated that the provincial adjustments to salaries would depend on the federal government’s commitment to assume the complete tax burden of Khyber Pakhtunkhwa.

Further discussions highlighted the sustainability of the pension system, with Aslam warning of a future where the government might have to choose between disbursing pensions and salaries if current trends continue without reform. He emphasized the necessity of collaborative strategies to address these financial challenges after the upcoming federal budget. The finance advisor also noted the province’s financial strategy, pointing out that while only a small fraction of the province’s income is internally generated, measures are being taken to enhance revenue through reduced expenditures and tax reforms.