KP Chief Minister Slams Federal Fuel Price Hike in Cabinet Meeting
Chief Minister Khyber Pakhtunkhwa Sohail Afridi presided over the 50th meeting of the provincial cabinet on Friday, attended by cabinet members, the Chief Secretary, additional Chief Secretaries, and relevant administrative Secretaries. In his address, Afridi strongly criticized the federal government's recent increase in fuel prices, warning it would exacerbate inflationary pressures and burden households nationwide.
Economic Critique and Poverty Concerns
Speaking via Zoom, Afridi noted that nearly 45% of Pakistan's population, over 100 million people, now lives below the poverty line. He emphasized that rising prices are impacting not only low-income groups but also middle and upper middle-income households. The Chief Minister called for long-term economic planning, cautioning against short-term "fire-fighting" measures that fail to address structural challenges. "Sustainable growth requires policy consistency and clear direction," he stated.
Afridi contrasted current economic conditions with those during former Prime Minister Imran Khan's tenure, highlighting that Pakistan achieved 6.1% GDP growth despite the global COVID-19 pandemic, with fuel prices kept relatively lower even amid high international oil prices. He attributed the sharp rise in current fuel prices to policy shortcomings and a lack of clear federal agenda.
Provincial Relief and Fiscal Challenges
The Chief Minister highlighted that the KP government has introduced targeted relief measures for motorcyclists and farmers, receiving national recognition. He affirmed the province's commitment to contributing to national stability despite fiscal constraints, resisting attempts to reduce provincial allocations through strong representation.
Afridi pointed out that Khyber Pakhtunkhwa has independently absorbed financial shocks from recent floods, while its due share under the National Finance Commission remains unrealized. He also noted that the administrative merger of erstwhile tribal districts with the province is incomplete financially, placing additional burden on provincial resources.
Security and Macroeconomic Risks
Addressing security, Afridi said national policy shortcomings have contributed to a resurgence of militancy, leading to forced displacement and increased provincial security expenditures without adequate federal support. He highlighted macroeconomic risks, including a widening trade deficit, declining export growth, and pressure on foreign exchange reserves, which fuel currency depreciation and inflation.
The Chief Minister warned that fuel price increases will have cascading effects on electricity tariffs, inflation, unemployment, and overall economic hardship. He urged the federal government to adopt a comprehensive economic strategy for long-term stability, noting KP is developing a provincial crisis management framework with additional relief measures to be announced.
Cabinet Decisions and Approvals
Special Assistant to the Chief Minister on Information, Shafi Jan, briefed media on cabinet decisions, which included:
- Approval for establishing the University of Applied and Modern Sciences in merged districts, with a committee formed under the Provincial Minister for Local Government to finalize modalities.
- Abolition of 55 vacant support staff posts at the Agriculture University under austerity policy, saving Rs9 million monthly.
- In-principle approval for posting and transfer guidelines in higher education to address staff shortages in remote colleges.
- Conditional approval of Rs229 million grant-in-aid for the Auqaf Department for essential expenditures.
- Agreement in principle for voluntary deduction of two days' basic salary from Grade-20 and above officers, with the Finance Department to devise a consent mechanism.
- Approval of amendments to the Khyber Pakhtunkhwa Medical Teaching Institutions Appellate Tribunal Rules, 2020, and MTI status for Saidu Group of Teaching Hospitals.
- Grants including Rs10 million for Fatimid Foundation for thalassemia treatment, creation of 598 paid intern nurse posts, and Rs993 million for operationalizing Timergara Medical College.
- Appointment of seven new non-official members to the Khyber Pakhtunkhwa Health Care Commission.
Additional Initiatives and Projects
The cabinet also approved:
- A non-ADP scheme for land purchase to establish a Tehsil Sports Complex at Paroa, D I Khan.
- Financial assistance for wheelchair cricket players from KP who participated in the Pak-Afghan Series 2025 and Asia Cup 2023-24.
- A special grant-in-aid for sponsoring the National Bodybuilding Championship in Peshawar.
- Appointment of two new members to the Khyber Pakhtunkhwa Textbook Board and an Rs80 million grant for Mufti Mahmood College, D I Khan.
- Introduction of Matric Tech and Inter Tech programmes as a pilot project in selected government schools, costing Rs450 million over two years to declare 70 schools as Centres of Excellence and provide 1,650 scholarships.
- Appointment of seven staff in Service Delivery Units under a market-based salary policy.
- Use of a digital platform for fee payments under the Electricity Rules, 1937, and withdrawal of the Madian Hydropower Station project from the World Bank programme for alternative options.
- Amendments to the Khyber Pakhtunkhwa Excise Duty on Minerals Labour Welfare Act, 2021.
- Release of Rs20 million to district administration for facilities at camps for internally displaced families in Arandu, Lower Chitral.
- Release of Rs785 million to the Relief Department for boats and equipment as pre-emptive monsoon measures.
- Approval of the Budget Strategy Paper 2026-27 and financial assistance for treatment of 27 patients with complicated diseases.
Shafi Jan noted that both previous and present KP governments have reduced POL expenditure on official vehicles by 60% under austerity policies.
