The Khyber Pakhtunkhwa Finance Department has taken decisive action to tighten controls over salary and pension payments after a recent incident where the provincial account was overdrawn.
Addressing the October Salary Deficit
This strict directive comes in response to an event where salaries for the month of October were disbursed from the provincial non-food account. This action was taken without prior authorization and, critically, it caused the account's balance to fall into a negative position. The department has now moved to prevent a repeat of this scenario.
New Directives for Timely and Regulated Payments
According to a circular issued by the Budget Officer, all departments have been firmly reminded of the existing Federal Treasury Rules. These rules stipulate that monthly salary bills must be signed on the last working day of the month. The payment must then be processed and given to employees on the very next working day.
To maintain a healthy cash balance, the Finance Department has instituted a new, crucial step. From now on, the disbursement of salaries, allowances, and pensions will occur exclusively on the first working day of each month. However, this payment is conditional. It will only be made after the confirmation that the federal tranche has been successfully deposited into the provincial Account-I.
Ensuring Financial Discipline and Future Stability
This measure is designed to enforce fiscal discipline and ensure that the province's financial operations run smoothly. By linking salary payments directly to the receipt of federal funds, the government aims to guarantee timely salary payments to its employees and pensioners without jeopardizing the treasury's financial health. This proactive step is expected to bring more predictability and stability to the province's financial management.
