KP govt bars new posts, foreign trips and luxury hotel events under FY27 austerity plan

The Khyber Pakhtunkhwa Finance Department has issued Austerity Measures and Budget Execution Guidelines for fiscal year 2026-27, following approval by the Provincial Cabinet in its meeting held on June 19, 2026.

Under the austerity measures, the provincial government has banned the creation of new posts, purchase of non-essential official vehicles, participation in overseas workshops and training programmes using provincial funds, holding official events at five-star hotels, and overseas medical treatment at government expense. 

The Chief Minister of Khyber Pakhtunkhwa may, however, review individual cases involving public interest or unavoidable necessity.

The Finance Department has directed all Principal Accounting Officers to hold regular Departmental Accounts Committee meetings to strengthen internal audit systems. Departments have also been told to keep spending strictly within released funds and avoid creating financial liabilities before funds are made available.

To boost revenue collection, the guidelines task the Provincial Revenue Review Committee, chaired by the Advisor on Finance, with continuously monitoring revenue-generating departments, recommending reforms, setting performance indicators, and proposing legal and administrative measures.

Prior approval from the Finance Department and strict compliance with relevant rules will now be mandatory for appointments on daily wages, contingent-paid staff, leave vacancies, and recruitment against vacant posts. No appointments will be allowed against dying cadre positions.

Maintenance and repair projects must comply with prescribed rules, secure approval from relevant forums, and obtain administrative sanction before execution. All Works Departments must maintain a complete digital record of such projects on a designated e-portal and submit quarterly internal audit reports to the Finance Department.

Funds allocated for advertisements must be used solely for their approved purpose, with the Information Department required to maintain records of all government advertisements and publications and conduct reconciliation at least twice a year.

Autonomous and semi-autonomous bodies, Medical Teaching Institutions, and other public sector organisations have been directed to fully implement the austerity measures with approval from their respective governing forums.

The Finance Department has also instructed all government institutions to maintain strict oversight of official vehicle use, fuel and maintenance expenditures, avoid unnecessary official travel, maximise the use of online platforms for meetings, and minimise non-essential expenses, including hospitality during official meetings.

The guidelines aim to strengthen fiscal discipline, curb unnecessary expenditure, improve revenue generation, and ensure transparent, prudent use of public resources. All administrative departments, autonomous and semi-autonomous bodies, divisional commissioners, deputy commissioners, and attached departments have been directed to implement them in letter and spirit.