New Dates for Salary and Pension Payments — Government Confirms

The Khyber Pakhtunkhwa (KP) government has introduced a new regulation that mandates the disbursement of salaries and pensions on the 1st of each month, effective immediately. This decision, made by the provincial Finance Department, comes after administrative issues arose from payments being made in the final days of October.

In a formal notification issued by the Finance Department, the government explained that the premature payments had caused complications, particularly with the provincial government’s accounts, as the Federal Tranche had not been received in time. This resulted in a negative balance in the Provincial Account No. 1 (Non-Food), highlighting the need for a more structured approach to financial management.

The official statement reads: “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. 1 (Non-Food) balance turning negative.”

The notification also referenced the Federal Treasury Rules, specifically Para 217, which states that “the bill for monthly pay and fixed 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 working day.” The new directive seeks to prevent such financial disruptions in the future, ensuring that salary and pension payments are handled efficiently and according to the provincial government’s financial guidelines.

From now on, all government departments and institutions are instructed to ensure that salaries, allowances, and pensions are only disbursed on the first working day of each month, with no exceptions. This new rule aims to streamline the payment process and ensure positive cash flow management in line with the financial agreements between the provincial government, the State Bank of Pakistan, and the federal government.

The Finance Department’s latest directive is part of the government’s ongoing efforts to enhance administrative procedures and strengthen financial accountability within the province.

Key Points:

• Salaries and pensions will now be paid on the 1st of every month.
• Payments made in late October caused financial issues due to the Federal Tranche delay.
• The new rule aims to streamline financial management and avoid disruptions.
• The directive follows guidelines set by the Federal Treasury Rules and the Memorandum of Understanding (MoU) between the provincial and federal governments.