PESHAWAR, Dec 20: The NWFP government has regularized the services of thousands of employees who were appointed on contract basis from July 1, 2001, onwards under the contract employment policies of 2001 and 2002.

The decision was taken at a meeting of the provincial cabinet held here on Monday with Chief Minister Akram Durrani in the chair. However, according to the decision, the employees to benefit from the decision will not be entitled to pension.

The government has decided to create a special fund - contributing provident fund - for these employees. The employees, said an official of the finance department, would contribute 10 per cent of their basic salary to the fund and a similar amount would be contributed by the provincial government.

"The decision reflects a major change in the government's policy," said an official source, adding that "it would not put much pressure on the treasury because the government has not given the right of pension to the employees".

The source told Dawn that the exact number of employees covered by the decision was not yet known and the secretary finance department had informed the cabinet that the information would be available soon. However, the source said the number would run into thousands.

The decision, said an official of the establishment department, would also apply to employees of the officer grade who had been recruited through the provincial public service commission on contract basis.

The cabinet also decided that class-IV employees appointed on fixed pay would have the right of appeal like regular civil servants. In this respect, section 19 of Civil Service Act would be suitably amended. The meeting also decided to abolish mutation fee charged on transferring inheritance, gift and partition.

Similarly, all teachers attached to public representatives including members of the provincial and national assemblies and senate and all those on deputation with the provincial ministers have been directed to report forthwith to their original duty in their schools.

They were warned by the cabinet that in case of their failure to comply with the decision within 10 days their services would be terminated. The cabinet approved to hand over Keyal hydel-power station in Kohistan to the Water and Power Development Authority for construction which would be completed in five years and would raise Rs192 million a year for the provincial government on account of net hydel profit.