PESHAWAR: Khyber Pakhtunkhwa Chief Minister Mohammad Sohail Afridi on Friday said his government would formulate a crisis management policy at the provincial level.
He also said more measures would be taken soon to mitigate the effects of rising inflation.
“The federal government has once again increased the burden on people by raising the prices of petrol and diesel. Our government will not allow the people to be crushed under inflation,” the chief minister told a Zoom cabinet meeting here.
He criticised the federal government’s latest increase in fuel prices by saying it will deepen inflationary pressures and further strain households across the country.
Afridi promises measures to mitigate effects of rising inflation
Mr Afridi said nearly 45 per cent of the country’s population lived below the poverty line and that rising prices were increasingly affecting not only low-income groups but also middle and upper middle-income households.
He called for long-term economic planning, warning against “short-term, fire-fighting measures”, which, he said, have failed to address structural challenges.
“Sustainable growth requires policy consistency and clear direction,” he said and contrasted current economic conditions with those during former prime minister Imran Khan’s tenure.
The CM noted that Pakistan recorded 6.1 per cent GDP growth despite the global Covid-19 pandemic, while fuel prices were kept relatively lower even amid high international oil prices.
He said that current fuel prices had risen sharply, which was attributed to policy shortcomings, and failure of the federal government for a lack of a clear agenda.
“Despite ongoing national level challenges, the province continues to contribute constructively to broader economic stability,” he said, adding that the province remained committed to contributing to national stability despite fiscal constraints.
Mr Afridi said that attempts to reduce provincial fiscal allocations were effectively resisted through strong representation of the province’s case.
and emphasised that KP had independently absorbed substantial financial shocks arising from recent floods, while its due share under NFC had not been fully realised.
The chief minister also pointed out that while the erstwhile tribal districts had been administratively merged with the province, their financial integration remained incomplete, resulting in additional fiscal burden on provincial resources.
He said that the shortcomings in national policy had contributed to a resurgence of militancy, leading to forced displacement of populations and increased security expenditures at the provincial level, without commensurate federal support.
Mr Afridi said macroeconomic risks, widening trade deficit, declining export growth and pressure on foreign exchange reserves contributed to currency depreciation and inflation.
He warned that increases in fuel prices would have cascading effects on electricity tariffs, inflation, unemployment and overall economic hardship. He urged the federal government to adopt a comprehensive economic strategy focused on long-term stability. Special assistant to the chief minister on information Shafi Jan highlighted the decisions taken in the meeting and said the cabinet approved the establishment of the University of Applied and Modern Sciences for the merged districts.
According to him, the participants approved abolition of 55 vacant support staff posts in the Agriculture University under the provincial government’s austerity policy, which would result in a monthly saving of Rs9 million. They also granted conditional approval of Rs229 million as grant-in-aid for the Auqaf department to meet certain essential expenditures.
In view of the prevailing crisis situation, the cabinet agreed in principle to the voluntary deduction of two-day basic salary of government officers in Grade-20 and above, and directed the finance department to devise a mechanism for obtaining their consent.
The meeting was informed that both previous and present KP governments had so far reduced POL expenditure on official vehicles by 60 per cent under the austerity policy.
The cabinet approved necessary amendments to the KP Medical Teaching Institutions Appellate Tribunal Rules, 2020, and granted MTI status to the Saidu Group of Teaching Hospitals.
It also approved a grant-in-aid of Rs10 million for Fatimid Foundation for treatment of underprivileged children suffering from thalassemia, creation of 598 paid intern nurse posts in various hospitals of the province, and grant-in-aid of Rs993 million for operationalisation of Timergara Medical College and early commencement of classes there.
Mr Jan said the cabinet granted approval to a non-ADP scheme for purchase of land for establishment of a Tehsil Sports Complex at Paroa, Dera Ismail Khan, financial assistance for wheelchair cricket players from Khyber Pakhtunkhwa who participated in the Pak-Afghan Series 2025 and Asia Cup 2023-24, and a special grant-in-aid for sponsorship of the recently held National Bodybuilding Championship in Peshawar.
He added that grant-in-aid of Rs80 million was okayed for Mufti Mahmood College Dera Ismail Khan during the current financial year.
The meeting approved introduction of Matric Tech and Inter Tech programmes in selected government schools as a pilot project with a cost of Rs450 million. Under the initiative, 70 government schools will be declared centres of excellence, while 1,650 students will receive scholarships to acquire modern technical skills in line with contemporary requirements.
The participants also approved the use of a digital platform for payment of various fees under the Electricity Rules, 1937, and decided to withdraw the Madian hydropower project from the World Bank programme and pursue other viable implementation options.
They also allowed the release of additional Rs20 million to the district administration for the provision of facilities and other relief measures at camps established for internally displaced families in Arandu, Lower Chitral.
The cabinet approved Rs785 million funding for the relief department to procure boats and other necessary equipment as pre-emptive measures to deal with any untoward situation during the monsoon season.
It granted approval to the Budget Strategy Paper 2026-27 for preparation of the upcoming financial year’s budget and sanctioned financial assistance for treatment of 27 deserving patients suffering from complicated diseases.
Published in Dawn, April 4th, 2026