K-P municipal salary grants are now ring-fenced: the Khyber-Pakhtunkhwa government has banned the use of grants meant for municipal staff salaries and pensions for any other purpose, after years in which the money was diverted and workers went months without pay, The Express Tribune reported.
The order covers staff of the Tehsil Municipal Administrations and the Capital Metropolitan Government. Under the directive, salary and pension grants may be spent only on the purpose for which they were released. Any administration caught diverting the money to development schemes or other work will face disciplinary action.
The Local Government Department issued the directive after complaints kept coming in from most districts. Money released for staff salaries and pensions was being spent on development schemes and unrelated work, a practice that went on for years and left municipal employees unpaid for months at a time.
K-P municipal salary grants: months without pay
The delays hit workers and their families hard. Employees went on strike, held demonstrations and protested to demand their dues, and the unrest disrupted municipal services and caused serious problems for the public.
In several districts, the misuse of earmarked grants had become almost routine over the years. Late salaries squeezed household budgets, hurt morale and weakened service delivery across the province’s municipal network.
The department has now made clear the grants are ring-fenced and cannot be re-appropriated in any circumstances. Action will be taken against the Tehsil Municipal Officer, Finance Officer and TOI concerned if funds are diverted again.
Salaries paid on time
Steps ordered by the Advisor to the Governor and the Secretary of the Local Council Board are already showing results. After years of irregular payments, every Local Government Department employee received a full salary on the first of the month.
Municipal employees across K-P spoke of relief and satisfaction. Many called the return of regular salary payments a historic and welcome step, and credited the Advisor to the Governor and the Secretary of the Local Council Board with the intervention that ended the hardship.
The department says the measure should stabilise municipal operations. With salaries protected and paid on schedule, staff can focus on service delivery rather than wage disputes. Compliance will be closely monitored, and any further diversion of salary or pension grants will bring immediate disciplinary action.
Part of a wider K-P reset
The salary order comes as the provincial government moves on several fronts at once. Khyber-Pakhtunkhwa has unveiled a Rs70 billion counterterrorism plan to rebuild its police and Counter Terrorism Department, and Governor Faisal Karim Kundi has chaired the first meeting of the K-P Advisory Council.
The province’s local government system is also under review across the country. Islamabad has finalised the delimitation of 130 union councils after rejecting all objections, while Punjab’s Suthra Punjab sanitation drive has set strict deadlines for cleanliness in every town.
Even the climate is pressing on public services. A UN-backed report warns that heatwaves in Punjab threaten agriculture and food security, with fruit yields falling and livestock under strain. For K-P’s municipal workers, the immediate relief is simpler: pay that arrives on the first of the month, every month.
Frequently asked questions
What has the K-P government banned?
The use of salary and pension grants for Tehsil Municipal Administration and Capital Metropolitan Government staff on development schemes or any unrelated spending.
Why were municipal staff going without pay?
Funds released for salaries and pensions were being diverted to development schemes and other activities, leaving employees unpaid for months.
Who faces action if funds are diverted again?
The Tehsil Municipal Officer, Finance Officer and TOI concerned will face disciplinary proceedings.
Are salaries now being paid on time?
Yes. After several years of irregular payments, all Local Government Department employees received their full salaries on the first of the month.
Can the grants be re-appropriated?
No. The Local Government Department says the grants are ring-fenced and cannot be re-appropriated under any circumstances.





