Fri, 08 Dec 2023

Peshawar [Pakistan], October 3 (ANI): Amid the ongoing economic slump across Pakistan, the government of Khyber Pakhtunkhwa province failed to provide salaries to its employees on the first day of October, blaming it on the non-payment of the province's dues by the ruling coalition.

The matter came to light straight after the National Bank of Pakistan was issued letters by the district account offices for the delay in salary payment to the government employees, Dawn reported.

However, the bank blamed it on the centre for not clearing the payments of the province.

Moreover, the letters sent by the Kohat and Bajaur district controllers of accounts to the NBP's local branches went viral on social media.

As per sources, the province of Khyber Pakhtunkhwa is under a crunch of PKR 275 billion in funding due to the non-payment of hydel profit dues and payments for flood losses, Dawn reported.

However, refuting the delay in salaries of employees in the province, Finance minister Taimur Saleem Jhagra wrote on his Facebook page that all salaries to the government employees would be paid 'on time next week'.

"The province is ensuring that it manages the financial crisis created by the non-payment of dues by the federal government," he said.

Pakistan's economy is forecast to slow to 3.5 per cent in the financial year 2022-23 due to reasons like devastating floods and policy tightening, the Asian Development Bank (ADB) has said in its latest report.

According to the Asian Development Outlook (ADO) 2022 Update, GDP growth in Pakistan in the financial year 2021-2022 was propelled by higher private consumption and an expansion in agriculture, services and industry--particularly large-scale manufacturing.

But in the financial year, 2022-23--as well as climate headwinds and Pakistan's critical policy efforts--ADB's lower growth projection also reflects double-digit inflation.

Pakistan's inflation spiked to 21.3 per cent in June, its highest since 2008, lifting average headline inflation to 12.2 per cent in in the financial year 2021-2022. (ANI)

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