The Khyber Pakhtunkhwa government has announced interest-free loans for provincial employees, aiming to ease financial burdens through accessible installment plans.
According to the official notification, loans will be extended to employees from grade one to 17, with Rs340 million allocated under the current budget.
The plan sets aside Rs100 million for secretariat employees and Rs240 million for other staff, ensuring wider inclusion across different departments of the province.
Eligible employees will receive advances of Rs200,000 for vehicles and Rs250,000 for house construction, repayable through convenient, interest-free installments.
Separately, the government has also launched a paperless Ehsaas e-pension system, effective from January 1, 2026, across the province.
The Chief Minister’s Secretariat confirmed that pensions for new retirees will be processed digitally, replacing the lengthy paper-based pension structure.
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The e-pension dashboard will serve as a web-based platform, enabling employees to file cases six months before retirement through simplified digital forms.
Officials said the initiative will modernize workflows, cut red tape, and ensure faster processing of pensions for provincial employees.
Last month, KP Assembly passed the Government Servants Housing Foundation Bill to establish a foundation providing affordable residential plots to provincial employees.
The initiative addresses the acute housing shortage, as many government servants are currently forced to live in expensive rental houses across different urban and rural areas.
According to the bill, plots will be allotted on a no-profit, no-loss basis, ensuring fair distribution and affordability for employees in all service grades.
Funding for the foundation will come from federal and provincial grants, alongside monthly salary deductions, aiming to ease employees’ long-term housing burden.