KP Govt Announces Interest-Free Loan Scheme for Staff
The Khyber Pakhtunkhwa government has introduced an interest-free loan scheme for provincial employees, aiming to ease financial burdens with allocations in the current year’s budget.
According to an official notification, employees from grades one to seventeen will be eligible to access loans under easy installment plans, ensuring greater financial relief.
The government has allocated Rs100 million for secretariat employees and Rs240 million for other provincial staff, totaling Rs340 million this fiscal year.
Under the scheme, employees will be able to obtain Rs200,000 for purchasing vehicles and Rs250,000 for building residential houses across the province.
Meanwhile, the provincial government has also approved the Ehsaas e-pension system, designed to replace manual pensions with a transparent and paperless digital platform.
The e-pension system will become operational from January 1, 2026, allowing retiring employees to submit pension cases online six months before retirement.
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Authorities said the web-based portal will create a fully paperless workflow, reducing bureaucratic delays and ensuring quicker disbursement of pensions for newly retired employees.
Chief Minister Ali Amin Gandapur has directed the Finance Department to implement the e-pension system, terming it a revolutionary step toward administrative modernization.
Last month, KP Assembly passed the Government Servants Housing Foundation Bill, creating a new housing foundation to provide affordable residential plots for employees.
The initiative aims to address the shortage of affordable housing, as many government servants are forced into expensive rental accommodations across the province.
According to the bill, plots will be allotted to government employees on a no-profit, no-loss basis, ensuring fairness and affordability for all applicants.
Funding will come through provincial and federal government grants, while monthly salary deductions from employees will also contribute to supporting the foundation’s financial structure.