Special Assistant for Information Shafi Jan has released details regarding the decisions taken in the Khyber Pakhtunkhwa cabinet meeting, stating that the provincial cabinet has approved the Khyber Pakhtunkhwa Fiscal Responsibility and Debt Management (Amendment) Bill 2026. 

The amendment aims to make the process of acquiring loans more effective and stricter in order to reduce the trend of unnecessary borrowing.

He said the objective of the bill is to strengthen fiscal discipline and ensure effective monitoring of public debt. A separate Debt Management Office will also be established to reduce reliance on loans for development projects.

According to Shafi Jan, under the amended law, the government will ensure that at least 20% of average income is invested in non-financial assets each fiscal year. Meanwhile, the limit for debt servicing has been set at 5% of average income, which may be increased to 7% with special approval.

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He further stated that total public debt and government guarantees will not exceed 75% of average income, although in special circumstances this limit can be raised up to 100%.

The cabinet also approved the Budget Strategy Paper 2026–27, prioritizing increased tax and non-tax revenue, reduction in debt, improved investment outcomes, youth empowerment, and environmental protection.

He added that reforms in health, education, and other sectors, along with the solarization of government buildings, telemedicine, school monitoring systems, digital skills programs, and Safe City projects, are among the government’s key priorities.

Shafi Jan also announced that the cabinet approved amendments to the Khyber Pakhtunkhwa Jail Rules 2018, allowing prisoners to have virtual meetings with veiled women, elderly, and sick relatives.

He said that under the Good Governance Roadmap, a performance framework has been approved to improve the efficiency of government officers. Officers showing outstanding performance will receive rewards of up to four basic salaries along with commendation certificates.

In Peshawar, the cabinet also approved special concessions for land mutation, transfer, and lease to facilitate the construction of civil dispensaries in super high-risk union councils for polio prevention.

The cabinet further approved the Khyber Pakhtunkhwa Journalist Welfare Endowment Fund (Amendment) Bill 2026 to make the financial assistance system for journalists more effective and sustainable.

Shafi Jan clarified that three bills related to the salaries and perks of assembly members, the Speaker, and the Deputy Speaker were presented for consideration. However, reports circulating in the media about lifetime perks for the Speaker and Deputy Speaker are incorrect.

He emphasized that no such clause exists in the proposed bill, and under Article 53(8) of the Constitution, such benefits are limited only until a new Speaker assumes office.

He added that all these decisions were taken in the provincial cabinet meeting chaired by Chief Minister Sohail Afridi.