KP Approves Interest-Free Loans For Govt Employees

Peshawar, Sept 24, 2025: The Khyber Pakhtunkhwa government has decided to provide interest-free loans to provincial government employees to support their financial needs and facilitate access to essential assets.

The official notification in this regard states that the government will offer loans to employees from Grade 1 to 17, which they can repay in easy installments. The government has allocated Rs 10 crore for Secretariat employees and Rs 24 crore for other provincial staff under this initiative.

The notification further specifies that employees can receive Rs 200,000 to purchase vehicles and Rs 250,000 as an advance for house construction. The government has earmarked Rs 34 crore in this year’s budget to fund the program.

A spokesman said that through this initiative the provincial government demonstrates its commitment to supporting employees financially while helping them gain better access to housing and transportation, ensuring their welfare and convenience.

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