QUETTA: A financial crisis has gripped Balochistan’s local government institutions as both development and non-development funds have been suspended for the past two months. The delay in fund disbursement has not only stopped daily operations in several municipal bodies but has also led to the suspension of salaries for thousands of employees.
According to local media reports, the provincial government and the Finance Department have decided to implement the “SAFE System” a digital mechanism aimed at ensuring transparency in monthly disbursements to local bodies. However, as a result of this transition, funds under all heads including salaries have been frozen since the last two months.
Municipal institutions in low-income areas are struggling to maintain basic services such as sanitation and waste management. The situation is particularly dire for lower-grade employees, daily wage workers, and retired staff, many of whom have not received salaries or pensions in two months. Reports suggest that in some households, the absence of income has led to extreme financial distress.
Even in better-performing municipal bodies with relatively stronger internal revenue streams, the lack of provincial grants is beginning to strain routine operations. Many employees, especially those on daily wages, are now facing uncertainty over their future.
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The delay has sparked concerns among labor unions and local government representatives, who are calling for immediate release of at least interim funds to resume essential services and provide relief to affected workers.
