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The Azadi Times > Latest > News > Kashmir Pays the Price: IMF Conditionalities and the Collapse of Public Welfare

Kashmir Pays the Price: IMF Conditionalities and the Collapse of Public Welfare

Public sector unions in Pakistan-administered Jammu & Kashmir unite to demand sweeping reforms, fair compensation, and regional autonomy in a landmark document.

Editorial Staff
Last updated: June 29, 2025 3:56 PM
By Editorial Staff
Published: June 29, 2025
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Together, these federations are demanding that AJK employees not be subjected to pension cuts under IMF conditionalities — especially given that AJK has neither borrowed from IMF nor directly benefited from such funds.
Together, these federations are demanding that AJK employees not be subjected to pension cuts under IMF conditionalities — especially given that AJK has neither borrowed from IMF nor directly benefited from such funds.
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Muzaffarabad – Pakistan-administered Jammu & Kashmir: The All Azad Jammu & Kashmir Government Employees Confederation, representing thousands of public servants across health, education, engineering, and administrative departments, has formally issued a comprehensive Charter of Demands, warning of statewide strikes and complete work stoppages if the government fails to meet their long-standing demands.

https://azaditimes.com/storage/2025/06/AQN_HJwjSBz5aDCmZva0OK-xCteDDdvuBGlXY9G7jL5KQeHLstczj2VjbnBc35oiHnPpzF_EBqaozGBAdG1uL6vcJMrjSKerg6nFk1oa3TRmSw.mp4

In a rare show of unity, the Confederation’s Secretary General, Mir Muhammad Arif, confirmed that multiple federations, including health, public sector, doctors, education, and technical workers, have agreed upon a joint agenda aimed at safeguarding the rights and dignity of AJK government employees.

“We are united across departments, regions, and affiliations,” said Mir Muhammad Arif during a press briefing in Muzaffarabad. “This charter is not just about economic rights, it is a declaration of dignity for the workers of this state who have kept its institutions alive.”

Mir Muhammad Arif stated from Muzaffarabad that all government employee federations in Jammu & Kashmir have come together under the All Government Employees Confederation in AJK, emphasizing that their platform is “united and unanimous.” The following federations have joined forces:

  1. Health Employees Federation AJK
  2. Public Sector Employees Federation AJK
  3. Doctors Joint Action Committee AJK
  4. PWD, WAPDA, MDA & Workers Federation AJK
  5. Education Employees Federation AJK
  6. Democratic Employees Unity AJK

Arif asserted, “Our federations have engaged in extensive consultation and are determined that the Charter of Demands reflects the true challenges and aspirations of our workforce in AJK, independent of any external pressures.”

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Pension Reforms and IMF Conditions: A Rejection of Unjust Cuts

The Charter categorically rejects any proposal to reduce government employees’ pensions under “pension reforms” linked to IMF conditions. Key points include:

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  • No Justification for Pension Deductions:
    The charter affirms that there was never any clause regarding pension cuts when employees joined service. Since the AJK government has neither sought IMF loans nor expended such funds on its employees, any federal notification regarding pension reductions is considered baseless and unjust.
  • Call for Clear Policy:
    It demands that the AJK government adopt a clear and independent policy to eliminate pension reduction measures, thereby relieving employees of ongoing economic uncertainty and enabling them to perform their duties without undue fear.

Addressing Disparities: GP Fund, Utility Allowance, and Salaries

The document highlights severe inequities compared to practices in Pakistan:

General Provident Fund (GPF) Issues:
Unlike their counterparts in Pakistan, the public employees in AJK do not receive any profit on their GPF deposits. Moreover, their principal amounts are not securely maintained, and the withdrawal process is exceedingly cumbersome. The charter calls for a streamlined procedure and for interest on GPF deposits to be allocated according to State Bank guidelines.

Universal Utility Allowance:
All government employees in AJK must be granted an undifferentiated utility allowance to ensure fair distribution across departments.

Salary Reforms and Increase:
The charter insists on increasing government employee salaries by 300% or, at the very least, by the same standard applied to assembly members. Additionally, it demands that all discrepancies in pay be eliminated by granting a uniform allowance of 150% to every department.

Housing and Rental Reforms:
In line with Pakistani practices, the charter calls for the allocation of funds for house hiring and an increase in housing rent to mirror local economic conditions.

Overhauling the Legal Framework and Service Structure

The Charter makes sweeping demands to restructure and improve employment conditions:

Repeal of the 2016 Act:
The “Mulaazim Kash Act 2016” must be repealed immediately. In its stead, the Industrial Rationalization Act 2017 should be enforced to ensure full unionization rights for AJK government employees.

Establishing Robust Service Structures:
A well-defined service structure must be developed for all cadres including health employees, allied health professionals, nurses, computer operators, and other support staff. The temporary positions carved out for supporting staff must be regularized and standardized according to established norms.

Upgrading Entry-Level Scales:
In accordance with a High Court decision, the entry-level scale for Junior Technicians (MCH) is to be upgraded from B-9 to B-12, with a similar upgrade recommended for paramedical staff.

Housing Facilities in District Headquarters:
All district headquarters should implement housing schemes to improve living conditions for employees.

Enforcement of Minimum Wage:
The government must implement a notification ensuring a minimum monthly wage of 37,000 PKR for all public sector employees in AJK.

Streamlining Biometrics:
The current biometric system must be simplified, ensuring that its objectives are met while exempting field employees from unnecessary burdens.

Enhancing Medical Allowances and Local Procurement:
There must be an increase in medical allowances along with a corrective overhaul of the local drug procurement system to eliminate corruption, backed by increased funding.

Tax Relief Measures:
The excessive taxation imposed on government employees must be scrapped, and employees should be declared exempt from these taxes.

Regularization and Equal Career Advancement

Permanent Status for All Contractual Employees:
The charter demands that all ad-hoc, temporary, contractual, and part-time employees—including those under the NISP program—be granted permanent status.

Reclassification of Health Workers and Supervisors:
Health workers and their supervisors must be reclassified as full civil servants, with a revised service structure similar to models adopted in other Pakistani provinces.

Revision of the Overall Service Framework:
There must be a comprehensive revision of the service structure for all government employees, including immediate implementation of the August 20, 2023 agreement, adherence to provisions of the 2016 Act and Ordinance 2023, and establishment of an appellate authority as directed by the Supreme Court.

Restoring the Death Package and Recruitment Quotas:
The death package for employees’ families must be reinstated. Additionally, the existing 25% recruitment quota for employees’ children should either be fully restored or, alternatively, all quota systems must be scrapped to prevent double standards.

Protest and Negotiation Demands

Support for Ongoing Strikes in District Poonch:
Employees in District Poonch, who have been on complete strike since February 20, 2025, receive unequivocal support from the charter. Despite protests on February 10 and 20, 2025, the government response has been insufficient.

Call for Mass Protest:
A mass protest is scheduled for February 26, 2025, across the capital and all divisional and district headquarters in AJK. The union warns that if the demands are not met, a comprehensive, indefinite strike will be initiated.

Immediate Negotiations:
The Charter emphasizes that swift negotiations are imperative to resolve these issues. Failure to negotiate will lead to a complete halt in government work, with full responsibility placed on the current administration.

Revisions in Drug Rules and Career Upgradation Procedures

Amendments to Drug Rules 2021:
In a bid to improve operational efficiency in the health sector, the charter calls for an amendment to allow qualified, retired dispensers from the Public Health Department to secure a drug sale license.

Career Advancement and Equal Opportunities:
Over the past five to ten years, while many cadres have seen regular upgrades, some have been left behind. The Charter demands that these remaining cadres be upgraded on the basis of equality. Moreover, the “officiating period” should be integrated into time-scale promotions, with any deviations from this requirement immediately rectified.

Voices from the Ground

Mir Muhammad Arif, Secretary General, All Azad Kashmir Government Employees Confederation:

“Our unified charter is the embodiment of our collective will. We reject any imposition of IMF-inspired conditions or federal mandates that do not reflect our unique regional realities. Our demands are rooted in the authenticity of our experience and our right to independent policy-making.”

Dr. Arif, Representative, Doctors Joint Action Committee AJK:

“It is unacceptable that our government employees, who never agreed to such pension cuts, are now facing retroactive deductions. Our pensions and GPF contributions must be protected with clear and transparent policies.”

Syeda U., Member, Health Employees Federation AJK:

“Nurses and allied health professionals deserve a structured career progression and the same dignity as their counterparts. This charter calls for immediate regularization and fair upgradation to reflect our real contribution.”

Muhammad B., Worker and Union Activist:

“The present system of accessing GPF funds is overly complex and unjust. We demand that procedures be simplified and aligned with the State Bank’s policies, so that our hard-earned money is not compromised.”

This Charter of Demands signifies far more than an issue of wage disparity. It is a declaration of AJK’s unique identity and a call for the region’s democratic rights. By uniting diverse federations into a single voice, AJK government employees challenge the imposition of policies that ignore the region’s distinct political and economic circumstances. Their demands not only focus on economic justice but also emphasize the need for regional autonomy and a governance model that is responsive to local needs.

As the scheduled protest on February 26, 2025, approaches, the fate of these demands—and the future of public sector reforms in AJK—will ultimately be determined by the willingness of the regional government to engage in meaningful negotiations. The outcome of these negotiations is critical, as it will either restore stability and confidence among government employees or plunge the region into prolonged industrial action with widespread economic repercussions.

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TAGGED:AJK government employeesCharter Of DemandsPublic Sector Reform
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