KP cabinet approves establishment of Takaful companies

PESHAWAR: The Khyber Pakhtunkhwa cabinet has approved the establishment of Takaful companies in the province under Islamic principles.

Under this approval, Khyber Pakhtunkhwa General Takaful Company and Khyber Pakhtunkhwa Family Takaful Company will be established.

The provincial cabinet met here on Monday with Chief Minister Muhammad Sohail Afridi in the chair. Besides, the members of the provincial cabinet, administrative secretaries of all departments attended the meeting.

Briefing the media, Special Assistant to the Chief Minister for Information and Public Relations, Shafi Jan said that the cabinet also approved the allocation of Rs 2 billion for the General Takaful Company and Rs 3 billion for the Family Takaful Company.

He said that since the establishment of the Bank of Khyber in 1990, this was the first time a new institution of this nature was being set up in the province.

He explained that the General Takaful Company would cover health and other risk-related matters, while the Family Takaful Company would provide financial support to families in the event of the death of the family head.

The cabinet, he said, also approved a supplementary grant of Rs 3,825 million for the Khyber Pakhtunkhwa Safe Cities Project. The project was launched in its first phase in Peshawar, while the second phase includes D I Khan, Bannu, Lakki Marwat, and Waziristan, among other districts.

Shafi Jan said significant progress had been made on the Peshawar Safe City project, with 80 percent of work completed on some targets and over 50 percent on others. Work on Safe City projects in other cities is also underway. Due to an expansion in the scope of work, an additional grant was required, which was approved by the cabinet.

He further said that recommendations of the cabinet committee regarding the merger of the posts of Risaldar and Dafadar in the former FATA were presented, under which nomenclature approval was granted for 16 remaining posts. Subject to fulfillment of rules and regulations, these posts will be merged into the police.

The cabinet also approved the framework as per the prevailing conditions for maintaining the quota system for students from the former FATA in medical and other educational institutions on a merit basis after dividing South Waziristan into two districts.

Other approvals included the establishment of a Khyber Pakhtunkhwa cell for the National Finance Commission in the Small Industrial Development Board Plaza in Islamabad, reconstitution of the Khyber Pakhtunkhwa Trade Testing Board, and approval of Rs 199 million for security and other development needs around the Rashakai CPEC Economic Zone.

The cabinet also approved a grant of Rs 168 million for the Khyber Pakhtunkhwa Education Foundation, budget estimates of the Khyber Pakhtunkhwa Housing Authority, and the purchase of four vehicles worth Rs 49 million for the Mansehra Gravity Water Supply Scheme.

According to him, approval was also granted for financial assistance to compensate owners of rickshaws, petrol pumps, shops, vehicles, flour mills, and factories for losses incurred during the floods of 2025.

Copyright Business Recorder, 2025