What is the procedure when one recommended candidate doesn't accept the offer of appointment or one's candidature is cancelled after the recommendations (before joining) from Khyber Pakhtunkhwa Public Service Commission?

Whether the substitute (next available/deserved) candidate would be appointed on his place?

the seats are retained for next exam.never heard of ‘waiting list’ in competitive exams.

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and in exams other than competitive one?

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I'm gr8 believer in luck, and i find, the harder i work, the more i have of it.

Yup there are waiting lists in tests like that of NTS,EATEA and NAB,ANF etc.these institutions didn't take tests regularly, so they have to manage it in some way.

Brother Qublai Khan I'm talking about all posts other than PMS Posts filled through provincial commission?

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I'm gr8 believer in luck, and i find, the harder i work, the more i have of it.

Yes...posts other than PMS in provincial commision have waiting lists....any absentee candidate would augment vacant position and the subsequent candidate would be considered for the job...for instance, lecturers posts in bps.17 .

I went through the PCS Regulations 2003, but could not find any clause related to your query. Better, you contact someone in the KP PSC.

@Marwat Lucky: Fortunately, found this notification in my laptop regarding waiting list.
Govt. of KPK Establishment Department (Regulations Wing)
No. SOR-VI(E&D)/1-10/2010/Vol-VII
Dated Peshawar, the December 10, 2014
Subject: Change in recruitment policy regarding maintenance of waiting list of the eligible candidates- Judgement of the Supreme Court of Pakistan
Dear Sir,
I am directed to refer to this department's circular of even number dated 19-03-2013 on the subject noted above and to clarify that the 03 months period for maintaining waiting list by the Public service commission or Departmental selection committee as the case may be, shall be counted w.e.f. the date of issuance of offer of appointment by the department(s).
I am, therefore, directed to request that the above clarification may be brought into the notice of all concerned for guidance and compliance.
Yours Faithfully,
Saima Jamil
Section Officer (Reg-VI)

If you the need the copy, write down yours email address, I will send it to you.