Islamabad, Mar 10 2025: The government is considering introducing new senior-level New Grade 23 & 24 positions within the bureaucracy as part of ongoing civil service reforms aimed at enhancing administrative efficiency and restructuring the pay scale system.
During a recent meeting of the civil service reforms committee, members discussed the possibility of adding two new pay New Grade 23 & 24 positions to provide greater depth to the current Basic Pay Scale (BPS) framework.
The committee also reviewed proposals to restructure ministries based on workload, streamline various allowances, and grant tax exemptions for specific benefits.
In response to queries about whether the BPS system should be retained, the Finance Division’s additional secretary explained that a working group had explored alternative models.
However, shifting away from the BPS structure would lead to pay inconsistencies across different services, making it difficult to maintain uniformity.
As a result, the committee acknowledged that the existing system, despite its limitations, remains the most practical approach. The committee chair sought clarification on the structure in place before the adoption of the BPS system in 1973.
The additional secretary explained that salaries were previously categorized under a class-based hierarchy, ranging from Class-I for highly skilled professionals to Class-IV for unskilled workers.
The Planning, Development, and Special Initiatives Secretary advocated for a classification system that groups ministries and divisions based on workload and function, with corresponding allowances.
Supporting this, the committee chair proposed that the New Grade 23 & 24 scales should primarily apply to technical ministries such as power and energy, where specialized expertise is critical.
He cited the Neelum-Jhelum hydropower project as an example where a lack of technical proficiency led to financial losses.
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To address the demand for specialized professionals in key sectors, the additional finance secretary suggested establishing a National Executive Service, arguing that the current standardized pay structure fails to attract top-tier talent.
The committee also evaluated the feasibility of monetizing housing facilities for federal employees. While many members supported the initiative, the additional finance secretary cautioned that implementing monetization could impose an annual cost of Rs24 billion on the government.
He further noted that nearly 45% of employees receiving minimal house rent allowances would likely demand similar benefits, increasing financial strain.
The Federal Public Service Commission (FPSC) secretary recommended introducing monetization in stages, starting with federal employees based in Islamabad.
The chair endorsed this gradual rollout, stating that it would promote parity between federal and provincial employees while also reducing administrative expenses.
Additionally, the committee explored potential reforms to improve benefits for government employees, including providing housing upon retirement and performance-based incentives.
The chair directed the working groups to consolidate their findings and present final recommendations at the next meeting.
