Islamabad, Dec 22: Prime Minister Shehbaz Sharif has established an eight-member special committee to evaluate and suggest changes or new allowances for government employees during the financial year.
This follows a 25% salary increase for civil and military staff in June and a more than 100% hike in judicial compensation last month.
The move comes despite a revenue shortfall, with collections growing by only 23% in the first five months of the fiscal year, well below the targeted 40% growth needed to reach the Rs12.97 trillion goal by June 30, 2025.
A report by the Pakistan Institute of Development Economics (PIDE) revealed that the federal government spends over Rs8 trillion annually on its 1.92 million employees, pensions, and various benefits.
The judiciary and Pakistan Administrative Services (PAS) are the largest recipients of these funds, enjoying significant non-monetary benefits, often at the expense of technical and professional staff.
The PIDE study also pointed out that the Basic Pay Scale (BPS) system, introduced in 1983, has undergone 12 revisions but still does not align with contemporary human resource management practices.
Non-monetary perks, such as government housing, official vehicles, and medical reimbursements, significantly increase the cost of higher-grade civil servants, sometimes exceeding 1.2 times their basic pay.
The study also highlighted disparities within the public sector, noting that judicial employees enjoy the most perks, while secretariat staff and other ministries receive allowances that can be up to 150% of their basic salary.
