The Pakistani government is considering a government pay scales reform to enhance administrative efficiency and address fiscal challenges. A recent meeting of the civil service reforms committee highlighted the need for modernization, focusing on attracting specialized talent to critical sectors.
Introduction of BPS-23 and BPS-24
A major aspect of this government pay scales reform is the introduction of BPS-23 and BPS-24. These new pay scales aim to compensate senior bureaucrats handling high-responsibility roles, particularly in technical fields like power and energy. The existing Basic Pay Scale (BPS) system, established in 1973, has faced criticism for its rigid, one-size-fits-all structure, failing to address the complexities of various government functions.
During the committee discussions, the Pay and Pension Commission recommended keeping the BPS structure while differentiating ministries based on workload. The additional finance secretary noted that managing diverse salary variations without a standardized system like BPS would be challenging, making the reform crucial for efficiency.
Restructuring Federal Ministries
The government pay scales reform also proposes restructuring federal ministries by categorizing them based on workload, merging allowances, and providing tax exemptions. Additionally, the finance secretary suggested establishing a National Executive Service (NES) as an alternative framework.
Housing Benefit Federal Government
The government is also considering monetizing housing benefits for federal employees. While this initiative has support, concerns arise over its estimated Rs24 billion annual cost. The Federal Public Service Commission (FPSC) proposed a phased implementation, starting with Islamabad-based employees.
New Pension Policy in Pakistan 2025
Amidst these reforms, the government recently abolished multiple pensions and introduced a new pension calculation method to curb the Rs1 trillion pension bill. Additionally, the 2024-25 budget approved a salary increase of up to 25% and a 15% pension boost, further aligning with fiscal responsibility measures.
This government pay scales reform marks a significant shift in Pakistan’s bureaucratic structure. By introducing new pay scales, restructuring ministries, and revising benefits, the government aims to enhance efficiency while ensuring fiscal sustainability. Successful implementation will depend on careful planning and stakeholder collaboration.
