Commission started work to streamline salary, pension. The Express Tribune

Islamabad:

The Pay and Pension Commission (PPC) on Thursday began its detailed work to review the current public sector pay structure that favors two dozen departments, which is very important financially and to the talent in the Pak Secretariat Discourages you.

At the first meeting of the Commission headed by former Principal Secretary to Prime Minister Nargis Sethi, Finance Advisor Dr. Abdul Hafeez Sheikh was also present.

Both Sheikh and Nargis had their own expectations from the Commission and reservations on the existing structure, including the availability of reliable data for decision making.

“The current model of disbursement of salary and pension is not sustainable,” an official handout quoted Sheikh as saying.

“The success of the Pay and Pension Commission is dependent on the provision of reliable and authentic data from all concerned in a timely manner,” the Finance Ministry quoted Nargis.

The chairperson has established nine sub-groups to review the current basic pay scales, allowances, allowances, ancillary benefits, pensions and payments to federal, provincial government departments and the armed forces.

The PPC was restructured this month after Prime Minister Imran Khan resigned after its first chairman, Wajid Rana, resigned from the finance ministry.

The government has set up the commission at a time when it is again under pressure to increase salaries by at least 100–150% and to end discrimination in payments to various federal and provincial government departments.

There are about 26 civil and military departments that are receiving 50% to 100% more than the standard pay package for rendering “exceptional services”.

The federal government gave special allowances to the Federal Investigation Agency (FIA) and the National Accountability Bureau (NAB) that created disinterest among employees of the Pakistan Secretariat – the seat of the federal bureaucracy.

An officer working in the Pak Secretariat Islamabad is receiving a lower salary than a person serving in a provincial capital.

The salary structure of the federal government has not been attractive after the two provincial governments approved additional allowances of up to 150%.

In the last high-powered board meeting, which was held to promote officers from grade-21 to 22, the board did not promote officers who were eligible, but were forced to relinquish their lucrative positions in the federal government Did not serve the purpose of doing.

The scope of the commission includes federal and provincial civil servants, other public servants, civilians paid from the defense budget, all armed forces, civilian armed forces and all employees of public sector enterprises.

It is unlikely that the commission will finalize its report before the budget and it may take at least one to two years to finish the work, a member of the commission said.

However, the Commission will make its interim recommendations before June next year on the issue of increase in salaries of government employees.

The Finance Ministry said that while assuring the commission of its full support, the Finance Advisor also recommended that the government is ready to consider the government’s recommendation before finalizing the report.

The Finance Ministry has to face the increasing burden of salary and pension but about 90% of the pension is for the Army. For the pension in the current financial year, Rs. Out of 470 billion, an amount of Rs. 369 billion is for military pension.

There is also a need to set up a pension fund as the pension is currently paid from the budget, which is uncertain.

The Defined Contribution Scheme (DCS) is now being adopted by countries where employees contribute to future pension schemes. However, the benefits of already retired employees cannot be reduced.

The Commission is expected to highlight the existing distortions and anomalies in the pension scheme and recommend remedial measures.

Unlike the previous small commission, the reorganized commission consists of 25 members and senior professionals from the public and private sectors, as well as federal and provincial secretaries, AJK and G-B, and other senior officials of all governments. These officials were also involved in the PPC meeting.

The Finance Advisor expressed confidence that PPC will come up with a financially viable solution to streamline the basic pay scales and allowances and allowances of government employees.

He said that the commission would follow a consultative process to resolve rising spending on the national treasury.

Nargis said that the commission will review the existing salary and pension structures, allowances, allowances and facilities and evaluate their monetization potential.

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