The government is considering introducing new pay scales for top bureaucrats and restructuring federal ministries to improve efficiency. The proposal, discussed in a recent meeting of the civil service reforms committee, includes the creation of additional pay scales—BPS-23 and BPS-24—as well as categorising ministries based on workload, merging allowances, and exempting them from taxes, The Express Tribune reported.
According to the news report, committee members debated whether the existing Basic Pay Scale (BPS) system should be retained. The additional finance secretary explained that while a working group had reviewed the option of replacing the system, managing pay variations across different services without BPS would be unfeasible.
The Economic Affairs Division presented findings from a working group that had assessed federal and provincial benefits, regional pay comparisons, and potential improvements in post-retirement compensation.
The chair questioned how salaries were managed before the BPS system was introduced in 1973, to which officials responded that wages were determined by classification, ranging from Class-I (highly skilled) to Class-IV (unskilled) workers.
The Planning, Development, and Special Initiatives secretary sought the Pay and Pension Commission’s stance on the matter. The finance secretary informed the committee that the commission had recommended retaining the current BPS system. However, he supported the idea of differentiating ministries and divisions based on their responsibilities and workload, suggesting that compensation should be adjusted accordingly.
The committee also discussed the feasibility of introducing BPS-23 and BPS-24 for ministries handling technical and high-workload tasks. The finance secretary suggested that the establishment of a National Executive Service (NES) could serve as an alternative framework.
The chair highlighted that the “one-size-fits-all” approach to pay scales was outdated, citing the Neelum-Jhelum hydropower project as an example where a lack of specialised personnel resulted in financial losses. He noted that six to seven ministries, particularly those dealing with power and energy, required specialised human resources and should be incentivised to attract skilled professionals.
Several members supported the idea of monetising housing benefits for federal employees, but the additional finance secretary warned that such a move could cost the government around Rs24 billion annually. He argued that if monetisation were introduced, approximately 45% of employees receiving nominal house rent allowances would also demand similar compensation, significantly increasing the financial burden.
The Federal Public Service Commission (FPSC) secretary suggested implementing the monetisation policy in phases, starting with employees of the Federal Secretariat or Islamabad-based government offices. The committee endorsed this phased approach. The chair concluded the meeting by directing the working groups to finalise recommendations for the next session.
