The government is exploring the possibility of establishing new high-level positions within the bureaucracy to add more depth to the existing pay scale system.
During a recent civil service reforms committee meeting, members evaluated the potential introduction of two new pay grades—BPS-23 and BPS-24. The committee also examined proposals to divide ministries and adjust benefits based on workload, combine various allowances, and make certain allowances tax-exempt.
When committee members questioned whether the existing Basic Pay Scale (BPS) system should be maintained, the Finance Division’s additional secretary explained that a working group had considered alternatives. However, abandoning the BPS would create complications in managing pay variations, as it would necessitate different pay scales for various services—an approach deemed impractical.
The committee chair inquired about the system in place before the introduction of the BPS framework in 1973. The additional secretary explained that pay was previously managed through a class-based system, ranging from Class-I (highly skilled) to Class-IV (unskilled).
The Planning, Development, and Special Initiatives Secretary supported the idea of categorizing ministries and divisions based on their workload and job nature, with allowances tailored accordingly. The chair suggested that the proposed BPS-23 and BPS-24 scales should be limited to technical ministries and divisions with higher workloads, such as power and energy. He emphasized the need for specialized human resources in these ministries, citing the Neelum-Jhelum hydropower project as an example of losses caused by a lack of expertise.
The additional finance secretary proposed the creation of a National Executive Service to address the need for specialized talent. He also highlighted that the current “one-size-fits-all” approach to pay scales was no longer effective.
The committee also discussed the monetization of housing facilities for federal employees. While most members supported the idea, the additional finance secretary warned that monetization could cost the government approximately Rs24 billion annually. He argued that around 45% of employees currently receiving nominal house rent allowances would also demand monetization, further increasing the financial burden.
The Federal Public Service Commission (FPSC) secretary suggested implementing monetization in phases, starting with employees of the Federal Secretariat or those based in Islamabad. The chair endorsed this phased approach, noting that it could establish compensation parity with provincial employees and reduce administrative costs.
The committee also reviewed proposals to improve federal employee benefits, including the provision of housing upon retirement and performance-based bonuses. The chair directed the working groups to consolidate their findings and present final recommendations in the next meeting.
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