The government is exploring the creation of new pay scales for senior bureaucrats to address the growing demands of technical expertise and workload in federal ministries. During a recent meeting of the committee on civil service reforms, the introduction of additional pay scales, BPS-23 and BPS-24, was discussed, along with proposals to bifurcate ministries based on workload, merge allowances, and exempt allowances from taxes.
The committee deliberated on whether the existing Basic Pay Scale (BPS) system should be retained. The additional secretary of the Finance Division explained that while the idea of disbanding the BPS system was considered, it was deemed unfeasible due to the complexities of managing separate pay scales for different services. He also highlighted that before the introduction of the BPS system in 1973, pay was 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 job nature and workload, with allowances tailored accordingly. The committee 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 also emphasized the need for specialized human resources in technical ministries, citing the Neelum-Jhelum hydropower project as an example of losses incurred due to a lack of expertise.
The additional finance secretary proposed the idea of a National Executive Service to address the need for specialized talent. He also noted that the “one-size-fits-all” approach to pay scales was no longer effective.
The committee also discussed the monetization of housing facilities for federal government 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.
Additionally, the committee 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.
