Thread: Civil Service in the news
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Old Wednesday, March 06, 2013
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Default Federal secretariat staff: 20 percent special pay approved by Prime Minister
Federal secretariat staff: 20 percent special pay approved by Prime Minister

Prime Minister Raja Pervez Ashraf has approved 20 percent special pay for federal secretariat employees, an unprecedented step in the middle of a fiscal year. This increase in salary is over and above the 15 percent civil servant pay rise across-the-board announced in the budget 2012-13 on June 6, 2012.

According to a statement released by the Ministry of Finance, the Prime Minister, on the special recommendation of the Finance Minister, approved a 20 percent special pay for federal secretariat employees. The total employees of the federal secretariat are around 20,000 to 22,000 and 20 percent increase in their pay may have an estimated impact of Rs 2 billion on the budget. The salary rise would be implemented from March 1, 2013 and advisor to Ministry of Finance Rana Asad Amin has reportedly been tasked to work out an accurate financial impact of the decision. Senior officials of Finance Ministry privately admit that the decision of new Finance Ministry would further fuel the budget deficit and the government borrowing would rise which, in turn, would impact on inflation.

The minister stated that during last five years, the government increased salaries of federal government employees by more than 100 percent. To further improve the living standard of federal government employees, the government is trying its level best to increase salaries of federal government employees, the minister added. The Finance Ministry on Monday also agreed to provide Rs 9 billion to the Higher Education Commission (HEC) for project development and current expenditure.

The decision to this effect was taken by Finance Minister Saleem Mandviwalla during a meeting with Chairman HEC Javed Leghari who called on the Minister to apprise him about the financial constraints facing the HEC.

Mandviwalla agreed to provide Rs 3 billion to the HEC for development expenditure and Rs 6 billion for running expenditures as well as salaries and pension of the employees. The minister also assured the HEC Chairman of full support for promotion and strengthening of higher education in the country.


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