Civil servants: Institutional restructuring, compensation packages discussed

ISLAMABAD: Under the chairmanship of Planning Minister Ahsan Iqbal, the 13th meeting of the Civil Service Reforms Committee was convened Wednesday. The meeting focused on key agenda items, including institutional restructuring and reviewing compensation packages for civil servants.

Presentations were made by the Cabinet Division on institutional restructuring, while officers from the Finance Division and Economic Affairs Division (EAD) briefed the Minister on current situation and proposed recommendations to review financial compensation. Discussions centered around modernizing recruitment criteria to cater to the evolving needs of the civil service.

The Minister emphasized the need for restructuring service in a way that allows officers to differentiate themselves based on performance rather than their initial service allocation. “A strategy must be devised to enable top talent at senior level to compete for key positions on merit,” stated the Minister.

Regarding financial compensation, an analysis presented by EAD and Finance Division officers highlighted the challenges faced by civil servants, including inadequate medical support, transportation, and accommodation. Key findings highlighted the unavailability of affordable housing and transportation in Islamabad as major deterrents for officers. Several recommendations were discussed at length and direction was given by Minister to incorporate the most viable recommendations into summary to be presented before the PM.

The meeting participants were informed that the state bears a significant burden of Rs. 1.04 trillion annually for pension payments to two million officers. Finance Division representatives apprised the Minister that significant pension reforms have been introduced as part of the Budget 2025-26, aiming to rationalise public spending and reduce the growing fiscal burden posed by the existing pension system.

The Minister stressed that pension should not be a “dead investment” and suggested utilizing the skills of retired officers in various organizations.

To address medical support issues, a summary prepared by the Ministry of National Health Services proposing health insurance as a viable alternative was discussed.

The Minister directed relevant officials to conduct a comparative analysis of allowances drawn by civil servants in federal and provincial governments. Recommendations were made to make it mandatory for civil servants to serve in the federal government for a specific period to be eligible for promotion.

The committee discussed various suggestions to address issues related to remuneration, accommodation, transport, and monetization. The Minister emphasized the need for administrative steps to attract officers to serve in the federal government, rather than relying solely on financial incentives.

The meeting concluded with Minister’s direction to compile a final report, incorporating all recommendations and findings, for discussion in the next meeting.

Copyright Business Recorder, 2025