Print Print edition: 2025-07-08

Govt officials on boards of cos: remuneration restriction lifted

Published July 8, 2025 Updated July 8, 2025 09:30am

2 min

By Tahir Amin

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ISLAMABAD: The federal government has withdrawn the July 2024 restriction on government officials receiving more than Rs one million remuneration while serving as members of Boards of companies/organisations.

Finance Division (Regulations Wing) issued an office memorandum (OM) “cabinet decision dated 22-06-2025 in case no. 387/rule-19/2025/573”, which states that in pursuance of Cabinet Decision dated 22-06-2025 in case No. 387/Rule-19/2025/573, Finance Division’s letter No.2(1)R-4/2004-Pt dated 10-07-2024 and O.M. of even No. dated 01-08-2024 stands withdrawn ab-initio.

On July 10, 2024, Finance Division issued an OM which referred to Cabinet decision No. 172/21/2024 dated 12.06.2024 stipulating that the government servants appointed to the Board of companies/organizations and who become entitled to fee shall only be allowed to retain remuneration to a maximum of Rs. 1.0 million (Rupees one million only) in a financial year.

Board meetings in a fiscal year: Only Rs1m remuneration fixed for govt officers

Any amount in excess of Rs. 1.0 million (Rupees one million only) so received shall be deposited by the officer in the government treasury and record of the same shall be promptly provided to the administration wing of the respective Ministry/Division.

On August 1, 2024 Finance Division issued another OM which referred to Finance Division’s O.M No. 2(1)R4/2004-Pt dated 10th July, 2024 and which stated that it has come to the notice of Finance Division that confusion exists with regard to implementation of Cabinet decision No. 172/21/2024 dated 12.06.2024. 2. It has, therefore, been decided to re-iterate those instructions that the government servants appointed to the Board of Companies/Organizations and who become entitled to fee, shall only be allowed to retain remuneration to a maximum of Rs. 1.0 million (Rupees one million only) in a financial year. Any amount in excess of Rs. 1.0 million (rupees one million only) so received shall be deposited by the officer in the government treasury and record of the same shall be promptly provided to the administration wing of the respective ministry/division.

Business Recorder texted and called Finance Division spokesperson to seek response, however till filing of this report no response was received.

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