Federal Cabinet Implements Stricter Regulations on Bureaucrats' Benefits

The federal government recently announced crucial decisions regarding the filling of vacant positions and the regulation of monetary benefits for top bureaucrats. These decisions were finalized during a special federal cabinet meeting held on June 12th to set the budget for the upcoming fiscal year 2024-25.

One of the key decisions made by the federal cabinet is to fill vacant positions from grade 1 to 16, subject to approval by the Finance Division's austerity committee. However, this directive excludes positions where recruitment processes are already in progress or roles within specific security and law enforcement agencies.

In preparation for the new fiscal year, the government has allocated significant funds for the operation of the civil government and pension disbursements. Nevertheless, concerns have been raised regarding the escalating wage and pension bill, particularly in light of the increased recruitment in the public sector.

Adjustments have been made to allowances and subsidies for government employees, with notable budget increments for the National Assembly, the Senate, and the President's office. Additionally, the federal cabinet has imposed a cap on the monetary benefits for bureaucrats attending board meetings, limiting the annual remuneration to Rs1 million. Any surplus payments received from board meetings must be returned to the government treasury.

Deputy Prime Minister and Foreign Minister Ishaq Dar proposed this restriction on board meeting benefits to address the issue of excessive payments to government officials attending state-owned enterprises' meetings. Furthermore, the cabinet emphasized the enforcement of the State-Owned Enterprises (Governance and Operations) Act 2023, restricting individuals from serving as directors on more than five state-owned enterprises, including subsidiaries.

The federal government's recent decisions aim to streamline bureaucratic processes, control expenditure, and enhance governance within state-owned enterprises. These measures reflect a commitment to fiscal responsibility and transparency in public sector operations, ensuring efficient utilization of resources for the benefit of the nation.