ISLAMABAD: The government has started working on offering lucrative allowances to its employees. Despite a shortfall in revenue collection.
The federal government’s revenue collection increased by only 23 pc in the first five months of the current fiscal year, falling short of the targeted 40 pc growth to achieve Rs 12.97 trillion by June 30, 2025.
The PM Office and the Ministry of Finance have been receiving regular representations from various stakeholders and employee groups, seeking additional compensation, particularly following the recent significant increases in salaries and allowances for judges.
Prime Minister Shehbaz Sharif has constituted an eight-member ‘special committee’ for “revision of existing or grant of new allowances to government servants” during the current financial year.
Led by Finance Minister Muhammad Aurangzeb, the committee includes an overwhelming representation from the intended beneficiaries. It comprises the secretaries for finance, cabinet, establishment division, defence, and interior, as well as the minister for economic affairs, who was a batch mate to many grade 21 officers, and the minister of state for finance and revenue.
The single-point task before the special committee will be to “review the proposals received by finance division for revision of existing or grant of new allowances to government servants during currency of a financial year. The committee shall review and recommend revision/grant to the cabinet at the time of approval of annual budget”, a notification said.
