Cabinet Approves Rs1.8bn Allowance for Top Bureaucrats
ISLAMABAD: The federal cabinet has approved a new special allowance for senior members of Pakistan’s bureaucracy, setting aside Rs1.8 billion for the benefit at a time when the government has also extended austerity measures for the new fiscal year. The decision has quickly become a major public finance story because it comes alongside only a 7 percent general salary increase for ordinary government employees.
The allowance was reportedly cleared during the special cabinet meeting held to approve the federal budget on June 12, while details were later released by the Cabinet Division. The new benefit is named the All Pakistan Services Provincial Governments’ Cadre Posts’ Parity Allowance and will apply to eligible officers serving in Islamabad.
According to the available details, the Rs1.8 billion allocation will be effective from July 1, suggesting that the payment could represent a major salary enhancement for officers covered by the scheme. The exact rate, eligibility structure and final operational mechanism are expected to be determined through further consultation among the Establishment Division, Cabinet Division and Finance Division before approval by the prime minister.
Officials contacted for clarity on the purpose and scale of the allowance did not provide an immediate explanation, leaving important questions unanswered about the basis for the decision. The reported justification from official quarters is that officers from All Pakistan Services often compare federal postings with more attractive provincial perks and benefits, creating pressure for pay parity.
The new allowance is the second major special benefit approved for senior bureaucrats during Prime Minister Shehbaz Sharif’s tenure. In June 2022, the government had approved a 150 percent executive allowance for officers posted in the federal secretariat, the Prime Minister’s Office and the President’s Secretariat, a move that later encouraged other service groups to demand similar treatment.
Under Article 240 of the Constitution, All Pakistan Services refer to civil services whose officers may serve in both federal and provincial roles. The Pakistan Administrative Service and the Police Service of Pakistan are generally treated as key examples of such services, making the new allowance relevant to some of the most powerful administrative and policing cadres in the country.
The decision has drawn attention because it has been approved in the same broader fiscal environment in which austerity policies remain officially in force. The cabinet has extended restrictions on the purchase of new vehicles and durable goods, the creation of new posts, government-funded non-essential foreign visits and treatment abroad at public expense, while allowing an austerity committee to grant exemptions on a case-by-case basis.
Critics are likely to question whether targeted benefits for senior officials are compatible with the government’s public message of restraint. Pakistan is already facing pressure from high debt servicing costs, inflation, rising energy prices and repeated demands for fiscal discipline from lenders and citizens. In that environment, pay increases for selected elite cadres can deepen the perception of unequal treatment within the public sector.
The issue also has wider administrative consequences. Instead of a comprehensive civil service pay reform, repeated special allowances can create new distortions and trigger fresh demands from other groups that feel excluded. This has happened before, when officers outside the original executive allowance framework pressed for similar treatment after the first major enhancement was approved.
The next stage will depend on how the government defines eligibility, payment rates and safeguards for the new allowance. If the policy is implemented without a transparent explanation, it may add to public criticism over bureaucratic privilege; if reviewed within a broader pay reform plan, it could become part of a more structured debate on incentives, service delivery and fairness across Pakistan’s public sector.