PM Establishes Special Committee to Overhaul Government Servants’ Allowances

Objective of the Special Committee

Prime Minister Shehbaz Sharif has established a Special Committee tasked with reviewing and recommending changes to government servants’ allowances. This committee, formed in response to proposals submitted to the Finance Division, aims to address revisions in existing allowances or the introduction of new ones within a financial year.

Committee Leadership and Structure

Federal Minister for Finance and Revenue, Muhammad Aurangzeb, will chair the committee, which includes key figures from various divisions. Members are:

• Federal Minister for Economic Affairs
• Minister of State for Finance & Revenue
• Secretary, Finance Division
• Secretary, Cabinet Division
• Secretary, Establishment Division
• Secretary, Defence Division (co-opted for Armed Forces-related matters)
• Secretary, Interior Division (co-opted for Civil Armed Forces-related matters)

This diverse composition ensures comprehensive oversight and fair representation across sectors.

Committee’s Role and Responsibilities

The committee’s Terms of Reference (ToRs) include:

• Evaluating proposals submitted by the Finance Division regarding adjustments to allowances.
• Recommending revisions or new allowances for government employees.
• Aligning recommendations with the annual budget for final approval by the Cabinet.

Streamlining Financial Adjustments

This initiative aims to streamline the process of revising government allowances, ensuring timely and effective resource allocation. By including representatives from the Defence and Interior Divisions, the committee also addresses specific needs of the Armed Forces and Civil Armed Forces, enhancing equity in compensation packages.