Planning Commission wants bureaucrats’ perks monetised

LAHORE: Planning Commission of Pakistan has advised the government to monetise the perks of bureaucracy to save billions of additional expenditure.

The new growth strategy of the commission says when state provides perks it reduces productivity by adding bureaucracy to manage those perks. Civil servants’ perks include transportation, housing, plots, land and membership of clubs.

It points out that the government provides perks worth Rs4.7 billion annually to bureaucrats in grade 20 and above. It states that when the administrative cost needed to maintain and disburse these perks is added, the total cost increases to Rs6.1 billion.

The new growth strategy points out that once monetised, the cash pay per officer will increase significantly. At the same time, annual cost for the government will fall to Rs3.1 billion.

If only 50 percent compensation is given against the withdrawal of perks, annual cost for the government will only be Rs0.9 billion.

The commission says that against monthly salary of Rs144,316, a grade 22 officer gets Rs186,205 for transport and Rs200,000 as house allowance.

If these perks are fully monetised, these officers would get Rs530,316 in cash.

In case the perks are reduced by 50 percent after monetisation, the grade 22 bureaucrat would get Rs337,316 per month.

The monthly salary of grade 21 bureaucrat is Rs119,019 while the government spends Rs171,164 per month for his transport and Rs150,000 for his housing.

After full monetisation of these perks, the monthly salary would increase to Rs280,019 and in case of 50 percent compensation the amount would fall to Rs280,019.

The take home salary of a grade 20 bureaucrat is Rs107,130, while the government spends Rs118,124 for his transport and Rs80,000 for his housing.

After full monetisation of these perks, he would get Rs305,130 and in case of 50 percent monetisation of these perks the amount would decline to Rs206,130. -- 'The News', Mansoor Ahmad 22 Apr 2011.

Comments 1

The figures given by the planning commission are eye openers. If reforms like the one suggested above by the commission are implemented, it will be a win win situation for both the employee and the exchequer. Latent areas of wastage and fritterage need to be looked into in every sphere of governance and the loopholes duly plugged. Proper money management can help the country stand on it's own feet instead of all the time begging from the IMF and world bank.

I would add to the suggestion that at the time of retirement complete amount of pension be paid to the retiree in toto, so that govt's administrative costs on managing monthly pension payments are eliminated. The pensioner also is benefited in that he/she can utilise the money for some beneficial purpose or keep it in National savings scheme and get monthly returns. No govt machinery/expenditure would be needed for managing monthly pensions and the misappropriations in this department (which is surprisingly very high) would also be done away with.-- Wg Cdr (r) Fardad Ali Shah Chitral, 25 Apr 2011.