PM withdraws decision to grant honorarium

Three salaries reward to officers would have cost Rs30m

ISLAMABAD:

The Prime Minister’s Office has decided to withdraw the decision of giving three salaries in reward to the officers serving at PM’s House and Office – in a move that would help save Rs30 million in addition to avoiding any public resentment.

But the low-paid employees serving against basic pay scales of 1 to 16 would still be entitled to the honorarium equal to their three monthly basic salaries, according to the government sources.

Prime Minister Anwaarul Haq Kakar on Monday partially reversed his earlier decision of giving three salaries in reward for all the employees serving in grade 1 to 22 at the Prime Minister’s Office and House.

Earlier, it had been decided that all the officials (grade 1 to 16) and the officers (grade 17-22) would be given a departing gift by the prime minister in the shape of three salaries in rewards. When contacted, a senior functionary of the PM’s Office stated that it has now been decided that the rewards would not be given to the officers serving in grade 17 to 22.

However, all the employees serving in grade 1 to 16 would still be entitled to the honorarium. The low-paid employees are more vulnerable to the inflationary pressures and they do hope that every premier would honour their services at the time of departure by giving them monetary benefits, the senior functionary said.

There is a possibility that in the next few days, at least two of the three biggest largest political parties would form an alliance and make a government, which would end the term of Anwaarul Haq Kakar that began in August last year.

The senior functionary said that it was not unusual that every prime minister would give such benefits at the end of the term of the office. But he said that it has now been decided that the officers would be exempted from the honorarium.

The decision would help save Rs30 million of the exchequer – a sum not substantial in itself but carries significant symbolic value. The cost of giving honorariums is over Rs50.6 million, according to the officials.

The premier’s fresh decision reflects the ground realities, suggesting a sensitivity to public sentiment on the matter.

Earlier, on a proposal from his staff, the caretaker prime minister had approved giving three months’ basic salary as honorarium for “completion of the official tasks in the current financial year in a befitting manner”.

After the PM’s decision, the Economic Coordination Committee (ECC) of the cabinet had also approved a supplementary grant by creating a room in the budget.

If the ECC's approved decision had been executed as planned, it would have incurred a cost of Rs80.63 million to the exchequer. At the time of the approval, the Ministry of Finance had expressed reservations about giving the honoraria. However, the majority of ECC members insisted that the cabinet body should recognise the prime minister’s authority.

The ECC had approved Rs42 million for rewards for the public wing of the PM’s Office and Rs38.63 million for the PM’s House.

Pakistan faces a precarious fiscal situation, making it imperative to refrain from such rewards, especially to public servants who receive substantial salaries and can withstand challenges of high inflationary pressures.
Inflation has persisted in double digits for an extended duration, reaching over 28% in January.

The federal government’s budget deficit widened more than 50% during the first half of this fiscal year, requiring a prudent fiscal management and leaving no room for any kind of rewards.

Compared to the private sector, the low-paid employees are getting higher salaries and enjoying job security.

In the first half, the federal government’s total expenditures surged by 58% compared to the same period of the previous year. The total expenses amounted to Rs6.7 trillion – higher by Rs2.5 trillion. There was also a 50% increase in the current expenditures that amounted to Rs6.6 trillion in six months.