Caretaker Prime Minister Approves 140% Executive Allowance for FBR Officers
The decision follows a recommendation by the Finance division and will be funded from the FBR's allocated budget for the fiscal year 2023-24. This move also raises concerns about the frozen performance allowances of lower-level employees and reflects the broader landscape of economic policies in Pakistan.
Karobar
ISLAMABAD 10/16/2023:In a significant development, the caretaker Prime Minister has granted approval for a 140% executive allowance for Federal Board of Revenue (FBR) officers holding the rank of grade 17 and above. This move follows a recommendation from the Finance division to rationalize allowances within the FBR headquarters.
Although the Finance division initially proposed a 150% Executive Allowance based on the basic pay, the Prime Minister has given the green light to a 140% allowance for approximately 300 officers, including both Inland Revenue and Customs officers stationed at the FBR headquarters. This allowance adjustment will take effect from November 1st, 2023, with the associated expenses being covered by the FBR's allocated budget for the fiscal year 2023-24.
Sources indicate that, after accounting for FBR-specific allowances and incentives, the FBR will incur an additional expenditure of approximately Rs 300 million. It's worth noting that government officers within the grade range of 17-22 had previously been granted a 30% ad hoc relief allowance as part of the 2023-24 budget.
The decision to increase the allowances for senior officials raises questions concerning the frozen performance allowances for lower-level employees. In July 2023, the Finance division, acting on the FBR's recommendation, had urged the Prime Minister's office to not only unfreeze performance allowances for 1,724 officers in field formations but also institute a disparity reduction allowance of 40% for all employees within the BS 1 to 16 ranks.
It's important to highlight that the freezing of allowances for lower-grade officials, a policy put in place during the tenure of former finance minister Ishaq Dar in the 2013-14 budget, remains in effect despite numerous protests by FBR officials.
