Pakistan is passing through a difficult economic period. The country is heavily indebted, the government faces persistent financial pressures, and the ordinary citizen is struggling to meet the rising cost of living. In such circumstances, every rupee of public money should be spent with the greatest care. Unfortunately, the situation in many government departments, state-owned enterprises and public corporations presents a very different picture. One of the most disturbing practices is the payment of fabulous salaries, perks and privileges to senior executives and heads of government corporations, while the employees actually performing much of the operational work remain poorly paid. Packages running into millions of rupees, luxury facilities, vehicles and other benefits have become common in some organizations. The question that needs to be asked is whether such expenditure is justified by the actual contribution of the individual receiving it.Take the example of organizations where engineers and technical staff work in difficult conditions in the field to discover oil and gas. Their expertise and physical efforts directly contribute to the organization and ultimately to the national economy. Yet, we sometimes see extraordinarily high packages for those sitting in offices and conference rooms. The disparity deserves serious examination.
There must be a reasonable ceiling on salaries and benefits in government-owned corporations. A maximum package of around Rs. 2 million per month, including perks and other benefits, could be considered for the highest positions, subject to clearly defined exceptions based on genuine professional requirements. Public service should not become a means of providing unlimited financial benefits at the expense of the taxpayer.The other side of the picture is even more painful. While senior executives receive millions, the minimum average salary of ordinary workers in many organizations has been fixed as Rs. 40,700 (up from Rs 37000) per month. How can a family survive on this amount when even two meals a day, medical treatment and children’s schooling have become increasingly expensive? In some organizations, drivers are reportedly earning more than Rs. 150,000 per month. This raises a basic question: can the Finance Minister prepare a realistic household budget for an ordinary worker earning Rs. 37,000 a month?
The problem is not confined to salaries. Many loss-making state-owned enterprises continue to receive subsidies and other support from the government while maintaining expensive administrative structures and high-end facilities. New posts and pay packages can sometimes be created at the discretion of those in authority, while audit objections do not necessarily translate into meaningful accountability. The result is a system in which losses are ultimately borne by the taxpayer, but responsibility for those losses remains difficult to establish. Equally important is the widespread practice of re-employment after retirement and repeated extensions of service.
There may be exceptional circumstances where the services of a retired person are genuinely required because of specialized knowledge or experience. But such cases should be the exception, not the rule. Continued re-employment and extensions have another serious consequence: they block the promotion of serving officers who have spent years waiting for their turn. At the same time, young and qualified people looking for employment opportunities are denied vacancies that could otherwise become available. Thus, the practice is not merely a financial issue; it also affects morale, career progression and employment prospects for the younger generation. Keeping in view the country’s present economic position, it is imperative to examine whether the state can continue spending huge amounts on retired personnel who are re-employed on lucrative packages while simultaneously drawing pensions and enjoying other retirement benefits.
In the name of justice, fairness and transparency, a high-powered board should therefore be constituted, headed by the Secretary Finance and comprising four other members, including at least one member of public repute. The board should undertake a comprehensive review of re-employment, extensions, salaries, perks and benefits being provided to retired personnel in government departments, corporations and state-owned enterprises. Every case should be examined on its individual merits. If there is a genuine shortage of specialized expertise, the reasons should be recorded and the appointment should be for a clearly defined and limited period. But where no compelling institutional need exists, the practice should end.
Pakistan cannot afford a system in which the privileged continue to receive millions in salaries and perks while ordinary employees struggle to meet basic household expenses. Nor can a heavily indebted country justify unnecessary expenditure simply because it has become an established administrative practice.The fundamental principle should be simple: public money belongs to the public. It must be spent in the national interest, not treated as a personal privilege. At a time when the country needs every available rupee for debt servicing, education, health, development and employment generation, extravagance at the top and deprivation at the bottom cannot continue indefinitely.
The time has come for the government to undertake a comprehensive review of salaries, perks, re-employment and extensions across the public sector. Those who have served the country deserve respect and dignity after retirement, but respect does not necessarily require an unlimited financial package. Pakistan’s economic circumstances demand that merit, necessity, fairness and affordability-not influence or privilege-determine who is appointed, what they are paid and for how long.A country under deep debt cannot afford luxury at the top while leaving its ordinary workers struggling at the bottom.
