On Monday, the government made a major change that allows senior bureaucrats to earn unlimited money from board meetings of corporate organizations. At the same time, the government has introduced strict spending restrictions on those same organizations.
According to a new notification by the Finance Ministry, the previous rule from July 10, 2014, which had set a limit of Rs1 million per year on board meeting earnings, has now been completely withdrawn. The ministry said the rule is considered to have "never existed".
The 2014 rule was officially approved by the federal cabinet on June 12, 2024. It stated that government officers on company boards could only keep up to Rs1 million in a financial year. Any extra money earned had to be deposited back into the government treasury.
This cap on meeting fees was first announced by former finance minister Ishaq Dar nearly 10 years ago. Although it was not strictly followed in later years, it was re-confirmed in 2023. However, with the latest decision, the cap has now been completely removed, and officers can legally keep all earnings for FY 2024-25.
Government Continues Austerity Measures for Other Departments
In another notification, the Finance Ministry also said that austerity measures will continue for all federal departments, state-owned enterprises (SOEs), and regulatory bodies.
For SOEs, the ministry mentioned that these measures are mandatory under the SOEs (Governance & Operations) Act 2023 and other relevant laws.
Key Austerity Measures Include:
- Complete ban on purchasing new vehicles
- No creation of new government posts
- No medical treatment abroad at government expense
- No non-essential foreign visits
Government Announces 7% Pension Increase
Separately, the ministry has also announced a 7% increase in pensions for all civil pensioners. This includes civil servants paid from defence budgets, as well as retired armed forces and civil armed forces personnel.