Pakistan Institute of Development Economics (PIDE) has released a detailed study titled as “LifeTime Cost Of Public Servants” on its website.

The state-run institute headed by economist Nadeemul Haque, has said that the study reveals that the federal government pays a total of Rs. 8 trillion to its Rs. 1.92 million government servants. Along with this expense come pensions for retired staff with six dozen kinds of privileges to the serving lot.

It states that “The combined ratio of salaries, perks, and operating expenses is much higher for BPS-22 employees, earning 32.52 times from BPS-1 employees. This suggests that perks and benefits and operating expenditure are highly compressed, with a large gap between the highest and the lowest salaries.” Added to this disparity is the use of vehicles for personal use by officers from Grade 20-22 which costs more than 1.2 percent of the basic pay and the reimbursements of health allowances and medical bills cost the budget over Rs. 2.5 to 3 billion. The housing facility that has never been accounted for in the total cost of living.

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It has been pointed out very clearly that political hirings and promises by politicians to provide jobs for their voters is a big issue since their role is to create more opportunities and not offer jobs.

A public servant of Grade-1 hired in July 2023 will be costing Rs.8.17 million including the salary, pension, perks and benefits that come with it for a period of thirty years. This goes on to increase for all the officers till Grade 17.

The PIDE report suggests long-term planning, keeping in check all the major expenses spent on Government servants and before hiring a new one. Immediate job creation is good but rapid job creation may have negative effects on the economy in the longer run. It is important to strike a balance between short-term benefits and sustainable fiscal goals.