The federal cabinet has approved a special allowance for top bureaucrats, allocating a Rs1.8 billion budget for the measure during a meeting on June 12, according to details released by the Cabinet Division on July 17.
The perk, named the “All Pakistan Services (APS) Provincial Governments’ Cadre Posts’ Parity Allowance,” marks the second special payout granted to senior bureaucrats in four years. The approval occurred alongside a seven percent salary increase for public sector workers and the extension of official austerity guidelines into the 2026-27 fiscal year.
The Rs1.8 billion sanction indicates the payout equals 100 percent of basic pay for eligible officers.
As per the reports, both the secretary of the Establishment Division and the secretary of the Cabinet Division declined to answer queries regarding the rationale, calculation rates, or potential impact assessments for the decision.
According to the reports, the government introduced the allowance to address reluctance among bureaucrats to leave provincial postings, where compensation structures exceed federal levels.
Disparities also exist between general federal pay scales and specialized bodies, including the judiciary, the National Accountability Bureau (NAB), and the Federal Board of Revenue (FBR).
Members of the Pakistan Administrative Service and the Police Service of Pakistan constitute the All-Pakistan Services under Article 240 of the Constitution, which covers cadres serving in both federal and provincial roles.
The cabinet instructed the Establishment Division to work with the Cabinet and Finance Divisions to present a proposal to Prime Minister (PM) Shehbaz Sharif detailing the structure, quantum, eligibility criteria, and operational rules for officers posted in Islamabad.
In the same session, the cabinet approved recalculating the 150 percent Executive Allowance originally granted in June 2022 based on running basic pay as of June 30, 2026, rather than 2017 pay scales.
The revision applies to officers in Grade 17 through Grade 22 serving across federal secretariats, the Prime Minister’s Office (PMO), and the President’s Secretariat.
Alongside the financial approvals, the government extended operational restrictions for the 2026-27 fiscal year. The measures mandate bans on purchasing new durable goods and vehicles, serving items beyond a single dish or basic refreshments at official events, creating temporary or contingent positions beyond one year, funding medical treatment abroad or non-essential foreign trips using state funds, and expanding sectors across state-owned entities governed by the State-Owned Enterprises Governance and Operations Act, 2023.
The cabinet authorized the Austerity Committee, operating under the Finance Division, to grant exemptions to the guidelines. Recent approvals by the committee permitted vehicle purchases, office renovations, furniture acquisitions, and new staff placements within the Ministry of Interior.
