INSTITUTIONAL REFORMS IN THE FEDERAL

Institutional Reforms Cell

Prime Minister’s Office
GOVERNMENT

Islamabad
AUGUST 2018-AUGUST 2021

INSTITUTIONAL REFORMS IN THE FEDERAL

GOVERNMENT
VOLUME-I

Institutional Reforms Cell

Prime Minister’s Office
Islamabad

GOVERNMENT OF PAKISTAN

Volume-I
 VOLUME 1

Reports On
Sr # Title Page #
RE-ORGANIZING THE FEDERAL
A 02
GOVERNMENT
B CIVIL SERVICES REFORMS 172
C BUSINESS PROCESS RE-ENGINEERING 295
RESTRUCTURING KEY PUBLIC SECTOR
D 354
INSTITUTIONS

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 PREFACE
These two volumes containing the reports and the minutes of the

meetings on Institutional Reforms are aimed at providing complete

documentation of the work that has been carried out during the last

three years. These volumes comprise background working papers,

discussions by the Task Forces, deliberations at the Cabinet Committee

on Implementation of Reforms, proposals finalized for consideration by

the Cabinet, the decisions taken by the Cabinet and current status of

implementation of the reforms. The minutes of the Cabinet Committee

on Institutional Reforms (CCIR) formed in July 2020 have not been

included in these volumes as they are still secret. However, the decisions

taken by the Cabinet on the recommendations of the CCIR are included

in Volume I. The Cabinet Committee on Implementation that was the

precursor for the CCIR held 37 meetings from 23rd July, 2019 to 9th

July, 2020. During proceedings of the meetings, the Committee called

upon the representatives of the Ministries/Divisions/Departments

concerned to present their view points on the proposals. The committee

then gave its recommendations to the Cabinet for approval in cases

where consensus was reached. Periodical progress reports were

submitted to the Cabinet. The purpose of this compilation is to Capture

institutional memory in a systematic and coherent manner, to have

readily available reference material and a guideline for follow up.

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2. The Prime Minister Mr. Imran Khan has been the guiding light of

the reforms process and without his support , nudging and leadership

we would not have initiated or achieved whatever has been accomplished

so far. His keenness to ensure implementation of these reforms has

resulted in the formation of the CCIR with the mandate to monitor the

progress of the reforms approved so far and to come up with the

proposals for new set of reforms. There would thus remain a continuity

and the past work would seamlessly weave into the future work plan. The

CCIR has held 23 meetings since its inception.

3. I would like to record my appreciation to the members of the Task

Forces on Civil Service Reforms and Restructuring the Federal

Government, the members of the Cabinet Committee on Implementation

of Reforms and the Ministries and Secretaries of the Divisions involved

in the process. The Task Forces benefitted from 80 consultative

sessions held at Islamabad, Lahore, Peshawar, Karachi and Quetta during

the last three years which were attended by 2223 stakeholders mainly

from the various Federal and Provincial Cadre, Ex-Cadre and Non-Cadre

Officers. Business leaders were also consulted about the proposed

reforms. Senate Committee and N.A Committee on Cabinet were also

briefed about these reforms.

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4. I would like to thank the staff of the Institutional Reforms Cell -

Dr. Samina Taslim Zehra who was followed by Mr. Qamar Zaman as Joint

Secretary, Mr. Nauman Yusaf, Mr. Ahmed Rajwana, Mr. Hassan Haren

Hote who were followed by Dr. Altamash Janjua, Mr. Najeebullah Khan,

Dr. Amir Hussain and Mr. Rafique Ahmed Khokhar as Deputy

Secretaries. They played critical role in supporting the work of the Task

Forces and the Cabinet Committee and the compilation of these two

volumes would not have been possible without their help.

5. Chapters in Volume I are organized in three parts - Part I those

reforms which have been approved and are under implementation; Part

II those which have been deferred and Part III which are under review

and deliberations. Volume I is divided into four sections (a) Reorganizing

the Federal Government (b) Civil Services Reforms (c) Business Process

Reengineering and (d) Restructuring of key public sector organizations.

Each chapter in Part I consists of Working papers, Proposals and

recommendations, decisions taken and current status while Parts II and

III consist of Working papers, Proposals and Recommendations. Volume

II Contains the record of discussions and deliberations in form of the

minutes of the meetings of the Task Forces and the Cabinet Committee

on Implementation of Reforms.

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6. These volumes are an attempt to promote transparency –an

essential ingredient of Governance and accountability: whether the task

assigned has been fulfilled or not. They also reflect the arduous nature

of consensus building on key reforms and, more importantly, the

impediments faced in their implementation. These volumes indicate that

the diagnostics and design work has been done and what is missing is the

delivery. The CCIR would, hopefully, be able to monitor the progress at

regular intervals through action plans, responsibilities assigned,

milestones and deadlines without forming any new task forces and

Commissions. The journey is long and difficult but a beginning has been

made.

ISHRAT HUSAIN
Advisor to Prime Minister

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 VOLUME 1A
RE-ORGANIZING THE FEDERAL
GOVERNMENT

vi
 Table of Contents
PART-1: APPROVED REFORMS UNDER IMPLEMENTATION ........................................... 1
CHAPTER 1 REFORMING THE GOVERNMENT IN PAKISTAN: RATIONALE,
PRINCIPLES AND PROPOSED APPROACH .......................................................................... 2
1.1. OBJECTIVES, GUIDING PRINCIPLES AND PROGRESS ACHIEVED ........................ 13
1.2 PROGRESS ACHIEVED.................................................................................................... 15
CHAPTER 2 SIZE, GROWTH AND FUNCTIONS OF THE FEDERAL GOVERNMENT .... 17
CHAPTER 3 REPORT ON REORGANIZING THE FEDERAL GOVERNMENT (AS
APPROVED BY THE CABINET-JULY 3, 2019) ........................................................................... 23
CHAPTER 4 PRESENT STATUS OF THE REORGANIZATION OF THE FEDERAL
GOVERNMENT ...................................................................................................................... 86
CHAPTER 5 LEGAL INSTRUMENTS AND BOARD STATUS OF AUTONOMOUS BODIES
................................................................................................................................................ 102
CHAPTER 6 THREE TIERS IN THE FEDERAL SECRETARIAT ...................................... 120
CHAPTER 7 FOUR OCCUPATIONAL STREAMS FOR THE FEDERAL SECRETARIAT126
PART-2: REFORMS DEFERRED ......................................................................................... 129
CHAPTER 8 WORKING PAPER ON REORGANIZING THE FEDERAL SECRETARIAT
................................................................................................................................................ 130
CHAPTER 9 ABOLITION OF VACANT POSTS (BS 1-16) IN THE FEDERAL
GOVERNMENT .................................................................................................................... 147
CHAPTER 10 EMPOWERMENT OF SECRETARIES’ COMMITTEES AND
STRENGTHENING CABINET SECRETARY ...................................................................... 156
PART-3: REFORMS UNDER REVIEW AND DELIBERATION.......................................... 158
CHAPTER 11 DEFINITIONS OF THE AUTONOMOUS BODY, CONSTITUTIONAL BODY
AND EXECUTIVE DEPARTMENT ...................................................................................... 159
CHAPTER 12 POWER AND FUNCTIONS OF THE EXECUTIVE DEPARTMENTS AND
AUTONOMOUS BODIES ...................................................................................................... 160
CHAPTER 13 CONCEPT PAPER FOR REORGANIZATION AND REVITALIZATION OF
SCIENCE AND TECHNOLOGY IN PAKISTAN .................................................................. 164
CHAPTER 14 RESTRUCTURING OF THE MINISTRY OF COMMERCE ........................ 168
CHAPTER 15 CABINET COMMITTEE ON INSTITUTIONAL REFORMS (CCIR) .......... 170

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PART-1: APPROVED REFORMS UNDER
IMPLEMENTATION
 CHAPTER 1 REFORMING THE GOVERNMENT IN
PAKISTAN: RATIONALE, PRINCIPLES AND PROPOSED
APPROACH
Ishrat Husain1

Introduction

The rationale and guiding principles for reforming the Government in Pakistan were
first spelled out in the report of the National Commission for Government Reforms produced
in 20082. Despite the devolution of powers to the provincial governments under the 18th
Amendment and much larger resource allocation to the province under the 7th National Finance
Commission (NFC) report, it is a pity that the reforms of the government in delivery of public
services to the common citizens have not made any headway in the last decade. Therefore, the
rationale and guiding principles with some slighter modification remain unchanged.

2. On the contrary, they have assumed a sense of urgency. A legitimate question that is
often raised by those working for the government in Pakistan but not by outsiders is: Why
reform the Government? Most of them believe that things are going well and the costs of
bringing about these reforms will prove to be disruptive for the economy as well as for
administration. They further saw that we had inherited a strong, robust system from the British
that has been tried and tested over time and there is hardly any compelling reason to bring about
any major structural changes. In order to address this question, we have to provide the rationale
for bringing about reforms in the government which is done in Section I. Having established
the business case for reforms, Section II lays down the principles that would underpin these
reforms. Finally, the proposed approach to design and implement the reforms will be discussed
in Section III.

Section I
Rationale for Reforms

3. It must be conceded at the outset that the time horizon for the consummation and impact
of the proposed reforms is long term – the next 10 to 20 years and not immediate or short term.
It may also be accepted that there are no quick fixes and therefore the rationale for this plan
should therefore be viewed in the context of the long-term vision of Pakistan, the external
environment in which Pakistan will be operating as a country, the lessons learnt from other
successful developing countries, the diagnostic studies including public opinion polls about
government performance in Pakistan and the growing expectations of the public at large.

(A) Long Term Vision and Challenges of the 21st century

4. Pakistan’s long-term vision envisages the country to be a developed, industrialized, just

and prosperous nation at the end of the next 20-25 years. This vision is to be achieved through
rapid and sustainable development in a resource constrained economy by deploying knowledge
inputs. The transition for achieving this objective is proposed to be managed by an intelligent

1
This paper was circulated among the Secretaries Committee meeting held on 4th February, 2021 and an expanded
version was published by PIDE in February, 2021. The views expressed in this paper are those of the author and
do not, in any way, represent those of the Government of Pakistan.
2
Government of Pakistan (2008), Report of the National Commission for Government Reforms, Islamabad

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and efficient exploitation of the country’s inherent and contrived competitive advantage. To
achieve this Pakistan has to become an active participant in the globalized economy for goods,
labor, capital, technology and services, and this option has serious consequences for the future
governance of the country.

5. Twenty first century is a knowledge economy confronted with many serious challenges
that have no precedents in the past. Noteworthy among them are disruptive technological
advances, changing nature of skill composition of work force, Demographic changes with
ageing population in the West and China and younger population in South Asia and Africa,
climate change and its consequences on food, energy and water and growing competition
among emerging economies for share in international trade. The hegemony of a unipolar world
led by the US is also being threatened by a newly emerging power i.e. China.

6. The imperative of integrating Pakistan in the larger global economy and responding to
these challenges, places certain essential demands and one of them is that the structures of the
state and instruments of the government have to be redesigned to use knowledge and
technology inputs to create opportunities for increased productivity and competitiveness.
Among the 180 nations of the world which are Pakistan’s competitors for capturing market
share in the ever-expanding global economy, only those will survive that remain agile and adapt
themselves to the changing demand patterns, supply value chain and technological upgradation.
The main actors in a country that will together impinge upon its competitiveness and
productivity are the state, market and civil society. The respective roles of these main actors
and their interrelationships have therefore to be redefined and re-calibrated.

7. Following this logical sequence, the various organs of the State – executive, judiciary
and legislature – have to be assessed and evaluated to determine whether they are capable of
meeting this new challenge or whether they need to be re-vamped to develop new capabilities
and build up new response capacity. We would in this paper like to focus on one element of
the State i.e. Executive branch and do not dwell upon the other two i.e. the Parliament and the
judiciary. We also do not directly address the market and the civil society in this paper. The
main purpose here is to assess whether the government, its structures, processes and human
resource policies and practices can keep up with these new demands or need modification or
alteration. We do realize the limitation of this paper in so far as it only captures only one pillar
of governance system while a more holistic picture of the dynamic interactions and the
boundaries between the State, Market and Society needs to be depicted and analyzed.

8. Structural economic reforms to improve Pakistan’s prospects for competing in the

globalized economy require stable, functioning, competent and responsive institutions for
implementation. But unfortunately, we are at present caught in a difficult logjam. While the
economic reforms themselves create dislocation and displacement in the transition period,
strong working institutions provide the wherewithal and armoury to withstand these shocks
thus minimizing the costs of adjustment and maximizing the benefits to the poor and neglected.
The urgency to build strong institutions to implement these structural reforms is therefore quite
obvious. Institutions in public sector are manned by civil servants and therefore reforms of civil
service to achieve the long-term goals and challenges of the 21st century become the burning
issue.

(B) Lessons from other Developing Countries

9. The role and limitations of governments in various developing countries have been
analyzed at great length in many academic and non-academic studies. The predominant view

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is that the binary postulate of Government vs Market is totally misplaced. Governments should
do what they are capable of doing better than in the past. A strong and effective government is
needed rather than a weak and expansive government. The all wide-encompassing government
has become too cumbersome and centralized with overlapping and competing interests,
inefficient and unresponsive to the emerging needs of the public. Civil servants are poorly
trained, sub-optimally utilized, badly motivated and ingrained with attitudes of indifference
and inertia. It has been argued by development economists that effective government in
developing countries is not only necessary due to abundant market failures but possibly even
sufficient to achieve economic development.

10. A number of developing countries have successfully reformed their governments and
tackled the market failures as well as achieved rapid economic development. How have they
been able to transform the expansive government into a well-focused, well-functioning and
result oriented effective government? The interpretation of the success of East Asian countries
such as the Newly Industrializing Countries (NICs), ASEAN countries and China is a matter
of serious debate among development economists. Neoclassical economists attribute the
success to market friendly environment, private sector led growth and openness to trade with
the governments providing macroeconomic stability, security of person and property,
infrastructure services, promoting research and development, and investing in education,
health, science and technical training. Others such as Wade (1990) and Amsden (1989) have
argued that an interventionist state which guided and steered a proactive industrial policy and
picked the winners, was largely responsible for the success of these countries. By now, there is
some consensus that if the labels and ideologies are set aside the evidence overwhelmingly
suggests that there are some critical success factors of varying degrees. These factors are: -

i) promote market competition, curb monopolies, cartels or oligopolies, and rent seeking
ii) ensure a level playing field and entry for new comers in the market,
iii) exercise regulatory vigilance (but eliminate inefficient and outdated regulations), and
enforcement
iv) open up the economy to international trade,
v) provide the way for judicial independence,
vi) provide dispute resolution mechanisms and enforce contracts,
vii) promote transparency, and observe the rule of law.

11. The role of the Government is to provide an enabling environment for private
businesses so that they can carry out production, distribution, trade of goods and services
without indulging itself in these activities directly. A successful enabling environment requires
an efficient and competent civil service, investment in human resources, skills, well-
functioning, physical infrastructure, rules of law and equitable distribution of benefits of
growth.

12. More recently, Fareed Zakaria after studying weak and effective governance in
developed and developing countries over time has concluded that competent bureaucracy and
the ability to tax have been key factors in the history of modernization. In my view, China’s
stellar performance and its transition from an impoverished country to become a global
economic power within a short span of forty years can also be largely attributed to a
meritocratic bureaucracy advantaged by highly focused leadership. Even the appointments to
political offices such as Mayors, Governors, members of Politburo are mostly made on
performance.

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13. The other piece of empirical evidence that is beginning to gain wide acceptance is that
decentralization and greater devolution of power, authority and resources to lower tiers of
government also makes a difference through better allocation and a more efficient utilization
of resources. Devolution also helps in moving towards a relatively more egalitarian outcome
in the provision of basic public goods services.

14. Another way to promote human development and deliver social services to the poor
segments of the population that has worked is through the wider participation of the private
sector, communities and civil society organizations. Participation, besides being considered a
means to further human capabilities is also a way of choosing the right kind of projects and
ensuring that development funds are used more judiciously. Private–public partnerships and
public–NGO or Civil Society Organization partnerships are being successfully used in many
countries for the provision of infrastructure, education, health and other social services. These
partnerships not only supplement the limited public resources and counter the governance
issues through monitoring, evaluation and corrective actions but also enable local communities
to participate in decision making through their organizations. The reduced efficiency of public
sector expenditure can also be corrected through these partnerships. Allocation of risks in
public-private partnership takes place on the relative strengths of the two partners.

(C) Changes in the Pakistani Scene

15. We now turn to the diagnostic studies and the changes that have taken place in the
landscape in Pakistan in the past several years and are likely to affect the functioning of the
government in the future. My own research study that culminated in the book “Governing the
Ungovernable” examined the two periods of Pakistan’s history i.e. 1950-90 and the second
period 1990-2015. During the first period Pakistan had stellar performance and was among the
top economic performers in the developing world. India during that period was growing at 3
percent per annum compared to 6 percent growth rate of Pakistan. The gap between the two
economies was 5:1. India’s per capita income was much lower and poverty rate much higher
than Pakistan. In the second period Pakistan has become a laggard even in South Asia and both
India and Bangladesh overtook Pakistan in most social and economic indicators. The size of
Indian economy has expanded ten times that of Pakistan from five times since the year 1990.
Latest data shows that Bangladesh has now overtaken Pakistan in terms of per capita income.
Bangladesh has become the second largest exporter of ready-made garments after China.

16. After reviewing many alternate hypotheses advanced in the literature to explain these
different outcomes in the two periods within the same country my research study concluded
that it was the relative performance of the institutions of Governance that provides the most
persuasive explanation for the rise and fall of Pakistan’s economy in the two periods. When
Pakistan had strong institutions such as WAPDA which carried out Indus Basin Works; PIDC
that brought about industrial revolution from almost a scratch; ADC which introduced high
yielding varieties of wheat and Rice seeds and fertilizers that made Pakistan self-sufficient in
food and an exporter; Planning Commission that produced five year plans that were emulated
by other developing countries and PIA which established among others Singapore Airlines and
Emirates. These are just few examples of strong institutions manned by competent and honest
officers that made a substantial difference to the economic prospects of a moth ridden country
which was condemned by many international observers to suffer economic collapse ready to
be absorbed in the larger India. Where these institutions stand in relation to the earlier period
is quite well known and documented. Most of them have become dysfunctional creating more
stress on the economy rather than making any contribution.

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17. A leading economist and practitioner has observed in an article:

18. “A weak institutional framework hangs like a dead albatross around the neck of the
state, imposing substantial deadweight costs. It produces untenably large inside and outside
lags in policy formulation and implementation leading to a state which is unresponsive both to
internal requirements as well as rapidly changing external environment.”

19. A number of commissions, committees, task forces, and working groups in Pakistan
have examined and made recommendations about the changes in our administrative system.
Unfortunately, these have not been implemented for a variety of reasons and those who believe
in status quo and want to continue operating in their comfort zones and protecting their turf
have prevailed in stalling these reforms. Outside observers believe that even during last ten
years the quality of Secretaries to the Government and the heads of various public sector
institutions has deteriorated. But in addition to the historical reasons there have been at least
seven new developments in Pakistan’s landscape that clearly point to the need for reforms in
the structure, processes and human resource management policies and practices.

20. First, it is becoming increasingly apparent that the benefits of economic growth have
not been distributed equitably among the lower income groups, backward districts, rural areas
and women. Incidence of poverty has declined but regional disparities, gender inequality and
income real distribution have intensified. Almost all studies point out that the governmental
machinery at the Federal, Provincial and Local Governments have become largely
unresponsive and inert in delivery of basic public services to the common citizens. Almost all
comparative country rankings, whether originating from the World Bank or Global
Competitiveness Report of the World Economic Forum or other think tanks and institutions
consistently rate Pakistan quite low in Public Sector Management, Institutions and Governance.
Along with the low Human Development Indicators this weak institutional dimension makes
the task of poverty reduction, income distribution and delivery of public services quite difficult.
The impact of good economic policies upon the lower strata of our society, particularly those
who are illiterate and are not well connected, thus gets muted. The widespread hue and cry
about the absence of a trickle-down effect of good economic policies is a manifestation of the
dysfunctional nature of our public sector governance. Government institutions have to be
strengthened to meet this challenge particularly at the grass root level i.e. the Metropolitan
areas, cities, towns, villages and neighborhoods. The present inverse relationship in power,
authority and prestige between the senior most officers who work at levels so remote from the
ordinary citizens and those who are expected to solve the problems at the local government
level has to be reversed. In the British days the District Collector was senior to the Secretaries
of departments and he could take decisions on the spot without making innumerable references
to the capitals and getting no response. I have seen numerous files of Section officers where
these letters were lying buried and no tracking system in place and have heard Ambassadors
complaining that their urgent telegrams were not answered on time.

21. Second, the responsibilities of the government in the field of owning, managing and
operating public enterprises and corporations have undergone significant change both in the
thinking as well as action during the last sixteen years. A large number of government owned
corporations, businesses, industrial units, banks and financial institutions and service providers
have either been privatized or ought to be privatized. The cumulative liabilities of these public
sector enterprises run into trillions and are adding to the stock of our domestic and external
debt. In power sector the circular debt has piled up to Rs 2.2 trillion and PIA has liabilities
close to 500 billion. This divestment will reduce the burden on the administrative apparatus at
all levels of government. The shedding of these activities by the government would have

6
serious repercussions for the oversight function of the Ministries/ Departments in the post
privatization period.

22. Third, the devolution of administrative, operational and financial powers to provincial
governments has introduced a completely new dynamic in the Federal-Provincial relationship
and allocation of tax revenues. The devolution remains incomplete as the local governments
where most of the interaction between a citizen and the state takes place have suffered severe
setback in the post 2008 era. The growing demands of urbanization require effective,
empowered and efficient metropolitan corporations and municipal corporations. The Provincial
Assemblies of Punjab and KPK have passed laws to this effect which need to be implemented.
These urban corporations have to be headed by high quality experienced civil servants assisted
by a team of experts in town planning, water supply, sanitation, solid waste disposal etc.

23. Fourth, the unbundling of the policy, regulatory and operational responsibilities of the
Federal Ministries have shifted the focus on the policy making, monitoring and evaluation
functions. But this transition has been incomplete, uneven and mixed across the Ministries and
needs to be firmly rooted. The lack of adequate competence and knowledge of regulatory
functions would demand development of expertise in this field as well as in policy formulation,
implementation and evaluation. Autonomous regulatory bodies have also imposed severe
coordination constraints in achieving results. The outdated skill sets in our key government
agencies have to be replaced by the emerging skills required. To illustrate this point, take the
example of the Federal Board of Revenue (FBR). It has a large number of generalist managers,
appraisers, preventive officers and tax inspectors mostly at lower grades but very few sector
specialists, data analytics experts, qualified auditors, tax lawyers, financial modelling
professionals, public finance economists. It does not have a Research and Development wing
to carry out studies for example on tax incidence, buoyancy and elasticities of taxes, tax gap
analysis. Ministry of Finance does not possess a Macro Economic or Fiscal policy unit manned
by trained economists and has to rely upon the expertise of the State Bank of Pakistan. A single
source of advice is not useful for complex policy making.

24. Fifth, some limited success has been achieved by fostering private – public partnerships
in the fields of infrastructure, education and health. But these partnerships can only be nurtured
if the government departments and Ministries have the adequate skills to design concession
agreements, B.O.T or contractual arrangements, monitoring and evaluation tools and legal
recourse to enforce the obligations and stipulations agreed by the private sector partners.
Similarly, the NGOs and community organizations such as Rural Support Programs have been
actively engaged in the delivery of public services in the fields of education, health, water
supply etc. The government departments and Ministries have to be reconfigured to develop the
capacity to design and operate these partnerships.

25. Sixth, there is a great deal of uncertainty and anxiety among the members of the civil
services of the country about their future career prospects. Those specialists serving in ex-cadre
jobs such as scientists, engineers, medical doctors, accountants, etc. are demoralized because
they have limited opportunities for career progression. They also feel that they are not treated
at par with the cadre service officers in matters of promotion and advancement. In a rapidly
changing world of knowledge economy to pretend that technical expertise or domain
knowledge or subject specialization are of lesser value in public policy formulation,
implementation and project management would be highly pernicious. We employ highly paid
consultants with donor money but there is nobody in house to judge whether the analysis,
findings and recommendations in these reports are commensurate with our peculiar eco system,
resource constraints and capabilities. There is an urgent need to mainstream these specialists

7
in the core civil service, providing them periodic training in their fields, career progression
policies for them and performance management indicators to evaluate their usefulness and
continuation in service.

26. Seventh, the switch over from manual to automated processes and the government’s
commitment to move towards E-Government would require a look at the skill mix and training
requirements of the existing and future civil servants throughout the entire hierarchy. E-
Government will itself flatten the hierarchical texture and make apparent the redundancies in
the system. At the same time, it will involve basic computer literacy at all levels and grades,
digital archiving, storage and retrieval of all files and documents. Consequently, only a few of
the clerical and subordinate staff positions can be utilized in the future government
organization. The present ratio of 5 percent officers and 95 percent support staff is highly
skewed, induces inefficiency and preempts a large chunk of pay bill. Savings in the officer to
staff ratio would be adequate to pay higher compensation package to the officers who form the
back bone of the institutions.

(D) Expectations-Delivery Gap

27. The recent political history clearly points to the failure of successive governments to
live up to the expectations of the majority of their population. This trend has become even more
acute in the last decade or so with the advent and spread of the electronic and social media. In
Pakistan every incumbent government has been voted out of power since 2008. Given the
youth bulge and their exposure and awareness the opportunities for them are not keeping pace
with their aspirations. The ICT (Information Communication Technology) revolution that has
touched even the remote areas of these countries has, in fact, tended to visualize the disparities
and contributed to higher expectations from government. On the other hand, the capacity of the
government institutions responsible for the delivery of public goods and services has rapidly
eroded and is in a debilitating and feeble state, while a large variety of goods and services
available, advertised and visually observed on the electronic media has whetted their appetite.
They believe that the means through which they can acquire these goods and services for
themselves and their children is through public sector employment, education and training and
government transfers. In actual practice, the allocation of public goods, services, employment
and subsidies is rationed by access to the government functionaries or by paying bribes. As
these groups have neither the right connections nor the money to pay the bribes, they suffer
from a relative sense of deprivation while observing that the influential and well-to-do
segments of the population are preempting and enjoying the benefits of government jobs,
contracts, permits, land, etc. Large, untaxed incomes are also accruing to the same privileged
groups and individuals. The resentment of this poor and unconnected population is conveyed
through the only instrument they possess i.e. the vote at the time of elections.

28. The popular perceptions as expressed in public opinion polls, media commentaries and
editorials, articles and papers, seminars and discussions, observations of politicians and civil
society actors, all convey with a few honorable exceptions, a negative image of the civil
servants in Pakistan and a high level of dissatisfaction with the functioning of the Ministries,
Departments, Corporations and Agencies of the different tiers of the government. These
perceptions are in contrast to the views of the civil servants themselves who see themselves as
poorly paid, highly demoralized and stressed out individuals. They feel that they have been
unfairly treated by their political bosses and unappreciated by the general public. Empirical
studies and casual observations show that the root cause of this disenchantment of civil society
and the disillusionment of the civil servants can be traced to structural, procedural and
motivational deficiencies in the overall system of governance. Any attempts to treat the

8
symptoms in an isolated manner without coming to grips with the root causes will be
counterproductive. The reform package should be comprehensive with a clear blueprint, but
the introduction of each set of reforms could be phased and sequenced.

Section II

Broad Principles Underpinning the Reforms

29. In order to lay down the direction in which the reforms will be undertaken, it is essential
that the broad principles that will underpin these reforms are clearly defined. The following
broad principles are outlined under each area of the reforms.

Civil Services

i) Open, transparent merit–based recruitment to all levels and grades of public services
with regional representation as laid down in the Constitution.
ii) Performance–based promotions and career progression for all public sector employees
with compulsory training at post-induction, mid-career and senior management levels.
iii) Equality of opportunities for career advancement to all employees without preferences
or reservations for any particular class.
iv) Replacement of the concept of Superior Services by equality among all cadres and
non-cadres of public servants.
v) Grant of a living wage and compensation package including decent retirement benefits
to all civil servants.
vi) Strict observance of security of tenure of office for a specified period of time.
vii) Separate cadres of regular Civil Services at the Federal, Provincial and local
government levels co-existing with contractual appointments.
viii) Creation of an All Pakistan National Executive Service (NES) for senior management
positions drawn through a competitive process from among the Federal, Provincial and
local government cadre, ex cadre and non-cadre officers, those working in autonomous
bodies and other public sector entities
ix) Introduction of four specialized cadres under the NES for Economic Management,
Technical, Social Sector Management and General Management.

Structure of Federal, Provincial and District Governments

i) Devolution of powers, responsibilities and resources from the Provincial to local

governments.
ii) Establishing inter-governmental structures with adequate authority and powers to
formulate and monitor policy formulation.
iii) Clear separation of policy making, regulatory and operational responsibilities of the
Ministries/Provincial departments.
iv) Making each Ministry/Provincial department fully empowered, adequately resourced
to take decisions and accountable for results through financial and performance audit.
v) Streamline, rationalize and transform the attached departments/ autonomous bodies/
subordinate offices/field offices, etc. into fully functional arms of the Ministries for
performing operational and executive functions.
vi) Reduce the number of layers in the hierarchy of each Ministry/ Provincial department
to three to expedite decision making process.
vii) Cabinet Secretary to perform the main coordinating role among the Federal Secretaries
on the lines of the Chief Secretary in the Provinces.

9
 viii) Revival and strengthening of the Secretaries Committee at the Federal/ Provincial
governments to become the main vehicle for inter-ministerial coordination and dispute
resolution among various ministries.
ix) District level officers interacting with the general public in day-to-day affairs should
enjoy adequate powers, authority, status and privileges to be able to resolve the
problems and redress the grievances of the citizens.

Business Process Re-Engineering

i) All laws, rules, regulations, circulars, and guidelines issued by any government
ministry/department/agency should be available in its most up dated version to the
general public free of cost in a user-friendly manner on the web page and in electronic
and print forms at public places. The websites should be designed in such a manner
that government-public physical interaction is brought to the minimum and maximum
services are provided online with transparency in the application of rules and
procedures.
ii) Service standards with timelines for each type of service rendered by the Federal
Government departments and bodies dealing with public matters should be
developed, widely disseminated and posted at websites of each such department.
Interaction of the public with government offices involving financial transaction for
services like permits, taxes, fee, should be preferably done through online or digital
payment mode.
iii) Rules of business of the Federal, Provincial and District government should be revised
to make them simple and comprehensible, empowering the Secretaries/Heads of
Departments to take decisions without multiple references, clearances and back and
forth movement of files. Post-audit of the decisions taken should be used to ensure
accountability rather than prior clearances.
iv) Delegation of financial, administrative, procurement, human resource management
powers should be revisited and adequate
v) Powers commensurate with the authority should be delegated at each tier of the
hierarchy.
vi) Estacode, Financial Rules, Accounting and Audit Rules, Fundamental Rules and all
other rules in force should be reviewed systematically and revised to bring them in line
with modern management practices.
vii) E-Government should be gradually introduced in a phased manner. Technological
solutions, hardware and software applications are easy parts of the process, but the
most difficult aspect is the training and change in the culture, attitude and practices. E-
Government should be driven by business needs rather than crafted as an elegant
technical solution. E-Government would replace the outdated and manual files system
and bring about transparency, accountability and efficiency

Section III

Proposed Approach

30. The lesson learnt from the experience of the National Commission for Government
Reforms (NCGR) where we aimed to prepare a comprehensive reform package after extensive
consultations with the stake holders has led us to think differently about our approach.
Although we had formed a Steering Committee headed by the President of Pakistan and
consisting of Chief Ministers this extra territorial forum did not work out as expected.
Bypassing the Federal Cabinet and not building a broader political constituency rather than

10
leaving the final decision making to the four Chief Ministers who considered the reforms an
erosion of their vast discretionary powers was a mistake. The second mistake was
overburdening the agenda by proposing reforms in the Federal, Provincial and local
governments, All Pakistan, Federal, provincial and District civil services at the same time
without any proper and clear sequencing. Since the NCGR Report the 18th amendment and the
7th NFC award have drastically changed the contours of Federal- Provincial relationship.
Therefore, the task forces appointed by the PM on Civil service reforms and restructuring of
the Government have limited their recommendations to the Federal Government only. While
the provinces were represented on the Task Forces, it was left to their political masters to decide
whether they would use these recommendations in their provinces or design their own. Most
of the provincial authorities informed that they would form their own task forces. Since then,
the progress made by the provincial task forces is not known. It must be conceded that most
reforms aimed at improving the delivery of basic public goods and services to the common
citizen lie at the doorsteps of local government and in absence of that, the reforms at the Federal
level would have much muted impact. The whole spectrum of Local Government reforms was
left to the provinces and the Punjab and KP Assemblies have come up with legislation which
would indeed strengthen the local government system. It is not clear what would be the stance
of the Sindh and Balochistan Governments in their approach towards devolution as they have
their own peculiar considerations

Risks/limitations of the present approach

i) The exclusion of the provinces where three fourth of all civilian government
employees serve, from the scope of the present deliberations has diluted the efficacy
and impact of any reform package, however well-meaning it may be, on the lives of
the ordinary citizens.
ii) The local government laws approved by the provincial assemblies of Punjab and KPK,
if faithfully implemented, would have contributed to efficient delivery of basic
services, accountability for results, responsiveness to the peculiar needs of the
communities and promoted nurturing of the leadership from the grass root level. This
model of participatory democracy has yet to see the light of the day.
iii) The task forces and expert groups can provide technocratic solutions but every reform
has serious political repercussions. There are immediate losers from the reforms who
can organize themselves and resist and agitate publicly. Unless the party-in-power
leaders own these reforms and enter into a constant rather than sporadic or episodic
dialogue with the potential, the risk of shelving, abandoning or defanging the reforms
is quite high.
iv) Most of the reforms would produce results in medium or long-term. Therefore, long-
term sustainability and effective implementation depends upon a broad consensus
across the party lines diminishing the chances of reversal once a different party comes
to power. Such consensus building has been lacking so far. Past episodes where very
productive reforms were given up in the mid-course with the change in the government
should alert us to this grave impending danger.

11
 References
Amsden A, 1989, Asia’s Next Giant: South Korea and Late Industrialization

Oxford: Oxford University Press.

Commission on Growth and Development, 2008, Washington D.C. The World Bank

Government of Pakistan, 2007, Vision 2030 Planning Commission,

Islamabad.

Husain I, 1999, The Economy of an Elitist State, Oxford: Oxford

University Press.

Husain I ,2012 Reforming the Government in Pakistan, Lahore, Vanguard

Press

Husain, I. 2018, Governing the ungovernable, Oxford: Oxford University Press

Kaufmann D and Mastruzzi M, 2005, “Governance Matters IV,” World

Bank.

Leipzeiger D, 1997, Lessons from East Asia, Ann Arbor: University of

Michigan Press.

National Commission for Government Reforms, Volumes I and II ,

(website www.ncgr.gov.pk 2006.

Sen. A.K. 1999, Development as Freedom, Oxford: Oxford University

Press.

Sherani, S. 2017, Institutional Reforms in Pakistan, Frederich Ebert Stiftung

Stiglitz J and Yusuf S, 2001, Rethinking the East Asia Miracle, Oxford
University Press. Bradhan P and Mookherjee D, 2001, “Decentralization
Corruption and Government Accountability: An Overview” in Susan
Rose-Ackerman, Handbook of Economic Corruption, Cheltenham:
Edward Elgar.

Todaro, M.P and Smith, S.C, 2004, Economic Development, Pearson.

UNDP, 2003, Pakistan National Human Development Report.

Wade R, 1990, Governing the Market: Economic Theory and the Role of Government,
Princeton: Princeton University Press.

World Bank, 1993, The East Asia Miracle: Economic Growth and Public
Policy, Oxford University Press.

World Development Report 2000/2001, New York: Oxford University Press.

Zakaria, F. 2020, Ten lessons for Post Pandemic World, Simon and Schuster

12
1.1. OBJECTIVES, GUIDING PRINCIPLES AND PROGRESS
ACHIEVED
1. Federal Government in Pakistan comprised 42 Division and 441 attached departments,
autonomous bodies, statutory bodies, corporations, etc. in August, 2018. Many of these
organizational entities (OE’s) were created considering the exigencies of time and to meet
emergent need(s), but through a self-surviving mechanism, have still been perpetuating. Given
this background and inefficiencies, Institutional Reforms Cell (IRC) solicited information from
all Ministries and Divisions on the different types of entities under their control. Subsequently,
an elaborate mapping exercise was undertaken to propose reconfiguration of the existing OEs.
After this exhaustive exercise, a working paper containing the detailed proposals was discussed
and deliberated upon by the Task Force on Austerity and Restructuring of Government for
incorporation of members’ views. The refined proposals were then circulated, reviewed and
discussed by the Secretaries Committee. The proposed recommendations pertaining to each
Ministry were then brought to the attention of the Minister in charge for their comments and
views. This entire exercise has resulted in the reconfiguration of the entire Federal Government.

Objectives

2. In pre 2018 era, there was no institutionalized mechanism whereby entities in the
Federal Government could be created, modified or wound up. The nomenclature, functions and
legal authority of these entities varied across Ministries and there were no uniform or standard
criteria that could provide meaningful distinction between each of these entities or units of the
Government. There was a dire need to bring these under a standardized system of
organizational mapping, but simultaneously, the continued justification of some of them had
to be questioned. Some of these OEs had been in existence for several decades and they have
lost the raison d’être for which they were established. Many of these were merely surviving as
the controlling Ministries couldn’t find any alternative for adjustment of their employees and
a set up was needed to pay the salaries and pensions to the employees. With the passage of the
time, funding stream for them had also dried up, thus these entities were unable to perform any
meaningful role in governance and merely existed in name. Overlapping and duplication of
responsibilities were also common, coupled with questionable capacity of these OE’s to meet
the needs of the future. In nutshell, organizational architecture was riddled with diffused
responsibility and a clear lack of accountability for results.

3. This all was also giving rise to the confusion in decision making, which involved too
many layers—vertical, horizontal and cross entities, whereas resource availability and internal
controls were remotely exercised. In order to overcome these issues, the categorization of entire
government was re-examined and these entities were classified into three distinct categories
namely Executive Department, Autonomous Body and Constitutional Body. The detail of this
categorization is available in succeeding chapters.

Guiding Principles of Reorganizing the Federal Government

4. The guiding principles used for Reorganizing the Federal Government and the
Provincial Governments are: (a) efficient distribution of span of control (b) clear delineation
of roles/ responsibilities along with accountability (c) separation of policy making, operational,
implementation and regulatory functions of the Ministry (d) reducing the hierarchical tiering
and the turnover time for government business (e) strengthening intra and inter-ministerial
coordination and collaboration (f) empowering the head of the Division, the head of the

13
executing departments and the head of the autonomous bodies to deliver agreed goals and
results.

14
1.2 PROGRESS ACHIEVED
1. The second Task Force on Restructuring of the Federal Government and Austerity
focused on (a) 441 organizational entities (OEs) by reviewing their functions, efficacy and
legal status, (b) revitalizing the e-office suite in the Ministries, (c) Business process
reengineering, (d) Public financial management and (e) Strengthening the Secretaries
committee for inter-ministerial coordination and resolving unsettled issues to lessen the burden
on the Cabinet and its committees.. The Cabinet formed a Committee of Ministers and
Secretaries to oversee the implementation of this report. The Committee held 37 meetings,
listened to the viewpoints of the Ministries/Divisions, took decisions and made
recommendations for their official notification. This Implementation Committee was
subsequently folded into the newly formed Cabinet Committee on Institutional Reforms with
the same membership and an expanded mandate The status of progress up to date is as follows:

i) A comprehensive report on the 441 OEs was submitted to the Cabinet and approved.
The report divided all the OEs in six categories (a) those to be retained as autonomous
bodies (b) those to be retained as Executive departments (c) those to be privatized (d)
those to be transferred to the provinces (f) those to be merged (g) those to be liquidated
or wound up. This effort has reduced federal government entities from 441 in total to
324 and reduced the configuration of entities from 14 different kinds to three i.e.
Executive Departments, Autonomous Bodies and Constitutional Bodies. Furthermore,
liquidation, merger and transfer of entities to provinces or relevant Ministries would
help reduce the fixed and variable costs of the federal government without any loss to
efficiency and results.
ii) The Parliament approved a Public Financial Management Law for the first time in the
history of Pakistan in June 2019 devolving financial powers from the Ministry of
Finance to the line Ministries and abolishing the Financial Advisers organization.
Chief Financial and Accounting officers would assist the Secretaries in discharging
their functions of financial management and sub offices of AGPR would be located
within the ministries
iii) E-Office suite has made progress, the latest version of the software has been tested,
hardware has been procured and installed, training to the Ministry staff has been
imparted and most Ministries have reached level 4. By December this year it is
expected that all Ministries would have all filing and exchange of correspondence
electronically with a strong tracking system. This would not only eliminate delays in
disposal of business but also strengthen accountability. The culture of missing files at
crucial junctures would hopefully be replaced by transparency in transactions.
iv) In the area of Business Process Reengineering Esta code, Rules of Business and
Financial Rules are being updated, revised and posted on the websites for ready access
to all the stakeholders. The websites and web portals of all Divisions are being
reconfigured to provide as much information and data on rules, regulations, Office
memoranda, procedures, forms, policies, relevant staff officers to the public at large
as possible so that unnecessary references that remain unanswered by Government
functionaries at present are minimized.
v) Implementation Committee has also recommended abolition of almost 71,000 posts
which have been lying vacant for at least one year with the objective of rightsizing and
observing austerity.
vi) Amendments in the rules of Business recommended by the Task Force and the
Secretaries Committee are being vetted by the Law and Justice Division.

15
 vii) A proposal to reduce the tiers of the hierarchy in each Division from six to three with
broad banding—Deputy Secretary (BPS 19/ 20), Joint Secretary (BPS 20/21) and
Secretary (21/22) -- is under consideration by the CCIR. The positions of Principal
Staff Officer, Senior Staff Officer and Staff Officer would be created to assist the
officers occupying the three tier posts in the vertical hierarchy.
viii) 23 training institutions engaged in training of the civil servants are being made
autonomous, empowered to take decisions, fully resourced both financially and with
quality instructional staff. Incentive structure for these institutions’ instructional staff
should be brought at par with those serving the National School of Public policy.
ix) Maximum limit for approval of PSDP schemes has been raised and the Division can
now approve schemes up to Rs. 2 billion.
x) Planning and Development Division has introduced a number of changes to simplify
the processing, approval and implementation of development schemes. No unapproved
scheme is included in the PSDP Budget allocation.
xi) Finance Division has set up a mechanism of quarterly releases of funds on PSDP
schemes in timely manner.

Strengthening Key Institutions of Governance

2. In addition to these two tasks forces the relevant Ministries dealing with key institutions
which were vital for the economy or were draining financial resources were tasked by the Prime
Minister to carry out reforms in these organizations. Most prominent among them are the
Federal Board of Revenue (FBR), Pakistan Railways (PR), Pakistan Steel Mills (PSM),
Pakistan International Airlines (PIA), Civil Aviation Authority (CAA) Competition
Commission of Pakistan CCP), Auditor General of Pakistan (AGP), Evacuee Property Trust
Board (EPTB), Capital Development Authority (CDA). The Cabinet has approved the
restructuring plans of PR, PSM, CAA, CCP, EPTB and CDA and their implementation with
time lines is being monitored by the CCIR on a regular basis. FBR Reforms are being
undertaken under a comprehensive framework document that delineates the responsibility for
the tasks, milestones and time lines. Tax Policy Board under the Chairmanship of the Minister
Finance meets periodically to review the progress made and resolve the outstanding issues
hindering actions. The reform package along with the new law governing the office of Auditor
General has been drafted, agreed upon and would soon be submitted to the Cabinet for
approval. As a first step sub-offices of AGPR have been established in 12 Ministries and these
sub-offices have received appreciation

3. PIA is also being restructured to make it a competitive, lean and modern airline. This
is being achieved through a number of interventions including financial restructuring, HR
rationalization, organizational restructuring, fleet modernization and routes rationalization. In
order to improve the ecosystem for aviation industry, CAA is being bifurcated. The regulatory
role will be retained in the Authority whereas the airports development functions will be
entrusted into a new corporate entity to obviate the conflict of interest and also to facilitate the
joint ventures and outside investments for modernizing airport facilities.

4. A comprehensive restructuring plan for Pakistan Railways has been prepared and
approved by the Cabinet. It has also been submitted to the Supreme Court. PR will be separated
into 5 main constituent companies for better management. The implementation of the plan will
be supervised by CCIR. Similarly, an elaborate plan for restructuring of CDA and ETPB has
been prepared and is being implemented by concerned quarters.

16
 CHAPTER 2 SIZE, GROWTH AND FUNCTIONS OF THE
FEDERAL GOVERNMENT
1. The total strength of the Federal Government was 955,000 (approx.) employees in
2019-20. Around 13,000 were in the Secretariat, 8,000 in constitutional bodies, 544,000 in the
attached departments and 390,000 in the autonomous, semi-autonomous bodies, corporations,
etc. Over the years, the number of these employees have increased as per following table.

GROWTH OF FEDERAL GOVERNMENT EMPLOYEES (THOUSANDS)

FEDERAL
AUTONOMOUS BODIES TOTAL
GOVERNMENT

Officers Staff Total Officers Staff Total Officers Staff Total

2010-11 21.2 428.7 449.9 66.6 302.6 369.285 87.8 731.4 819.2

2015-16 25 429.2 454.5 70.1 304.9 375.1 95.5 734.1 829.6

2016-17 27.8 542.7 570.5 68.5 327.5 396 96.10 870.2 966.6

2017-18 28.9 552.3 581.2 67.8 329.6 397.4 96.8 881.9 978.7

2018-19 26.9 554.8 581.7 68.4 330.8 399.2 95.4 885.6 981

2019-20 26.5 538.6 565.1 63.1 326.1 389.3 89.635 864.7 954.3

2. The running of civil administration costs almost Rs 450 billion annually, of which Rs
260 billion is the wage bill and Rs 190 for operating expenses. A decade ago, the wage bill was
only Rs 50 billion. The pension bill is growing explosively and is likely to equal the wage bill
in next few years. Therefore, it is considered prudent to review the size, growth and functions
of the Federal Government and recommend measures to bring efficiency, while reducing the
size and cutting the waste. An exercise was undertaken to find out, what functions these
employees are performing. Taking the Federal Legislative List (Fourth Schedule) of the
Constitution as the starting points, classification scheme of fifteen broad categories of functions
was set up. This functional classification of those employed in the attached departments and
autonomous bodies (Annex-I) reveals that 35 percent are deployed in Security, Law and Order
Agencies (Civilian Armed Forces, Police, Civilians working in Defence establishments); 20
percent in provision of infrastructure service (Railways, Postal Services, Aviation, Highways
etc.) and 18 percent in Energy Sector (Power, Oil and Gas). Thus, almost three fourth of the
Federal employees are engaged in Security and infrastructure services including energy.

17
 WHAT FUNCTIONS THEY PERFORM?

% Category
35 Security, Law and Order, Civilian armed forces
20 Infrastructure Services –Railway, Postal Services, Aviation, Highways
18 Energy Sector- Power, Oil and Gas
5 Social Sector-Health Education and Social protection
5 Commercial and Taxations
12 Data, Training and Research, Regulatory, judicial etc
¾ of Federal employees were thus employed in Security and infrastructure services
including energy

3. Social Services (Education, Health, social Protection), Commercial Services, Banking,

Finance, Insurance, Audit and Account Services account for around 5 percent each. The
remaining 12 percent of the employees are distributed among eight other functional categories:
-

i) Data, Training, Research

ii) Islamabad Capital Territory.
iii) Tax Collection
iv) Regulatory Services.
v) Judicial and Quasi-Judicial Services.
vi) Media Relations
vii) External Relations and
viii) Parliamentary Support Services.

4. A further breakdown of the Federal Government employees (excluding the

Autonomous bodies) by Basic Scale Wise shows that 95% or 538,601 were in staff support,
position i.e BS-16 grades and the remaining 5% in Decision making position i.e BS-17 grades.
Among those in the staff support almost 50 percent were occupying lower end BS 1-5 positions
such as Qasid /Naib Qasid/ Farash, Dafatry/ Kharkroob/ Chowkidar/ Khalasi/ Loader/S
weeper/ Cleaner/ Mali/ Garderner, Security Clerks, Drivers. Another large concentration can
be found in Grades 9-15 which is populated by LDCs, UDCs, Senior Clerks, Assistants etc. An
analysis of the Federal Secretariat staff reveals that 4,125 posts are filled in by this category of
employees out of the total of 10,850 or 38 percent. The same pattern is most likely to prevail
in the attached department.

5. A list of the ten largest Division in the Federal Government (excluding autonomous
bodies) is shown at Annex-II. It may be noted that Interior and Defence Division (only Civilian
Employees) account for almost two-thirds of the total employees of the Federal Government.
The ten largest attached departments are shown at Annex-III while the ten largest autonomous
bodies at Annex-IV.

6. The impact of reorganizing the Federal Government approved by the Cabinet in July,
2019 can be assessed by a comparison of the total employee strength in 2019-20 relative to

18
2018-19. There has been a decrease of 26,641 in the Federal Government and the autonomous
bodies during the years.

INCREASE/ DECREASE IN EMPLOYEES

S.
Description 2018-19 2019-20 Difference
No.

Total strength of the Federal

1 581,755 565,082 (-)16,673
Government

Total strength of the

2 399,265 389,297 (-) 9,968
Autonomous Bodies

3 Total 981,020 954,379 (-) 26,641

5. In terms of the budgetary saving, the pay and allowances of Civil Administration of the
federal Government show a decrease of Rs 4 billion in 2019-2020 in nominal terms and a much
large saving of Rs, 28 billion in real terms. The savings of the autonomous bodies and the
corporations could not be ascertained.

2018-19 2019-20 Rs. Billion

248 244 4

Pay & allowances of the Federal Government (civil administration)

6. Moreover, Cabinet Committee on Institutional Reforms has also recommended that

71,000 posts lying vacant for a year or more should be abolished and this exercise would be
repeated every year at the time of the budget formulation.

7. In addition to this, Ministry of Interior has been asked to carry out a review of all the
civilian armed forces agencies, which constitute the largest chunk of employees especially due
to the fact that the law-and-order situation in Pakistan has improved considerably. Ministry of
Interior is in the process of the reviewing this and would share findings with the Cabinet in due
course of time.

19
 Annex-I

LARGEST DIVISIONS 2019-20

BS 17-22 BS 01-16 Total

Interior 2,839 234,982 237,821

Defence 5,180 116934 122,114

Railways 515 61,561 62,076

Postal 301 23,318 23,619

Revenue 2,117 18,886 21,003

Finance 3,690 13,440 17,130

Aviation 572 12,498 13,070

Education 3,927 8,421 12,348

Planning & Development 830 7,089 7,919

Communication 211 6,895 7,106

20
 Annex-I

TOP TEN LARGEST ATTACHED DEPARTMENTS

BS 17-22 BS 01-16 Total

Railways 473 61,378 61,851

GHQ 204 42,296 42,500

FC, KP (N) 574 39,554 40,128

FC B (N) 290 37,169 37,459

FC (S) KP 12 33,314 33,326

PAF 29 33,058 33,087

FC KP 61 26,948 27,009

Sindh Rangers 509 25,658 26,167

FC Turbut 179 25,962 26,141

PPO 292 23,290 23,582

21
 Annex-III

TOP AUTONOMOUS BODIES/CORPORATIONS 2019-20

BS 17-22 BS 01-16 (%) Total

PEPCO/DISCO 5,034 128,529 34.3% 133,563

POF, Wah 449 21,562 5.61% 22,011

WAPDA 1,856 16,162 4.61% 18,018

NBP 9,262 5741 3.81% 15,003

CDA 714 13,249 3.61% 13,963

Utility Stores 105 12,737 3.31% 12,842

Corporation.

PIA 3,697 8,351 3.1% 12,048

OGDCL 2,353 9,571 2.9% 11,924

Pakistan Steel Mills 2,628 6,978 2.5% 9,606

NADRA 649 8,667 2.4% 9,316

66.1% 258,292

Top 10 bodies total 389,297

strength of employees
in 209,
ABs/Corporations

22
CHAPTER 3 REPORT ON REORGANIZING THE FEDERAL
GOVERNMENT (AS APPROVED BY THE CABINET-JULY 3,
2019)
MAIN REPORT

Executive Summary
7. The Federal Government notified in September 2018 the formation of a Task Force
consisting of both officials as well as non-officials to come up with the recommendations for
the restructuring and reorganization of the Federal Government. The Task Force, assisted by
the Institutional Reforms cell in the Prime Minister’s office carried out a comprehensive
assessment of each organizational entity (OE) working under the Government of Pakistan.

8. The survey and assessment found that in all 441 organizational entities existed in the
Federal Government and these can be classified on the basis of their legal structure and
functional responsibilities into 18 different categories. Table 1 of the Report shows the existing
structure of these OEs. After the assessment and discussion, it was decided that these 441 OEs
would be grouped into seven categories for further action. Only 324 OEs would be retained by
the Federal Government after taking action on the proposals made with respect to the other 117
OEs.

9. A draft working paper with the proposals suggesting future configuration, regrouping,
and mapping of each OE was circulated and discussed by the Secretaries Committee. Their
suggestions were incorporated and the revised proposals pertaining to the OEs under the
administrative control of each ministry were sent to the Minister in charge for their views.
After these consultations, deliberations and incorporation of the views an updated report was
prepared and along with the draft summary was sent to the Federal Cabinet for discussion and
decision.

Proposals
10. The 441 OES were divided into the following 7 categories for action purposes:

i) To be privatized or transferred to Sarmaya Pakistan Ltd. (43)

ii) To be transferred to the Provincial Governments, Islamabad Capital Territory and Gilgit
– Baltistan (14)
iii) To be liquidated, wound up or closed down (8)
iv) To be transferred into independent Commissions/ Councils/ Committees with minimum
involvement of the Government
v) To be merged with other entities (35)
vi) To be reorganized as Training and Policy Support Institutes (17)
vii) To be retained by the Federal Government only in two broad categories as (i) Executive
Departments (87) and (ii) Autonomous Bodies (237)

Recommendations
11. The Cabinet at its meeting held on July 9, 2019 decided in principle to approve the
recommendations that the Federal Government would retain 324 organizational entities under
two broad categories (i) Executive departments (87) and (ii) Autonomous bodies (237) and

23
action in respect to the remaining 117 entities would be taken according to the proposals (a) to
(f) above

12. The criteria, functions and powers of the autonomous bodies and executive departments
are also spelled out in Annex – 1 of the summary.

Implementation Committee
13. Restructuring and reorganization of 441 OEs is likely to entail fulfilment of procedural
and legal formalities. It is therefore imperative to put in place a structured implementation and
follow-up mechanism

14. The Cabinet at its meeting constituted an Implementation Committee comprising the
following persons:

i) Adviser to the PM on Institutional Reforms & Austerity (Convenor)

ii) Minister for Defence
iii) Minister for Education and Professional Training
iv) Chairman, Special Committee of the National Assembly on Kashmir
v) Advisor to the PM on Establishment
vi) Special Assistant to the PM on Petroleum
vii) Secretary, Establishment Division
viii) Secretary, Finance Division
ix) Secretary, Law & Justice Division
x) Special Secretary, Cabinet Division
xi) Secretary of the Ministry/ Division concerned (on invitation)

15. The committee will work out an implementation strategy/ work plan in consultation
with the Task Force taking into consideration

i) Cost benefit analysis specific to the entities concerned

ii) Expected outcome of the proposed transformation with reference to service delivery
iii) Constitutional and legal ramifications/ considerations’
iv) Issues pertaining to terms and conditions of civil servants and impact of the
reorganization exercise on career progression of existing civil servants

The Committee will complete the task within six months and present monthly implementation
progress to the Cabinet.

Introduction

16. The Federal Government currently consists of about 441 organizational entities
categorized under numerous attached departments, subordinate offices, autonomous bodies,
registered companies, statutory corporations etc. under the various Divisions/ Ministries. These
entities collectively employ an approximate 1.128 million people. Overtime the structure of
these organizations has evolved in a haphazard and unchecked manner often serving the vision
of individuals while ignoring the needs of the State. The expenditure of the government on the
maintenance and operations of these entities as well as on the salaries of their bloated ranks has
not been in conjunction with the work being done.

17. The list below depicts the general configuration of the Federal Government.

24
 i) Ministry
ii) Division
iii) Attached departments
iv) Autonomous bodies / Organizations
v) Semi-autonomous bodies
vi) Constitutional bodies
vii) Public limited companies/ State owned enterprises
viii) Corporate bodies/ Companies/ Corporations
ix) Subordinate offices
x) Trusts/ Foundations
xi) Scientific research institutes
xii) Colleges, universities, area study centers and centers of excellence
xiii) Councils, committees and commissions
xiv) Regulatory bodies
xv) Independent tribunals/ Courts
xvi) Promotion bodies
xvii) Development authorities
xviii) Financial institutions
xix) Research/Data documentation
xx) Security/Enforcement agencies

Background
18. Given the current inefficiencies of the prevailing structure, the Institutional Reforms
Cell (IRC) at the Prime Minister’s Office solicited information from all Ministries and
Divisions on the different types of entities under their control. Subsequently and elaborate
mapping exercise was undertaken to propose reconfiguration of the existing OEs. After this
exhaustive exercise was undertaken, a working paper containing the detailed proposals was
discussed and deliberated upon by the Task Force on Austerity and Restructuring of
Government for incorporation of members’ views. The refined proposals were then circulated,
reviewed and discussed by the Secretaries Committee. The recommendations of the Committee
have been incorporated in the proposals (annex tables). The proposed recommendations
pertaining to each Ministry were then brought to the attention of the Minister in charge for their
comments and views which have also been reflected in the final proposals contained in this
report.

Rationale for Reorganizing the Federal Government

19. Under the prevailing circumstances, there is no institutionalized mechanism whereby
entities in the Federal Government can be created, modified or wound up. The nomenclature,
functions and legal authority of these entities vary across Ministries and there is no uniform or
standard criteria that can provide meaningful distinction between each of these entities or units
of the Government. Not only do these entities need to be brought under a standardized system
of organization but the continued justification of some of them have to be questioned. Some of
these OEs have been in existence for several decades and they have lost the raison d’être for
which they were established and except for the salaries and rents etc. there is not much funding
available to them. In other cases there is overlapping and duplication of responsibilities. Some
of the entities which are required to meet the needs of the future are either missing or need
strengthening. In general, the present organizational architecture is riddled with diffused
responsibility and a clear lack of accountability for results. Decision making involves too many

25
layers—vertical, horizontal and cross entities, whereas resource availability and internal
controls are remotely exercised.

Principles of Reorganization
20. The organizing principles that this report proposes for reorganizing the Federal
Government and the Provincial Governments are: (a) efficient distribution of span of control
(b) clear delineation of roles/ responsibilities along with accountability (c) separation of policy
making, operational, implementation and regulatory functions of the Ministry (d) reducing the
hierarchical tiering and the turnover time for government business (e) strengthening intra and
inter-ministerial coordination and collaboration (f) empowering the head of the Division, the
head of the executing departments and the head of the autonomous bodies to deliver agreed
goals and results.

Existing Structure of the Federal Government

21. The current categorization of the entities considered for reconfiguration are detailed in
Table 1 below.

Constitutional bodies 05 Research/ Data/ Documentation 15

Regulatory bodies 31 Educational Institutions 31

Courts/ Tribunals 22 Quality Assurance 04

Commercial/ Semi Development Authorities 05

Commercial/Manufacturing 92

Public Utilities/ Service Providers 25 Councils/ Commissions/ Committees 17

Promotion Bodies 28 Trusts/ Foundations22

Financial Institutions 15 Executive Agencies 58

Training Institutions 31 Security/ Enforcement 18

Scientific Research Institutes 12

Others 10

Total 441

26
Proposed Reconfiguration of the Federal Government

22. In view of the objectives outlined above, the OEs working under the control of different
Divisions / Ministries have been divided into the following categories for action purposes:

i) To be privatized or transferred to Sarmaya Pakistan Ltd (43)

ii) To be transferred to the provincial governments, Islamabad Capital Territory, and Gilgit
Baltistan in light of the 18th constitutional amendment (14)
iii) To be liquidated, wound up or closed down in cases where entities have lost justification
for their continued existence (8)
iv) To be transformed into independent Commissions/Councils/Committees with
minimum involvement of the Government
v) To be merged with other entities in instances of overlapping and duplication of
responsibilities (35)
vi) To be reorganized as Training and Policy Support Institutes (17)
vii) To be retained by the Federal Government only in two broad categories as (i) Executive
Departments (87) and (ii) Autonomous Bodies (237)

23. The proposed recommendations are laid out from Annex 2 to 8 of this report, whereas
the mapping of the existing OEs for formulating the proposed configurations is shown at Annex
9. The existing attached departments and subordinate offices have been mapped separately
from the existing autonomous bodies, registered companies, statutory corporations etc. It is
generally proposed to retain the attached departments and subordinate offices as Executive
Departments and the autonomous bodies, registered companies, statutory corporations etc. are
proposed to be categorized under one category of Autonomous Bodies. As a result, the Federal
Government would retain about 324 organizational entities under two broad categories (i)
Executive Departments (87) and (ii) Autonomous Bodies (237). The criteria, functions and
powers of the Executive Departments and Autonomous Bodies after the proposed
reorganization are spelled out in Annex1.

Conclusion

24. In light of the feedback received from all stakeholders, the report reflects the consensus
of views of different Ministries and Divisions as well as the Taskforce on Austerity and
Restructuring of Government.

27
 Annex-1
Functions, Powers and Criteria for Autonomous Bodies and Executive Departments

25. Autonomous bodies (ABs) ---To be headed by the Chief Executive these bodies can be
set up to perform regulatory, operational, corporate, promotional, research and development or
quasi-judicial functions entrusted to them by the Government. At present most of the ABs
have been established through;

i) an act of legislation or statute or constitutional obligation

ii) formation of a public limited company – listed or unlisted
iii) the resolutions of the Cabinet or Cabinet Committees
iv) established under the Trust Act,
v) agreement with international development institutions or foreign investors

26. Their legal status—Statutory body, limited company, corporation would remain
unchanged but for administrative purposes, all such bodies would be classified as Autonomous
bodies distinct from the Executive departments (EDs).

27. The main criteria for deciding whether an entity would be an autonomous body or not
would be

i) the relative significance of the goals and objectives for which it has been set up,
ii) its relative importance in the economy, governance, social sectors, regulation,
technological development,
iii) its size and scale of operations, particularly the capacity to execute mega projects on
behalf the Government
iv) its capacity to generate its own revenues fully or partly,
v) its requirement to attract skills and expertise that are not normally available in the
government.
vi) its business model as a fully owned state enterprise or partnership with the private
sector.
vii) promotion of public - private partnership for infrastructure development, human
resources development, scientific and technological advancement.
viii) training, skill development, research and higher educational institutions, medical
hospitals and institutes.

28. The employees of these autonomous bodies would not be treated as civil servants except
those on deputation from the Government and would not be remunerated according to the Basic
Pay Scales of the Government. Their terms and conditions will be determined under the rules
formulated by the Board of Directors. They will be recruited in a transparent and merit based
manner through an open, competitive process and they will be paid compensation packages as
determined by the respective Boards of Directors. Only in cases where the Government paying
subsidies, grants, loans or any financial assistance or is meeting the entire or partial expenditure
from its budget, these packages will be subject to the approval of the representative of the
Ministry of Finance on the Board. Where these bodies do not receive aid or financial support
of any kind from the Government these Boards will be fully authorized to determine the
Compensation packages for their employees. The guidelines and beneficiaries will be
determined by the Federal Government but there would be flexibility for the Boards to operate
within these guidelines. The terms and conditions of the existing employees working in these
autonomous bodies would not be altered to their disadvantage.
28
29. As a broad guiding principle all the existing corporate bodies established under an act
of legislation or Companies Ordinance or otherwise, all the regulatory bodies, all the tribunals
or quasi-judicial bodies, all research and development institutions of certain size and scale, all
training institutions of certain size and scale should function as autonomous bodies. The
category of semi-autonomous bodies should be abolished and those classified in this category
should either become AB or ED. The ABs would have their Boards of Directors appointed by
the Federal Government and the membership would be drawn from persons who have
demonstrated eminence in their professions such as law, engineering, accountancy, economics
and finance, strategic management, academia, private sector, or other relevant disciplines. Due
care should be given to give adequate representation to all provinces in the selection of the
Board members. They should meet the criteria fit and proper as prescribed by the Federal
Government.

30. The Board of ABs would have appropriate representation from the Federal Government
and these representatives should be empowered to convey the stated policy, position or stance
of the Federal Government at the Board meetings, articulate the views on behalf of the Federal
Government and fully participate in the deliberations of the Board. In cases where the Federal
Government has to make financial commitments a senior officer of the Ministry of Finance of
the status not less than Grade-21 should be member of the Board. He should be authorized,
prior to the meetings, to take positions on behalf of the Federal Government provided all papers
for discussion at the Board meeting are received at least 15 days prior to the meeting while
those requiring budgetary allocations at least one month in advance. In case where the entire
or partial expenditure is borne by the Government the representative of the Ministry of Finance
on the Board would carry veto powers in matters that commit or create future financial
liabilities for the Federal Government. No references should be made to the Ministry after the
Board’s decision except in the matters of budgetary allocations or approval of development
schemes to the Ministries. The Board, can however, appeal to the Ministry of Finance against
the decision of their representative on the Board. The normal procedure prescribed by the
Government for budget submissions and allocations and processing of development schemes
will be followed by the ABs only if they are seeking subsidies, grants, loans, equity injection
grant-in-aid, financial relief or guarantees or other types of financial assistance from the
Government. In case they are using their own financial resources the Board of Directors will
have the final authority. The audit of the ABs will be carried out both by the external auditors
as well as the Auditor General of Pakistan. For the purposes of the reports of AG and for
appearances before the Public Accounts Committee (PAC) the head of the AB will be fully
accountable. He/she will serve as the Principal Accounting Officer of the body he/she is
heading.

31. The procurement of goods and services by ABs should be made in a transparent and
competitive manner. Wherever the standard rules of the Public Procurement Regulatory
Agency (PPRA) can be applied without difficulty they should be adopted and followed. In
other case the PPRA rules may be modified and adopted to suit the particular business needs
of the AB but the principle of open, transparent and competitive bidding should remain the
overarching principle.

32. The Federal Ministry under whose jurisdiction the AB falls will also enter into a
framework agreement at the beginning of the fiscal year specifying the goals and targets to be
achieved, the financial and human resources likely to be available and the key performance
indicators. The AB will prepare an Annual Performance Report that will be placed before the
Parliament.

29
33. All regulatory agencies would enjoy quasi-judicial powers and the Ministry concerned
will have no representation in the agency’s governance structure. The Ministry/ Division will
have no oversight or monitoring responsibility on the regulatory agency as carried out in case
of other autonomous bodies. All regulatory agencies except for the financial sector will be
clustered under the Cabinet Division. The Cabinet Division will only provide policy guidance
as approved by the Cabinet or the Committees of the Cabinet and ensure implementation of
policy by the ABs. All legislative and parliamentary business and international coordination
activities except of purely technical nature will be channelled through the Cabinet Division to
the Prime Minister/ Cabinet.

34. Executive Departments (presently Attached Departments): The attached departments

will be the executing arms of the Ministries in addition to the ABs and should be re-designated
as Executive Departments (EDs). The main criteria of designating or setting up an ED are: -

35. That they form an integral part of the operations and implementation of Ministry’s
policies, programs and projects. They will be subject to all Government rules, regulations,
instructions, orders.

36. They are fully dependent for their finances and manpower on Government and require
constant guidance, collaboration and support from the Ministry, its agencies or other parts of
the Government.

37. Other existing entities such as subordinate offices should either be absorbed within the
Division or the Ministry if the nature of their work is policy support or transformed into
Executive departments if the content of their responsibilities are mainly operational

38. Executive Departments will report to the Ministry specifically to the Minister incharge
and the Secretary of the Division concerned. The Head of the Executive Department (ED) will
prepare an Annual Work Plan and Budget that will be reviewed and approved by the Ministry.
All operational decisions pertaining to the planning, programming, phasing, and resourcing of
the Executive Departments will be carried out by the head of the Executive Departments.
He/She will be delegated the powers of Principal Accounting Officer by the Secretary of the
Division and the budget for the department will be transferred to him at the beginning of the
year. The goals and targets assigned to the ED and the outcomes will be monitored by the
Minister and Secretary jointly and the HED will be held accountable for the results.

39. The Executive Department can commission expert advice on various issues from
different Ministries/ Divisions and from within the Division itself but the processing of files as
a matter of routine and seeking of prior approvals by the Ministry has snarled implementation,
circumscribed the operational autonomy of the departments, diffused the responsibilities and
accountabilities and led to inefficiencies, delays and a culture of indecisiveness and inaction.

40. The EDs should be delegated adequate financial and administrative powers to be able
to manage the resources assigned to them i.e financial, material and human and produce
tangible results. The introduction of 3 years rolling medium term budget will be highly useful
in the planning and facilitating the service delivery arrangements. The audit rules should be
suitably modified so that the responsibility for compliance with the financial rules, adherence
to the budgetary discipline and prudent use of resources lies with the head of the Executive
department and not the Secretary of the Division.

30
41. The introduction of collective responsibility of the Minister and Secretary in oversight,
policy guidance, monitoring and prescribing operational targets and holding the Head of
Department accountable for outcomes and results is likely to maintain adequate checks and
balances but will at the same time provide some spurt to the implementation machinery of the
Government which has remained weak so far and gets bogged down in multiple references and
clearances. The cost of indecision or delayed decision making would become apparent under
the proposed governance structure.

42. The employees of the Executive departments would continue to be governed by the
existing service conditions, rules and regulations.

31
 Annex-2
TABLE-2 - PRIVATIZATION CANDIDATES / TRANSFER TO SARMAYA-E-PAKISTAN

Sr.
Division Name of Department
No.

1. State Life Insurance Corporation of Pakistan, Karachi

01 Commerce 2. National Insurance Company Limited (NICL), Karachi
3. Pakistan Reinsurance Company Limited, Karachi

4. First Women Bank Limited (FWBL)

02 Finance
5. SME Bank Ltd.

6. Sindh Engineering Limited (SEL)

7. Republic Motors Private Limited
8. Pakistan Engineering Company Limited (PECO)
9. Heavy Electrical Complex (HEC)
10. National Fertilizer Corporation of Pakistan Private Limited
Industries &
03 11. State Engineering Corporation (SEC)
Production
12. Morafco Industries Private Limited
13. Pakistan Automobile Corporation (PACO)
14. Spun Yarn Research and Development Company, Multan
15. Southern Punjab Embroidery Industries, Multan
16. Khadi Crafts Development Company

Information
04 Technology & 17. Telephone Industries of Pakistan (TIP)
Telecommunication

18. Oil & Gas Development Company Ltd., Islamabad

05 Petroleum 19. Pakistan Mineral Development Corporation (PMDC)
20. Pakistan Petroleum Limited (PPL)

21. Power Holding (Private) Limited (PHPL)

22. National Power Parks Management Company (Private)
Limited (NPPMCL)
23. Jamshoro Power Generation Company (GENCO-I)
24. Central Power Generation Company (GENCO-II)
25. Northern Power Generation Company (GENCO-III)
06 Power 26. Lakhra Power Generation Company (GENCO-IV)
27. Islamabad Electric Supply Company (IESCO)
28. Lahore Electric Supply Company (LESCO)
29. Gujranwala Electric Power Company (GEPCO)
30. Faisalabad Electric Supply Company (FESCO)
31. Hyderabad Electric Supply Company (HESCO)
32. Multan Electric Power Company (MEPCO)
33. Quetta Electric Supply Company (QESCO)
32
 34. Peshawar Electric Supply Company (PESCO)
35. Sukkur Electric Power Company (SEPCO)
36. Tribal Areas Electric Supply Company (TESCO)
37. Lakhra Coal Development Company Ltd., Karachi
38. Government Holdings (Pvt.) Limited (GHL)
39. Kot Addu Power Company (KAPCO)
40. 1233 MW Balloki Power Plant
41. 1230 MW Haveli Bahadur Power Plant

42. Jinnah Convention Centre, Islamabad

07 Others
43. Services International Hotel, Lahore

33
 Annex-3
TABLE-3 - ORGANIZATIONS PROPOSED FOR TRANSFER TO PROVINCES, GILGIT
BALTISTAN & ICT

Sr.
Division Name of Department
No.

1. Federal Directorate of Education (FDE)

2. Directorate General of Special Education
3. Federal College of Education
4. Federal Government Polytechnic Institute of Women,
Federal Education &
01 Islamabad
Professional Training
5. Sir Syed Schools and College of Special Education
6. Federal Government College of Home Economics &
Management Sciences
7. Basic Education Community Schools (BECS)

02 Industries & Production 8. Department of Explosives

9. Directorate of Health Services (GB)

Kashmir Affairs & Gilgit
03 10. Northern Areas Transport Corporation (NATCO),
Baltistan
Gilgit (GB)

National History & Literary

04 11. Department of Libraries (DOL), Islamabad (ICT)
Heritage

Overseas Pakistanis &

05 Human Resource 12. Directorate of Workers Education, Islamabad (ICT)
Development

06 Petroleum 13. Saindak Metals Limited (SML)

07 Railways 14. Pakistan Railways Police

34
 Annex-4

TABLE-4 -ORGANIZATIONS PROPOSED FOR WINDING UP/ LIQUIDATION

Sr. No. Division Name of Department

1. Abandoned Properties Organization, Islamabad

01 Cabinet
2. Department of Stationery and Forms

Federal Education &

02 3. National Education Assessment System (NEAS)
Professional Training

03 Finance 4. Industrial Development Bank Limited (IDBL)

Kashmir Affairs & Gilgit

04 5. TB Wing, Attock
Baltistan

Planning, Development &

05 6. National Construction Company Limited, Islamabad
Reform

7. Railway Estate Development and Marketing

Company Limited (REDAMCO)
06 Railways
8. Kashmir Railway Limited (KR)

35
 Annex-5
TABLE-5 - MERGERS

Sr. No. Division Name of Department Remarks

To be merged into the proposed

1. Pakistan Institute of Trade &
01 Commerce Industry and Policy Institute
Development, Islamabad
(IPI)

2. Akhtar Hameed Khan National

Centre for Rural Development To be merged into NSPP
(AHKNCRD)

02 Establishment 3. Secretariat Training Institute

To be merged into NSPP
(STI)

4. Pakistan Academy for Rural

To be merged into NSPP
Development (PARD)

To be merged into the proposed

5. Pakistan Manpower Institute
Human Development Policy
Federal (PMI)
Institute (HDPI)
Education &
03
Professional
6. Academy of Educational To be merged into the proposed
Training
Planning & Management Human Development Policy
(AEPAM) Institute (HDPI)

To be merged with Naya

Housing &
04 7. National Housing Authority Pakistan Housing Authority
Works
(NPHA)

8. Karachi Tools, Dies & Moulds

Centre, Karachi
9. Furniture Pakistan To be merged into TUSDEC
10. Gujranwala Business Centre,
Gujranwala

11. Aik Hunar Aik Nagar (AHAN)

12. Pakistan Hunting & Sports
To be merged into SMEDA
Arms Development Company,
Peshawar
Industries &
05
Production To be transferred to Special
13. Pakistan Machine Tool Factory, Projects Division (SPD), with
Karachi the condition to continue it for
civilian use too

14. ENAR Petrotech Services Pvt To be handed over to OGDCL,

Limited Petroleum Division

To be merged with Trading

15. National Fertilizer Marketing
Corporation of Pakistan,
Limited (NFML)
Commerce Division

36
 16. NFC Institute of Engineering
and Technology, Multan To be handed over to Ministry of
17. NFC Institute of Engineering Federal Education &
and Fertilizer Research, Professional Training
Faisalabad

18. National Industrial Parks

Development and Management
Company
19. Technology Up-Gradation & To be merged into Pakistan
Skill Development Company Industrial Development
(TUSDEC) Corporation (PIDC)
20. Export Processing Zone
Authority (EPZA)
21. Industry Facilitation Centre

To be merged with Marine

22. Marine Biological Lab. Karachi
Fisheries Department

23. Directorate of Dock Workers’ To be merged with Mercantile

Maritime
06 Safety, Karachi Marine Department
Affairs
24. Directorate of Seamen’s
To be merged with Pakistan
Welfare & Seamen Hostel,
Marine Academy
Karachi

To be merged with Population

25. Directorate of Central Wing of National Health
Warehouse of Supplies Services, Regulations &
Coordination Division

National To be merged with Federal

26. Islamabad Blood Transfusion
Health Health Regulatory Authority
Authority (IBTA)
Services, (FHRA)
07
Regulations
& To be merged with Health
Coordination 27. National Health Information Planning, System Strengthening
Resource Centre (NHIRC) & Information Analysis Unit
(HPSIU)

28. District Population Office To be merged with District

(DPO), Islamabad Health Office, Islamabad

To be merged with Quaid-e-

29. Quaid-i-Azam Academy
Azam Mazar Management
(QAA), Karachi
Board
National
History & 30. Aiwan-e-Iqbal Complex (AIC), To be merged with Iqbal
08
Literary Lahore Academy, Lahore
Heritage
To be merged with National
31. Urdu Science Board (USB), Language Promotion
Lahore Department (NLPD), which is
proposed to be renamed as
37
 32. Urdu Dictionary Board (UDB), National Language Promotion
Karachi Authority

33. Pakistan LNG Limited (PLL)

To be merged into a single unit
09 Petroleum 34. Pakistan LNG Terminals
as Autonomous Body
Limited (PLTL)

35. Earthquake Reconstruction &

10 Others Rehabilitation Authority To be merged with NDMA
(ERRA)

38
 Annex-6
TABLE-6 -PROPOSED TRAINING, POLICY SUPPORT AND RESEARCH INSTITUTES

Sr.
Division Name of Department Remarks
No.

1. Pakistan Institute of To be merged into the proposed

Trade and Industry
01 Commerce
Development,
Islamabad and Trade Policy Institute (ITPI)

2. National Transport
To be merged into the proposed
02 Communication Research Centre
Infrastructure Policy Institute (IPI)
(NTRC)

To be merged into the Proposed

3. Pakistan Manpower
Human Development Policy
Institute (PMI)
Federal Institute (HDPI)
03 Education &
Professional 4. Academy of To be merged into the Proposed
Educational Planning Human Development Policy
& Management Institute (HDPI)

Information & 5. Information Services To be part of the proposed Media

04
Broadcasting Academy University

To be merged into the proposed

6. National Police Bureau National Police Training and
Research Institute (NPTRI)
05 Interior
To be merged into the proposed
7. National Police
National Police Training and
Academy
Research Institute (NPTRI)

To be merged into the proposed

Industries & 8. National Productivity
06 Industry and Trade Policy Institute
Production Organization
(ITPI)

National Food To be merged into the proposed

9. Agriculture Policy
07 Security & Agriculture, Food and Environment
Institute
Research Policy Institute (AFEPI)

To be part of the proposed Human

10. Health Services
National Health Development Policy Institute
Academy (HAS)
Services, (HDPI)
08
Regulations &
Coordination 11. National Institute of To be part of the Pakistan Health
Population Studies Research Council (PHRC)

39
 12. National Research
To be part of the Pakistan Health
Institute of Fertility
Research Council (PHRC)
Control

To be merged into the proposed

13. Audit and Accounts
09 Finance Institute of Fiscal Policy and
Academy
Financial Management (IFPFM)

To be merged into the proposed

14. Directorate General
Institute of Fiscal Policy and
Training Customs
Financial Management (IFPFM)
10 Revenue
15. Directorate General To be merged into the proposed
Training Inland Institute of Fiscal Policy and
Revenue Services Financial Management (IFPFM)

16. Hydrocarbon
To be merged into the proposed
11 Petroleum Development Institute
Energy Policy Institute (EPI)
of Pakistan (HDIP)

17. Pakistan Railways To be merged into the proposed

12 Railways
Academy Walton Infrastructure Policy Institute (IPI)

NOTE: The proposals for the training institutes to be transformed into Training, Policy Support
and Research arms of the Ministries are still at a discussion stage but have been included here
simply to indicate the missing gaps in the Government’s existing organizational infrastructure.
The scope, mandate and responsibilities of the proposed institutes would be finalized after
consultation with the Secretaries and the Ministers.

40
TABLE-7 -PROPOSED EXECUTIVE DEPARTMENTS

Sr.
Division Name of Department
No.

1. Pakistan Meteorological Department

01 Aviation
2. Airport Security Force (ASF)

3. Department of Communications Security

02 Cabinet 4. National Archives of Pakistan, Islamabad
5. Printing Corporation of Pakistan, Islamabad

6. Zoological Survey of Pakistan (ZSP)

03 Climate Change 7. Pakistan Environmental Protection Agency (Pak-EPA)
8. Climate Change Authority

9. Directorate General of Trade Organizations, Islamabad

04 Commerce 10. Trade Dispute Resolution Organization
11. Liaison Office Afghan Transit Trade, Chaman

05 Communications 12. National Highways & Motorways Police (NH&MP)

13. Directorate of Military Lands and Cantonments

14. Federal Government Educational Institutions
(Cantonments/Garrisons) Directorate
06 Defence
15. Pakistan Military Accounts Department
16. Office of the Surveyor General of Pakistan
17. Pakistan Maritime Security Agency

18. Directorate General Munitions Production (DGMP) -

07 Defence Production (MVRDE, ARDE & IOP)
19. Directorate General Defence Purchase (DGDP)

08 Establishment 20. Staff Welfare Organization (SWO)

21. Inter Board Committee of Chairmen (IBCC)

22. Pakistan National Commission for UNESCO (PNCU)
Federal Education & 23. National Talent Pool (NTP)
09
Professional Training 24. National Council for Rehabilitation of Disabled Persons
(NCRDP)
25. National Council for Social Welfare

26. Office of the Controller General of Accounts (CGA)

10 Finance 27. Pakistan Mint, Lahore
28. Federal Treasury Offices (FTOs), Islamabad & Karachi

41
 29. All Pakistan Missions Abroad
11 Foreign Affairs
30. Afghan Trade Development Cell

31. Estate Office Management

12 Housing & Works
32. Pakistan Public Works Department

33. Family Protection & Rehabilitation Centre for Women

34. National Child Protection Centre (NCPC)
13 Human Rights 35. Implementation of National Plan of Action (INPAC)
36. National Commission for Child Welfare & Development
(NCCWD)

Information & 37. Press Information Department (PID)

14
Broadcasting 38. Directorate of Electronic Media and Publications (DEMP)

39. Directorate General of Immigration and Passports

40. Directorate General of Civil Defence
41. Pakistan Rangers (Punjab), Lahore
42. Pakistan Coast Guards, Karachi
43. Frontier Corps, (North), Khyber Pakhtunkhwa, Peshawar
44. Frontier Corps, (South), Khyber Pakhtunkhwa, Peshawar
45. Frontier Corps (North), Balochistan, Quetta
46. Frontier Corps (South), Balochistan, Quetta
15 Interior
47. Office of the Chief Commissioner, Islamabad (ICT)
48. Pakistan Rangers (Sindh), Karachi
49. Federal Investigation Agency (FIA), Islamabad
50. Office of the Commandant, Frontier Constabulary, Khyber
Pakhtunkhwa, Peshawar
51. Gilgit Baltistan Scouts, Gilgit
52. National Police Bureau
53. National Academy for Prisons Administration, Lahore

Inter Provincial 54. Department of Tourist Services

16
Coordination 55. National Internship Programme

56. J&K Refugees Rehabilitation Organization, Islamabad

Kashmir Affairs &
17 57. Directorate of Health Services (AK)
Gilgit Baltistan
58. J&K State Property in Pakistan, Lahore

59. Marine Fisheries Department, Karachi

18 Maritime Affairs 60. Mercantile Marine Department, Karachi
61. Government Shipping Office, Karachi

42
19 Narcotics Control 62. Anti-Narcotics Force

63. Federal Seed Certification & Registration Departments

(FSC&RD)
64. Department of Plant Protection (DPP)
National Food
20 65. Animal Quarantine Department (AQD)
Security & Research
66. Plant Breeders’ Rights Registry
67. National Veterinary Laboratory (NVL)
68. Federal Water Management Cell (FWMC)

69. Directorate of Central Health Establishment

70. Directorate of Malaria Control (DoMC)
71. Pakistan Institute of Medical Sciences (PIMS)
National Health
72. Federal Government Polyclinic (FGC / FGC-PGMI)
21 Services, Regulations
73. National Institute of Rehabilitative Medicine (NIRM)
& Coordination
74. National Health Emergency Preparedness & Response
Network (NHEPRN)
75. Federal General Hospital (FGH)

76. National Library of Pakistan (NLP), Islamabad

National History & 77. Aiwan-e-Quaid Building, F-9 Park, Islamabad
22
Literary Heritage 78. Department of Archaeology & Museums (DOAM),
Islamabad

Overseas Pakistanis &

23 Human Resource 79. Bureau of Emigration & Overseas Employment
Development

Planning,
24 Development & 80. National Endowment Scholarships for Talent (NEST)
Reform

25 Petroleum 81. Geological Survey of Pakistan

82. Railways Board (including Railways Divisions/Departments,

26 Railways
educational & health institutes & factories/workshops)

Religious Affairs &

27 83. Directorate General of Hajj and Umrah
Inter Faith Harmony

States & Frontier

28 84. Chief Commissionerate for Afghan Refugees, Islamabad
Regions

29 Textile 85. Textile Commissioner’s Organization, Karachi

86. Office of Engineering Adviser/Chairman Federal Flood

30 Water Resources Commission (CEA/CFFC)
87. Office of Pakistan Commissioner for Indus Waters (PCIW)

43
TABLE-8 -PROPOSED AUTONOMOUS BODIES

Sr.
Division Name of Department
No.

1. Civil Aviation Authority

01 Aviation
2. Pakistan International Airlines Corporation Limited

3. Pakistan Telecommunications Authority, Islamabad

4. National Electric Power Regulatory Authority, Islamabad
5. Oil and Gas Regulatory Authority, Islamabad
6. Public Procurement Regulatory Authority, Islamabad
7. Frequency Allocation Board, Islamabad
8. Sheikh Sultan Trust, Karachi
9. Islamabad Club, Islamabad
10. Private Educational Institutions Regulatory Authority (PEIRA)
(Proposed to be transferred from Federal Education &
02 Cabinet Professional Training Division)
11. Pakistan Electronic Media Regulatory Authority
(PEMRA)(Proposed to be transferred from Information &
Broadcasting Division)
12. Karachi Infrastructure Development Company Ltd (KIDCL)

13. Global Change Impact Studies Centre, Islamabad (GCISC)

03 Climate Change
14. Islamabad Wildlife Management Board (IWMB)

15. Trade Development Authority of Pakistan, Karachi

16. Intellectual Property Organization of Pakistan, Islamabad
17. National Tariff Commission, Islamabad
18. Pakistan Institute of Fashion and Design, Lahore
04 Commerce
19. Trading Corporation of Pakistan Pvt. Ltd., Karachi
20. Pakistan Tobacco Board, Peshawar
21. Pakistan Horticulture Development and Export Company, Lahore
22. Pakistan Expo Centers Pvt. Ltd. Company, Lahore

23. National Highway Authority (NHA)

05 Communications
24. Construction Technology Training Institute (CTTI)

06 Defence 25. Pakistan Armed Services Board

26. Defence Export Promotion Organization (DEPO)

27. Pakistan Ordnance Factories (POFs) Board, Wah Cantt
28. Heavy Industries Taxila (HIT) Board, Taxila
07 Defence Production
29. Pakistan Aeronautical Complex (PAC) Board, Kamra
30. Karachi Shipyard & Engineering Works (KS&EW), Karachi
31. National Radio Telecommunication Corporation (NRTC)

08 Economic Affairs 32. National Disaster Risk Management Fund (NDRMF)

44
 33. Federal Public Service Commission (FPSC)
34. Federal Employees Benevolent & Group Insurance Funds
09 Establishment
(FEB&GIF)
35. National School of Public Policy (NSPP)

36. National Training Bureau (NTB)

37. National Institute of Science and Technical Education (NISTE)
38. National Vocational & Technical Training Commission
Federal Education (NAVTTC)
10 & Professional 39. Higher Education Commission (HEC)
Training 40. National Education Foundation (NEF)
41. Federal Board of Intermediate & Secondary Education (FBISE)
42. National College of Arts
43. National Skill University

44. Office of Auditor General of Pakistan

45. Central Directorate of National Savings (CDNS)
46. National Security Printing Corporation (NSPC)
47. State Bank of Pakistan (SBP)
48. National Bank of Pakistan (NBP)
49. Financial Monitoring Unit (FMU)
50. Competition Commission of Pakistan (CCP)
51. Securities and Exchange Commission of Pakistan (SECP)
52. Public Private Partnership Authority (PPPA)
11 Finance 53. Pak Kuwait Investment Company
54. Pak Libya Holding Company
55. Pak Oman Investment Company
56. Pak Iran Joint Investment Company
57. Pak Brunei Investment Company Ltd.
58. Saudi Pak Industrial & Agricultural Investment Company
59. Pak China Investment Company
60. Zarai Taraqiati Bank Limited (ZTBL)
61. National Investment Trust Limited (NITL)
62. House Building Finance Company Limited (HBFC)

63. Foreign Service Academy, Islamabad

12 Foreign Affairs 64. Institute of Strategic Studies, Islamabad

65. Federal Government Employees Housing Foundation, Islamabad

13 Housing & Works 66. Pakistan Housing Authority Foundation
67. Council for Works & Housing Research (CWHR)

68. National Commission for Human Rights (NCHR)

14 Human Rights
69. National Commission on the Status of Women (NCSW)

70. Pakistan Gems & Jewellery Development Company

71. Pakistan Steel Mills Corporation (PSMC)
72. Pakistan Steel Fabricating Company
Industries & 73. Pakistan Institute of Management
15
Production 74. Small and Medium Enterprises Development Authority (SMEDA)
75. Utility Stores Corporation (USC)
76. Engineering Development Board
77. Leather Crafts Development Company, Multan
78. Pakistan Chemical and Energy Sector Skill Development

45
 79. Pakistan Industrial & Technical Assistance Centre (PITAC),
Lahore
80. Pakistan Industrial Development Corporation (PIDC) and its
subsidiaries and units
81. Pakistan Stone Development Company
82. Agro Food Processing (AFP) Facilities, Multan

83. Implementation Tribunal for Newspaper Employees (ITNE)

84. Central Board of Film Censors (CBFC)
85. Information Service Academy (ISA)
86. National Institute of Folk & Traditional Heritage (Lok Virsa)
87. Institute of Regional Studies (IRS)
Information & 88. National Press Trust (NPT)
16
Broadcasting 89. Shalimar Recording and Broadcasting Company (SRBC)
90. Pakistan Broadcasting Corporation (PBC)
91. Pakistan Television Corporation Limited (PTV)
92. Pakistan National Council of Arts (PNCA)
93. Press Council of Pakistan (PCP)
94. Associated Press of Pakistan Corporation (APPC)

95. National Information Technology Board (NITB)

96. National Telecommunication Corporation (NTC)
97. IGNITE National Technology Fund Company
Information 98. Universal Service Fund Company
17 Technology & 99. Pakistan Software Export Board (PSEB)
Telecommunication 100. Pakistan Telecom Employees Trust (PTET)
101. Telecom Foundation (TF)
102. Electronic Certification & Accreditation Council (ECAC)
103. Virtual University of Pakistan

104. National Database & Registration Authority (NADRA)

105. Metropolitan Corporation Islamabad
18 Interior
106. National Public Safety Commission
107. Capital Development Authority (CDA)

108. Pakistan Sports Board

109. Pakistan Veterinary Medical Council
110. Pakistan Cricket Board
Inter Provincial 111. Federal Land Commission
19
Coordination 112. Pakistan Tourism Development Corporation (PTDC)
(Proposed to be transferred from Cabinet Division)
113. National Tourism Coordination Board (NTCB) (Proposed to
be transferred from Cabinet Division)

Kashmir Affairs & 114. Gilgit Baltistan Council

20
Gilgit Baltistan 115. Azad Jammu and Kashmir Council

116. Council of Islamic Ideology

117. Law and Justice Commission of Pakistan
118. Banking Mohtasib Pakistan
21 Law & Justice 119. Appellate Tribunal Inland Revenue
120. Customs Appellate Tribunal
121. Federal Service Tribunal
122. Federal Judicial Academy
123. Federal Shariat Court
46
 124. Appellate Tribunal Inland Revenue
125. National Accountability Bureau (NAB)
126. Wafaqi Mohtasib (Ombudsman)
127. Federal Tax Ombudsman Secretariat
128. Federal Insurance Ombudsman Secretariat
129. Federal Ombudsman for Protection against Harassment of
Women at the Workplace
130. Banking Courts
131. Special Courts (Offences in Banks)
132. Drug Courts
133. Special Courts (Anti Terrorism) (ICT)
134. Commercial Courts
135. Foreign Exchange Regulation Appellate Board
136. Accountability Courts
137. Special Courts (Central)
138. Special Courts (Control of Narcotic Substances)
139. Competition Appellate Tribunal, Islamabad
140. Anti Dumping Appellate Tribunal
141. Environmental Protection Tribunal
142. Intellectual Property Tribunal
143. Insurance Appellate Tribunal
144. Special Judge, (Customs, Taxation & Anti-Smuggling)

145. Pakistan Marine Academy, Karachi

146. Gwadar Port Authority, Gwadar
147. Port Qasim Authority, Karachi
22 Maritime Affairs
148. Karachi Port Trust, Karachi
149. Pakistan National Shipping Corporation, Karachi
150. Korangi Fisheries Harbour Authority, Karachi

151. Pakistan Oilseed Development Board (PODB)

152. Fisheries Development Board (FDB)
153. Livestock Dairy Development Board (LDDB)
National Food
154. National Fertilizer Development Centre (NFDC)
23 Security &
155. Pakistan Agriculture Research Council (PARC)
Research
156. Pakistan Agriculture Service & Storage Corporation
(PASSCO)
157. Pakistan Central Cotton Committee (PCCC)

158. Drug Regulatory Authority of Pakistan (DRAP)

159. Human Organ Transplant Authority (HOTA)
160. Pakistan Medical and Dental Council (PM&DC)
161. Pakistan Health Research Council (PHRC)
162. National Institute of Health (NIH)
National Health
163. Pakistan Nursing Council (PNC)
Services,
24 164. Pharmacy Council of Pakistan (PCP)
Regulations &
165. College of Physician and Surgeon Pakistan
Coordination
166. National Trust for Population Welfare (NATPOW)
167. Shaheed Zulfiqar Ali Bhutto Medical University (SZABMU)
168. National Council for Homeopathy (NCH)
169. National Council for Tibb (NCT)
170. Health Services Academy (HSA)

47
 171. Pakistan Academy of Letters (PAL), Islamabad
172. Iqbal Academy Pakistan (IAP), Lahore
173. Quaid-i-Azam Mazar Management Board (QMMB), Karachi
National History & 174. National Language Promotion Department (NLPD) [proposed
25
Literary Heritage to be renamed as National Language Promotion Authority
(NLPA)]
175. National Book Foundation (NBF), Islamabad

176. National Industrial Relations Commission, Islamabad

177. Overseas Pakistanis Foundation, (including employees of
Overseas Pakistanis
Educational Institutions under OPF), Islamabad
26 & Human Resource
178. Employees Old Age Benefits, Institutions, Karachi
Development
179. Workers Welfare Fund, Islamabad
180. Overseas Employment Corporation, Islamabad

Poverty Alleviation 181. Benazir Income Support Program (BISP)

27
& Social Protection 182. Pakistan Bait ul Mal

183. Inter State Gas Systems (Pvt.) Ltd. (ISGSL)

184. Pak-Arab Refinery Limited (PARCO)
28 Petroleum 185. Pakistan State Oil Company Limited (PSOCL)
186. Sui Northern Gas Pipelines Limited (SNGPL)
187. Sui Southern Gas Company Limited (SSGCL)

188. Pakistan Planning and Management Institute (PPMI)

189. National Logistics Cell (NLC)
Planning,
190. Pakistan Environmental Planning & Architectural Consultant
29 Development &
(PEPAC)
Reform
191. Pakistan Institute of Development Economics (PIDE)
192. Pakistan Bureau of Statistics (PBS)

193. Pakistan Post Office Department (i. Postmasters General,

Islamabad, Rawalpindi, Multan, Lahore, Peshawar, Quetta,
30 Postal Services Karachi & Hyderabad; ii. General Managers, Lahore & Karachi;
iii. Chief Controller of Stamps)
194. Postal Staff College

195. National Energy Efficiency & Conservation Authority

(NEECA)
196. Alternative Energy Development Board (AEDB)
197. National Engineering Services Pakistan Pvt. Ltd. (NESPAK)
198. Private Power & Infrastructure Board (PPIB)
199. Pakistan Electric Power Company Limited (PEPCO)
31 Power
200. Pakistan Information Technology Company (PITC)
201. Central Power Purchasing Agency Guarantee Limited
(CPPAG)
202. National Transmission & Dispatch Company (NTDC)
203. Pakistan Council of Renewable Energy Technologies,
Islamabad (PCRET)

32 Privatization 204. Privatization Commission

33 Railways 205. Federal Government Inspector of Railways (F.G.I.R)

48
 206. Pakistan Railway Advisory & Consultancy Services Limited
(PRACS) [Proposed to be evolved into Pakistan Railways
Passenger Transportation Company (PRPTC)]
207. Railway Constructions Pakistan Limited (RAILCOP)
208. Pakistan Railways Freight Transportation Company Limited
(PRFTC)

Religious Affairs & 209. Pakistan Madrassah Education Board

34 Inter Faith 210. Evacuee Trust Property Board (ETPB)
Harmony

35 Revenue 211. Federal Board of Revenue (FBR)

212. COMSATS University, Islamabad (CUI)

213. National Institute of Electronics, Islamabad (NIE)
214. National Institute of Oceanography, Karachi (NIO)
215. National University of Sciences & Technology, Islamabad
(NUST)
216. Pakistan Council of Scientific & Industrial Research,
Islamabad (PCSIR)
217. Pakistan Council for Science & Technology, Islamabad
Science & (PCST)
36
Technology 218. Pakistan Engineering Council, Islamabad (PEC)
219. Pakistan Museum of Natural History, Islamabad (PMNH)
220. Pakistan National Accreditation Council, Islamabad (PNAC)
221. Pakistan Science Foundation, Islamabad (PSF)
222. Pakistan Standard & Quality Control Authority, Karachi
(PSQCA)
223. Pakistan Halal Authority, Islamabad (PHA)
224. National University of Technology, Islamabad (NUTECH)
225. STEDEC Technology Commercialization Corporation of
Pakistan Pvt. Ltd., Lahore (STEDEC)

226. National Textile University, Faisalabad

227. Pakistan Cotton Standards Institute, Karachi
228. Karachi Garment City Company (KGCC), Karachi
37 Textile
229. Lahore Garment City Company (LGCC), Lahore
230. Faisalabad Garment City Company (FGCC), Faisalabad
231. Pakistan Textile City Limited (PTCL), Karachi

232. Water and Power Development Authority (WAPDA)

233. Indus River System Authority
38 Water Resources
234. Pakistan Council of Research in Water Resources, Islamabad
(PCRWR)

235. National Disaster Management Authority (NDMA)

236. Board of Investment (BOI)
Prime Minister’s 237. National Counter Terrorism Authority (NACTA)
39
Office (Under PM’s Office as per NACTA Act, 2013. The Islamabad
High Court has declared the Notification placing NACTA under
M/o Interior as null and void)

49
Grant-in-Aid Bodies –

TABLE-9 -(Operated by non-governmental or private organizations but receive grants from the
Government)

Sr.
Division Name of Department
No.

Federal Education 1. Pakistan Boys Scouts Association

01 & Professional 2. Pakistan Girls Guides Association
Training 3. National Commission for Human Development (NCHD)

Inter Provincial 4. National Academy of Performing Arts (NAPA)

02
Coordination

National Health 5. Pakistan Red Crescent Society

Services,
03
Regulations &
Coordination

MAPPING OF EXISTING ORGANIZATIONAL ENTITIES

TABLE 10 - Mapping of Existing Attached Departments & Subordinate Offices

Sr. Existing Attached Departments &

Division Proposed Configuration
No. Subordinate Offices

1. Pakistan Meteorological To be retained as Executive

Department Department in Aviation
Division
01 Aviation
2. Airport Security Force (ASF) To be retained as Executive
Department in Aviation
Division

3. Department of Communications To be retained as Executive

Security Department in Cabinet
Division

4. Department of Stationery and Proposed for Winding Up /

Forms Liquidation
02 Cabinet 5. National Archives of Pakistan, To be retained as Executive
Islamabad Department in Cabinet
Division

6. Pakistan Tourism Development To become Autonomous

Corporation (PTDC) Body under Inter Provincial
Coordination Division

50
 7. National Tourism Coordination To become Autonomous
Board (NTCB) Body under Inter Provincial
Coordination Division

8. Pakistan Bait ul Mal, Islamabad To become Autonomous

Body under upcoming
Poverty Alleviation & Social
Protection Division

9. Abandoned Properties Proposed for Winding Up /

Organization, Islamabad Liquidation, subject to
conditions

10. Printing Corporation of Pakistan To become Executive

(PCP), Islamabad Department in Cabinet
Division

11. Pakistan Environmental Protection To be retained as Executive

Agency (Pak-EPA) Department in Climate
Change Division

12. Zoological Survey of Pakistan To be retained as Executive

03 Climate Change (ZSP) Department in Climate
Change Division

13. Climate Change Authority To be retained as Executive

Department in Climate
Change Division

14. Pakistan Institute of Trade & To be merged into the

Development, Islamabad proposed Industry and Trade
Policy Institute (ITPI)

15. Directorate General of Trade To be retained as Executive

Organizations, Islamabad Department in Commerce
04 Commerce Division

16. Trade Development Authority of To become Autonomous

Pakistan, Karachi Body under Commerce
Division

17. Trade Dispute Resolution To be retained as Executive

Organization Department in Commerce
Division

51
 18. Liaison Office Afghan Transit To be retained as Executive
Trade, Chaman Department in Commerce
Division

19. National Highways & Motorways To be retained as Executive

Police (NH&MP) Department in
05 Communications
Communications Division

20. Directorate of Military Lands and To be retained as Executive

Cantonments Department in Defence
Division

21. Federal Government Educational To be retained as Executive

Institution Department in Defence
(Cantonments/Garrisons) Division
Directorate

22. Pakistan Military Accounts To be retained as Executive

Department Department in Defence
06 Defence Division

23. Office of the Surveyor General of To be retained as Executive

Pakistan Department in Defence
Division

24. Pakistan Armed Services Board To become Autonomous

Body under Defence Division

25. Pakistan Maritime Security Agency To be retained as Executive

Department in Defence
Division

26. Directorate General Munitions To be retained as Executive

Production (DGMP) - (MVRDE, Department in Defence
ARDE & IOP) Production Division

27. Directorate General of Defence To be retained as Executive

07 Defence Production Purchase (DGDP) (Subordinate Department in Defence
Office) Production Division

28. Defence Export Promotion To become Autonomous

Organization (DEPO) Body under Defence
Production

29. Staff Welfare Organization (SWO) To be retained as Executive

Department in Establishment
Division
08 Establishment
30. Akhtar Hameed Khan National To be merged into NSPP
Centre for Rural Development
(AHKNCRD)

52
 31. Secretariat Training Institute (STI) To be merged into NSPP

32. Federal Public Service To become Autonomous

Commission (FPSC) Body under Establishment
Division

33. Civil Services Academy (CSA) Already a constituent unit of

NSPP

34. National Training Bureau (NTB) To become Autonomous

Body under Federal
Education & Professional
Training Division

35. Pakistan Manpower Institute To be merged into the

(PMI) proposed Human
Development Policy Institute
(HDPI)

36. Federal Directorate of Education To be transferred to ICT

(FDE) Local Government when
formed (To remain with
the Federal Ministry until
then)

37. Directorate General of Special To be transferred to ICT

Education Local Government when
formed (To remain with
Federal Education the Federal Ministry until
09 & Professional then)
Training
38. Academy of Educational Planning To be merged into into the
& Management (AEPAM) proposed Human
Development Policy Institute
(HDPI)

39. National Education Assessment Already under liquidation as

System (NEAS) informed at Secretaries
Committee meeting dated
20.03.2019

40. Pakistan National Commission for To be retained as Executive

UNESCO (PNCU) Department in Federal
Education & Professional
Training Division

41. National Talent Pool (NTP) Minister for Federal

Education & Professional
Training Division to be
consulted as regards to
winding up

53
 42. National Council for Minister for Federal
Rehabilitation of Disabled Persons Education & Professional
(NCRDP) Training Division to be
consulted as regards to
winding up

43. National Council for Social Minister for Federal

Welfare Education & Professional
Training Division to be
consulted as regards to
winding up

44. National Institute of Science and To become Autonomous

Technical Education (NISTE) Body under Federal
Education & Professional
Training Division

45. Federal College of Education To be transferred to ICT

Local Government when
formed (To remain with
the Federal Ministry until
then)

46. Federal Government Polytechnic To be transferred to ICT

Institute of Women, Islamabad Local Government when
formed (To remain with
the Federal Ministry until
then)

47. Sir Syed Schools and College of Federal Minister to be

Special Education consulted

48. Federal Government College of To be transferred to ICT

Home Economics & Management Local Government when
Sciences, Islamabad formed (To remain with
the Federal Ministry until
then)

49. Central Directorate of National To become Autonomous

Savings (CDNS) Body under Finance Division

50. Office of Auditor General of To become Autonomous

Pakistan (AGP) Body under Finance Division

10 Finance
51. Office of the Controller General of To be retained as Executive
Accounts (CGA) Department in Finance
Division

52. Pakistan Mint, Lahore To be retained as Executive

(Subordinate Office) Department in Finance
Division

54
 53. Federal Treasury Offices (FTOs), To be retained as Executive
Islamabad & Karachi Department in Finance
Division

54. All Pakistan Missions Abroad To be retained as Executive

(Except Trade Missions) Department in Foreign
Affairs Division
11 Foreign Affairs
55. Afghan Trade Development Cell To be retained as Executive
Department in Foreign
Affairs Division

56. Estate Office Management To be retained as Executive

Department in Housing &
Works Division

57. National Housing Authority To be merged into Naya

12 Housing & Works
Pakistan Housing Authority

58. Pakistan Public Works Department To be retained as Executive

Department in Housing &
Works Division

59. Family Protection & To become Executive

Rehabilitation Centre for Women Department in Human Rights
Division

60. National Commission for Child To become Executive

Welfare & Development Department in Human Rights
(NCCWD) Division
13 Human Rights
61. National Child Protection Centre To become Executive
(NCPC) Department in Human Rights
Division

62. Implementation of National Plan To become Executive

of Action (INPAC) Department in Human Rights
Division

63. Department of Explosives To be transferred to

Industries &
14 provinces
Production

64. Press Information Department To be retained as Executive

(PID) Department in Information &
Broadcasting Division

65. Directorate of Electronic Media To be retained as Executive

Information &
15 and Publications (DEMP) Department in Information &
Broadcasting
Broadcasting Division

66. Implementation Tribunal for To become Autonomous

Newspaper Employees (ITNE) Body under Information &
Broadcasting Division

55
 67. Central Board of Film Censors To become Autonomous
(CBFC) Body under Information &
Broadcasting Division

68. Information Service Academy To become Autonomous

(ISA) Body under Information &
Broadcasting Division

69. National Information Technology To become Autonomous

Information
Board (NITB) Body under Information
16 Technology &
Technology &
Telecommunication
Telecommunication Division

70. Directorate General of To be retained as Executive

Immigration and Passports Department in Interior
Division

71. Directorate General of Civil To be retained as Executive

Defence Department in Interior
Division

72. Pakistan Rangers (Punjab), Lahore To be retained as Executive

Department in Interior
Division

73. Pakistan Coast Guards, Karachi To be retained as Executive

Department in Interior
Division

74. Frontier Corps, (North), Khyber To be retained as Executive

Pakhtunkhwa, Peshawar Department in Interior
Division
17 Interior
75. Frontier Corps, (South), Khyber To be retained as Executive
Pakhtunkhwa, Peshawar Department in Interior
Division

76. Frontier Corps (North), To be retained as Executive

Balochistan, Quetta Department in Interior
Division

77. Frontier Corps (South), To be retained as Executive

Balochistan, Quetta Department in Interior
Division

78. Office of the Chief Commissioner, To be retained as Executive

Islamabad (ICT) Department in Interior
Division

79. Pakistan Rangers (Sindh), Karachi To be retained as Executive

Department in Interior
Division

56
 80. Federal Investigation Agency To be retained as Executive
(FIA), Islamabad Department in Interior
Division

81. Office of the Commandant To be retained as Executive

Frontier Constabulary, Khyber Department in Interior
Pakhtunkhwa, Peshawar Division

82. Gilgit Baltistan Scouts, Gilgit To be retained as Executive

Department in Interior
Division

83. National Police Bureau To be retained as Executive

Department in Interior
Division – The Division to
give feedback if it should be
merged into proposed
National Police Training &
Research Institute

84. National Academy for Prisons To be retained as Executive

Administration, Lahore Department in Interior
Division

85. Department of Tourist Services To be retained as Executive

Department in Inter
Provincial Coordination
Inter Provincial
18
Coordination 86. Inter Board Committee of To be transferred to Federal
Chairmen (IBCC) Education & Professional
Training Division
asExecutive Department

87. J&K State Property in Pakistan, To be retained as Executive

Lahore Department in Kashmir
Affairs & Gilgit Baltistan
Division
Kashmir Affairs &
19
Gilgit Baltistan
88. J&K Refugees Rehabilitation To be retained as Executive
Organization, Islamabad Department in Kashmir
Affairs & Gilgit Baltistan
Division

89. Banking Mohtasib Pakistan To become Autonomous

Body under Law & Justice
Division

90. Appellate Tribunal Inland To become Autonomous

20 Law & Justice Revenue Body under Law & Justice
Division

91. Customs Appellate Tribunal To become Autonomous

Body under Law & Justice
Division

57
 92. Federal Service Tribunal To become Autonomous
Body under Law & Justice
Division

93. Marine Fisheries Department, To be retained as Executive

Karachi Department in Maritime
Affairs Division

94. Directorate of Dock Workers’ To be merged

Safety, Karachi withMercantile Marine
Department

95. Pakistan Marine Academy, To become Autonomous

Karachi Body under Maritime Affairs
Division

96. Mercantile Marine Department, To be retained as Executive

21 Maritime Affairs
Karachi Department in Maritime
Affairs Division

97. Marine Biological Laboratory, To be merged with Marine

Karachi Fisheries Department

98. Government Shipping Office, To be retained as Executive

Karachi Department in Maritime
Affairs Division

99. Directorate of Seamen’s Welfare To be merged with Pakistan

& Seamen Hostel, Karachi Marine Academy

100. Anti Narcotics Force To be retained as Executive

22 Narcotics Control Department in Narcotics
Control Division

101. Federal Seed Certification & To be retained as Executive

Registration Departments Department in National Food
(FSC&RD) Security & Research
Division

102. Department of Plant Protection To be retained as Executive

(DPP) Department in National Food
National Food Security & Research
23 Security & Division
Research
103. Animal Quarantine To be retained as Executive
Department (AQD) Department in National Food
Security & Research
Division

104. Agriculture Policy Institute To be merged into the

(API) proposed Agriculture, Food

58
 and Environment Policy
Institute (AAFEPI)

105. Pakistan Oilseed Development To become Autonomous

Board (PODB) Body under National Food
Security & Research
Division

106. National Veterinary To be retained as Executive

Laboratory (NVL) Department in National Food
Security & Research
Division

107. Fisheries Development Board To become Autonomous

(FDB) Body under National Food
Security & Research
Division

108. Livestock Dairy Development To become Autonomous

Board (LDDB) Body under National Food
Security & Research
Division

109. Federal Water Management To be retained as Executive

Cell (FWMC) Department in National Food
Security & Research
Division

110. National Fertilizer To become Autonomous

Development Centre (NFDC) Body under National Food
Security & Research
Division

111. Directorate of Central Health To be retained as Executive

Establishment Department in National
Health Services, Regulations
& Coordination Division

112. Directorate of Malaria Control To be retained as Executive

(DoMC) Department in National
Health Services, Regulations
National Health
& Coordination Division
Services,
24
Regulations &
113. Pakistan Institute of Medical To be retained as Executive
Coordination
Sciences (PIMS) Department in National
Health Services, Regulations
& Coordination Division

114. Federal Government To be retained as Executive

Polyclinic (FGC / FGC-PGMI) Department in National
Health Services, Regulations
& Coordination Division

59
 115. National Institute of To be retained as Executive
Rehabilitative Medicine (NIRM) Department in National
Health Services, Regulations
& Coordination Division

116. Federal General Hospital To be retained as Executive

(FGH) Department in National
Health Services, Regulations
& Coordination Division

117. National Health Emergency To be retained as Executive

Preparedness & Response Department in National
Network (NHEPRN) Health Services, Regulations
& Coordination Division

118. Directorate of Central To be merged with

Warehouse of Supplies Population Wing of National
Health Services, Regulations
& Coordination Division

119. District Population Office To be merged with District

(DPO), Islamabad Health Office, Islamabad

120. Federal Medical and Dental It is a constituent unit of

College (FM&DC) SZABMU and does not
require to be listed separately
under National Health
Services, Regulations &
Coordination Division

121. Department of Archaeology & To be retained as Executive

Museums (DOAM), Islamabad Department in National
History & Literary Heritage
Division

122. National Language Promotion To be renamed as National

Department (NLPD), Islamabad Language Promotion
Authority and become
Autonomous Body

123. Department of Libraries To be transferred to ICT

National History &
25 (DOL), Islamabad Local Government when
Literary Heritage
formed (To remain with the
Federal Ministry until then)

124. National Library of Pakistan To be retained as Executive

(NLP), Islamabad Department in National
History & Literary Heritage
Division

125. Urdu Science Board (USB), To be merged with National

Lahore Language Promotion Board
(NLPD/NLP Authority)

60
 126. Urdu Dictionary Board To be merged with National
(UDB), Karachi Language Promotion Board
(NLPD/NLP Authority)

127. Quaid-i-Azam Academy To be merged with Quaid-e-

(QAA), Karachi Azam Mazar Management
Board

128. Aiwan-e-Quaid Building, F-9 To be retained as Executive

Park, Islamabad Department in National
History & Literary Heritage
Division

129. National Industrial Relations To become Autonomous

Commission, Islamabad Body under Overseas
Pakistanis & Human
Resource Development
Division

130. Bureau of Emigration & To be retained as Executive

Overseas Pakistanis Overseas Employment Department in Overseas
26 & Human Resource Pakistanis & Human
Development Resource Development
Division

131. Directorate of Workers To be transferred to ICT

Education, Islamabad Local Government when
formed (To remain with
the Federal Ministry until
then)

132. Geological Survey of Pakistan To be retained as Executive

27 Petroleum Department in Petroleum
Division

133. Pakistan Planning and To become Autonomous

Management Institute (PPMI) Body under Planning,
Development & Reform
Division
Planning,
28 Development &
134. Jawaid Azfar Computer Centre To be considered constituent
Reform
(JACC) unit of Planning,
Development & Reform
Division and not listed
separately

135. Pakistan Post Office To become Autonomous

Department (including Postmasters Body under Postal Services
29 Postal Services General Offices, General Division
Managers Offices and Chief
Controller of Stamps)

61
 136. Postal Staff College To become Autonomous
Body under Postal Services
Division

137. National Energy Efficiency & To become Autonomous

30 Power Conservation Authority (NEECA) Body under Power Division

138. Railways Board (including To be retained as Executive

Railways Divisions/Departments, Departmentin Railways
educational & health institutes and Division
factories/workshops)

139. Pakistan Railways Police To be transferred to

provinces

31 Railways
140. Federal Government Inspector To become Autonomous
of Railways (F.G.I.R) Body under Railways
Division

141. Pakistan Railways Academy, To be merged into the

Walton, Lahore proposed Infrastructure
Policy Institute (IPI)

142. Directorate General of Hajj To be retained as Executive

and Umrah Department in Religious
Affairs & Inter Faith
Harmony Division
Religious Affairs &
32 Inter Faith
Harmony 143. Office of Pilgrims Affairs, To be retained as Executive
Jeddah, Kingdom of Saudi Arabia Department in Religious
Affairs & Inter Faith
Harmony Division

144. Federal Board of Revenue To become Autonomous

(FBR) Body under Revenue
Division

145. Directorate General Training To be merged into the

Customs proposed Institute of Fiscal
Policy and Financial
Management (IFPFM)
33 Revenue

146. Directorate General Training To be merged into the

Inland Revenue Services proposed Institute of Fiscal
Policy and Financial
Management (IFPFM)

62
 147. Council for Works & Housing To be transferred to Housing
Research (CWHR) & Works Division as
Autonomous Body
Science &
34
Technology
148. Pakistan Council of To be transferred to Power
Renewable Energy Technologies, Division as Autonomous
Islamabad (PCRET) Body

149. Chief Commissionerate for To be retained as Executive

States & Frontier
35 Afghan Refugees, Islamabad Department in States &
Regions
Frontier Regions Division

150. Pakistan Bureau of Statistics Already placed as

(PBS) Autonomous Body under
36 Statistics
Planning, Development &
Reform Division

151. Textile Commissioner’s To be retained as Executive

37 Textile Organization, Karachi Department in Textile
Division

152. Office of Engineering To be retained as Executive

Adviser/Chairman Federal Flood Department in Water
Commission (CEA/CFFC) Resources Division
38 Water Resources
153. Office of Pakistan To be retained as Executive
Commissioner for Indus Waters Department in Water
(PCIW) Resources Division

TABLE-11 - Mapping of Existing Autonomous Bodies, Corporations, Statutory Bodies & Public
Sector Companies Etc

Existing Autonomous Bodies,

Sr. Corporations, Statutory Bodies
Division Proposed Configuration
No. & Public Sector Companies
Etc

To be retained as Autonomous
154. Civil Aviation Authority
Body under Aviation Division

01 Aviation

155. Pakistan International To become Autonomous Body

Airlines Corporation Limited under Aviation Division

156. Pakistan
To be retained as Autonomous
02 Cabinet Telecommunications
Body under Cabinet Division
Authority, Islamabad

63
 157. National Electric Power
To be retained as Autonomous
Regulatory Authority,
Body under Cabinet Division
Islamabad

158. Oil and Gas Regulatory To be retained as Autonomous

Authority, Islamabad Body under Cabinet Division

159. Public Procurement

To be retained as Autonomous
Regulatory Authority,
Body under Cabinet Division
Islamabad

160. Frequency Allocation To be retained as Autonomous

Board, Islamabad Body under Cabinet Division

161. Sheikh Sultan Trust, To become Autonomous Body

Karachi under Cabinet Division

162. Islamabad Club, To become Autonomous Body

Islamabad under Cabinet Division

163. Global Change Impact

To be retained as Autonomous
Studies Centre, Islamabad
Body in Climate Change Division
(GCISC)
03 Climate Change
164. Islamabad Wildlife To be retained as Autonomous
Management Board (IWMB) Body in Climate Change Division

165. Intellectual Property

To be retained as Autonomous
Organization of Pakistan,
Body under Commerce Division
Islamabad

166. National Tariff To be retained as Autonomous

Commission, Islamabad Body under Commerce Division

167. Pakistan Institute of To be retained as Autonomous

Fashion and Design, Lahore Body under Commerce Division

168. Trading Corporation of To become Autonomous Body

Pakistan Pvt. Ltd., Karachi under Commerce Division
04 Commerce
169. State Life Insurance
Proposed for Privatization /
Corporation of Pakistan,
Transfer to Sarmaya Pakistan
Karachi

170. Pakistan Tobacco Board, To become Autonomous Body

Peshawar under Commerce Division

171. Pakistan Horticulture

To become Autonomous Body
Development and Export
under Commerce Division
Company, Lahore

172. Pakistan Expo Centers To become Autonomous Body

Pvt. Ltd. Company, Lahore under Commerce Division

64
 173. National Insurance Proposed for Privatization /
Company Limited, Karachi Transfer to Sarmaya Pakistan

174. Pakistan Reinsurance Proposed for Privatization /

Company Limited, Karachi Transfer to Sarmaya Pakistan

175. National Highway To be retained as Autonomous

Authority Body in Communications Division

176. National Transport To be merged into the proposed

Research Centre (NTRC) Infrastructure Policy Institute
05 Communications
177. Construction Technology To become Autonomous Body
Training Institute (CTTI) under Communications Division

178. Karachi Infrastructure Already transferred to Cabinet

Development Company Ltd Division; to become Autonomous
(KIDCL) Body under Cabinet Division

179. Pakistan Ordnance To be retained as Autonomous

Factories (POFs) Board, Wah Body in Defence Production
Cantt Division

To be retained as Autonomous
180. Heavy Industries Taxila
Body in Defence Production
(HIT) Board, Taxila
Division

181. Pakistan Aeronautical To be retained as Autonomous

Complex (PAC) Board, Body in Defence Production
06 Defence Production
Kamra Division

182. Karachi Shipyard & To become Autonomous Body

Engineering Works under Defence Production
(KS&EW), Karachi Division

183. National Radio To become Autonomous Body

Telecommunication under Defence Production
Corporation (NRTC) Division

184. National Disaster Risk

To become Autonomous Body
07 Economic Affairs Management Fund
under Economic Affairs Division
(NDRMF)

185. Federal Employees To be retained as Autonomous

Benevolent & Group Body under Establishment
Insurance Funds (FEB&GIF) Division
08 Establishment
To be retained as Autonomous
186. National School of
Body under Establishment
Public Policy (NSPP)
Division
(including NIMs & Pakistan

65
 Administrative Staff
College)

187. Pakistan Academy for

To be merged into NSPP
Rural Development (PARD)

188. National Vocational & To be retained as Autonomous

Technical Training Body in Federal Education &
Commission (NAVTTC) Professional Training Division

To become Grant-in-aid
189. National Commission body,operated by non-
for Human Development governmental or private
(NCHD) organizations but receive grants
from the Government

To be retained as Autonomous
190. Higher
Body in Federal Education &
EducationCommission(HEC)
Professional Training Division

To be retained as Autonomous
191. National Education
Body in Federal Education &
Foundation (NEF)
Professional Training Division

192. Federal Board of To be retained as Autonomous

Intermediate & Secondary Body in Federal Education &
Education (FBISE) Professional Training Division
Federal Education
09 & Professional
193. Basic Education
Training To be transferred to provinces
Community Schools (BECS)

To be retained as Autonomous
194. National College of Arts Body in Federal Education &
Professional Training Division

To be retained as Autonomous
195. National Skill University Body in Federal Education &
Professional Training Division

To become Grant-in-aid
body,operated by non-
196. Pakistan Boys Scouts
governmental or private
Association
organizations but receive grants
from the Government

To become Grant-in-aid
body,operated by non-
197. Pakistan Girls Guides
governmental or private
Association
organizations but receive grants
from the Government

66
 198. Private Educational
Proposed to be transferred to
Institutions Regulatory
Cabinet Division
Authority (PEIRA)

199. Zarai Taraqiati Bank To be retained as Autonomous

Limited (ZTBL) Body in Finance Division

200. First Women Bank Proposed for Privatization /

Limited (FWBL) Transfer to Sarmaya Pakistan

201. House Building Finance To be retained as Autonomous

Company Ltd. (HBFC) Body in Finance Division

Proposed for Privatization /

202. SME Bank Ltd.
Transfer to Sarmaya Pakistan

203. National Security To be retained as Autonomous

Printing Company (NSPC) Body in Finance Division

204. State Bank of Pakistan To be retained as Autonomous

(SBP) Body in Finance Division

205. National Bank of To be retained as Autonomous

Pakistan (NBP) Body in Finance Division

206. Financial Monitoring To be retained as Autonomous

Unit (FMU) Body in Finance Division

207. Competition
10 Finance To be retained as Autonomous
Commission of Pakistan
Body in Finance Division
(CCP)

208. Securities and Exchange

To be retained as Autonomous
Commission of Pakistan
Body in Finance Division
(SECP)

209. Public Private

To be retained as Autonomous
Partnership Authority
Body in Finance Division
(PPPA)

210. National Investment To become Autonomous Body

Trust Limited (NITL) under Finance Division

211. Pak Kuwait Investment To become Autonomous Body

Company under Finance Division

212. Pak Libya Holding To become Autonomous Body

Company under Finance Division

213. Pak Oman Investment To become Autonomous Body

Company under Finance Division

214. Pak Iran Joint To become Autonomous Body

Investment Company under Finance Division

67
 215. Pak Brunei Investment To become Autonomous Body
Company Ltd. under Finance Division

216. Saudi Pak Industrial &

To become Autonomous Body
Agricultural Investment
under Finance Division
Company

217. Pak China Investment To become Autonomous Body

Company under Finance Division

218. Industrial Development Proposed for Winding Up /

Bank Limited Liquidation

To become Autonomous Body

219. Benazir Income Support under upcoming Poverty
Program (BISP) Alleviation & Social Protection
Division

To be merged into the proposed

220. Audit and Accounts
Institute of Fiscal Policy and
Academy
Financial Management (IFPFM)

221. Foreign Service To be retained as Autonomous

Academy, Islamabad Body in Foreign Affairs Division
11 Foreign Affairs
222. Institute of Strategic To be retained as Autonomous
Studies, Islamabad Body in Foreign Affairs Division

223. Federal Government To be retained as Autonomous

Employees Housing Body in Housing & Works
Foundation, Islamabad Division

To be retained as Autonomous
224. Pakistan Housing
12 Housing & Works Body under Housing & Works
Authority Foundation
Division

Already under liquidation;

225. National Construction
currently placed under Planning,
Company Ltd., Islamabad
Development & Reform Division

226. National Commission To become Autonomous Body

for Human Rights (NCHR) under Human Rights Division
13 Human Rights
227. National Commission on
To become Autonomous Body
the Status of Women
under Human Rights Division
(NCSW)

228. National Fertilizer

Industries & Corporation of Pakistan Proposed for Privatization /
14
Production Transfer to Sarmaya Pakistan

68
 To be merged with Trading
229. National Fertilizer
Corporation of Pakistan,
Marketing Limited
Commerce Division

230. NFC Institute of To be handed over to Ministry of

Engineering and Technology, Federal Education & Professional
Multan Training

231. NFC Institute of To be handed over to Ministry of

Engineering and Fertilizer Federal Education & Professional
Research, Faisalabad Training

232. Pakistan Industrial To become Autonomous Body

Development Corporation under Industries & Production
(PIDC) Division

233. Pakistan Gems &

Jewellery Development To become Autonomous Body
Company under Industries & Production
Division

234. National Industrial Parks To be merged into Pakistan

Development and Industrial Development
Management company Corporation (PIDC)

235. Technology Up-

To be merged into Pakistan
Gradation & Skill
Industrial Development
Development Company
Corporation (PIDC)
(TUSDEC)

To become Autonomous Body

236. Pakistan Stone
under Industries & Production
Development Company
Division

237. Gujranwala Business

To be merged into TUSDEC
Centre, Gujranwala

238. Aik Hunar Aik Nagar

To be merged into SMEDA

239. Pakistan Hunting &

Sports Arms Development To be merged into SMEDA
Company, Peshawar

240. Karachi Tools, Dies &

To be merged into TUSDEC
Moulds Centre, Karachi

241. Furniture Pakistan To be merged into TUSDEC

242. Sindh Engineering Proposed for Privatization /

Limited (SEL) Transfer to Sarmaya Pakistan

69
243. Republic Motors Limited
(RML) Proposed for Privatization /
Transfer to Sarmaya Pakistan

244. Pakistan Automobile

Corporation (PACO) Proposed for Privatization /
Transfer to Sarmaya Pakistan

245. State Engineering

Corporation (SEC) Proposed for Privatization /
Transfer to Sarmaya Pakistan

246. PECO (Pakistan

Engineering Company) Proposed for Privatization /
Transfer to Sarmaya Pakistan

247. Heavy Electrical

Complex (HEC) Proposed for Privatization /
Transfer to Sarmaya Pakistan

248. Pakistan Machine Tool To be transferred to Special

Factory, Karachi Projects Division (SPD), with the
condition to continue it for civilian
use too

249. ENAR Petrotech To be handed over to OGDCL,

Services Pvt Limited Petroleum Division

250. Pakistan Steel Mills

To become Autonomous Body
Corporation
under Industries & Production
251. Pakistan Steel
Division
Fabricating Company

252. Industrial Facilitation

To be merged into Pakistan
Centre (IFC), Islamabad
Industrial Development
Corporation (PIDC)

253. Agro Food Processing

To become Autonomous Body
(AFP) Facilities, Multan
under Industries & Production
Division

254. Pakistan Industrial & To become Autonomous Body

Technical Assistance Centre, under Industries & Production
Lahore Division

70
 To become Autonomous Body
255. Pakistan Institute of
under Industries & Production
Management
Division

256. Small and Medium

Enterprises Development To become Autonomous Body
Authority (SMEDA) under Industries & Production
Division

To become Autonomous Body

257. Utility Stores
under Industries & Production
Corporation (USC)
Division

258. National Productivity

To be merged into the proposed
Organization
Industry and Trade Policy Institute
(ITPI)

259. Engineering
To become Autonomous Body
Development Board
under Industries & Production
Division

260. Export processing zone

To be merged into Pakistan
Authority (EPZA)
Industrial Development
Corporation (PIDC)

261. Khadi Craft

Development Company Proposed for Privatization /
Transfer to Sarmaya Pakistan

262. Leather Crafts

Development Company, To become Autonomous Body
Multan under Industries & Production
Division

263. Spun Yarn Research and

Development Company,
Proposed for Privatization /
Multan
Transfer to Sarmaya Pakistan

264. Southern Punjab

Embroidery Industries
Proposed for Privatization /
Multan
Transfer to Sarmaya Pakistan

71
 265. Pakistan Chemical and
Energy Sector Skill To become Autonomous Body
Development under Industries & Production
Division

To be retained as Autonomous
266. Press Council of
Body in Information &
Pakistan (PCP)
Broadcasting Division

267. National Institute of Folk To be retained as Autonomous

& Traditional Heritage (Lok Body in Information &
Virsa) Broadcasting Division

To be retained as Autonomous
268. Institute of Regional
Body in Information &
Studies (IRS)
Broadcasting Division

To be retained as Autonomous
269. National Press Trust
Body in Information &
(NPT)
Broadcasting Division

270. Pakistan Electronic

Proposed to be transferred Cabinet
Media Regulatory Authority
Division
(PEMRA)
Information &
15
Broadcasting
271. Shalimar Recording and To be retained as Autonomous
Broadcasting Company Body in Information &
(SRBC) Broadcasting Division

272. Associated Press of To become Autonomous

Pakistan Corporation Bodyunder Information &
(APPC) Broadcasting Division

To become Autonomous Body

273. Pakistan Broadcasting
under Information & Broadcasting
Corporation (PBC)
Division

To become Autonomous Body

274. Pakistan Television
under Information & Broadcasting
Corporation Limited (PTV)
Division

To become Autonomous Body

275. Pakistan National
under Information & Broadcasting
Council of Arts (PNCA)
Division

Information 276. National To become Autonomous Body

16 Technology & Telecommunication under Information Technology &
Telecommunication Corporation (NTC) Telecommunication Division

72
 To become Autonomous Body
277. IGNITE National
under Information Technology &
Technology Fund Company
Telecommunication Division

To become Autonomous Body

278. Universal Service Fund
under Information Technology &
Company
Telecommunication Division

To become Autonomous Body

279. Pakistan Software
under Information Technology &
Export Board (PSEB)
Telecommunication Division

280. Telephone Industries Proposed for Privatization /

of Pakistan (TIP) Transfer to Sarmaya Pakistan

To become Autonomous Body

281. Pakistan Telecom
under Information Technology &
Employees Trust (PTET)
Telecommunication Division

To become Autonomous Body

282. Telecom Foundation
under Information Technology &
(TF)
Telecommunication Division

283. Electronic Certification To become Autonomous Body

& Accreditation Council under Information Technology &
(ECAC) Telecommunication Division

To become Autonomous Body

284. Virtual University of
under Information Technology &
Pakistan
Telecommunication Division

285. National Database &

To become Autonomous Body
Registration Authority
under Interior Division
(NADRA)

To be merged into the proposed

286. National Police
National Police Training &
Academy, Islamabad
17 Interior Research Institute

287. Capital Development To become Autonomous Body

Authority (CDA) under Interior Division

288. Metropolitan To become Autonomous Body

Corporation Islamabad under Interior Division

73
 Under PM’s Office as per NACTA
289. National Counter Act, 2013. The Islamabad High
Terrorism Authority Court has declared the Notification
(NACTA) placing NACTA under M/o
Interior as null and void.

290. National Public Safety To become Autonomous Body

Commission under Interior Division

291. Pakistan Sports Board To be retained as Autonomous

Body in Inter Provincial
Coordination Division

To be retained as Autonomous
292. Pakistan Veterinary
Body in Inter Provincial
Medical Council
Coordination Division

293. Pakistan Cricket Board To become Autonomous Body

under Inter Provincial
Coordination Division
Inter Provincial
18 To become Autonomous Body
Coordination 294. Federal Land
under Inter Provincial
Commission
Coordination Division

295. National Internship

To become Executive Department
Programme
in Inter Provincial Coordination
Division

To become Grant-in-aid body,

296. National Academy of operated by non-governmental or
Performing Arts private organizations but receive
grants from the Government

297. Northern Areas

To be transferred to Gilgit
Transport Corporation
Baltistan
(NATCO), Gilgit

To be retained as Executive
298. Directorate of Health
Department in Kashmir Affairs &
Services (AK)
Gilgit Baltistan Division
Kashmir Affairs &
19 299. Directorate of Health To be transferred to Gilgit
Gilgit Baltistan
Services (GB) Baltistan

Proposed for Winding Up /

300. TB Wing, Attock
Liquidation

To become Autonomous Body

301. Gilgit Baltistan Council under Kashmir Affairs & Gilgit
Baltistan Division

74
 To become Autonomous Body
302. Azad Jammu and
under Kashmir Affairs & Gilgit
Kashmir Council
Baltistan Division

303. Council of Islamic To become Autonomous Body

Ideology under Law & Justice Division

304. Federal Judicial To become Autonomous Body

Academy under Law & Justice Division

305. Law and Justice To become Autonomous Body

Commission of Pakistan under Law & Justice Division

To become Autonomous Body

306. Federal Shariat Court
under Law & Justice Division

307. National Accountability To become Autonomous Body

Bureau (NAB) under Law & Justice Division

308. Wafaqi Mohtasib

(Ombudsman) Secretariat To become Autonomous Body
under Law & Justice Division

309. Federal Tax

Ombudsman Secretariat To become Autonomous Body
under Law & Justice Division
20 Law & Justice

310. Federal Insurance

Ombudsman Secretariat To become Autonomous Body
under Law & Justice Division

311. Federal Ombudsman for

Protection against To become Autonomous Body
Harassment of Women at the under Law & Justice Division
Workplace

312. Banking Courts

To become Autonomous Body
under Law & Justice Division

313. Special Courts (Offences

To become Autonomous Body
in Banks)
under Law & Justice Division

314. Drug Courts To become Autonomous Body

under Law & Justice Division

315. Special Courts To become Autonomous Body

(AntiTerrorism) (ICT) under Law & Justice Division

75
 316. Commercial Courts To become Autonomous Body
under Law & Justice Division

317. Foreign Exchange To become Autonomous Body

Regulation Appellate Board under Law & Justice Division

318. Accountability Courts To become Autonomous Body

under Law & Justice Division

319. Special Courts (Central) To become Autonomous Body

under Law & Justice Division

320. Special Courts (Control To become Autonomous Body

of Narcotic Substances) under Law & Justice Division

321. Competition Appellate

To become Autonomous Body
Tribunal, Islamabad
under Law & Justice Division

322. Anti-Dumping Appellate

To become Autonomous Body
Tribunal
under Law & Justice Division

323. Environmental
To become Autonomous Body
Protection Tribunal
under Law & Justice Division

324. Intellectual Property

To become Autonomous Body
Tribunal
under Law & Justice Division

325. Insurance Appellate

To become Autonomous Body
Tribunal
under Law & Justice Division

326. Special Judge, (Customs, To become Autonomous Body

Taxation & Anti-Smuggling) under Law & Justice Division

327. Port Qasim Authority, To become Autonomous Body

Karachi under Maritime Affairs Division

328. Karachi Port Trust, To become Autonomous Body

21 Maritime Affairs
Karachi under Maritime Affairs Division

329. Gwadar Port Authority, To become Autonomous Body

Gwadar under Maritime Affairs Division

76
 330. Korangi Fisheries To become Autonomous Body
Harbour Authority, Karachi under Maritime Affairs Division

331. Pakistan National

To be retained as Autonomous
Shipping Corporation,
Body in Maritime Affairs Division
Karachi

To be retained as Autonomous
332. Pakistan Agriculture
Body in National Food Security &
Research Council (PARC)
Research Division

333. Pakistan Agriculture To become Autonomous Body

Service & Storage under National Food Security &
National Food Corporation (PASSCO) Research Division
22 Security &
Research To become Autonomous Body
334. Pakistan Central Cotton
under National Food Security &
Committee (PCCC)
Research Division

To become Executive Department

335. Plant Breeders’ Rights
in National Food Security &
Registry
Research Division

To be retained as Autonomous
336. Health Services Body in National Health Services,
Academy (HSA) Regulations & Coordination
Division

To be retained as Autonomous
337. Pakistan Health Body in National Health Services,
Research Council (PHRC) Regulations & Coordination
Division

To be retained as Autonomous
338. National Institute of Body in National Health Services,
Health (NIH) Regulations & Coordination
National Health
Division
Services,
23
Regulations &
To be retained as Autonomous
Coordination 339. Drug Regulatory
Body in National Health Services,
Authority of Pakistan
Regulations & Coordination
(DRAP)
Division

To be retained as Autonomous
340. Pakistan Medical and Body in National Health Services,
Dental Council (PM&DC) Regulations & Coordination
Division

To be retained as Autonomous
341. National Council for Body in National Health Services,
Homeopathy (NCH) Regulations & Coordination
Division

77
 To be retained as Autonomous
342. Pakistan Nursing Body in National Health Services,
Council (PNC) Regulations & Coordination
Division

To be retained as Autonomous
343. National Council for Body in National Health Services,
Tibb (NCT) Regulations & Coordination
Division

To be retained as Autonomous
344. Pharmacy Council of Body in National Health Services,
Pakistan (PCP) Regulations & Coordination
Division

To be retained as Autonomous
345. College of Physician and Body in National Health Services,
Surgeon Pakistan Regulations & Coordination
Division

346. Islamabad Blood

To be merged with Federal Health
Transfusion Authority
Regulatory Authority (FHRA)
(IBTA)

To be retained as Autonomous
347. Human Organ
Body in National Health Services,
Transplant Authority
Regulations & Coordination
(HOTA)
Division

To be retained as Autonomous
348. National Trust for
Body in National Health Services,
Population Welfare
Regulations & Coordination
(NATPOW)
Division

To be retained as Autonomous
349. Shaheed Zulfiqar Ali
Body in National Health Services,
Bhutto Medical University
Regulations & Coordination
(SZABMU)
Division

350. National Institute of To be merged with Pakistan Health

Population Studies (NIPS) Research Council (PHRC)

351. National Research

To be merged with Pakistan Health
Institute of Fertility Control
Research Council (PHRC)
(NRIFC)

To be merged with Health

352. National Health
Planning, System Strengthening &
Information Resource Centre
Information Analysis Unit
(NHIRC)
(HPSIU)

353. Pakistan Red Crescent To become Grant-in-aid

Society body,operated by non-
governmental or private

78
 organizations but receive grants
from the Government

To be retained as Autonomous
354. Pakistan Academy of
Body in National History &
Letters (PAL), Islamabad
Literary Heritage Division

355. National Book To be retained as Autonomous

Foundation (NBF), Body in National History &
Islamabad Literary Heritage Division

National History & To be retained as Autonomous

24 356. Iqbal Academy Pakistan
Literary Heritage Body in National History &
(IAP), Lahore
Literary Heritage Division

357. Quaid-i-Azam Mazar To be retained as Autonomous

Management Board Body in National History &
(QMMB), Karachi Literary Heritage Division

358. Aiwan-e-Iqbal Complex To be merged with Iqbal

(AIC), Lahore Academy, Lahore

To be retained as Autonomous
359. Overseas Pakistanis
Body under Overseas Pakistanis &
Foundation, (including
Human Resource Development
employees of Educational
Division
Institutions under OPF),
Islamabad

To be retained as Autonomous
360. Employees Old Age
Body under Overseas Pakistanis &
Benefits, Institutions,
Overseas Pakistanis Human Resource Development
Karachi
25 & Human Resource Division
Development
To be retained as Autonomous
361. Workers Welfare Fund, Body under Overseas Pakistanis &
Islamabad Human Resource Development
Division

To become Autonomous Body

362. Overseas Employment under Overseas Pakistanis &
Corporation, Islamabad Human Resource Development
Division

363. Government Holdings Proposed for Privatization /

(Pvt.) Limited (GHL) Transfer to Sarmaya Pakistan

364. Hydrocarbon
To be merged into the proposed
26 Petroleum Development Institute of
Energy Policy Institute (EPI)
Pakistan (HDIP)

365. Inter State Gas Systems To become Autonomous Body

(Pvt.) Ltd. (ISGSL) under Petroleum Division

79
 366. Lakhra Coal
Proposed for Privatization /
Development Company Ltd.,
Transfer to Sarmaya Pakistan
Karachi

367. Oil & Gas Development Proposed for Privatization /

Company Ltd., Islamabad Transfer to Sarmaya Pakistan

368. Pakistan Mineral

Proposed for Privatization /
Development Corporation
Transfer to Sarmaya Pakistan
(PMDC)

369. Pakistan Petroleum Proposed for Privatization /

Limited (PPL) Transfer to Sarmaya Pakistan

370. Pakistan State Oil To become Autonomous Body

Company Limited (PSOCL) under Petroleum Division

371. Saindak Metals Limited To be transferred to province,

(SML) subject to conditions

372. Sui Northern Gas To become Autonomous Body

Pipelines Limited (SNGPL) under Petroleum Division

373. Sui Southern Gas To become Autonomous Body

Company Limited (SSGCL) under Petroleum Division

To be merged with Pakistan LNG

374. Pakistan LNG Limited
Terminal Ltd (PLTL) and become
(PLL)
Autonomous Body

To be merged with Pakistan LNG

375. Pakistan LNG Terminals
Ltd (PLL) and become
Limited (PLTL)
Autonomous Body

376. Pak-Arab Refinery To become Autonomous Body

Limited (PARCO) under Petroleum Division

To be retained as Autonomous
377. National Logistics Cell
Body under Planning,
(NLC)
Development & Reform Division

To become Autonomous Body

378. Pakistan Environmental
Planning, under Planning, Development &
Planning & Architectural
27 Development & Reform Division – status to be
Consultant (PEPAC)
Reform reviewed by the Division

To become Autonomous Body

379. Pakistan Institute of under Planning, Development &
Development Economics Reform Division
(PIDE)

80
 380. National Endowment To become Executive Department
Scholarships for Talent in Planning, Development &
(NEST) Reform Division

381. Alternative Energy To be retained as Autonomous

Development Board (AEDB) Body under Power Division

382. National Engineering

To become Autonomous Body
Services Pakistan Pvt. Ltd.
under Power Division
(NESPAK)

383. Pakistan Electric Power To become Autonomous Body

Company Pvt. Ltd. (PEPCO) under Power Division

384. Pakistan Information

To become Autonomous Body
Technology Company
under Power Division
(PITC)

385. Power Holding (Private) Proposed for privatization /

Limited (PHPL) Transfer to Sarmaya Pakistan

386. National Power Parks

Management Company Proposed for privatization /
(Private) Limited Transfer to Sarmaya Pakistan
(NPPMCL)

387. Central Power

To become Autonomous Body
28 Power Purchasing Agency
under Power Division
Guarantee Limited (CPPAG)

388. Private Power & To become Autonomous Body

Infrastructure Board (PPIB) under Power Division

389. National Transmission & To be retained as Autonomous

Dispatch Company (NTDC) Body under Power Division

390. Jamshoro Power

Proposed for Privatization /
Generation Company
Transfer to Sarmaya Pakistan
(GENCO-I)

391. Central Power

Proposed for Privatization /
Generation Company
Transfer to Sarmaya Pakistan
(GENCO-II)

392. Northern Power

Proposed for Privatization /
Generation Company
Transfer to Sarmaya Pakistan
(GENCO-III)

393. Lakhra Power

Proposed for Privatization /
Generation Company
Transfer to Sarmaya Pakistan
(GENCO-IV)

81
 394. Islamabad Electric Proposed for Privatization /
Supply Company (IESCO) Transfer to Sarmaya Pakistan

395. Lahore Electric Supply Proposed for Privatization /

Company (LESCO) Transfer to Sarmaya Pakistan

396. Gujranwala Electric Proposed for Privatization /

Power Company (GEPCO) Transfer to Sarmaya Pakistan

397. Faisalabad Electric Proposed for Privatization /

Supply Company (FESCO) Transfer to Sarmaya Pakistan

398. Hyderabad Electric Proposed for Privatization /

Supply Company (HESCO) Transfer to Sarmaya Pakistan

399. Multan Electric Power Proposed for Privatization /

Company (MEPCO) Transfer to Sarmaya Pakistan

400. Quetta Electric Supply Proposed for Privatization /

Company (QESCO) Transfer to Sarmaya Pakistan

401. Peshawar Electric Proposed for Privatization /

Supply Company (PESCO) Transfer to Sarmaya Pakistan

402. Sukkur Electric Power Proposed for Privatization /

Company (SEPCO) Transfer to Sarmaya Pakistan

403. Tribal Areas Electric Proposed for Privatization /

Supply Company (TESCO) Transfer to Sarmaya Pakistan

404. Privatization To be retained as Autonomous

29 Privatization
Commission Body in Privatization Division

To become Autonomous Body

405. Pakistan Railway under Railways Division –
Advisory & Consultancy Proposed to be evolved into
Services Limited (PRACS) Pakistan Railways Passenger
Transportation Company (PRPTC)

406. Railway Constructions

To become Autonomous Body
Pakistan Limited
under Railways Division
(RAILCOP)
30 Railways
407. Railway Estate
Development and Marketing Proposed for Winding Up /
Company Limited Liquidation
(REDAMCO)

408. Pakistan Railways

To become Autonomous Body
Freight Transportation
under Railways Division
Company Limited (PRFTC)

82
 409. Kashmir Railway Proposed for Winding Up /
Limited (KR) Liquidation

To be retained as Autonomous
410. Evacuee Trust Property
Body under Religious Affairs &
Board
Religious Affairs & Inter Faith Harmony Division
31 Inter Faith
Harmony To become Autonomous Body
411. Pakistan Madrassah
under Religious Affairs & Inter
Education Board
Faith Harmony Division

To be retained as Autonomous
412. COMSATS University,
Body in Science & Technology
Islamabad (CUI)
Division

To be retained as Autonomous
413. National Institute of
Body in Science & Technology
Electronics, Islamabad (NIE)
Division

414. National Institute of To be retained as Autonomous

Oceanography, Karachi Body in Science & Technology
(NIO) Division

415. National University of To be retained as Autonomous

Sciences & Technology, Body in Science & Technology
Islamabad (NUST) Division

416. Pakistan Council of

To be retained as Autonomous
Scientific & Industrial
Body in Science & Technology
Research, Islamabad
Division
(PCSIR)
Science &
32
Technology
417. Pakistan Council of
To be transferred to Water
Research in Water
Resources Division as
Resources, Islamabad
Autonomous Body
(PCRWR)

418. Pakistan Council for To be retained as Autonomous

Science & Technology, Body in Science & Technology
Islamabad (PCST) Division

To be retained as Autonomous
419. Pakistan Engineering
Body in Science & Technology
Council, Islamabad (PEC)
Division

420. Pakistan Museum of To be retained as Autonomous

Natural History, Islamabad Body in Science & Technology
(PMNH) Division

421. Pakistan National To be retained as Autonomous

Accreditation Council, Body in Science & Technology
Islamabad (PNAC) Division

83
 To be retained as Autonomous
422. Pakistan Science
Body in Science & Technology
Foundation, Islamabad (PSF)
Division

Is a constituent unit of Pakistan

423. Pakistan Scientific and
Science Foundation (PSF) and
Technological Information
does not require to be listed
Centre, Islamabad (PASTIC)
separately as Autonomous Body

424. Pakistan Standard & To be retained as Autonomous

Quality Control Authority, Body in Science & Technology
Karachi (PSQCA) Division

To be retained as Autonomous
425. Pakistan Halal
Body in Science & Technology
Authority, Islamabad (PHA)
Division

426. National University of To be retained as Autonomous

Technology, Islamabad Body in Science & Technology
(NUTECH) Division

427. STEDEC Technology To be retained as Autonomous

Commercialization Body in Science & Technology
Corporation of Pakistan Pvt. Division – possibility of winding
Ltd., Lahore (STEDEC) up to be reviewed by the Division

428. National Textile To be retained as Autonomous

University, Faisalabad Body in Textile Division

429. Pakistan Cotton To be retained as Autonomous

Standards Institute, Karachi Body in Textile Division

430. Karachi Garment City

To become Autonomous Body
Company, Karachi
under Textile Division – Minister
to be consulted

33 Textile 431. Lahore Garment City

To become Autonomous Body
Company, Lahore
under Textile Division – Minister
to be consulted

432. Faisalabad Garment City

To become Autonomous Body
Company, Faisalabad
under Textile Division – Minister
to be consulted

433. Pakistan Textile City

To become Autonomous Body
Limited, Karachi
under Textile Division – Minister
to be consulted

84
 Federal Textile Board is not a
separate entity and hence does not
434. Federal Textile Board require to be listed separately under
Textile Division

435. Water and Power

To be retained as Autonomous
Development Authority
Body in Water Resources Division
(WAPDA)
34 Water Resources
436. Indus River System To be retained as Autonomous
Authority Body in Water Resources Division

437. National Disaster

To be merged with ERRA and
Management Authority
become Autonomous Body
Prime Minister’s (NDMA)
35
Office
438. Board of Investment
To become Autonomous Body
(BOI)

439. Earthquake
Reconstruction &
To be merged into NDMA
Rehabilitation Authority
(ERRA)

36 Others 440. Jinnah Convention Proposed to be privatized /

Centre, Islamabad Transfer to Sarmaya Pakistan

441. Services International Proposed to be privatized /

Hotel, Lahore Transfer to Sarmaya Pakistan

85
 CHAPTER 4 PRESENT STATUS OF THE
REORGANIZATION OF THE FEDERAL GOVERNMENT
1. The Cabinet Committee on Implementation of the Reorganization of the Federal
Government was directed to complete the task within six months and present monthly
implementation progress to the Cabinet. From July, 2019 to July, 2020, the Committee held 37
meetings and had in-depth and detailed discussion on all the proposals contained in July 2019
report. The controlling Ministries were invited in the meetings and their observations were
examined. Accordingly, fresh and revised proposals where required were submitted to the
Cabinet for approvals and issuing notifications, thereof. Later in August, 2020, the Cabinet
Committee on Institutional Reforms (CCIR) was notified, and which has held 23 meetings till
July, 2021. The CCIR was mandated to review progress made in implementation of
institutional reforms and also come up with fresh proposals for reforms.

2. After holding extensive deliberations in the Implementation Committee of the Cabinet

and Cabinet Committee on Institutional Reforms, the entire Federal Government has been
categorized into following categories:

Executive Department: 92 OE’s have been categorized as Executive Departments. These

departments will have direct relationship with the controlling Ministry/ Division. Table 1
presents the updated list of all the Executive Departments.
Constitutional Body: 10 CB’s have been identified in the report. Table 2 shows the entities
included in this list.
Autonomous Body: 206 entities have been categorized as Autonomous Bodies. IRC in
collaboration with Ministry of Law and Justice Division and Cabinet Division has prepared
definitions, functions and powers of the AB’s, which will be notified by Cabinet Division,
through an SRO. Table 3 lists the notified Autonomous Bodies. There is a deviation from table
8 of the main report, which showed 237 such entities, so 31 entities have been reclassified.

3. The fate of Federal Board of Revenue, Pakistan Post Office and few entities of the
Ministry of Science and Technology is yet to be decided. Moreover, Organizational Entities
have also been recommended for Privatizations, Liquidation, and Transfer etc, which are listed
below in Table 4.

4. The final number of the OE’s has also changed as during various meetings, the
controlling Ministries came up with suggestions, which were different to the ones, earlier
proposed. As general principle, the controlling Ministry/ Division was heard and due weightage
was accorded to their stance during the exercise.

Table 1: Executive Departments

Name of Division to which

Name of Executive Department
attached

1) (2) (3)

1. Airports Security Force

2. Pakistan Meteorological Department Aviation

86
3. Department of Communications Security

4. National Archives of Pakistan, Islamabad

Cabinet
5. Printing Corporation of Pakistan, Islamabad

6. Pakistan Environmental Protection Agency (Pak-EPA)

7. Zoological Survey of Pakistan (ZSP) Climate Change

8. Directorate General of Trade Organization, Islamabad

9. Liaison Office Afghan Transit Trade, Chaman

Commerce
10. Textile Commissioner’s Organization, Karachi

11. Trade Dispute Resolution Organization

12. Construction Technology Training Institute (CTTI)

13. National Highways and Pakistan Motorways Police Communications

14. Directorate of Military Land and Cantonments

Federal Government Educational Institutions

15.
(Cantonments/Garrisons) Directorate

16. Pakistan Armed Services Board

Defence
17. Pakistan Military Accounts Department

18. Pakistan Maritime Security Agency

19. Survey of Pakistan

20. Defence Export Promotion Organization (DEPO)

21. Directorate General Defence Purchase (DGDP)

Defence Production
22. Directorate General Munitions Production

Directorate General Research and Development

23.
Establishment (DGRDE)

Akhtar Hameed Khan National Centre for Rural

24.
Development (AKHNCRD)
Establishment
25. Staff Welfare Organization (SWO)

26. Inter Board Committee of Chairmen (IBCC)

Federal Education and
Professional Training
27. National Endowment Scholarship for Talents (NEST)

87
28. National Internship Program

29. Pakistan National Commission for UNESCO

30. Federal Treasury Offices (FTOs) Islamabad and Karachi

31. Office of the Controller General of Accounts Finance

32. Pakistan Mint, Lahore

33. Afghan Trade Development Cell

Foreign Affairs
34. All Pakistan Missions Abroad

35. Estate Office Management

Housing and Works
36. Pakistan Public Works Department

37. Family Protection & Rehabilitation Centre for Women

38. Implementation of National Plan of Action (INPAC)

39. National Child Protection Centre (NCPC)

National Commission for Child Welfare & Development Human Rights

40. (NCCWD)

National Council for Rehabilitation of Disabled Persons

41.
(NCRDP)

42. Directorate of Electronic Media and Publications (DEMP)

Information and
Broadcasting
43. Press Information Department (PID)

44. Directorate General of Immigration and Passports

45. Directorate General of Civil Defence

46. Federal Investigation Agency (FIA), Islamabad

47. Frontier Corps (North), Khyber Pakhtunkhwa, Peshawar

48. Frontier Corps (South), Khyber Pakhtunkhwa, Peshawar

Interior
49. Frontier Corps (North), Balochistan, Quetta

50. Frontier Corps (South), Balochistan, Quetta

51. Gilgit-Baltistan Scouts, Gilgit

52. National Academy for Prisons Administration, Lahore

53. Office of the Chief Commissioner, Islamabad

88
 Office of the Commandant Frontier Constabulary, Khyber
54.
Pakhtunkhwa, Peshawar

55. Pakistan Coast Guards, Karachi

56. Pakistan Rangers (Punjab), Lahore

57. Pakistan Rangers (Sindh), Karachi

58. Department of Tourist Services Inter Provincial

Coordination

59. Directorate of Health Services (AK)

Jammu & Kashmir Refugees Rehabilitation Organization, Kashmir Affairs & Gilgit-
60.
Islamabad Baltistan

61. Jammu & Kashmir State Property in Pakistan, Lahore

62. National Accountability Bureau

Law and Justice
63. Office of Attorney General for Pakistan

64. Government Shipping Office, Karachi

65. Mercantile Marine Department, Karachi Maritime Affairs

66. Marine Fisheries Department, Karachi

67. Anti-Narcotics Force (ANF) Narcotics Control

68. Animal Quarantine Department (AQD)

69. Department of Plant Protection (DPP)

Federal Seed Certification and Registration Departments

70.
(FSC&RD) National Food Security and
Research
71. Federal Water Management Cell (FWMC)

72. National Veterinary Laboratory (NVL)

73. Plant Breeders’ Rights Registry

74. Directorate of Central Health Establishment

75. Directorate of Malaria Control (DOMC) National Health Services,

Regulations and
76. Federal Government Polyclinic (FGC / FGC-PGMI) Coordination

77. Federal General Hospital (FGH)

78.
National Health Emergency Preparedness & Response

89
 Network (NHEPRN)

79. National Institute of Rehabilitative Medicine (NIRM)

80. Pakistan Institute of Medical Sciences (PIMS)

81. Department of Archaeology and Museums, Islamabad

National Heritage &
Culture
82. National Library of Pakistan, Islamabad

83. Bureau of Emigration and Overseas Employment Overseas Pakistanis and

Human Resource
84. Directorate of Workers’ Education, Islamabad Development

85. Department of Explosive

Petroleum
86. Geological Survey of Pakistan

87. Federal Government Inspector of Railways (FGIR)

Railways Board (including Railways Divisions / Railways

88. Departments, education and health institutes and factories /
workshops)

Religious Affairs and Inter-

89. Office of Pilgrims Jeddah, Kingdom of Saudi Arabia
faith Harmony

States and Frontier

90. Chief Commission rate for Afghan Refugees, Islamabad
Regions

Office of Engineering Advisor / Chairman Federal Flood

91.
Commission (CEA/CFFC)
Water Resources
92. Office of Pakistan Commissioner for Indus Waters (PCIW)

Table 2: Constitutional Bodies

S. Name of Division to which

Name of Constitutional Department
No. attached

(1) (2) (3)

1. Federal Public Service Commission (FPSC) Establishment

2. Office of the Auditor General of Pakistan (AGP) Finance

Inter Provincial
3. Council of common Interest (CCI)
Coordination

90
4. Council of Islamic Ideology

5. Federal Shariat Court

Law & Justice
6. High Courts

7. Supreme Court of Pakistan

8. Election Commission of Pakistan

9. National Assembly Secretariat Parliamentary Affairs

10. Senate Secretariat

Table 3: of Autonomous Bodies

Name of Division to
Name of Autonomous Bodies
which attached
S. No.

1) (2) (3)

1. Civil Aviation Authority (CAA)

2. Pakistan International Airlines Corporation Limited (PIA) Aviation

3. Frequency Allocation Board (FAB)

4. Islamabad Club, Islamabad

5. National Electric Power Regulatory Authority (NEPRA)

6. National Tourism Coordination Board (NTCB)

Cabinet
7. Oil and Gas Regulatory Authority (OGRA)

8. Pakistan Telecommunication Authority (PTA)

9. Pakistan Tourism Development Corporation

10. Public Procurement Regulatory Authority (PPRA)

11. Climate Change Authority

12. Global Change Impact Studies Centre, Islamabad (GCISC) Climate Change

13. Islamabad Wildlife Management Board (IWMB)

14. Faisalabad Garments City Company (FGCC), Faisalabad Commerce

91
 Intellectual Property Organization of Pakistan (IPO-
15.
Pakistan), Islamabad

16. Karachi Garments City Company (KGCC), Karachi

17. Lahore Garments City Company (LGCC), Lahore

18. National Tariff Commission (NTC), Islamabad

19. Pakistan Cotton Standards Institute, Karachi

20. Pakistan Expo Centres Private Limited Company, Lahore

Pakistan Horticulture Development and Export Company,

21.
Lahore

22. Pakistan Institute of Trade and Development, Islamabad

23. Trading Corporation of Pakistan Private Limited, Karachi

24. Trade Development Authority of Pakistan (TDAP), Karachi

25. National Highway Authority (NHA)

26. National Transport Research Centre (NTRC) Communication

27. Postal Staff College

28. Heavy Industries Taxila (HIT) Board, Taxila

29. Karachi Shipyard & Engineering Works (KS&EW), Karachi

30. National Radio Telecommunication Corporation (NRTC) Defence Production

31. Pakistan Aeronautical Complex (PAC) Board, Kamra

32. Pakistan Ordinance Factories (POFs) Board, Wah Cantt

33. Civil Services Academy (CSA)

Federal Employees Benevolent & Group Insurance Fund

34.
(FEB&GIF)
Establishment
35. National School of Public Policy

36. Pakistan Academy for Rural Development (PARD)

Federal Board of Intermediate and Secondary Education

37.
(FBISE), Islamabad
Federal Education and
38. Higher Education Commission (HEC) Professional Training

39. National Book Foundation (NBF)

92
40. National College of Arts, Lahore and Rawalpindi

41. National Education Foundation (NEF)

42. NFC Institute of Engineering and Technology, Multan

NFC Institute of Engineering and Fertilizer Research,

43.
Faisalabad

44. National Skill University

45. National Textile University, Faisalabad

46. National Training Bureau (NTB)

National Vocational and Technical Education Commission

47.
(NAVTEC)

48. Pakistan Institute of Fashion and Design, Lahore

49. Pakistan Manpower Institute (PMI)

50. Private Educational Institutions Regulatory Authority

51. Audit and Accounts Academy

52. Central Directorate of National Savings (CDNS)

53. Competition Commission of Pakistan (CCP)

54. Financial Monitoring Unit (FMU)

55. National Bank of Pakistan (NBP)

56. National Investment Trust Limited (NITL)

57. National Security Printing Corporation

58. Pak-Brunei Investment Company Limited Finance

59. Pak-China Investment Company

60. Pak-Iran Joint Investment Company Limited

61. Pak-Kuwait Investment Company

62. Pak-Libya Holding Company

63. Pak-Oman Investment Company

64. Public Private Partnership Authority (PPPA)

65. Saudi-Pak Industrial and Agricultural Investment Company

93
66. Securities and Exchange Commission of Pakistan (SECP)

67. State Bank of Pakistan (SBP)

68. Zarai Taraqiati Bank Limited (ZTBL)

69. Foreign Service Academy, Islamabad

70. Institute of Regional Studies (IRS) Foreign Affairs

71. Institute of Strategic Studies, Islamabad

Federal Government Employees Housing Authority,

72.
Islamabad

Pakistan Environmental Planning and Architectural Housing and Works

73.
Consultants Limited (PEPAC)

74. Pakistan Housing Authority Foundation

75. National Commission for Human Rights (NCHR)

Human Rights
76. National Commission on the status of Women (NCSW)

77. Agro Food Processing (AFP) Facilities, Multan

78. Engineering Development Board

79. National Productivity Organization

80. Pakistan Gems & Jewellery Development Company

Pakistan Industrial Development Corporation (PIDC) & its

81.
subsidiaries and Units
Industries and
Pakistan Industrial & Technical Assistance Centre (PITAC), Production
82.
Lahore

83. Pakistan Institute of Management

84. Pakistan Stone Development Company

Small and Medium Enterprises Development Authority

85.
(SMEDA)

86. Utility Stores Corporation (USC)

87. Associated Press of Pakistan Corporation (APPC)

88. Central Board of Film Censors (CBFC)

Information and
Broadcasting
89. Information Services Academy

90. Implementation Tribunal for Newspaper Employees (ITNE)

94
91. National Press Trust (NPT)

92. Pakistan Broadcasting Corporation (PBC)

93. Pakistan Electronic Media Regulatory Authority (PEMRA)

94. Pakistan Information Commission (PIC)

95. Pakistan Television Corporation Private Limited

96. Press Council of Pakistan

97. Shalimar Recording & Broadcasting Company (SRBC)

98. Electronic Certification & Accreditation Council (ECAC)

99. IGNITE National Technology Fund Company

100. National Information Technology Board (NITB)

101. National Telecommunication Corporation (NTC)

102. Pakistan Software Export Board (PSEB)

Information Technology
and Telecommunication
103. Pakistan Telecom Employees Trust (PTET)

104. Telecom Foundation (TF)

105. Telephone Industries of Pakistan (TIP)

106. Universal Service Fund Company

107. Virtual University of Pakistan

108. Capital Development Authority (CDA)

109. Metropolitan Corporation, Islamabad (MCI)

110. National Counter Terrorism Authority (NACTA)

111. National Database & Registration Authority (NADRA)

Interior
112. National Police Academy (NPA)

113. National Police Bureau

114. National Police Foundation (NPF)

115. National Public Safety Commission

116. Federal Land Commission

Inter-Provincial
Coordination
117. Pakistan Cricket Board (PCB)

95
118. Pakistan Sports Board (PSB)

119. Pakistan Veterinary Medical Council

120. Law and Justice

Federal Judicial Academy

121. Gawadar Port Authority, Gawadar

122. Karachi Port Trust, Karachi

123. Korangi Fisheries Harbour Authority, Karachi

Maritime Affairs
124. Pakistan Marine Academy, Karachi

125. Pakistan National Shipping Corporation, Karachi

126. Port Qasim Authority, Karachi

127. Agriculture Policy Institute

128. Fisheries Development Board

129. Livestock Dairy Development Board (LDDB)

130. National Fertilizer Development Centre (NFDC)

131. Pakistan Agriculture Research Council (PARC) National Food Security

and Research
Pakistan Agriculture Service & Storage Corporation
132.
(PASSCO)

133. Pakistan Central Cotton Committee (PCCC)

134. Pakistan Oilseed Development Board (PODB)

135. Pakistan Tobacco Board, Peshawar

136. College of Physician and Surgeon Pakistan

137. Drug Regulatory Authority of Pakistan (DRAP)

138. Health Services Academy (HSA)

139. Human Organ Transplant Authority (HOTA) National Health Services,

Regulations and
140. National Council for Homeopathy Coordination

141. National Council for Tibb (NCT)

142. National Institute of Health (NIH)

143. National Trust for Population Welfare (NATPOW)

96
144. Pharmacy Council of Pakistan (PCP)

145. Pakistan Health Research Council (PHRC)

146. Pakistan Nursing Council (PNC)

147. Shaheed Zulfiqar Ali Bhutto Medical University (SZABMU)

148. Aiwan-e-Quaid Building, F-9 Park, Islamabad

149. Iqbal Academy Pakistan (IAP), Lahore

150. National Academy of Performing Arts (NAPA)

151. National Institute of Folk & Traditional Heritage (Lok Virsa)

National Language Promotion Department (newly named as

152. National Heritage and
National Language Promotion Authority (NLPA)
Culture
153. National Museum of Pakistan, Karachi

154. Pakistan Academy of Letters (PAL), Islamabad

155. Pakistan National Council of Arts

Quaid-e-Azam Mazar Management Board (QMMB),

156.
Karachi

157. Employees Old Age Benefits Institutions, Karachi

158. National Industrial Relations Commission, Islamabad

Overseas Pakistanis and
159. Overseas Employment Corporation, Islamabad Human Resources
Development
160. Overseas Pakistanis Foundation, Islamabad

161. Workers Welfare Fund, Islamabad

162. Hydro Carbon Development Institute of Pakistan

163. Inter State Gas Systems (Pvt) Limited (ISGSL)

164. Pak-Arab Refinery Limited (PARCO)

165. Pakistan LNG Limited Petroleum

166. Pakistan State Oil Company Limited (PSOCL)

167. Sui Northern Gas Pipelines Limited (SNGPL)

168. Sui Southern Gas Company Limited (SSGCL)

169. National Disaster Risk Management Fund (NDRMF)

97
170. National Logistic Cell (NLC)

171. Pakistan Bureau of Statistics (PSB)

172. Pakistan Institute of Development Economics (PIDE) Planning, Development

and Special Initiatives
173. Pakistan Planning and Management Institute (PPMI)

Sindh Infrastructure Development Company Limited

174.
(SIDCL)

175. Benazir Income Support Programme

Poverty Alleviation and
Social Safety
176. Pakistan Bait-ul-Mal (PBM)

177. Alternative Energy Development Board (AEDB)

Central Power Purchasing Agency Guarantee Limited

178.
(CPPAG)

National Energy Efficiency & Conservation Authority

179.
(NEECA)

National Engineering Services Pakistan (Pvt) Ltd.

180. Power
(NESPAK)

181. National Transmission & Dispatch Company (NTDC)

182. Pakistan Electric Power Company Limited (PEPCO)

183. Power Information Technology Company (PITC)

184. Private Power & Infrastructure Board (PPIB)

185. Board of Investment (BOI)

Prime Minister’s Office
186. National Disaster Management Authority (NDMA)

187. Privatization Commission Privatization

Pakistan Railways Advisory & Consultancy Services

188.
Limited (PRFTC)

Pakistan Railways Freight Transportation Company Limited

189.
(PRFTC) Railways

190. Pakistan Railways Academy Walton, Lahore

191. Railways Constructions Pakistan Limited (RAILCOP)

Religious Affairs and

192. Evacuee Trust Property Board (ETPB)
Inter faith Harmony

193. Directorate General of Training Customs Revenue

98
 194. Directorate General of Training Inland Revenue Services

195. COMSATS University

196. National University of Science & Technology

197. National University of Technology

Pakistan Council for Scientific and Industrial Research

198.
(PCSIR)

199. Pakistan Engineering Council (PEC)

Science and Technology
200. Pakistan National Accreditation Council (PNAC)

201. Pakistan Science Foundation (PSF)

202. Pakistan Standards and Quality Control Authority

203. Pakistan Scientific & Technological Information Centre

STEDEC Technology Commercialization Corporation of

204.
Pakistan Pvt. Ltd.

205. Indus River System Authority (IRSA)

Water Resources
206. Water and Power Development Authority (WAPDA)

Table 4: List of entities recommended for the Privatization, Mergers and Liquidation
etc.

Following will retain status as candidates for privatization, mergers, liquidation etc.

Privatization

Sr.
Division Department
No.

1. State life insurance corporation of Pakistan, Karachi

1. Commerce 2. National Insurance Company Limited
3. Pakistan Reinsurance Company Limited

4. First Women Bank Limited

2. Finance
5. SME Bank

99
 6. State Engineering Corporation (Private) Limited
7. Heavy Electrical Complex (Private) Limited
8. Republic motors (private) Limited
3. Industries And Production
9. Morafco Industries Limited
10. Pakistan Automobile Corporation Limited
11. Pakistan Petroleum Limited
12. Sindh Engineering (Private) Limited

Information Technology and

4. 13. Telephone Industries of Pakistan (TIP)
Communication

14. Oil and Gas Development Company Limited,

Islamabad
5. Petroleum 15. Pakistan Mineral Development Corporation
(Private) Limited
16. Hyderabad Electric Supply Company Limited

17. Power Holding (Private) Limited

18. GENCO-I: Jamshoro Power Company Limited
19. GENCO-II: Central Power Generation Company
Limited, Thermal Power Station, Guddo
20. GENCO-III: Northern Power Generation Company
Limited, Thermal Power Station, Muzaffargarh
21. GENCO-IV: Lakhra Power Generation Company
Limited
22. Lakhra Coal Development Company Limited
6. Power 23. Islamabad Electric Supply Company Limited
(IESCO)
24. Lahore Electric Supply Company Limited
25. Gujranwala Electric Power Company Limited
26. Multan Electric Power Company Limited
27. Quetta Electric Supply Company Limited
28. Peshawar Electric Supply Company Limited
29. Sukkur Electric Power Company Limited
30. Tribal Electric Supply Company Limited
31. Lakhra Coal Development Company Limited

Liquidation

1. Finance 1. Industrial Development Bank Limited

Planning Development And

2. 2. National Construction Limited
Reform

3. Railway Estate Development and Marketing

Company
3. Railways 4. Pakistan Railway Freight Transportation Company
(Pvt) Ltd
5. Kashmir Railways (Pvt) Ltd

4. Industries And Production 6. Aik Hunar Aik Nagar

100
 Yet to be decided

1. Peoples Steel Mills Limited

1. Industries
2. Ceramics Development & Training Complex

2. Revenue 3. Pakistan Revenue Automation (Private) Limited

3. Railways 4. Karachi Urban Transport Corporation

4. Finance 5. Exim Bank of Pakistan Limited

5. Science And Technology 6. Plastics Technology Centre

Ministry Of Federal 7. Synthetic Fibre Development and Application

6.
Education Centre

Ministry Of Poverty
7. 8. Pakistan Poverty Alleviation Fund
Alleviation

8. 9. Devolution Trust for Community Empowerment

Others

Ministry Of Energy
1. 1. Saindak Metals Limited (Transfer)
Petroleum Division

2. Communication 2. Pakistan Post Office (Not decided)

3. Ministry Of Railways 3. Pakistan Railways (Not decided)

4. Gujranwala Tools, Dies & Moulds Center (Merger)

4. Industries
5. Furniture Pakistan (Merger)

5. Petroleum 6. Pakistan LNG Limited (Merger)

7. Pakistan Machine Tool Factory (Private) Limited

(Transfer to SPD)
8. Technology Up-gradation and Skill Development
Company (Merger)
6. Industries And Production 9. Karachi Tools, Dies And Moulds Centre (Merger)
10. National Industrial Parks Development and
Management Company (Merger)
11. Pakistan Hunting and Sporting Arms Development
Company (Not Decided)

101
 CHAPTER 5 LEGAL INSTRUMENTS AND BOARD STATUS
OF AUTONOMOUS BODIES
Institutional Reforms Cell has carried a review of all the Autonomous Bodies and updated the
status of their statutes and Board of Directors. Most of such entities have been created by virtue
of statutes or registered with Securities and Exchange Commission of Pakistan as Companies.
The status of the Board of Directors has also been updated.

S.
S. Name of
No Division Legal Instrument Board Status
No Autonomous Body
.

Civil Aviation
1. CAA Ordinance 1960 CAA Board
Authority (CAA)

Pakistan
1. Aviation
International
2. Airlines Companies Ordinance BOD
Corporation
Limited (PIA)

Pakistan
Frequency
3. Telecommunication Act - Board
Allocation Board
1996

Presidential Ordinance
Islamabad Club, Management
4. No. XXXIII of 17th July
Islamabad Committee
1978

Regulation of
Authority
National Electric Generation,
5. Power Regulatory Transmission &
Chairman
Authority (NEPRA) Distribution of Electric
and Members
Power Act-1997.

National Tourism
6. Coordination Board Notification Board
2. Cabinet
(NTCB)

Authority
Oil and Gas
7. Regulatory OGRA Ordinance-2002
Chairman
Authority (OGRA)
and Members

Authority
Pakistan Pakistan
8. Telecommunication Telecommunication (Re-
Chairman
s Authority (PTA) organisation) Act, 1996
and Members

Pakistan Tourism
Companies Act, 1913
Development
9. (now companies Board
Corporation
Ordinance, 1984)
(PTDC)

102
 Public Procurement
10. Regulatory PPRA Ordinance-2002 PPRA Board
Authority (PPRA)

Authority
Climate Change Pakistan Climate Change comprising
11.
Authority Act, 2017 Chairperson
and Members

Established in May 2002

and functioned as a
PSDP project for 11
Global Change years. In March 2013,
Impact Studies GCISC was granted the
12. BOG
3. Climate Change Centre, Islamabad status of a regular
(GCISC) national entity by
passage of "GCISC Act
2013" through the
Parliament

Islamabad Wildlife
Islamabad Wildlife (Protection, Preservation,
13. Management Board Conservation and Board
(IWMB) Management) Ordinance
1979

Faisalabad Garment Registered under SECP’s

14. City Company Companies Ordinance, BOD
(FGCC), Faisalabad 1984.

Intellectual Property
15. Organisation of IPO Act, 2012 Policy Board
Pakistan, Islamabad

Karachi Garment Registered under SECP’s

16. City Company Companies Ordinance, BOD
(KGCC), Karachi 1984.

Lahore Garment Registered under SECP’s

17. City Company Companies Ordinance, BOD
4. Commerce
(LGCC), Lahore 1984.

Commission
National Tariff
18. Commission (NTC), NTC Act 1990
Chairperson
Islamabad
and Members

Pakistan Cotton
Cotton Standardization
19. Standards Institute, BOD
Ordinance, 2002
Karachi

Pakistan Expo
20. Centers Pvt. Ltd. Companies Ordinance BOD
Company, Lahore

103
 Pakistan
Horticulture
Companies Ordinance
21. Development and BOD
1984
Export Company,
Lahore

Formerly Foreign Trade

Pakistan Institute of
Institute of Pakistan
Trade &
22. (FTIP), was created BOG
Development
under a Resolution in
(PITAD)
1989.

Trading
Corporation of Companies Ordinance
23. BOD
Pakistan Pvt. Ltd., 1984
Karachi

Trade Development
24. Authority of TDAP Ordinance-2006 BOD
Pakistan (TDAP)

Council &
National Highway
25. NHA Act 1991& 2001 Executive
Authority (NHA)
Board

National Transport
5. Communication Notification dated
26. Research Centre Nil
8.10.1992
(NTRC)

Constitute Unit of
27. Postal Staff College Nil
Pakistan Post

Heavy Industries
28. Taxila (HIT) Board, HIT Board Act, 1997. Board
Taxila

Karachi Shipyard & Companies Act, 1913,

29. Engineering Works now Companies BOD
(KS&EW) Ordinance, 1984

National Radio
Companies Act, 1913,
Telecommunication
30. now Companies BOD
6. Defence Corporation
Ordinance, 1984
Production (NRTC)

Pakistan
Aeronautical PAC Board Ordinance,
31. Board
Complex (PAC) 2000.
Board, Kamra

Pakistan Ordinance
POFs Board Ordinance
32. Factories (POFs) Board
1961
Board, Wah Cantt.

104
 Academy for
Administrative Training,
Lahore was renamed as
Civil Services Academy
Civil Services
33. vide Estab. Division’s Nil
Academy
SRO dated 17.9.1985.
Made constituent unit of
NSPP vide. NSPP
Ordinance 2002

Federal Employees
Federal Employees
7. Establishment Benevolent & Board of
34. Benevolent and Group
Group Insurance Trustees
Insurance Act, 1969
Funds (FEB&GIF)

National School of
35. NSPP Ordinance, 2002. BOG
Public Policy

Established in 1957 as an
Pakistan Academy
autonomous organization
for Rural
36. under the administrative BOG
Development
control of Establishment
(PARD)
Division

Federal Board of Federal Board of

Intermediate & Intermediate and
37. BOG
Secondary Secondary Education
Education (FBISE) Act, 1975

Commission
Higher Education with
38. HEC Ordinance 2002
Commission (HEC) Chairperson
and Members

National Book
39. Act. 1972. BOG
Foundation
Federal Education
National College of
8. & Professional
40. Arts (NCA), NCA Ordinance 1985 BOG
Training
Lahore, Rawalpindi

National Education
41. NEF Ordinance 2002 BOG
Foundation (NEF)

NFC Institute of
42. Engineering and Act 2002 Senate
Technology, Multan

NFC Institute of
Engineering and Companies Ordinance,
43. BOD
Fertilizer Research, Section 42
Faisalabad

105
 National Skills
National Skill
44. University Islamabad Senate
University
Act, 2017

National Textile
National Textile
45. University, BOG
Ordinance 2002
Faisalabad

National
National Training Notification, established
46. Training
Bureau (NTB) on 1.7.1976
Board

National Vocational
& Technical
NAVTTC Ordinance, Board of
47. Training
2005 Members
Commission
(NAVTTC)

Pakistan Institute of Pakistan Institute of

48. Fashion & Design, Fashion & Design Act, Senate
Lahore 2011

Pakistan Manpower Resolution, established Attach

49.
Institute (PMI) on 1.11.1975 Department

Islamabad Capital
Private Educational
Territory Private Authority
Institutions
50. Educational Institutions Chairperson
Regulatory
(Registration and and Members
Authority (PEIRA)
Regulation) Act 2013

Executive Order of
Audit and Accounts
51. Auditor General of Nil
Academy
Pakistan

Commission
Competition Competition Ordinance
52. Commission of 2007 transformed into
Chairperson
Pakistan (CCP) Competition Act 2010
and Members

Financial National
Anti-Money Laundering
9. Finance 53. Monitoring Unit Executive
Act 2010
(FMU) Committee

National Bank of
54. NBP Ordinance1949 BOD
Pakistan (NBP)

National Investment
Companies Ordinance
55. Trust Limited BOD
1984
(NITL)

56. National Security Companies Ordinance BOD

Printing

106
 Corporation
(NSPC)

Pak Brunei
Companies Ordinance
57. Investment BOD
1984
Company Ltd.

Pak China
Companies Ordinance
58. Investment BOD
1984
Company

Pak Iran Joint

Companies Ordinance
59. Investment BOD
1984
Company

Pak Kuwait
Companies Ordinance
60. Investment BOD
1984
Company

Pak Libya Holding Companies Ordinance

61. BOD
Company 1984

Pak Oman
Companies Ordinance
62. Investment BOD
1984
Company

Authority
Public Private Public Private
63. Partnership Partnership Authority
Chairperson
Authority (PPPA) Act (No. VIII), 2017
and Members

Saudi Pak Industrial

& Agricultural Companies Ordinance
64. BOD
Investment 1984
Company

Securities and
Security & Exchange
Exchange
65. Commission of Pakistan Policy Board
Commission of
Act, 1997.
Pakistan (SECP)

State Bank of
66. SBP Act, 1956 BOD
Pakistan (SBP)

Companies Ordinance
Zarai Taraqiati
1984
67. Bank Limited BOD
(ZTBL)

Foreign Service
Notification dated
10. Foreign Affairs 68. Academy, Nil?
12.5.1985.
Islamabad

107
 Institute of Regional
studies was established
Institute of Regional through Government
69. BOD
Studies (IRS) Resolution Vide
President’s directive No.
1324 of 1981

President’s directive
Institute of Strategic (Registered under
70. BOG
Studies, Islamabad Societies Registration
Act-1860).

Federal
Government
Companies Ordinance Executive
71. Employees Housing
1984 Board
Authority,
Islamabad

Pakistan
Environmental
11. Housing & Works
Planning and Resolution dated
72. BOG
Architectural 6.10.1998
Consultants Limited
(PEPAC)

Pakistan Housing
Companies Ordinance
73. Authority BOD
1984
Foundation

National Commission
National Commission for
Commission for
74. Human Rights Act (No.
Human Rights Chairperson
XVI) of 2012
(NCHR) and Members
12. Human Rights
National Commission
Commission on the
75. Ordinance-2000
Status of Women Chairperson
(NCSW) and Members

Agro Food
Section 42 - Companies
76. Processing (AFP) BOD
Ordinance, 1984
Facilities, Multan

Engineering Cabinet Decision Board of

77.
Development Board dated15.5.1995 Management
Industries &
13. National
Production Companies Ordinance
78. Productivity BOD
1984
Organisation (NPO)

Pakistan Gems &

Jewellery Companies Ordinance,
79. BOD
Development 1984
Company

108
 Pakistan Industrial
Development
Companies Ordinance,
80. Corporation (PIDC) BOD
1984
and its subsidiaries
and units

Pakistan Industrial
Societies Act 1860
& Technical
81. BOD
Assistance Centre
(PITAC), Lahore

Pakistan Institute of
82. SRO dated 15.11.1976. BOG
Management

Pakistan Stone
Companies Ordinance,
83. Development BOD
1984
Company

Small and Medium

Enterprises
SMEDA Ordinance,
84. Development BOD
2002
Authority
(SMEDA)

Utility Stores Companies Ordinance,

85. BOD
Corporation (USC) 1984

Associated Press of
Presidential Ordinance
Pakistan
86. No.LXXX, dated Board
Corporation
19.10.2002.
(APPC)

Information Subordinate
Notification dated 29th
87. Services Academy office to M/o
Nov, 1981
(ISA) MOIB

Implementation Newspaper Employees

Tribunal for (Conditions of Service)
88. Tribunal
Newspaper Act, 1973 (established on
Information &
14. Employees (ITNE) 5.7.1975).
Broadcasting
National Press Trust Trust Deed / Martial
89. Trust
(NPT) Law Ordinance 1969

Pakistan
PBC Act 1973 (statuary
90. Broadcasting BOD
body).
Corporation (PBC)

Pakistan Electronic
Media Regulatory PEMRA Ordinance 2002
91. Board
Authority (XIII of 2002)
(PEMRA)

109
 Commission
Pakistan
Right of Access to
92. Information
Information Act, 2017 Chairperson
Commission (PIC)
and Members

Pakistan Television
93. Corporation Companies Act 1913 BOD
Limited (PTV)

Press Council of Pakistan

Ordinance 2002. An
Press Council of
94. autonomous corporate Council
Pakistan (PCP)
body with the status of a
statutory body).

Unlisted Public Limited

Company incorporated in
Shalimar Recording Dec 1974, originally
95. and Broadcasting under the Act 1913 (Now BOD
Company (SRBC) replaced with the
Companies Ordinance
1984.

Electronic
Section 18 of Electronic
Certification &
96. Transaction Ordinance, Council
Accreditation
2002
Council (ECAC)

IGNITE National Pakistan

97. Technology Fund Telecommunication (Re- BOD
Company organization) Act, 1996

National Pakistan
98. Telecommunication Telecommunication (Re- BOD
Corporation (NTC) organization) Act, 1996

Information Pakistan Software

Companies Ordinance
Technology & 99. Export Board BOD
15. 1984
Telecommunicatio (PSEB)
n
Pakistan Telecom Pakistan
Board of
100. Employees Trust Telecommunication (Re-
Trustees
(PTET) organization) Act 1996

Telecom
101. Endowment Act, 1984 BOG
Foundation (TF)

Telephone
102. Industries of Companies Act, 2017 BOD
Pakistan (TIP)

Universal Service Section 42 – Companies

103. BOD
Fund Company Ordinance 1984

110
 Virtual University Virtual University
104. BOG
of Pakistan Ordinance, 2002.

Capital
105. Development CDA Ordinance, 1960 Board
Authority (CDA)

Metropolitan
ICT Local Government
106. Corporation Council
Act 2015
Islamabad

Initially created in 2009

as an Administrative
National Counter
Wing of the Ministry of
107. Terrorism Authority BOG
Interior. Then made
(NACTA)
autonomous through
NACTA Act 2013

National Database Established under

Authority
& Registration NADRA Ordinance by
16. Interior 108. Chairperson
Authority SRO 174 (1)/2000 dt 24
and Board
(NADRA) .3 .2000

National Police Memorandum of

109. BOG
Academy Association 1977

National
National Police Article 162 of Police
110. Public Safety
Bureau Ordinance 2002
Commission

National Police Charitable Endowments

111. BOD
Foundation Act, 1890

Commission
National Public
112. Police Order 2002
Safety Commission Chairperson
and Members

Land Reforms Commission

Federal Land
113. Regulation, 1972 (MLR- Chairperson
Commission
115) and Members

Pakistani Cricket Board

Pakistan Cricket
114. PCB Constitution SRO BOG
Board
1045 (1) 2019
Inter Provincial
17.
Coordination
Sports (Control &
Pakistan Sports
115. Development) Ord. 1962. Board
Board

Pakistan Veterinary
Pakistan Veterinary
116. Medical Council Act Council
Medical Council
1996

111
 Federal Judicial Federal Judicial
18. Law & Justice 117. BOG
Academy Academy Act, 1997

Gwadar Port
118. Ordinance, 2002 Board
Authority, Gwadar

Karachi Port Trust, KPT Act 1886 as Board of

119.
Karachi amended. Trustees

Korangi Fisheries
120. Harbour Authority, BOD
Karachi
19. Maritime Affairs
Pakistan Marine Notification
121. Nil
Academy, Karachi dt.06.03.1972

Pakistan National
Shipping Board of
122. PNSC’s Ordinance 1979.
Corporation, Directors
Karachi

Port Qasim
123. PQA’s Act, 1973. Board
Authority, Karachi

Resolution No. F.2-5/80/

Agriculture Policy
124. Coord (ii) dated 10th Nil
Institute (API)
March 1981

Fisheries
Companies Ordinance
125. Development Board BOD
1984, Section 42
(FDB)

Setup under Section 42

Livestock Dairy (Govt. guaranteed
126. Development Board company) of the BOD
(LDDB) Companies Ordinance,
1984.
National Food
20. Security & National Fertilizer Technical
Research 127. Development section of
Centre (NFDC) M/o NFSR

Established under
Pakistan
Ordinance No. XXXVIII Council
Agriculture
128. of 1981 Chairperson
Research Council
and Members
(PARC)

Pakistan
Agriculture Service Companies Act, 1913
129. & Storage BOD
Corporation
(PASSCO)

112
 Established by an act of
Parliament (Act No.30 of
Pakistan Central 1948) under the “Indian
130. Cotton Committee Central Cotton Cess Act Committee
(PCCC) XIV of 1923” in 1948
and as modified up to 1st
June, 1951

Resolution No. F. 17-1

Pakistan Oilseed
/94-PODB
131. Development Board Nil
(PODB)
dated 25th October 1994

Pakistan Tobacco
132. PTB Ordinance-1968 BOD
Board, Peshawar

College of
133. Physician and Ordinance 1962. Council
Surgeon Pakistan

Drug Regulatory Drug Regulatory

134. Authority of Authority of Pakistan Policy Board
Pakistan (DRAP) Act, 2012

Health Services Ordinance LXII of 2002

135. BOG
Academy (HSA) dated 4th October, 2002.

Transplantation of
Human Organs and
Human Organ
Tissues Ordinance 2007 Monitoring
136. Transplant
Transplantation of Authority
Authority (HOTA)
Human Organs and
National Health
Tissues Act,2010
Services,
21.
Regulations &
National Council
Coordination Unani Ayurvedic and
137. for Homeopathy Council
Homeopathic Act, 1965.
(NCH)

Established under
National Council
138. Section 3 of UAH Act – Council
for Tibb (NCT)
II of 1965.

National Institute of
139. Ordinance- 1980. Nil
Health (NIH)

National Trust for Established under

140. Population Welfare Charitable Endowments BOD
(NATPOW) Act, 1890.

Pharmacy Council Pharmacy Act, 1967

141. Council
of Pakistan (PCP) (Established in1973)

113
 Pakistan Health
Resolution dated
142. Research Council BOG
17.3.1962
(PHRC)

Pakistan Nursing
143. PNC Act, 1973. Council
Council (PNC)

Shaheed Zulfiqar
Act of Parliament, 21st Senate,
144. Ali Bhutto Medical
March 2013 Syndicate
University

Aiwan-e-Quaid
145. BOD
Building, F-9 Park

Iqbal Academy of
Iqbal Academy Governing
146. Pakistan (IAP),
Ordinance, 1962 Body
Lahore

National Academy
147. of Performing Arts BOD
(NAPA)

National Institute of
Folk & Traditional Autonomous Body-
148. BOG
Heritage (Lok Resolution, dt. 12.11.74
Virsa)

National Language
Promotion
Department (newly Cabinet Resolution
Advisory
National History & 149. named as National No.275/CF/79 dated
22. Council
Literary Heritage Language 4.10.79
Promotion
Authority (NLPA)

National Museum
150. Nil
of Pakistan, Karachi

Pakistan Academy
151. of Letters (PAL), Resolution dt.7.7.1976. BOG
Islamabad

Pakistan National
152. Council of Arts Act, 1973 BOG
(PNCA)

Law/Ordinance (Para5(1)
Quaid-i-Azam
of Quaid-i-Azam’s
Mazar Management
153. Mazar (Protection and Board
Board (QMMB),
Maintenance) Ordinance
Karachi
1971.

114
 Employees Old Age
Employees Old Age
Benefits Act, 1976 Board of
154. Benefits
(established on Trustees
Institutions, Karachi
1.7.1976).

Statute constituted under

Erstwhile IRO, 1969
National Industrial Commission
(IRO-2002) established
Relations
155. on 6.11.1972.
Commission, Chairperson
Now functioning under
Islamabad and Members
Industrial Relations Act
2012

Overseas
Employment
156. Companies Act, 1913 BOD
Overseas Corporation,
Pakistanis & Islamabad
23.
Human Resource
Development Emigration Ordinance,
1979. Registered on 8th
July, 1979 as Not for
Profit Company under
Overseas Pakistanis the Companies Act, 1913
157. Foundation (OPF), (now Companies Act, BOG
Islamabad 2017, Section-42).
Governed under Public
Sector Companies
(Corporate Governance)
Rules, 2013 of SECP.

Established under
Workers Welfare Workers Welfare Fund Governing
158.
Fund, Islamabad Ord. 1971.Established on Body
9.12.1971

Established in 1975
Hydrocarbon under a Resolution of the
Development Federal Government. Re-
159. BOG
Institute of Pakistan established under an Act
(HDIP) of the Parliament (Act
No. 1 of 2006)

Inter State Gas

24. Petroleum 160. Systems Pvt. Ltd. Companies Ord, 1984. BOD
(ISGSL)

Pak-Arab Refinery
161. Companies Act, 1913. BOD
Limited (PARCO)

Public Sector Companies

Pakistan LNG
162. ( Corporate Governance BOD
Limited
Rules) 2013

115
 Pakistan State Oil
Board of
163. Company Limited Companies Act, 1913.
Management
(PSOCL)

Sui Northern Gas

164. Pipelines Limited Companies Act, 1913. BOD
(SNGPL)

Sui Southern Gas

165. Company Limited Companies Act, 1913. BOD
(SSGCL)

National Disaster
166. Risk Management BOD
Fund (NDRMF)

National
National Logistics Notification dated
167. Logistic
Cell (NLC) 8.11.1979
Board

General Statistics
Pakistan Bureau of Governing
168. (Reorganization) Act,
Statistics (PBS) Council
2011
Planning,
25. Development & Pakistan Institute of
Advisory
Reform 169. Development PIDE Act 2010
Board, Senate
Economics (PIDE)

Nil (Attached
Pakistan Planning Autonomous body,
department of
170. and Management Establishment Division’s
M/o Planning
Institute (PPMI) O.M. dated 25.04.2005.
Commission)

Sindh Infrastructure Public Sector Companies

Development ( Corporate Governance
171. BOD
Company Limited Rules ) 2013 as amended
(SIDCL) in 2017

Benazir Income
172. Support Program Act of Parliament, 2008 Board
Poverty Alleviation
(BISP)
26. & Social Safety
Division
Pakistan Bait ul Statutory body, PBM
173. Board
Maal Act,1991

Alternative Energy Autonomous body-

174. Development Board formulated under Board
(AEDB) Ordinance 2007.
27. Power
Central Power
Purchasing Agency Companies Ordinance,
175. BOG
Guarantee Limited 1984
(CPPAG)

116
 National Energy Federal Government’s
Efficiency & Resolution No.
176. Board
Conservation S.R.O.4(KE)/86, dated
Authority (NEECA) the 23rd December, 1986

National
Engineering
Private Limited
177. Services Pakistan BOD
Company.
Pvt. Ltd.
(NESPAK)

National
Transmission & Companies Ordinance,
178. BOD
Dispatch Company 1984
(NTDC)

Pakistan Electric
Companies Ordinance,
179. Power Company BOD
1984
Limited (PEPCO)

The BOD PEPCO

Decision circulated vide
ED (L&CA) letter# 441-
Power Information
47/Secy/PEPCO/BOD/M
180. Technology BOD
-45/I-20 dated May 6,
Company (PITC)
2010. The company was
incorporated with SECP
on June 02/2010

Private Power &

Government Notification
181. Infrastructure Board Board
dated 2.8.1964.
(PPIB)

Established under the

Board of Investment
182. Board of Investment BOD
(BOI)
Ordinance, 2001.
Prime Minister’s
28.
Office
National Disaster Initially under Ordinance Commission
183. Management XL 2006 Chairperson
Authority (NDMA) NDMA Act 2010 and Members

Established under the

Commission
Privatisation Privatization
29. 184. Chairperson
Commission Commission
and Members
Ordinance,2000

Pakistan Railway
Advisory &
Companies Act 1913 as
185. Consultancy BOD
amended
Services Limited
30. Railways
(PRACS)

Pakistan Railways Companies Ordinance

186. BOD
Freight 1984
Transportation
117
 Company Limited
(PRFTC)

Pakistan Railways
187. Inherited from India Nil
Academy Walton

Railway
Companies Act 1913
Constructions
188. (amended by Companies BOD
Pakistan Limited
Ordinance 1984)
(RAILCOP)

Subordinate entity.
Religious Affairs Established under the
Evacuee Trust
31. & Inter Faith 189. Evacuee Trust Properties Board
Property Board
Harmony management & Disposal
Act, 1975

Directorate General
190. Training Institute Nil
Training Customs
32. Revenue
Directorate General
191. Training Inland Training Institute Nil
Revenue Services

COMSATS
192. University, BOG
Islamabad (CUI)

National University
of Science &
193. NUST Act, 1997. BOG
Technology
(NUST)

National University
of Technology, National University of
194. BOG
Islamabad Technology Bill, 2017
(NUTECH)
Science &
33.
Technology Pakistan Council of
PCSIR Act 1973 as
Scientific & Governing
195. amended vide Ordinance
Industrial Research, Body
of 1984.
Islamabad (PCSIR)

Pakistan
Engineering Governing
196. Act 1975 (V of 1976)
Council, Islamabad Body
(PEC)

Pakistan National
Accreditation
197. PNAC 2017 BOD
Council, Islamabad
(PNAC)

118
 Pakistan Science Board of
198. PSF Act 1973
Foundation (PSF) Trustees

Pakistan Standard &

Quality Control
199. PSQCA Act 1996 BOD
Authority, Karachi
(PSQCA)

Pakistan
Pakistan Scientific Subsidiary of PSF and Scientific &
200. & Technological should be removed from Technologica
Information Centre list l Information
Centre

STEDEC
Established in 1987
Technology
under Companies Act.
Commercialisation
201. Incorporated under BOD
Corporation of
Companies Ordinance
Pakistan Pvt. Ltd.,
1984.
Lahore (STEDEC)

Authority
Indus River System
202. IRSA Act 1992.
Authority Chairperson
and Members
34. Water Resources
Water and Power Authority
Development WAPDA Act, 1958
203.
Authority Amended in 1994 Chairperson
(WAPDA) and Members

119
 CHAPTER 6 THREE TIERS IN THE FEDERAL
SECRETARIAT
1. A concept paper for restructuring the Federal Ministries and Divisions was prepared in
October 2018 by the Task Force on Restructuring of the Federal Government. The Prime
Minister had desired that this paper should be discussed at a consultative session of key
ministers before it was presented to the Cabinet. The PM chaired the session and it was decided
that it was not an appropriate time for carrying out the restructuring of the Divisions/ Ministries.
In the first instance, it is imperative to restructure the 16 types of organizational entities
working under the federal Ministries such as attached departments, companies and
corporations, statutory bodies and tribunals etc. Consequently, a major exercise of the
reorganization of these entities was undertaken and approved by the Cabinet on July 9, 2019.

2. A number of entities mainly of commercial nature have been placed on privatization

list as the Government does not enjoy any particular advantage in running these businesses.
Some other entities that are to be retained for strategic reasons have to undergo restructuring
and follow the best practices of good governance—autonomy, transparency, autonomy so that
they can operate efficiently and effectively. To this effect, the Public Financial Management
(PFM) Law, enacted for the first time after independence, has delegated financial powers and
autonomy in budget making and execution to the Autonomous Bodies and Executive
Departments. The Cabinet Committee on State owned Enterprises headed by the Finance
Minister has adopted the recommendations made by the Implementation Committee. They
would also be monitoring the progress on a regular basis.

3. The division of work among the (a) Ministries / Division (b) Autonomous Bodies and
Executive Departments and (c) regulatory bodies has been clarified. The reorganization along
with the delegation of powers under the PFM Law once fully in place, would reduce the
workload on the Federal Ministries/Divisions which would now mainly be involved in policy
making, goals and performance indicators for these bodies and holding them accountable for
results. The autonomous bodies and their boards would carry out implementation of policies,
projects and programs approved by the Government. The regulatory bodies would act
independent of the Ministries / Divisions. Most of these regulatory agencies would be located
in the Cabinet Division.

4. Another initiative taken by the present Government is to introduce E-Office and Web
portals loaded with manuals and codes for all the Ministries/Divisions by early 2021.
Accordingly, the need for support staff engaged in manual file and record keeping, referencing
and other routine matters would be drastically reduced. The staff rendered surplus would be
paid out of a Surplus Pool until they are absorbed in regular positions, retrained, resign or retire.

5. In view of the above-mentioned developments i.e. the reorganization of the Federal

Government organizational entities, delegation of financial powers and greater operational
autonomy to the attached (Executive) Departments and Autonomous Bodies, introduction of
E-Office and Web Portals, it is the right time that we should revisit the present configuration
of the Ministries and Divisions in the Federal Government3.

The present paper does not include President Secretariat, PM Office, National Assembly Secretariat,
Senate Secretariat and other bodies such as Supreme Court, ECP, NAB ,Wafaqi Mohtasab etc.in the proposed
restructuring. Once the Main Secretariat is reorganized, we can approach these bodies too.
120
6. There are essentially two main changes we propose in this paper (a) substitute the
present complement of personal staff officials by quality officers from grade 17 to 21 (b) reduce
the hierarchical tiers in the Federal Secretariat from five to three

7. The running of Civil Administration costs about Rs 450 billion annually of which Rs
260 billion is the wage bill and 190 billion for operating expenses. A decade ago, the wage bill
was only Rs 50 billion. The pension bill is growing explosively and is likely to equal the wage
bill in a few years. The total sanctioned strength of the civilian employees at the Federal level
(excluding Autonomous Bodies) was 491,860 in 2009 and has risen to 663,234 by 2019—an
increase of 35 percent. 85 percent of the total wage and salary bill is claimed by the support
staff who account for 95 percent of the total employees while 15 percent goes to the officers in
Grades 17-22 who form 5 percent of the total strength. The introduction of e-government
should reduce the need for support staff which, in turn, would lower the recurring expenditure
of running of the Federal Government.

8. To effect budgetary savings the staff to officer ratio in the Federal Secretariat needs to
be reduced. It is currently 4.11 but eighteen Divisions have this ratio above 5 all the way up to
12. The details are given in Annex I. The ratio of 4:1 should be accepted in the first instance as
the benchmark for staff deployment in the Federal Secretariat and those rendered surplus to the
requirements would be placed in a surplus pool for later absorption, retraining, redeployment,
retirement, voluntary separation. This should be accompanied by immediate freeze on new
recruitment against the posts in BPS 1-16 in the Secretariat. Exceptional cases for deviation
from this benchmark can be considered by the Cabinet Committee on Institutional Reforms.

9. As discussed below, this ratio should be gradually brought down further to 2:1 by
substituting the Private Secretaries, Assistant, Clerks, Steno typists etc. in the offices of the
Ministers, Secretaries, Joint /Additional Secretaries and Deputy Secretaries by highly qualified
Staff officers drawn from Grades 17-22. An informal survey shows that the Ministers and
senior officers would be better served with such a substitution as these Staff officers would add
value by assisting in collecting the data, analyzing the issues under consideration and carrying
out spade work.

10. It is further proposed that the hierarchy in each Division be reduced from five tiers to
three – Deputy secretary (BPS 19/20), Joint Secretary (BPS 20/21) and Secretary (BPS 22). In
few Divisions such as Finance, the workload may justify a position of Special Secretary (BPS
22). BPS 19 officer can be appointed as D.S. and BPS 20 as J.S. in Division where the workload
is not that heavy. The concept of Broad-banding is now used liberally in many organizations
including GOP such as Senior Joint Secretary /Additional Secretary and Additional Secretary
in-charge of a Division.

11. It is proposed that a Deputy Secretary should head a Section in a Ministry/Division in

place of a Section Officer. Each Deputy Secretary would have two staff officers in grade 17/18
assisting him in his duties. These staff officers would not initiate any noting or summaries but
gather data and references to the relevant law and rules for the use by the Deputy secretary.
The present complement of subordinate staff of Superintendents, assistants, UDCs, LDCs
would be abolished. Only one Naib Qasid would be assigned to each D.S.

12. Each Joint Secretary would have two staff officers in Grade 18/19 in his office to assist
him in his duties. The present complement of subordinate staff except a Naib Qasid would be
abolished.

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13. Each Secretary would have two staff officers in Grade 20/21 in his office to assist him
in his duties. The present complement of subordinate staff except a Personal Assistant and Naib
Qasid would be abolished.

14. Each Minister/Minister of State/Advisor would have one Technical Advisor, one Staff
Officer in Grade 21, one Public Relations Officer, one Protocol Officer, one Private Secretary,
One Driver and Security Guards.

15. At present, there are 3376 sanctioned posts is BPS 17-22 in the Secretariat. If the
proposed configuration is accepted, this total number would reduce to 2460 as detailed in the
following two categories. This new strength will be very close to the current working strength
(2520) of officers in the Federal Secretariat.

i) The proposed strength of the main Federal Secretariat would be:

Number

Secretary Grade 22 40

Joint Secretary Grade 21/20 140

Deputy Secretary Grade 20/19 630

ii) The total number of Staff officers serving in the secretariat hierarchy at the different
tiers would be:

Number

For Minister in Grade 21 30

For Secretary in Grade 20/21 80 (2 to 1)

For Joint Secretary in Grade 19/20 280 (2 to 1)

For Deputy Secretary in Grade 17/18 1260 (2 to 1)

16. It may be noted that there is a huge discrepancy in the staff strength of the Divisions in
the same clusters and a review of the staffing pattern in each Division is called for and the gaps,
redundancies and missing skills is identified. Some divisions have large executing agencies,
but their own policy formulation work is much limited e.g. Revenue Division has a strong
agency i.e. FBR with 20,631 employees but the main Division at the Secretariat consists of
only 34 staff and officers. In order to bring homogeneity, each Division will have at least the
following positions either in the rank of J.S. or D.S. depending on the workload.

i) Chief Finance & Accounts Officer

ii) Chief I.T. Officer
iii) Chief Human Resource Officer

17. There is an immediate need to appoint Chief Technical Officers in all the technical
Divisions of the Federal Secretariat. These Divisions include Aviation, Communication,
Climate Change, Housing and Works, Information Technology, Law and Justice, Maritime,

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Power, Petroleum, Railway, Science and Technology and Water Resources in addition to these
posts. Other Divisions may also choose to appoint a CTO if they feel the need.

Issues for Discussion

i) Whether the three-tier structure of the Division from the present five-tier structure
would improve speed and quality of decision making?
ii) Whether the proposal to appoint staff officers attached with the Minister, Secretary,
Joint Secretary and Deputy Secretary as proposed in paras 14-17 above in place of the
present complement of subordinate staff would expedite the disposal of business and
effect savings?
iii) Whether the staff-officer ratio of 4:1 should be enforced in the first instance in the
Divisions which exceed this ratio and then bring it down to 2:1 in the next three years
if the proposals in paras above are accepted. Those retiring, resigning or leaving the
staff jobs in Grade 1-16 in the Federal Secretariat and non-technical staff in the attached
(Executive) departments should not be replaced and those posts abolished. The savings
in the wage bill, thus effected, should be used to increase the salaries of officers in
Grades 17-22.

Present Status

18. This working paper/ proposal was discussed and considered by Cabinet Committee on
Institutional Reforms on 14th January, 2021. Mr. Shafqat Mahmood, Chairman of the CCIR
appreciated the idea and informed that Ministry of Federal Education and Professional Training
was already implementing a three-tier structure as given below. After the ratification by the
Cabinet, Establishment Division has been advised to examine alternate proposal for reducing
the tiers of the Federal Government and submit the recommendation for the consideration of
the CCIR. Now, Establishment is preparing a mechanism for its implementation as pilot project
in few selected Divisions.

Proposed Three Tier Structure

1. Secretary Staff Officers

(Grade 21-22) (Grade 20)
Additional Secretary Staff Officers
(Grade 20-21) (Grades 19,20)
Joint Secretary Staff Officers
(Grade 19, 20) (Grades 17, 18, 19)

2. Secretary Staff Officers

(Grade 21-22) (Grades 20)
Joint Secretary Staff Officers
(Grade 20, 21) (Grades 19 – 20)
Deputy Secretary Staff Officers
Grade 19, 20) Grades 17, 18, 19)

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 ANNEX- I

Ratio of Working Staff and Officers in Divisions

S.NO. DIVISION BS 1-16 BS 17-22 RATIO

1 Aviation 61 15 4.07

2 Cabinet 641 94 6.82

3 Climate Change 108 34 3.18

4 Commerce 347 73 4.75

5 Communications 87 20 4.35

6 Defence 340 52 6.54

7 Defence Production 164 27 6.07

8 Economic Affairs 367 82 4.48

9 Establishment 630 139 4.53

10 Federal Education 105 21 5.00

11 Foreign Affairs 1725 455 3.79

12 Finance 967 387 2.50

13 Housing and Works 138 21 6.57

14 Human Rights 175 35 5.00

15 Industries and Production 247 48 5.15

16 Information and Broadcasting 359 28 12.82

17 Information Technology 95 21 4.52

18 IPC 179 36 4.97

19 Interior 444 75 5.92

20 Kashmir Affairs and GB 77 21 3.67

21 Law and Justice 371 50 7.42

22 Maritime 115 32 3.59

23 Narcotics 95 18 5.28

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24 National Food 142 35 4.06

25 National Health 182 64 2.84

26 National History and Literary Heritage 88 17 5.18

27 National Security 16 7 2.29

28 Overseas Pakistanis and HRD 210 33 6.36

29 Parliamentary Affairs 132 34 3.88

30 Postal Services 26 8 3.25

31 Petroleum and Natural Resources 226 56 4.04

32 Planning Development and Reform 497 260 1.91

33 Poverty Alleviation 54 8 6.75

34 Power 85 33 2.58

35 privatization 63 8 7.88

36 Railways 151 50 3.02

37 Religious Affairs 240 41 5.85

38 Revenue 26 7 3.71

39 Science and Technology 150 25 6.00

40 Textile 114 25 4.56

41 Safron 108 16 6.75

42 Water resources 17 9 1.89

Total 10364 2520 4.11

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 CHAPTER 7 FOUR OCCUPATIONAL STREAMS FOR THE
FEDERAL SECRETARIAT
1. The Federal Secretariat comprises 40 Divisions and each Division is headed by a
Federal Secretary. Presently, government of Pakistan is following a generalist model for the
Secretariat, whereby, career civil servants rise through the ranks and hold the position of the
Federal Secretary. These position in Secretariat start from the induction level at BS-17, which
is known at Section Officer.

2. As of now, no watertight policy is followed for the posting of the officer(s), rather any
officer is allowed posting in any Division, subject to availability of the vacancy and any
demand for his services. Some, informal assessment of the individual is though carried out, but
if the borrowing and lending Divisions are comfortable with the individual, this posting gets
materialized and is executed by the Establishment Division. Therefore, this assessment remains
informal to a great extent, and objective suitability remains elusive. Personal desire for posting
in any particular Division, if can be managed by individual, takes precedence over the academic
qualification, background and experience. This is a double edge sword and, in some
circumstances, officers also end up at unwanted Divisions, because Establishment Division is
also trying to fill in vacancies for the entire federal government. This gives rise to mismatch
between the core competencies of the officer and the requirements of the job. Under the present
system, an officer having background of Finance may end up in Religious Affairs or Culture
Divisions, and someone with no experience of trade may find himself dealing with complex
trade negotiation or managing issues of the circular debt, as the case may be.

3. This has necessitated the categorization of the Federal Secretariat into distinct clusters,
so that officers having requisite academic background, profile and experience can be posted in
a cluster of relevant and related Division. The purpose of this exercise is to inculcate
specialization in the Federal Secretariat to improve the quality of the decision making and
service delivery. The clustering of Divisions/ Ministries under four distinct stream and limiting
rotation, promotion and posting within the confines of the chosen streams would equip the
generalists who already possess breadth of experience and management expertise with some
domain knowledge and a degree of specialization enhancing their decision-making capabilities.

4. The uniformity of compensation would no longer create a tilt towards some Ministries/
Divisions which is the case at present. Employees make their best efforts to be posted in the
Divisions with relatively lucrative compensation irrespective of the fact whether their skillsets
and background experience fits in with the job requirements or not. The result is that there are
too many square pegs in round holes. This scheme would promote limited specialization as the
movement and transfers would take place within a limited cluster of Division/Ministries. This
controlled rotation in identical or related subject matter Ministries would nurture some degree
of specialization among the generalist officers, who primarily dominate the officer grade
positions in the Federal Secretariat. An ideal situation would be if the provincial Secretariat are
also organized along the same clusters. The rotation and transfer policy along with induction
of Provincial Service officers in the Federal Government and the deputation permissible under
section 10 of the Civil Servants Act can strengthen this process of limited specialization,
acquisition, and updating of competencies and skills in those subjects.

5. The current Federal Ministries/Divisions can be rearranged in the following clusters.

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CLUSTERS OF DIVISIONS
CLUSTER A: Technical Ministries / Divisions

i) Aviation
ii) Communications
iii) Climate Change
iv) Housing & Works
v) Information Technology
vi) Law and Justice
vii) Maritimes Affairs
viii) Power
ix) Petroleum
x) Railways
xi) Science and Technology
xii) Water Resources

CLUSTER B: Economic Ministries / Divisions

i) Commerce
ii) Economic Affairs
iii) Finance division
iv) Industries
v) National Food Security
vi) Planning, Development
vii) Privatization
viii) Revenue

CLUSTER C: Social Sectors Ministries / Divisions

i) Federal Education
ii) Human Rights
iii) National History & Literacy
iv) National Health
v) Overseas Pakistanis
vi) Poverty Alleviators
vii) Religious Affairs

CLUSTER D: General Management Group of Ministries / Divisions

i) Cabinet
ii) Defence
iii) Defence Production
iv) Establishment
v) Foreign Affairs
vi) Information, Broadcasting
vii) Inter-Provincial Coordination
viii) Kashmir Affairs
ix) National Security
x) Narcotics Control
xi) Parliamentary Affairs
xii) States and Frontier Regions
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 xiii) Interior

Present Status

6. The Federal Cabinet has approved this categorization of the officers into four streams
and presently, Establishment Division is implementing the scheme for the officers of Office
Management Group, only.

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PART-2: REFORMS DEFERRED

129
 CHAPTER 8 WORKING PAPER ON REORGANIZING THE
FEDERAL SECRETARIAT
1. In 2010, the 18th amendment to the Constitution abolished the concurrent list and
devolved the functions of 17 Federal Ministries4. The main functions of the Federal
Government after the 18th amendment are listed in Annex I. These, interalia, include Defence,
External Relations, Finance and Currency, Communications, Commerce and International
Trade, Electricity, standard setting, Superior Judiciary, Research and Development etc. Most
of these are public goods and services. After the 7th NFC award, the share of the Federal
Government in the Divisible Tax pool has shrunk to around 40 percent while it has been heavily
burdened with domestic and external debt servicing putting serious strains on fiscal balances.

2. Despite the devolution, low tax revenues and rising debt servicing burden the size of
the Federal Government and therefore the expenditure on wages and salaries and pensions has
been rising fast. It may be pertinent to point out that the following Ministries have re-emerged
at the Federal level under the following names:

Education—Federal Education and Professional Training

Health—National Health Services, Regulations and Coordination
Environment—Climate Change
Labour—Overseas Pakistanis and Human Resource Development
Culture—National History and Literary Heritage
Agriculture—National Food Security and Research

3. The Federal Government until 2002 had a small but effective Cabinet which consisted
of 16-17 ministers. Since then, there has been a proliferation of Ministries and despite the
devolution, there were 34 Ministries and 43 divisions when this Government took over
compared to 41 Ministries and 46 Divisions before the devolution. The present Government
has abolished two divisions and merged two. One new division on Poverty Alleviation and
Social Protection was created.

4. A concept paper for restructuring the Federal Ministries and Divisions was prepared in
October 2018 by the Task Force on Restructuring of the Federal Government. The Prime
Minister had desired that this paper should be discussed at a consultative session of key
ministers before it was presented to the Cabinet. The PM chaired the session and it was decided
that it was not an appropriate time for carrying out the restructuring of the Divisions/ Ministries.
In the first instance, it is imperative to restructure the 16 types of organizational entities
working under the federal Ministries such as attached departments etc. Consequently, a major
exercise of the reorganization of these entities was undertaken and approved by the Cabinet on
July 9, 2019 and these reforms are being continuously monitored and implemented by a Cabinet
Committee. As a result of this exercise, the number of organizational entities under the control
of the Federal Government has been reduced from 441 to 332.

5. The starting point of the reform should be the Division and in the proposed
configuration there should be only 33 Divisions down from 42 at present. Each Division can
be headed by a Minister, Minister of State, or Advisor as laid down in the Constitution. It is
suggested that the Special Assistants to the Prime Minister should assist the Prime Minister in

4
Education. Health, Agriculture, Culture, women, youth, Population, social welfare, Environment, Local
Government, Labour and Manpower, Minorities, Youth, Zakat, Livestock, Tourism, Sports; Textile Industry
with Commerce
130
overseeing, supervising evaluating and guiding the work of the Division, but not head the
Division as they cannot he held accountable for their performance by the Parliament. At present
42 Divisions are headed by 26 Ministers, 4 Advisors (Commerce, Finance and Revenue,
Climate Change, Parliamentary Affairs) and 5 Special Assistants to PM (Health, Overseas
Pakistanis, Poverty Alleviation, Petroleum and Information) and 3 directly by the P.M. The
SAPM can be given the status of the Minister or Minister of State and can attend the Cabinet
meetings. Under the new set up, the 26 ministers and 4 advisors would continue to head the
Divisions with the PM heading the existing 3 divisions.

6. The Ministries proposed for restructuring in the second phase are of two types :-(a)
those which can carry out stand-alone activities and can remain intact in their present form (b)
clusters of Division carrying out activities of similar or related nature. Coordination failures in
Pakistan despite the existence of fora a such as ECC have inflicted heavy costs on the economy
as each Ministry works in silos without due regard to the linkages, interdependencies and
synergies with the others. To illustrate, Infrastructure Development has been lopsided as most
investment has taken place in Motorways and Highways to the neglect of the cheaper and
accessible Rail transportation. Absence of inter – modal transport planning has made
evacuation of goods from North to the ports in South quite exorbitant affecting the
competitiveness of exports. Same is the case of Energy sector where Integrated Planning and
Policy is missing and the country is suffering huge economic and financial losses. An attempt
has therefore been made to introduce the concept of a few Ministries as a cluster of several
Divisions. In such cases of multiple divisions, forming a Ministry it is suggested that a Lead
Minister may be designated to head the Ministry with all the Ministers in Charge of the
Divisions working with the Lead Minister chosen from amongst the Ministers or Advisors of
the Divisions clustered. The concept of Lead Minister would apply only in eight cases (i)
Defence, (ii)Energy, (iii)Finance, (iv)Human Development, (v)Human Rights & Poverty
Alleviation, (iv)Infrastructure Development, (vii)Trade and Industry and (viii) Technology
Development.

7. The running of Civil Administration costs about Rs 450 billion annually of which Rs
260 billion is the wage bill and 190 billion for operating expenses. A decade ago the wage bill
was only Rs 50 billion. The pension bill is growing explosively and is likely to equal the wage
bill in a few years. The total strength of the civilian employees at the Federal level was 491860
in 2009 and has risen to 663234 by 2019—an increase of 35 percent. 85 percent of the total
wage and salary bill is claimed by the support staff who account for 95 percent of the total
employees while 15 percent goes to the officers in Grades 17-22 who form 5 percent of the
total strength. The introduction of e-government should reduce the need for support staff which,
in turn, would lower the recurring expenditure of running of the Federal Government. The staff
rendered surplus would be paid out of a Surplus Pool until they are absorbed in regular
positions, retrained, resign or retire.

8. The existing structure of the Federal Ministries and the Divisions (Annex-II) has been
reviewed by the Task Force which has come up with some proposals for a new configuration.
The Task Force had adopted the following criteria for evaluating each Ministry and Division:
-

i) Which Divisions/Ministries are the focus areas and areas of emphasis in the Manifesto
and the PM’s public statements?
ii) Which Divisions/Ministries have to perform the Constitutional obligation and serve as
the touch points with other organs of state?

131
 iii) Which Divisions/Ministries provide Cross-cutting or support services required for the
functioning of the Government as a whole?
iv) Which Divisions/Ministries are the main instruments needed for external and internal
security and national harmony
v) Which Ministries are the key drivers for promoting economic growth?

9. The proposed configuration of the Ministries and Divisions which meet the above
criteria stems from the following principles: -

i) A compact and manageable number of Ministers add to the quality of discussion, debate
and decision making by the Cabinet and bring about greater coherence in the affairs of
the Government.
ii) The Prime Minister has a better span of control and is able to monitor the performance
of his Ministers more effectively. The introduction of Lead Minister in eight Ministries
would relieve the PM from resolving inter Division conflicts and ensure better
coordination.
iii) Each Division should be organized on the basis of the volume of work, number of
agencies to be supervised, a critical mass of active personnel working in the Ministry
and identity in the nature of functions.
iv) The current priorities and the scope of the future responsibilities should be correctly
reflected and assigned due weightage.
v) Overlapping, duplication and the need for continuous inter-ministerial coordination and
consultation should be minimized.
vi) There should be a clear demarcation between the Line Ministries and the Support
Ministries (Cabinet Secretariat, Finance, Planning and Development, Information and
Media, Law and Justice, Parliamentary Affairs)
vii) Functions of similar and complementary nature should be grouped together e.g
Railways and Communication dealing with surface Transportation be brought under
one Division and lumped with the Division dealing with Air and Sea Transportation to
form the Ministry of Infrastructure Development.
viii) As more administrative and financial powers, functional and operational
autonomy are delegated to the Executive departments and autonomous bodies the work
load on the Division will be reduced to a considerable extent. This freeing up of time
and resources can therefore be better utilized by achieving economies of scale.
ix) Privatization, deregulation, transfer of activities to the provincial governments,
mergers, winding up and liquidation of several entities have created an uneven impact
on the residual size of each Ministry. It is therefore, necessary to realign each Ministry
to a uniform bench mark.
x) Some divisions have large executing agencies but their own policy formulation work is
much limited e.g. Revenue Division has a strong agency i.e. FBR with 20631
employees but the main Division at the Secretariat consists of only 34 staff and officers.
xi) The staff to officer’s ratio (10364 staff and 2520 officers) for the Federal Government
is currently 4.11 but eighteen Divisions have this ratio above 5 all the way up to 12.
This ratio should be accepted as the benchmark for staff deployment in the Federal
Secretariat and those rendered surplus to the requirements would be placed in a surplus
pool for later absorption, retraining, redeployment, retirement, voluntary separation.
Exceptional cases for deviation from this benchmark can be considered by the Cabinet
Committee on Implementation.
xii) This ratio should be gradually brought down to 3:1 by substituting the Private
Secretaries, Assistant, Clerks, Steno typists etc. in the offices of the Ministers,

132
 Secretaries, Joint /Additional Secretaries and Deputy Secretaries by fewer number but
highly qualified staff officers drawn from Grades 17-22. An informal survey shows that
the Ministers and senior officers would be better served with such a substitution as these
Staff officers would add value by assisting in collecting the data, analysing the issues
under consideration and carrying out spade work. Once this ratio is accepted as a
benchmark it would be applied to the attached departments and the autonomous bodies5
effecting major savings in the wage and salary bill and pensions.

10. Applying the above principles to the existing Ministries and Division it is proposed that
first of all a distinction is made between the line Ministries and the support Ministries which
provide back end services to facilitate and regulate the line ministries. The support Ministries
are:

i) Cabinet Division
ii) Establishment Division
iii) Finance, Revenue and Economic Affairs
iv) Information and Broadcasting
v) Law and Justice
vi) Parliamentary Affairs
vii) Planning, Development and Special Initiatives

11. Second, the number of divisions be reduced from 42 to 33 and the number of Ministries
from 32 to 22. It may be relevant to point out that some Divisions have as few as 22 staff
members on their strength which is highly sub-optimal from an organizational structure point
of view. Our survey shows that at least 8 Divisions have around or less than 100 staff members.
A scheme showing the mapping from the existing Ministries and Divisions to the proposed
configuration is shown at Annex-III and Annex-IV. The salient features of the proposed
changes are:

12. Cabinet Secretariat will continue to work directly under the Prime Minister with three
Divisions;

i) the existing Cabinet Division (with all regulatory agencies located here)
ii) an expanded Human Resource Management Division replacing the current
Establishment Division with the functions to formulate Human Resources policies for
the entire Federal Government, directly manage the, All Pakistanis Services, set
standards and norms for management of Federal Cadres and services and non-cadre
employees of other Divisions, ensure that the policies, standards and norms are being
followed. The HRM Division would also be the interface with the Federal Public
Service Commission for recruitment into the Federal Government.
iii) National Security Division. This Division has only 34 employees and should be folded
within the Cabinet Division. The Secretariat function of the National Security
committee should then be transferred to the Cabinet Division which also performs
similar functions in respect of National Economic Council.

13. A new Technology Development Ministry consisting of the existing Science

Technology (S&T) Division and Information Technology and Telecom Division be created to

5
For the attached departments and autonomous bodies, a further distinction has to be made separating staff
working with domain knowledge such as teachers, health workers, technicians, accountants, police men etc.
from those working in purely direct support functions to the officers
133
steer the country on the path of technological upgradation in the light of future interactive of
economic and social developments. A major restructuring of our Science & Technology
organizations has to be undertaken as there is a degree of overlap between the Ministries of
S&T and IT at present.

14. Ministry of Human Development: Considering that Education, Health, Population,

Welfare, Labor are provincial subjects there is hardly any need to have separate Ministries for
each of these subjects at the Federal level in the future. However, the synergies between each
one of these subjects are essential to design, develop, implement and monitor a human
development strategy for the country in consultation with the provinces, private sector, NGOs
and other stakeholders. While it is recommended that there should be separate Divisions for
Education and Health for these subjects they should be all brought together under a Ministry
of Human Development. This will highlight the importance of the present Government attaches
to a more integrated and holistic approach to the development of country’s human resources
for reaping the demographic dividends in the future by providing training and skills.

15. Ministry of Human Rights, Poverty Alleviation and Social Protection: It will consist of
two divisions - (a) Poverty Alleviation and Social Protection (b) Human Rights. It has become
quite obvious that the present segmentation of the instruments of social protection and social
safety nets among different ministries, agencies and provinces has proved to be inefficient and
devoid of any tangible impact on the intended target population of the poor vulnerable and
disadvantaged. Poverty Alleviation and Social Protection Division has already brought under
one umbrella the existing government interventions scattered across the Government and to
coordinates policies and programs with the Provincial Governments, private sector and
philanthropic sector. The Ministry will also be designing new interventions that have proved
successful in other countries. Human Rights Division is already seized of the problems of
women, children, Minorities and Disabled but has fewer staff to justify its existence as a
separate Division. Alternatively, the Ministry of Religious Affairs and Interfaith Harmony
should be expanded to from Ministry of Religious Affairs and Human Rights with two
divisions (1) Religious Affairs and Interfaith Harmony (2) Human Rights.

16. Ministry of Infrastructure Development: As Railways is being restructured to operate

as an autonomous body and Highways are already developed and maintained by another
autonomous body -National Highway Authority (NHA), and Ports and Shipping by
autonomous trusts and authorities, Aviation by PIA and CAA it becomes feasible to form a
single Ministry for Infrastructure Development with two divisions. The Division for Surface
or Land Transportation will be formed by the merger of Communications, Postal Services and
Railways Divisions. The Division for Air and Sea Transportation will be culled from the
Aviation Division and the Maritime Affairs Division. This grouping will help optimize Inter-
modal transport network for the country and also facilitate the coordination and interlink
problems inherent in the development of the National Transport Corridor.

17. Ministry of Energy Development: The present fragmentation between Power and
Petroleum along with past flawed policies and the huge burden of circular debt has made the
industrial sector uncompetitive while forcing government to give budgetary subsidies for
households creating stress on fiscal resources. The institutional infrastructure of Generation
Companies, Transmission Company, Distribution Companies, the IPPs in private sector, Oil
Exploration and Marketing Gas companies etc. require a more integrated energy development
strategy policy framework and coordination. With the successful separation of policy making,
regulatory and operational activities and ultimate privatization or corporatization of most of
the large operational companies, it is now propitious to have a Ministry of Energy Development
134
with the two existing Ministries of Power and Petroleum becoming two divisions. The ensuing
work load distribution will result in a more efficient and integrated development of
hydrocarbon and alternate energy sources and allocation among competing energy supply
sources.

18. Ministry of Trade and Industry: The two divisions – Commerce and Textile, Industries
and Production – should be lumped together under the Ministry of Trade and Industry. The
successful Japanese model of MITI in the 1960s and 1970s and that of Malaysia later on has a
lot of parallels with the current stage of Pakistan’s development. The backward and forward
linkages between the industrial production, import substitution and export diversification can
be exploited in a seamless, boundary less stream navigated by this Ministry. The issues
surrounding Pakistan’s competitiveness in global markets can also be sorted out by this
Ministry in a concerted manner.

19. Ministries of Climate Change and Food Security: should be formed by the two
respective divisions since most of the activities pertaining to crops, livestock, fisheries and also
environment and climate change such as water supply, sewerage, solid waste disposal, forests
resources etc. belong to the Provincial and Local Governments. This Ministry would make
policies and plans for mitigation and adaptation, promote agriculture research and applications
of new technology and develop national strategies for food security fix a futures risk due to
climate change. Alternatively, a Ministry of Water Resources and Food Security could be
created as most of the water resources are utilized for irrigation purposes in agriculture
production.

20. Narcotics Division had traditionally been part of the Interior Ministry and should revert
to that Ministry.

21. Ministry of Finance and Revenue should absorb the Ministry of Economic Affairs and
consist of two divisions;

i) Finance and Revenue.

ii) Economic Affairs.

22. The two divisions – Defence and Defence Production have been together part of the
Ministry of Defence in the past. It is suggested that the status quo ante be restored.

23. The future role of the Ministry of Information and Media that of the Information Service
Officers requires a more in-depth study in light of the overwhelming dominance of private
electronic media and the marginalization of the government owned channels. Other relatively
successful models such as the spokespersons in the office of the Prime Minister or Key
Ministries competent in their own respective professional fields could be tested as possible
alternatives. There are no clear views on this subject which needs further explanation.

24. It is further proposed that the hierarchical tiers in the Federal Secretariat should be
reduced from the existing five ---SO, DS, JS, AS and Secretary—to three—DS, JS and
Secretary. Each officer would get staff officers in Grades 17 to 20 to assist them in their routine
tasks replacing the existing battery of support staff.

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Conclusion
25. The purpose of this exercise of reorganizing the existing Divisions/ Ministries is
manifold.

i) Identify the focus areas and areas of emphasis of the present government and strengthen
those Ministries/Divisions to deliver the outcomes efficiently, economically and
effectively
ii) Clarify the distinction between the line Ministries which are at the front end and the
support Ministries which provide back end services to facilitate and regulate the line
ministries
iii) Bring about greater synergies, coordination and cohesion among the Divisions carrying
out similar or related activities
iv) Rationalize the distribution of work load among different Divisions as a result of
devolution, privatization, deregulation, mergers, liquidation etc.
v) Reduce the head count of Support staff and gradually transfer the savings to increase
the compensation package of officers who are under paid at present.
vi) Cut down the tiers of decision-making process from five to three and enhance the
quality of staff assistance to the officers in the chain

Issues for Discussion

i) Whether the proposed reduction in the number of Divisions and Ministries is justifiable
or not?
ii) Whether the proposed eight clusters of Divisions under the Ministries are acceptable or
not?
iii) Whether the three-tier structure of the Division from the present five tier structure
would improve speed and quality of decision making?
iv) Whether the staff-officer ratio of 3:1 should be accepted as a benchmark for the Federal
Government and enforced in a phased manner and be considered for future planning of
staff recruitment and deployment. Divisions exceeding this ratio may be advised to
provide justification to the Cabinet Implementation Committee.

136
 ANNEX- I

FUNCTIONS OF THE FEDERAL GOVERNMENT AS ENSHRINED

IN THE LEGISLATIVE LISTS OF THE CONSTITUTION

S. No Functions Corresponding Divisions

1) Defence of Federation and Military Defence and Defence Production

2) Management of Cantonment Areas Defence

3) External Affairs including Treaties Foreign Affairs, EAD,OPHRD

4) Nationality, Citizenship, Naturalization, Interior Division

migration and emigration and International
Travel

5) Post and Telegraphs Communications

6) Telephones and Wireless IT

7) Broadcasting Information and Broadcasting

8) Currency, coinage and legal tender, foreign Finance (through State Bank),
exchange, public debt including foreign debt, EAD
State Bank, Banking

9) Federal Public Services and Federal Public Establishment

Service Commission.

10) Federal Ombudsmen. Law (Federal Ombudsman)

11) Superior Courts, Administrative Courts, Law

Tribunals

12) Libraries, museums, and similar institutions National History and Literary
controlled or financed by the Federation Heritage

13) Federal Agencies for Research and Training S&T, FE&PT

(P&T)

14) Education as respects Pakistani students in OPHRD

foreign countries and foreign students in
Pakistan.

15) Nuclear energy Defence

16) Maritime shipping and navigation, major ports, Maritime Affairs

lighthouses, safety

137
17) Copyright Commerce (IPO)

18) Aircraft, air navigation, aerodromes, safety of Aviation

aircraft

19) Carriage of Passengers and goods Aviation, Maritime,

Communications, Railways

20) Opium Control Narcotics

21) Import and Export and inter provincial trade, Commerce

quality of exports

22) Law of insurance and insurance business Finance

23) Stock exchanges and future markets Finance (SECP)

24) Corporations, that is to say, the incorporation, Finance (SECP)

regulation and winding- up

25) National highways and strategic roads Communications

26) Federal surveys including geological surveys Planning

and Federal meteorological organizations

27) Fishing and fisheries beyond territorial waters. Maritime Affairs

28) Works, land and Buildings Housing and Works

29) Establishment of standards of weights and Industries

measures

30) Elections Law

31) Salaries, allowances and privileges of President Parliamentary Affairs

etc.

32) Duties, Taxes on income, corporations, sales, Revenue

trade, minerals, capital, transport etc.

33) Railways Railways

34) Minerals, Oil, gas etc Petroleum

35) Development of Industries, WAPDA Industries and Production, Water

Resources

36) Electricity Power

37) Regulatory Authorities Cabinet

138
 38) National Planning and Economic coordination Planning

39) Coordination of Scientific and Technological S&T

Research

40) Census Planning

41) Police Force Interior and Establishment

42) Legal, Medical and other Professions Law, NHS, S&T

43) Standards for Institutions in Higher Education, FE&PT (HEC), S&T

Research, Scientific

44) Interprovincial coordination IPCC

Divisions not covered above but with relevant constitutional provisions

i) Poverty Alleviation (Article 37, 38)

ii) Human Rights (3, 33, 34, 36)
iii) Kashmir Affairs (257)
iv) Religious Affairs (Article 2, 31 etc.)

Divisions not covered above and with no relevant provisions

i) National Food Security (38(b) partly)

ii) Climate Change
iii) National Security
iv) National Health (38 partly)
v) Privatization
vi) SAFRON (FATA has been merged)

139
 ANNEX- II

EXISTING MINISTRIES AND DIVISIONS

MINISTRIES DIVISIONS

1. AVIATION
1. 2. CABINET

3. ESTABLISHMENT
CABINET SECRETARIAT
NATIONAL SECURITY DIVISION
4
POVERTY ALLEVIATION AND
5.
SOCIAL PROTECTION

2. CLIMATE CHANGE 6. CLIMATE CHANGE

7. COMMERCE
3. COMMERCE AND TEXTILE
8. TEXTILE

9. COMMUNICATIONS
4. COMMUNICATIONS
10. POSTAL SERVICES

5. DEFENCE 11 DEFENCE

6. DEFENCE PRODUCTION 12. DEFENCE PRODUCTION

13. POWER
7. ENERGY
14. PETROLEUM

FEDERAL EDUCATION AND

15.
FEDERAL EDUCATION PROFESSIONAL TRAINING
8. ANDPROFESSIONAL
TRAINING NATIONAL HISTORY& LITERACY
16.
HERITAGE.

17. FINANCE
FINANCE, REVENUE AND
9. ECONOMIC AFFAIRS, 18. REVENUE
NATIONAL HISTORY.
19. ECONOMIC AFFAIRS

10. FOREIGN AFFAIRS 20. FOREIGN AFFAIRS

11. HOUSING & WORKS 21. HOUSING & WORKS

140
12. HUMAN RIGHTS 22, HUMAN RIGHTS

13. INDUSTRIES & PRODUCTION 23. INDUSTRIES & PRODUCTION

INFORMATION,
14. 24. INFORMATION & BROADCASTING,
BROADCASTING

INFORMATION
INFORMATION TECHNOLOGY &
15. TECHNOLOGY & 25.
TELECOMMUNICATIONS
TELECOMMUNICATIONS

16. INTERIOR 26. INTERIOR

INTER – PROVINCIAL INTER – PROVINCIAL

17. 27.
COORDINATION COORDINATION

KASHMIR AFFAIRS & GILGIT KASHMIR AFFAIRS & GILGIT

18. 28.
BALTISTAN BALTISTAN

19. LAW AND JUSTICE 29. LAW AND JUSTICE

20. MARITIME AFFAIRS 30. MARITIME AFFAIRS

21. NARCOTICS CONTROL 31. NARCOTICS CONTROL

NATIONAL FOOD SECURITY NATIONAL FOOD SECURITY &

22. 32.
& RESEARCH RESEARCH

NATIONAL HEALTH NATIONAL HEALTH SERVICES &

23. SERVICES & REGULATION 33. REGULATION AND
AND COORDINATION COORDINATION

OVERSEAS PAKISTANIS AND OVERSEAS PAKISTANIS AND

24. HUMAN RESOURCE 34. HUMAN RESOURCE
DEVELOPMENT DEVELOPMENT

25. PARLIAMENTARY AFFAIRS 35 PARLIAMENTARY AFFAIRS

PLANNING, DEVELOPMENT PLANNING, DEVELOPMENT AND

26. 36.
AND REFORMS REFORMS

27. PRIVATIZATION 37. PRIVATIZATION

28. RAILWAYS 38. RAILWAYS

RELIGIOUS AFFAIRS AND RELIGIOUS AFFAIRS AND

29. 39.
INTERFAITH HARMONY INTERFAITH HARMONY

30. SCIENCE AND TECHNOLOGY 40. SCIENCE AND TECHNOLOGY

141
 STATES AND FRONTIER
31. 41. STATES AND FRONTIER REGIONS
REGIONS

32. WATER RESOURCES 42. WATER RESOURCES

142
 ANNEX-III

PROPOSED MINISTRIES AND DIVISIONS

MINISTRY DIVISIONS HEAD
CABINET DIVISION PRIME MINISTER
1 CABINET SECRETARIAT HUMAN RESOURCES
MANAGEMENT
CLIMATE CHANGE ADVISER
CLIMATE CHANGE AND NATIONAL FOOD
2
FOOD SECURITY SECURITY AND MINISTER
RESEARCH
DEFENCE MINISTER
DEFENCE AND DEFENCE
3 DEFENCE
PRODUCTION
PRODUCTION
POWER MINISTER
4 ENERGY DEVELOPMENT
PETROLEUM SAPM
5 FOREIGN AFFAIRS FOREIGN AFFAIRS MINISTER
FINANCE, REVENUE AND FINANCE, REVENUE ADVISER
6
ECONOMIC AFFAIRS ECONOMIC AFFAIRS MINISTER
FEDERAL EDUCATION
& PROFESSIONAL MINISTER
7 HUMAN DEVELOPMENT TRAINING
NATIONAL HEALTH
SAPM
SERVICES
HUMAN RIGHTS MINISTER
HUMAN RIGHTS AND POVERTY
8
SOCIAL PROTECTION ALLEVIATION AND SAPM
SOCIAL PROTECTION
MINISTER
SURFACE RAILWAYS
TRANSPORTATION MINISTER
COMMUNICATION
INFRASTRUCTURE
9 MINISTER
DEVELOPMENT
AIR AND SEA AVIATION
TRANSPORT MINISTER
MARITIME
HOUSING AND WORKS MINISTER
INFORMATION, MEDIA
10 INFORMATION MEDIA MINISTER/SAPM
AFFAIRS
INTERIOR AND INTERIOR AND
11 MINISTER
NATIONAL SECURITY NARCOTICS CONTROL
INTER PROVINCIAL INTER PROVINCIAL
12 MINISTER
COORDINATION COORDINATION
KASHMIR AFFAIRS
KASHMIR AFFAIRS AND
13 AND MINISTER
GILGITBALTISTAN
GILGITBALTISTAN
14 LAW AND JUSTICE LAW AND JUSTICE MINISTER

143
 OVERSEAS
15 OVERSEAS PAKISTANIS SAPM
PAKISTANIS
PARLIAMENTARY PARLIAMENTARY
16 ADVISER
AFFAIRS AFFAIRS
PLANNING,
PLANNING AND
17 DEVELOPMENT, SPECIAL MINISTER
DEVELOPMENT
INITIATIVE
18 PRIVATIZATION PRIVATIZATION MINISTER
RELIGIOUS AFFAIRS
RELIGIOUS AFFAIRS AND
19 AND INTERFAITH MINISTER
INTERFAITH HARMONY
HARMONY
SCIENCE AND
MINISTER
TECHNOLOGY
TECHNOLOGY
20 INFORMATION
DEVELOPMENT
TECHNOLOGY & MINISTER
TELECOMMUNICATION
COMMERCE & TEXTILE MINISTER
21 TRADE AND INDUSTRY INDUSTRY AND
ADVISOR
PRODUCTION
22 WATER RESOURCES WATER RESOURCES MINISTER

144
 ANNEX-IV

(I) Ministries and Divisions to remain intact with some modifications

1. Cabinet

2. Establishment (to be upgraded as HR

1 Cabinet Secretariat
Management Division)

3. National Security??

2 Foreign Affairs. 4. Foreign Affairs.

3 Information and Media?? 5. Information and Media

4 Interior 6. Interior and Narcotics

5 Inter-Provincial Coordination 7. Inter-Provincial Coordination

Kashmir Affairs & Gilgit

6 8. Kashmir Affairs and Gilgit Baltistan
Baltistan

7 Law and Justice 9. Law and Justice

10. Overseas Pakistanis

8 Overseas Pakistanis
(Drop Human Resource Development)

9 Parliamentary Affairs 11. Parliamentary Affairs

Planning, Development and 12. Planning, Development and Special

10
Special Initiatives Initiatives

11 Privatization 13. Privatization

Religious Affairs and

12 14. Religious Affairs and Interfaith Harmony
Interfaith Harmony

13 Water Resources 15. Water Resources

(II) Ministries with Clusters of Division

16. Climate Change

Climate Change and Food
14
Security 17. Food Security

18. Commerce and Textile

15 Commerce and Industry
19. Industries and Productions

145
 20. Defence
Defence and Defence
16
Production 21. Defence Production

22. Power
17 Energy
23. Petroleum

24. Finance and Revenue

Finance, Revenue, Economic
18
Affairs 25. Economic Affairs

26.Education and National Heritage

19 Human Development
27. Health Services

28. Human Rights

Human Rights and Poverty
20
Alleviation 29. Poverty Alleviation

30. Surface Transportation

21 Infrastructure Development 31. Air and Sea Transportation

32. Housing and Works

33. Science and Technology

22 Technology Development
34. Information Technology & Telecom

i. Ministry of State and Frontier Regions to be abolished

ii. National Security Division merged into Cabinet Division
iii. Narcotics Division merged into Interior Division
iv. National History and Heritage merged into Education Division
v. Revenue Division merged into Finance Division

146
 CHAPTER 9 ABOLITION OF VACANT POSTS (BS 1-16) IN
THE FEDERAL GOVERNMENT
1. The Federal government has recorded an increase of 35 percent in its number of
employees during the last decade rising from 492,000 to 663,000 (Annex-I). The number of
employees of the Federal Government that were directly affected by devolution was 50,411.
Thus, the base number for comparative purposes should be adjusted to 441,000. On this basis
the expansion in the Federal Government employees during the last decade would be 50
percent.

2. The annual salary bill has risen three times during this period from Rs.89 billion to
Rs.260 billion, while the pension bill is becoming unmanageable as its growth is much faster
than the increase in salary bill. The Government structure is too lopsided with 95 percent of
the employees falling in Grades 1-16 and accounting for 85 percent of the total salary bill while
the officers form only 5 percent of the total employees. The Government has recently formed
a Pay and Pension Commission to examine the pay structure and reform the pension system.
The total pension bill in 2019-20 was Rs 342 billion (civilian 82; Military 260). In 2009-10 it
was Rs 75 billion—almost five times compared to salary bill which was Rs 89 billion in 2009-
10 and has risen only three times. This pension liability does not include the provincial
governments, and if included the pensions bill is more than Rupees 1.1 trillion per annum. Still,
some of the autonomous bodies would remain, out of this count, as well, because no centralized
exercise to collate the entire pension data has been undertaken.

3. In the meanwhile, a review of the sanctioned and actual posts occupied in the Federal
Government reveals that the vacancy ratio for the last five years has averaged about 10 percent.
The latest survey shows that there are 81,479 vacancies in the Secretariat and attached
departments (Annex-II, III and IV). In addition, there are 115,909 unfilled posts in the
autonomous bodies. Of the total vacant posts in the Secretariat and attached departments as
many as 71,737 are in BPS 1-16 grades.

4. It is proposed that in the first phase the Finance Division may be advised to abolish
these 71,737 posts in BPS 1-16 grades and freeze fresh recruitment in BPS 1-16 grades. Any
justification for exceptions to this policy would be examined first by the Establishment and
Finance Divisions and then placed before the Cabinet Implementation Committee (CIC) of
Reorganizing the Federal Government for final decision. One of the general guidelines to be
followed is that the ratio of supporting Staff i.e., Private Secretaries, Superintendents,
Assistants, Steno typists, Clerks, Drivers, Qasids and similar other staff) to officers in each
attached department should be brought down to an average of 4:1in the first phase and then to
3:1 that was prescribed and approved by the Government in 2001.

5. In the next round, the CIC may carry out this exercise in respect of the autonomous
bodies and Corporations. Priority would be given to a review of the manpower deployment in
the Distribution companies under Power Division.

Current Status

6. The Cabinet Committee on Institutional Reforms (CCIR) considered the summary

dated 3rd March 2021 submitted by the Finance Division regarding "Reorganizing the Federal
Government proposal regarding Abolition of Posts" and decided as under:

147
i) All Ministries/Divisions shall abolish posts in BPS 1-16 that have remained vacant for
more than one year. However, the posts to be abolished will not include posts that are
vacant due transfer/posting and positions meant for promotion. Moreover, the posts
where recruitment process is already under process, shall also be exempted till
finalization of the process.
ii) The posts in BPS1 to 16 belonging to the Health, Education and Police Departments in
the federal Government shall be exempted from abolition being the operational nature
of such departments
iii) All Principal Accounting Officers (PAOs) of all Ministries/ Divisions shall carry out
an exercise to identify the posts for abolition as mentioned in sub para ( i) of the decision
and intimate within four weeks to CCIR.

148
 ANNEX I

Expansion in the Federal Government Employees

(Secretariat and Attached Departments)

Year Sanctioned Posts

2008-09 491,860

2013-14 500,382

2017-18 660,657

2018-19 663,234

149
 ANNEX II

Federal Government Employment 2018-19

(Secretariat, Attached Department and Autonomous Bodies)

Sanctioned Filled-in Vacant

Officers Staff Total Officers Staff Total Officers Staff Total

Secretariat Total 5,769 21,494 27,263 4,302 18,510 22,812 1,467 2,984 4,451

Attached Departments 30,890 605,081 635,971 22,615 536,328 558,943 8,275 68,753 77,028

Autonomous Bodies 80,346 434,828 515,174 68,459 330,806 399,265 11,887 104,022 115,909

Total 117,005 1,061,403 1,178,408 95,376 885,644 981,020 21,629 175,759 197,388

150
 ANNEX III

Secretariat and Attached Department Employees

Secretariat Attached Department Grand Total

Officers Staff Total Officers Staff Total Officers Staff Total

Sanctioned 21.16% 78.84% 27,263 4.86% 95.14% 635,971 5.53% 94.47% 663,234

Filled - In 18.86% of total filled 81.14% of total filled 83.7% of total 4.05% 95.95% 87.9% 4.63% 95.37% 581,755

Vacant 32.96% of total vacant 67.04% of total vacant 16.3% of total 10.74% 89.26% 12.1% 11.96% 88.04% 81,479

151
 ANNEX IV

Sanctioned and Filled Posts in Each Division

SANCTIONED ACTUAL VACANT
STRENGTH WORKING

S. Division BS1- BS Tota BS BS17 Tot BS BS Tot

No. 16 17-22 l 1-16 -22 al 1-16 17-22 al

1 Aviation 76 19 95 61 15 76 15 4 19

2 Cabinet 738 136 874 641 94 735 97 42 139

3 Climate 140 52 192 108 34 142 32 18 50

Change

4 Commerce 364 93 457 347 73 420 17 20 37

5 Communicati 90 22 112 87 20 107 3 2 5

ons

6 Defence 367 78 445 340 52 392 27 26 53

7 Defence 170 36 206 164 27 191 6 9 15

Production

8 Economic 428 115 543 367 82 449 61 33 94

Affairs

9 Establishmen 843 179 1022 630 139 769 213 40 253

t

10 Federal 119 33 152 105 21 126 14 12 26

Education &
Professional
Training

11 Foreign 1983 545 2528 1725 455 218 258 90 348

Affairs 0
(total)*

12 Finance 1060 492 1552 967 387 135 93 105 198

4

13 Housing & 154 31 185 138 21 159 16 10 26

Works

152
14 Human 226 45 271 175 35 210 51 10 61
Rights

15 Industries & 287 73 360 247 48 295 40 25 65

Production

16 Information 409 36 445 359 28 387 50 8 58

and
Broadcasting

17 Information 118 24 142 95 21 116 23 3 26

Technology
and
Telecommuni
cations

18 Inter 251 59 310 179 36 215 72 23 95

Provincial
Coordination

19 Interior 479 136 615 444 75 519 35 61 96

20 Kashmir 90 28 118 77 21 98 13 7 20
Affairs &
Gilgit
Baltistan

21 Law & 451 82 533 371 50 421 80 32 112

Justice

22 Maritime 149 42 191 115 32 147 34 10 44

Affairs

23 Narcotics 99 20 119 95 18 113 4 2 6

Control

24 National 180 57 237 142 35 177 38 22 60

Food
Security &
Research

25 National 205 83 288 182 64 246 23 19 42

Health
Services
Regulations
&
Coordination

26 National 95 23 118 88 17 105 7 6 13

History &

153
 Literary
Heritage

27 National 17 11 28 16 7 23 1 4 5
Security

28 Overseas 260 53 313 210 33 243 50 20 70

Pakistanis
and Human
Resource
Development

29 Parliamentar 160 35 195 132 34 166 28 1 29

y Affairs

30 Postal 41 11 52 26 8 34 15 3 18
Service (now
Communicati
on)

31 Petroleum 268 101 369 226 56 282 42 45 87

and Natural
Resources

32 Planning, 641 331 972 497 260 757 144 71 215

Development
& Reform

33 Poverty 71 12 83 54 8 62 17 4 21
Alleviation
and Social
Safety (ex-
Statistics)

34 Power 123 40 163 85 33 118 38 7 45

35 Privatisation 66 11 77 63 8 71 3 3 6

36 Railways 190 50 240 151 50 201 39 0 39

37 Religious 263 48 311 240 41 281 23 7 30

Affairs and
Inter-faith
Harmony

38 Revenue 35 11 46 26 7 33 9 4 13

39 Science and 164 45 209 150 25 175 14 20 34

Technology

154
40 Textile (Now 144 33 177 114 25 139 30 8 38
commerce)

41 States & 122 29 151 108 16 124 14 13 27

Frontier
Regions

42 Water 29 16 45 17 9 26 12 7 19
Resources

Totals 12165 3376 15541 10364 2520 128 1801 856 265
84 7

155
 CHAPTER 10 EMPOWERMENT OF SECRETARIES’
COMMITTEES AND STRENGTHENING CABINET
SECRETARY
1. There is a widespread impression that federal government business suffers from a
fragmented approach. Consultation inter-se-among Ministries/ Division is patchy,
unsystematic and not as smooth or frequent as it should be. Effective coordination is lacking
and conflict resolution mechanism among the Ministries is not satisfactory. Inter-ministerial
matters therefore linger on causing delays. Even relatively mundane inter-Ministerial dispute
/differences have to be resolved at the highest levels. In the provinces, this role is being
performed by the Chief Secretary. To improve the quality of overall decision making and
relieve the highest decision makers from the drudgery of mundane affairs of the state, it is
proposed to strengthen the offices of the Cabinet Secretary and also make effective use of the
Secretaries’ Committee.

2. The role of Cabinet Division is, inter alia, to provide support for holding meeting of the
Cabinet, Cabinet Committees and promote inter-Ministerial / inter –Divisional coordination
through Secretaries Committee. Cabinet division is also responsible for administrative
structures of the government, ensuring adherence to the rules of Business and monitoring
implementation of decisions made by the cabinet and its committee. Similarly, Establishment
Division is responsible for all human resources and personnel management policies and their
implementation in the public sector, both these Divisions are directly under the control of the
Prime Minister.

3. The role of these important Divisions, which constitute Cabinet Secretariat, has
dwindled with the passage of time and they are unable to perform their assigned functions
efficiently and effectively. There is a need to restore an avenue for the secretaries of the
government to get their operational difficulties resolved to improve coordination among
various Ministries and to develop a low-cost dispute and conflict resolution mechanism. This,
in turn, would have a positive impact on the overall performance of the government to get their
operational difficulties resolved to improve coordination among the various Ministries at the
operational level in day-to-day matters can be resolved by bringing about two important
structural changes.

i) The first change is to strengthen the office of the Cabinet Secretary by making her /him
first among equals and vesting him with the same powers as enjoyed by the Chief
Secretary at the provincial level. This practice will neither be novel in case of Pakistan
as it was in force for several decades, nor will it be unique as both India and UK are
very much following it. To make this office effective, the senior most secretary of the
Government should be made the Cabinet Secretary for a fixed tenure. The secretaries
can turn to him for advice, counselling and guidance while the Prime Minister may seek
his advice on matters of important consequences.
ii) The second change is to tap on the collective wisdom and experience of the Federal and
Provincial Secretaries by making extensive use of the Secretaries Committee. The
present tendency of over centralization of decision making by pushing most of the
problems and even straightforward issues in their lap can be curbed by delegating some
specified powers of inter-ministerial coordination and dispute resolution to these
committees. This will strengthen the leadership qualities of the Secretaries as they will
work as a collective team and force them to take decisions not on the basis of narrow
considerations of protecting their turf but in the larger national interests. This will also
156
 free up the time of the PM and CMs who will be able to resolve to devote quality time
to more contentious and difficult issues that cannot be resolved at the Secretaries level
and to exercise strategic oversight. It is also believed that the inordinate delays that
occurs in the decision making will also be reduced through this process.

Present status

4. Pursuant to this paper, the Secretaries Committee has been revitalized and is now
meeting quite regularly. Moreover, some changes have been introduced in the Rules of
Business, 1973 to institutionalize the added role of the Secretaries Committee. Due to divergent
issues on the enhanced role of the Cabinet Secretary, the proposal at Para 3(i) has still not been
implemented.

157
PART-3: REFORMS UNDER REVIEW AND
DELIBERATION

158
CHAPTER 11 DEFINITIONS OF THE AUTONOMOUS BODY,
CONSTITUTIONAL BODY AND EXECUTIVE
DEPARTMENT
Autonomous Body means any of the following, namely:

i) An entity incorporated under the Companies laws, a statutory corporation, trust, society
registered under any law for registration of societies; or
ii) A body formed under any law or legal or executive instrument; or
iii) Any educational or research institution, college or university; or
iv) A body corporate, or a regulatory body; or
v) A fund, mudaraba or musharika; or
vi) An office of the Federal Government other than a Ministry, Division, Executive
Department or a Constitutional Body, Court or Tribunal; or
vii) Any other juridical body; If it takes its own decisions independent of the Federal
Government but receives binding policy directives or directions from the Federal
Government; or whose ownership, wholly or partially vests in the federal government.

“Constitutional Body” means a body or institution established under the Constitution or which
derive powers directly from the Constitution and includes the office of the Auditor General of
Pakistan; “Executive Department” means a department which has direct relation with a
Ministry/Division and has been declared as such by the Federal Government

159
 CHAPTER 12 POWER AND FUNCTIONS OF THE
EXECUTIVE DEPARTMENTS AND AUTONOMOUS BODIES
Executive Departments

1. The Attached Departments shall be re-designated as Executive Departments. They will

be the executing arms of the Ministries in addition to the autonomous bodies and shall be
subject to all Government rules, regulations, instructions and orders. The main criteria of
designating or setting up an Executive Department are as follows:

i) They form an integral part of the operations and implementation of the Ministry's
policies, programs and projects; and
ii) They are fully dependent for their finances and manpower on the Government and
require constant guidance, collaboration and support from the Ministry, its agencies or
other parts of the Government.

2. Other existing entities such as subordinate offices should either be absorbed

3. Within the Division or the Ministry if the nature of their work is policy support or
should be transformed into Executive Departments if the content of their responsibilities are
mainly operational.

4. Employees of the Executive Departments would continue to be governed by their

existing service rules, regulations and other terms and conditions.

Functioning

5. Executive Departments will report to their Ministry; specifically, to the Minister-in-

charge through the Secretary of the Division concerned. The Head of the Executive Department
will prepare an Annual Work Plan and Budget that will be reviewed and approved by the
Ministry. All operational decisions pertaining to the planning, programming, phasing, and
resourcing of Executive Departments will be carried out by the Head of the Executive
Department. He/she will be delegated the powers of the Principal Accounting Officer by the
Finance Division if there is ample justification to do so. The Budget for the Executive
Department will be transferred to the department at the beginning of the year. The goals and
targets assigned to the Executive Department and their outcomes will be monitored by the
Minister and Secretary jointly and the Head of the Department will be held accountable for the
results.

6. The Executive Department can commission expert advice on various issues from
different Ministries/Divisions and from within the Division itself but the processing of files as
a matter of routine and seeking of prior approvals by the Ministry shall not be required.

7. The EDs shall be delegated adequate financial and administrative powers to be able to
manage the resources assigned to them i.e., financial, material and human and produce tangible
results. They will propose 3 years rolling medium term budgets for the planning and facilitating
of service delivery arrangements. Their audit rules shall be suitably modified so that the
responsibility for compliance with the financial rules, adherence to budgetary discipline and
prudent use of resources lies with the Head of the Executive Department and not the Secretary
of the Division.

160
8. The Minister-in-charge shall be responsible for policy guidance, whereas, the Secretary
of the Division shall be responsible for oversight, monitoring and prescribing operational
targets of Executive Departments and holding the Head of Department accountable for
outcomes and results.

Autonomous Bodies

9. The autonomous bodies shall be entities distinct and different from the Executive
Departments of the Government. Autonomous bodies shall retain such legal status as has been
conferred upon them under applicable law and shall perform such regulatory, operational,
corporate, promotional, research and development or quasi-judicial functions as entrusted to
them by the Government.

10. For the purpose of establishing or converting an entity or an organization as an

autonomous body, the following shall be looked into:

i) The relative significance of the goals and objectives for which it has been set up;
ii) Its relative importance in the economy, governance, social sector, regulation and
technological development;
iii) Its size and scale of operations, particularly the capacity to execute mega projects on
behalf the Government;
iv) Its capacity to generate its own revenues, whether partially or fully;
v) Its requirement to attract skills and expertise from the private sector;
vi) Its business model as a fully owned state enterprise or partnership with the private
sector; promotion of public - private partnership for infrastructure development, human
resource development, scientific and technological advancement: and
vii) Whether it is a training, skill development, research or higher education institution;

11. The controlling Ministry/ Division Government shall provide guidelines for smooth
functioning and operation of the autonomous bodies.

Organizational Structure

12. Each autonomous body shall be headed by a Chief Executive, who shall be its Principal
Accounting Officer if so, determined by the Finance Division.

13. Each autonomous body shall be, governed by a Board of Directors, where such Board
exists or is established. Such Board shall be appointed by the Ministry/Division. The
membership of the Board shall be drawn from persons who have demonstrated eminence in
their professions such as law, engineering, accountancy, economics and finance, strategic
management, academia, business, or other relevant fields. Due care should be given to adequate
representation of the Government and where applicable, the Provinces on the Boards. Members
of the Board shall meet the fit and proper criteria as prescribed by the Government/SECP/SBP
as applicable or laid down in the statutes or rules of the autonomous body.

Powers of the Boards

14. The Boards of autonomous bodies shall, without limitation, exercise full powers subject
to the following guidelines:

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 i) In cases where the Government has to make financial commitments, a senior officer of
the Ministry of Finance of the status not less than Grade-21 should be a member of the
Board. He should be authorized, prior to the meetings, to take positions on behalf of the
Government provided all papers for discussion at the Board meeting are received at
least 15 days prior to the meeting while those requiring budgetary allocations at least
one month in advance. No reference will be made to Finance Division, later.
ii) In cases where the entire OR partial expenditure is borne by the Government, the
representative of the Ministry of Finance on the Board would carry veto powers in
matters that commit or create future financial liabilities for the Government. The Board
can, however, appeal to the Ministry of Finance against the decision of their
representative on the Board.
iii) No references need to be made to the Administrative Ministry concerned after the
Board's decision except in the matters of budgetary allocations or approval of
development' schemes or legislative business or parliamentary oversight or
international coordination, or any other allied matter.
iv) The procedure prescribed by the Government for budget submissions and allocations
and processing of development schemes shall be followed where the autonomous
bodies are seeking subsidies, grants, loans, equity injection, grant-in-aid, financial relief
or guarantees or other types of financial assistance from the Government.
v) Where the autonomous bodies are using their own financial resources the Board of
Directors will have full authority, including without limitation, to approve the annual
business plan and the Budget and monitor their execution.

HR Management

15. The autonomous bodies shall recruit their employees in a transparent and merit-based
manner through an open competitive process. The Boards of the autonomous bodies shall
formulate rules providing for induction, promotion, training, discipline, remuneration and
others term, and conditions of their employees with no pension liabilities for the Government.

16. Provided that in cases where the Government is providing subsidies, grants or any other
financial assistance to the autonomous body, remuneration packages of employees shall be
subject to the approval of the representative of the Ministry of Finance on the Board.

17. Save as otherwise provided under any other law for the time being in force, employees
of autonomous bodies shall not be treated as civil servants; provided that the terms and
conditions of existing employees working in autonomous bodies shall not be altered to their
disadvantage. Civil servants may be inducted in an autonomous body on deputation for
specified periods if the need arises, whose allowances have to be approved by Finance Division.

Audit

18. The Audit of the autonomous bodies shall be carried out both by external auditors as
well as the Auditor General of Pakistan. For the purposes of the reports of the Auditor General
and for appearances before the Public Accounts Committee, the Chief Executive of the
autonomous body will be fully accountable in cases where he is the Principal Accounting
Officer.

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Procurement

19. The procurement of goods and services by autonomous bodies shall be made in an open,
transparent and competitive manner in line with rules and regulations of the Public
Procurement Regulatory Authority (PPRA). However, without compromising openness,
transparency and competition, where the autonomous body deems appropriate, the
procurement rules of autonomous bodies may be modified and adopted to suit their particular
business needs. In such cases, the AB shall prepare alternate procurement rules, and submit it
to PPRA Board through controlling Ministry/Division. Thereafter, the controlling
Ministry/Division shall submit these rules, along with recommendations of the PPRA Board,
to the Federal Cabinet for approval.

Functioning

20. The Federal Ministry, under whose jurisdiction an autonomous body falls, shall at the
beginning of each financial year, enter into a framework agreement with the autonomous body,
specifying the goals and targets to be achieved, the financial and human resource likely to be
available and the key performance indicators. The autonomous body shall prepare an Annual
Performance Report which will be placed before the Parliament.

21. All regulatory bodies will enjoy quasi-judicial powers and shall be governed by their
relevant statutes. The Ministry concerned will have no representation in the agency's
governance structure. The Ministry/Division will have no oversight or monitoring role over
regulatory bodies as carried out in case of other autonomous bodies. All regulatory bodies,
except for those in the financial sector, will be clustered under the Cabinet Division. The
Cabinet Division will only provide policy guidelines as approved by the Cabinet and ensure
implementation of the said policy guidelines by the autonomous bodies. All legislative and
parliamentary business and international coordination activities except those of purely
technical nature will be channelled through the Cabinet Division to the Prime Minister /
Cabinet.

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 CHAPTER 13 CONCEPT PAPER FOR REORGANIZATION
AND REVITALIZATION OF SCIENCE AND TECHNOLOGY
IN PAKISTAN
1. The present system of Research and Development in Science and Technology (S&T) is
highly fragmented, overlapping and unfocused. It lacks coordination, collaboration and
application to the real problems faced by the country. At the Federal level, there is a sharp
boundary between Defence and Civilian research organizations. Within Defence, SPD had
done some remarkable and path breaking work but it has not spilled over to dual technology
use for the economy at large. Ministry of Defence production (MoPD) is also assigned
responsibilities for research and has Defence Science and Technology Organization (DESTO)
but it lacks resources—human, financial and organizational—to make any meaningful impact
The exception is PAF Kamra. SUPARCO works on space research under the SPD. Pakistan
Atomic Energy Commission has had successful track record but it has also been shifted to SPD.
Another organization that has made significant contribution is NASSCOM. Chief of Joint Staff
is supposed to provide the coordinating role within Defence complex and it is to be established
whether that is in fact happening. It is also not obvious whether the Defence organizations are
using universities such as NUST, PIAS, IST, Air University, Bahria University for outsourcing
studies that cannot be undertaken in house. Contract work given to the private sector firms has
not reached a high pitch. In most countries the Defence sponsored research has proved to be
precursor for most technological advances that have been subsequently applied for larger use
to the economy.

2. Within the civilian structure there is a division between the Federal and provincial
governments. Let us begin with the most critical sector upon which our food, exports,
employment and manufacturing are dependent. Agriculture research is being carried out by
Pakistan Agriculture Council (PARC) and its National Agriculture Center (NARC) with 44
different institutes scattered throughout the country under MNFS, PRCWR under MoST, NIAB
and NIBGE etc under PAEC, PCCC under Textile, Ministry of Climate Change, Agriculture
and Veterinary Science Universities under HEC and 66 provincial research institutions. A study
in 2007 estimated that there were as many as 123 such institutions carrying out research on
crops, horticulture, animal husbandry, fisheries and forestry. What is the impact of these
institutions? Since 1990s Pakistan’s agricultural productivity has either stagnated or declined—
the most glaring example being that of Cotton whose production has come down from 14-15
million bales to 9-10 million bales while India has doubled its production from 17 million bales
to 37 million.

3. The above example is symptomatic of a much larger question that is the public S&T
research institutions have failed to perform for a variety of reasons which have been amply
documented and need not be repeated here. As the 21st century is that of knowledge economy
we have to rethink drastically about S&T in a holistic manner rather than persist with the
present silo mind set which is based on turf protection and preservation by the incumbent
custodians of these organizations.

VISION

4. The vision of the national research system is to build a national capacity for innovation
and application of innovation in key sectors of the economy through a coordinated,
collaborative and unified national platform to improve Pakistan’s competitiveness and the
living standards of Pakistan’s population.
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STRATEGY

5. Pakistan ranks 105 out of 129 countries in Global Innovation Index far behind India 52
and Sri Lanka 89. There is very little possibility for Pakistan to make socio economic progress
unless it improves its national eco system and capacity for knowledge creation, assimilation,
adaptation and application in a holistic interlinked manner.

6. The strategy would begin with teaching STEM subjects in our schools by making their
learning interesting, experiential and explicative of day to day activities and applicative to the
real world problems. Rote learning, memorization and reproduction of materials at examination
have to be substituted by critical thinking and analytical understanding. Science laboratories
have to be equipped and science teachers particularly female have to be recruited, trained and
remunerated for this purpose.

7. At the next stage the colleges and universities would create more places and facilities
for expanding enrolment in these subjects particularly in Life Sciences, Natural sciences, ICT,
materials and other emerging technologies. Faculty members should be attracted form the best
universities in the world and allowed liberal research facilities such as setting up their own
labs. HEC and PSF should allocate substantial amounts for competitive research grants and
innovation centred challenge funds. India ranks 8th in the world in terms of number of students
graduating in science and technology.

8. Public research institutes have to form integral part of the respective sectoral Ministries
who would assign problems to the scientists for studies and recommending solutions.
Collaboration and pooling of similar or allied or complementary area specific expertise,
equipment and facilities available in the universities, private research institutions and other
institutions should be given preference in the award of research projects by the sectoral
ministries. Most researchers have gravitated towards universities due to better salary and career
prospects. Only 8 percent are working in public research institutes, this disparity would have
to be removed to attract and retain talent in research organizations outside the universities.

9. Pakistan’s expenditure on R&D is negligible in relation to the country’s requirements

and has been drastically cut down compared to the 1990s. Government has to increase
allocations but tie these down with output and performance.

ORGANIZATION

10. To bring about the above shift and implement the stated strategy, if agreed, would
require a complete overhaul and restructuring of the organizational architecture of S&T system.
At the apex would be a high powered National Science and Technology Commission (NSTC)
headed by the President of Pakistan and consisting of the Federal and provincial Ministers of
all S&T related subjects including Defence Production and SPD, private sector representatives
and a few eminent scientists. The NSTC would be the highest direction setting body integrating
all areas of S&T in the country under a unified national platform. The MoST would act as the
Secretariat of the Commission and would be assisted by an Executive Committee consisting of
the Secretaries of key ministries--- Agriculture, Energy, Industries, ICT , Water Resources, etc
Chairman HEC and senior heads of leading S&T organizations. For this purpose the present
structure of MoST has to be completely revamped and a new organizational architecture has to
be built in which the Ministry is an apex body coordinating the Federal, provincial, universities,
private sector research at national level drawing its mandate from the NSTC and collaborating
with bilateral, regional and international scientific organizations at the global level.
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11. At the provincial level, Science and Technology Councils on the same pattern would
be formed for coordination of all research oriented departments, institutes, universities and the
private sector. S&T departments would act as the secretariat and implementing agency for the
councils.

PROPOSED FUNCTIONS AND RESPONSIBILITIES OF MoST

i) A unified national platform for S&T management in Pakistan that brings all ongoing
public and private research in different sectors under one umbrella i.e. of NSTC
ii) Formulate national research plans, policies and standards and seek funding from
national budget and international donor agencies (creation of endowment funds is
recommended so that the funding can be made regular and independent)
iii) Prioritize within the approved plan and establish Innovation Promotion Fund for
financing priority research projects on a competitive basis, appointing expert
committees and expert panels and arranging the peer review, supervision,
implementation and Evaluation of these research projects
iv) Plan and oversee the spread of STEM education and supporting infrastructure and
teaching faculty at school, college and university levels in close coordination with the
provincial education and S&T departments and HEC
v) Support professional science academies and associations in their outreach activities
and science literacy campaigns particularly using the media and internet
vi) Develop National Science Centres that include Technology and Science Parks,
Museums, national laboratories in emerging technologies with open access and
sharing of S&T resources
vii) Promote collaboration among research institutes, universities. NAVTC, TEVTA and
enterprises to undertake research projects applicable to national development
priorities and provide funding for Manufacturing Innovation Centres for industrial
application of new technologies
viii) International S&T exchanges and open cooperation in innovation capacity building,
bringing in high-end foreign experts in their fields for joint research projects, training
and dissemination of new knowledge
ix) Set up Challenge Funds for young scientists who have just completed their PhD
degrees to incentivize them to work on problems and constraints facing different
sectors of the economy

PROPOSED ACTION PLAN

i) Make the Pakistan Science Foundation (PSF) the funding arm of NSTC for all R&D
support from the Federal Government on the model of NSF in US. This can be
initiated by making an endowment fund of Rs10billion for PSF. HEC funding for
R&D may also be linked to recommendations of PSF.
ii) Pakistan Council of Science and Technology (PCST) should be redesigned for
promotion of STEM education and scientific literacy, National Science Parks,
Technology Parks, National Science Research Centres. Five-year funding for these
initiatives has to be committed through PSDP, Provincial ADPs, Private sector and
international donor agencies
iii) Both PSF and PCST should be strengthened by increasing the numbers of quality
and experienced scientists, making them financially and operationally autonomous,
raising their annual budget and offering MP1 scales to the heads of these institutions
iv) Reorganize the Secretariat of MoST by setting up separate cells for (a) Policy
formulation, monitoring and implementation including Human resource
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 Development of Scientific manpower (b) Industry-academia-research institute-
Technical and vocational training linkages (c) Coordination between Federal
Ministries and their research institutes and provincial departments and their institutes,
universities, Technical and Vocational training institutions and R&D organizations;
(d) International cooperation and exchange programs
v) Transfer the existing sector specific research institutions to respective sectoral
Ministries to forge linkage between application of research to policies and programs.

12. However, the governance structure of all these bodies has to be revisited.

i) PCSIR to Ministry of Industries

ii) PRCWR to Ministry of Water Resources
iii) PSQCA to be placed with Cabinet Division as other regulatory authorities
iv) CWHR to Ministry of Works and Housing
v) NIO to Ministry of Maritime affairs
vi) NIE to Ministry of ITT –PCRET to Ministry of Energy
vii) PHA to Ministry of Commerce
viii) COMSAT, COMSTECH, ECO Science to Ministry of Foreign Affairs
ix) STEDEC can play a major role in commercialization of patents and innovations on
the lines of India’s National Research Development Corporation (NRDC)

13. Institutes which are at present missing or are future oriented should be set up under the
MoST. The Knowledge Economy task force would recommend such institutes but examples
that come to mind are Palaeobotany, Metallurgy and new materials, Geomagnetism, Quantum
computing, Artificial intelligence, Nano Science and Technology, etc. A few of such centres
have been established in the universities and the MoST institutes would bring them together
through its convening power.

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 CHAPTER 14 RESTRUCTURING OF THE MINISTRY OF
COMMERCE
1. Exports and remittances are the backbone of the economy of Pakistan. Over the last
decade, Pakistan’s export has been hovering between $ 20-25 billion per annum. Pakistan has
one of the lowest exports to GDP ratio in the world, and in terms of trade agreements, Pakistan
is one of the economically isolated countries of the world as it has only three FTA’s. The
present government has been trying hard to enhance exports and remittances. Prime Minister
of Pakistan routinely heads the meetings of the National Export Development Board (NEDB)
is issues personal directions to the Commerce Ministry.

PEMANDU Consultants Report

2. World Bank has also carried out a study by engaging PEMANDU Consultants in 2019.
The consultants highlighted Malaysia’s trade, investment and industrial ecosystem which is led
by the Ministry of International Trade and Industry (MITI) and its organizational structure.
Industrial Development, International Trade and Investment streams in Malaysia are combined
under single leadership. Similarly, Japan’s trade, investment and industry components all fall
under a single entity: the Ministry of Economy, Trade and Industry (METI). All vice Ministers
answer to a single METI Minister. The strengths and areas of improvement needed in the
current structure of the three Ministries of Pakistan (Commerce, Textile and Industries &
Production) and Board of Investment were studied and it was found that alignment was required
to eliminate duplicate functions to improve linkages and data collection of the private sector
and to create a one-stop investment facilitation window for investors. The absence of Industrial
policy as well as the absence of an export-oriented Tariff policy, that was in line with industry
needs was also pointed out by the consultants.

3. The consultants opined that in Pakistan trade, investment and industrial development
was spearheaded by the Ministry of Commerce and Textile, Ministry of Industries and
Production (MoIP) and the Board of Investment (BOI), disjointly. They suggested that if the
synergies of trade, industry and investment Ministries were combined, economic
competitiveness could be created. It was proposed that three Divisions and BOI would be
integrated into one Division, which would be looked after by a single Minister or the Prime
Minister. The consultants recommended merger of Commerce, Industries and Board of
Investment (BoI).

4. On the basis of their recommendations, Commerce and Textiles Divisions have been
merged, and Board of Investment has started a closer collaboration with regards to attracting
investment from abroad. However, on the merger of the Industries and Commerce, as is the
case in some of the developed countries of the world and East Asian countries, there has not
been much progress.

HR of Commerce Division

5. There is no denying the fact that Pakistan needs to have more economists- people who
can understand the domestic economy, its linkages with external world and how it affects the
domestic growth, FDI and domestic investment, availability of finance, industrial zones,
various SBP financing scheme, and on the top international trade.

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6. Reorganizing Commerce Division to perform above stated functions is prerequisite to
making Pakistan an export-oriented country and in this availability of technical and
professional sound HR is the starting point. At the moment, bulk of the posts in Commerce
Division are manned by Secretariat Group and officers are posted by Establishment Division.
Despite being cadre head of the Commerce and Trade, and administrative head of the Division,
Secretary Commerce is not empowered to posts offices against these Secretariat posts, which
constitute bulk of the HR of the Division. This is unlike FBR, MoFA and other divisions,
where, postings up to BS-20 are made by the administrative heads. This always results in
higher number of vacant posts, as Establishment Division keeps struggling to find suitable
officers. In order to overcome, this situation, Commerce Division resorts to adhoc measures,
for example the substantive posting of any CTG officer is in any different organization of the
Commerce Ministry, but he is assigned additional charge in Ministry on officiating basis. In
addition to this, foreign postings of the officers also remain a continuous challenge for the
Division, as these posting are frequently challenged in the court of law.

7. In view of the above, there is need to provide trained and specialized HR to man the
affairs of the Commerce Ministry in the wake of the changing global scenario, complexity and
interconnectedness of the economies. Managing the affairs of the Commerce Ministry by
Establishment Division, just like any other Division with a generalist pool of officers may not
serve the needs of the time and there is need to empower Secretary Commerce while making
use of specialized cadre, which he controls.

Present Status

8. Ministry of commerce was advised to present this case before the Cabinet Committee
on Institutional Reforms and accordingly this presentation was made on 31st March, 2021. The
CCIR advised the Commerce Ministry to bring a formal summary, on the proposed
restructuring plan including reservation of posts in the Commerce Ministry for cadre officers
of Commerce and Trade Group.

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CHAPTER 15 CABINET COMMITTEE ON INSTITUTIONAL
REFORMS (CCIR)
The CCIR has been constituted in July, 2020 by the Prime Minister to give a focused attention
to the reform’s agenda of the government. CCIR has been holding its meeting, quite regularly and 23
meetings have been held as of 20th August 2021. CCIR has taken numerous decisions pertaining to
Rules of Business, Reorganizations of the Federal Government and restructuring of the institution. The
Prime Minister and Cabinet also refer such matters to CCIR for its consideration. The notification and
ToRs of the CCIR are copied below;

Notification

No. F.5/10/2020-Com in terms of rule 17 (2) of the rules of Business, 1973 the prime Minister
has been pleased to continue the Cabinet Committee on Institutional Reforms (CCIR) with immediate
effect. The composition of the CCIR will be as under: -

i) Mr. Shafqat Mahmood, Minister for Federal Education and professional Training
Chairman
ii) Minister for Defence
Member
iii) Minister for National Food Security and Research
Member
iv) Special Assistant to the Prime Minister on Establishment
Member
v) Adviser to the Prime Minister on Institutional Reforms and Austerity
Member
vi) Special Assistant to the Prime Minister on Petroleum

By Special Invitation

i) Secretary, Establishment Division

ii) Secretary, Finance Division
iii) Secretary, Law and Justice Division
iv) Special Secretary, Cabinet Division
v) Secretary of the Ministry / Division concerned (on invitation)

1. The Terms of reference (ToRs) of the Committee are Annexed.

Terms of reference (ToRs)

Cabinet Committee on Institutional Reforms (CCIR)

i) Work out an implementation strategy /work plan in consultation with the task force
taking into consideration the following aspects.

a. Cost benefit analysis specific to the entities concerned

b. Expected outcome of the proposed transformation with reference to service
delivery
c. Constitutional and legal ramifications/ considerations.
d. Issues pertaining to terms and conditions of Civil servants and impact of the
re-organization exercise on career progression of existing Civil Servants.

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ii) Determine the size, composition and staffing of the Federal Government Secretariat,
attached Departments and autonomous bodies and monitor its implementation after the
approval of the Cabinet.
iii) Suggest an appropriate hierarchical organization i.e tiering within each Ministry /
Division, attached departments and autonomous bodies.
iv) Design a modern public service structure for the Federal Government including human
resources policies incorporating principles of good governance; and
v) Simplify and redesign the rules of businesses, other rules and business processes
including the measures to introduce e-governance to improve the efficiency in disposal
of government work. Cabinet Secretary would act as the Secretary of the Committee
and regularly submit the minutes of the Committee for the ratification by the Cabinet

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 VOLUME 1-B
REPORT ON CIVIL SERVICES REFORMS
Table of Contents
PART 1: APPROVED REFORMS UNDER IMPLEMENTATION .................................... 182
CHAPTER 1 TRAINING ......................................................................................................... 183
1.1. WORKING PAPER OF THE TASK FORCE ON NATIONAL TRAINING STRATEGY
FOR CIVIL SERVICES ...................................................................................................... 184
1.2. PROPOSALS OF THE TASK FORCE ON TRAINING FOR CIVIL SERVANTS ... 189
1.3. PROPOSALS DISCUSSED BY CABINET ON TRAINING ......................................... 192
CHAPTER 2 PERFORMANCE MANAGEMENT AND PROMOTIONS ......................... 198
2.1. WORKING PAPER OF THE TASK FORCE ON PROMOTION POLICY AND
PERFORMANCE EVALUATION .................................................................................... 199
2.2. PROPOSALS DISCUSSED BY THE CABINET ON PERFORMANCE MANAGEMENT
SYSTEM AND DECISIONS ............................................................................................... 204
2.3 GUIDELINES FOR PERFORMANCE MANAGEMENT SYSTEM .................... 206
CHAPTER 3 DIRECTORY RETIREMENT ......................................................................... 210
CHAPTER 4 EFFICIENCY AND DISCIPLINE RULES ..................................................... 211
CHAPTER-5 SECURITY OF TENURE................................................................................. 212
CHAPTER 6 ROTATION POLICY FOR PAS AND PSP OFFICERS ............................... 214
CHAPTER 7 INDUCTION OF PMS OFFICERS INTO PAS.............................................. 215
CHAPTER 8 SELECTION PROCESS OF THE CHIEF EXECUTIVES IN PUBLIC SECTOR
ENTITIES ............................................................................................................................. 216
CHAPTER 9 MP AND SPP SCALE POLICY ....................................................................... 221
CHAPTER 10 CONVERSION OF POSTS INTO MANAGEMENT AND SPECIAL PAY
SCALE .................................................................................................................................. 223
CHAPTER 11 TECHNICAL POSITIONS IN FEDERAL SECRETARIAT FROM PRIVATE
SECTOR ............................................................................................................................... 225
CHAPTER 12. TECHNICAL ADVISERS IN SELECTED MINISTRIES TO ASSIST
MINISTERS ......................................................................................................................... 227
PART II REFORMS UNDER REVIEW AND DELIBERATIONS ..................................... 229
CHAPTER 13 INDUCTION AND RECRUITMENT ........................................................... 230
13.1. PROPOSALS OF THE SUB-GROUP OF THE TASK FORCE ON CIVIL SERVICE
INDUCTION ........................................................................................................................ 231
13.2 OUTLINE OF THE PROPOSED CSS EXAMINATION SYSTEM ...................... 233
13.3 AGREED REFORMS IN CSS EXAMINATION ..................................................... 238

ii
CHAPTER 14 PAPER ON REORGANISATION OF TRAINING & POLICY RESEARCH
INSTITUTES ........................................................................................................................ 242
CHAPTER 15 CAREER PLANNING AND PROGRESSION ............................................. 250
CHAPTER 16 PAY AND COMPENSATION ........................................................................ 252
16.1 WORKING PAPER ON RATIONALIZING PAY AND COMPENSATION ............ 253
CHAPTER 17 NATIONAL EXECUTIVE SERVICE (NES) ............................................... 262
17.1 MINUTES OF SECRETARIES COMMITTEE MEETING HELD ON 03-09-2020 . 284
17.2 RESPONSE TO SECRETARIES COMMITTEE BY THE IRC ................................. 289
CHAPTER 18 NEGATIVE LIST OF APPOINTMENTS OF DUAL NATIONAL ........... 294

iii
Introduction
The Civil Services of Pakistan consist of cadres in All Pakistan, Federal and Provincial
Services, and it may include ex-cadre and non-cadre personnel. They serve mainly in the field,
Provincial and Federal Secretariats and the attached departments. Some of them work in
corporations, public enterprises, autonomous bodies. Others are categorized as public servants.
The total strength of the employees working in the government is around 4 million (excluding
the Defence Forces).
2. The last major reform of the Civil Services had taken place during Bhutto period when
the previous structure of categorizing them in Class I, II, III and IV, was replaced by a new
structure in which all Civil servants were categorized in 1-22 (BPS) pay scales by clubbing a
variety of jobs in one single pay scale/grade. For example, a school teacher and a clerk were
placed in the same scale without taking into consideration the labour market conditions or
relative importance of the job. Whenever salary increases or allowances were granted, they had
to be given across-the-board to all the employees falling in that grade.

3. An evaluation of human resource policies and their management and implementation

pursued since the 1973 reforms reveal a number of weaknesses. The withdrawal of
constitutional guarantee for security of service along with deep salary compression led to poor
quality of intake. The best and brightest were no longer attracted to the public sector.
Consequently, the institutions manned by mediocre and pliable civil servants decayed eroding
the delivery/capacity of the Government. Reforms are now badly needed to regain the lost
prestige and efficiency of civil services. These reforms have to cover the whole value chain of
human resource policies. Recruitment method and intake have outlived their utility, training
has no connection with future responsibilities, career progression of the majority of cadre
officers is automatic and unhindered. Performance appraisal is highly subjective and does not
distinguish between good and poor workers and has no link with annual salary increments.
There is too much distortion in the structure as 95 percent of the civil servants belong to Grades
1-16, consuming more than 80 percent of the annual wage bill of the Federal Government.
Their usefulness, efficiency and output are open to serious question. E-Governance and
Business Process Engineering would further reduce their numbers. A clear-cut policy on
attrition and non-replacement in Grades 1-16 has to be developed. Compensation packages for
officer grades are below while those of the support staff are higher than their comparators in
the private sector. Specialists and technical experts have been marginalized in decision making
process, business processes and rules of business are outdated and use of modern IT tools is
scarce. Transparency and internal accountability mechanisms have become weak over time and
as a result NAB, FIA, Judiciary and media have started playing an aggressive role instilling
fear and reinforcing tendency for non-action by honest civil servants.

4. One of the main weaknesses of the present system is that once you have passed the
Central Superior Services Examination at age of 25-28 years there is no compulsion to upgrade
your skills or knowledge. Career advancement is divorced from competencies or behaviour
displayed in the conduct of your duties. Posting and placement policy do not encourage these
officers to develop expertise and specialization in any of the clusters of Government
Ministries/departments. One day you may be Secretary Religious Affairs, the other day
Secretary Industries and Production and third assignment may be Secretary Health.

5. The officers next-in-line i.e. Additional, Joint and Deputy Secretaries are also mainly
drawn from generalist cadres. While some bright, sharp intellect individuals do make an effort

172
to learn on-the-job and excel but this is a random and risky way of policy making. Lack of
technical expertise to scrutinize and examine complex proposals, projects and concession
agreements worth billions of rupees emanating from the attached departments and autonomous
bodies does not ensure value for money and adequate returns to the exchequer. It has been
observed that in some technical Ministries, one or two qualified officers call the shots and the
Minister and Secretary are excessively dependent upon them, exceptions notwithstanding. The
Cabinet decision to appoint Technical Advisers in Minister’s office in 17 Ministries is a step
in the right direction but the present system of placement and postings has to be overhauled.

Medium term:
6. The whole value chain of (i) Induction and Recruitment (ii)Training (iii) Performance
Evaluation (iv) Career Progression and Promotion (v) Compensation and Benefits (vi)
Retirement and (vii)Internal accountability is proposed to be strengthened. It must be
emphasized that all these components in the value chain are interlinked and have to be
strengthened together. The virtuous cycle can only be achieved if action is taken on all these
components, simultaneously. Increasing pay and salary without fixing the performance
evaluation system would go waste. It would be at the same time difficult to recruit talent if the
salary structure is not attractive. If promotions are not based on skill and knowledge acquisition
and performance on the job, mediocrity would not be eliminated. To meet the needs of the
future, we have enhance our reliance on ones skillset and performance and divorce the existing
seniority cum fitness and cadre based system.

Short term:
7. First, in order to completely redesign the current performance management system a
beginning can be made by introducing performance agreements between the Prime minister
and the Ministers in charge of the Divisions. These agreements would contain major goals for
the year and the key performance indicators agreed upon mutually. These indicators would
then be used for evaluating the performance of each Ministry.

8. Second, is the revamping of the selection process of the Chief Executives/Managing

Directors of key public sector enterprises and organizational entities. An open, transparent,
competitive process based on merit along with adequate remuneration would be able to attract
high calibre candidates and enable the Government to select the right person for the right job.
The person selected would be given performance targets and held responsible for the results.

9. Third is the security of tenure for the officers in high-ranking positions. Too frequent
transfers impair the learning on the job and thus capacity to take considered and well-informed
decisions. The fear of arbitrary transfers also deters the ability to render frank and candid advice
or refuse to carry out inadvisable orders of the superiors.

10. Fourth, in the Federal Secretariat there are at least 17 Ministries that would benefit from
infusion of technical expertise at Additional/Joint Secretary level. A survey of the Ministries
reveals that the existing deployment of technical expertise at these levels is scanty. It is
proposed that the posts specifying job description academic qualifications, work experience,
eligibility criteria should be advertised widely and opened up to all the serving officers of the
Federal and Provincial governments as well as to the private sector. The selection would be
made by the Federal Public Service examination. These posts have to excluded from the Cadre
strength of the Secretariat as we cannot afford to create additional posts due to austerity
measures.
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11. Finally, the specialized skill sets of officers such as engineers, scientists, agriculturists,
public health experts, educationists, economists working in the Government get obsolete with
the passage of time as there is no provision for refresher courses or systematic training to catch
up with the latest developments in their respective fields. The Government has to hire
expensive consultants or rely upon donors to design, prepare and implement development
projects. Post induction, mid-career and continuous professional development courses need to
be organized for Ex cadre and non-cadre officers and their career progression linked to their
training outcomes and on the job performance.

Guiding Principles for the Prime Minister’s Task Force on Civil Service
Reforms
12. The Prime Minister’s Task Force on Civil Service Reforms was notified on the 28th of
August 2018 and entrusted with the responsibility to evaluate the performance of the federal
civil service and propose reforms to improve civil administration and public service delivery.
The task force has evaluated various service policies and rules relating to the areas of induction
and recruitment, training for civil servants, performance management measures, promotion
rules, compensation packages, the Efficiency & Discipline Rules, 1973 and Rules of Business
to bring about amendments that will enhance efficiency, performance, and accountability over
the long run. In addition to these broad themes, the Task Force has also considered more
specific initiatives including rules to ensure security of tenure for officers and the introduction
of a National Executive Service within the federal bureaucracy.

13. The general guidelines and principles which the Task Force has taken into consideration
in its reform efforts are enumerated below. The reforms that have already been introduced and
those that are in the pipeline have been envisioned keeping in mind a need for:

i) Evaluation of the entire value chain of HR policies of civil servants as part of the
reforms initiative including induction & training policies, performance
management, promotions, and career planning, pay and compensation and
discipline & accountability
ii) Open, transparent merit – based recruitment to all levels and grades of public
services with Regional Representation as laid down in the constitution.
iii) Performance – based promotions and career progression for all public sector
employees with compulsory training at post induction, mid-career, and senior
management levels.
iv) Equality of opportunity for career advancement to all employees without
preferences or reservations for any particular class.
v) Replacement of the concept of Superior Services by equality among all cadres and
non-cadres of public servants.
vi) Grant of a Living wage and compensation package including decent retirement
benefits to all civil servants.
vii) Strict observance of security of tenure of office for a specified period of time.
viii) Separate cadre of regular Civil Services at All Pakistan, Federal, Provincial and
District levels co-existing with contractual appointments.

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ix) Creation of an All-Pakistan National Executive Service (NES) for senior
management positions drawn through a competitive process from the Federal,
Provincial and District Level Civil Servants and outside professionals.
x) Introduction of three specialized cadres under the NES for Economic Management,
Social Sector Management and General Management.

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Progress Achieved
14. At the Federal level, we identified that in the civil service reform would adopt the
“whole value chain of policies” approach in an integral manner. This value chain starts with
(a) Induction and Recruitment and extends to (b) Post induction and mid-career Training (c)
performance Management (d) Career progression (e) Compensation and Benefits and finally
(f) Retirement and Severance. Each one of these topics was analysed at length by the sub groups
of the Task Force, discussed at the whole Task Force meeting, discussed at consultative
sessions with stakeholders and then crystallized in form of recommendations. As the task force
had a diverse group of membership there were at times heated discussions, some members
withdrew or resigned and others expressed strong dissenting views. Criticism was levied that
the Task Force was dominated by the PAS officers and had little representation from other
services and the Chairman himself was an ex CSP officer. The PAS officers dominated because
the ex officio members i.e. the Chief Secretaries and Federal Secretaries all belonged to that
service. Non official members were drawn from among the academia, private sector, also
retired civil servants belonging to PFS, PSP, IRS. More than 80 consultative sessions held at
Quetta, Karachi, Lahore, Peshawar and Islamabad including training institutes were attended
by more than 2,200 officers from all services, cadres, ex cadre and non-cadre. Their views were
incorporated while finalizing the recommendations.

15. The Task Force was of the view that unless the elements of this value chain were not
revamped any structural changes such as creation of National Executive Service would not
make much sense. So, it was proposed that each of these items and allied policies should be
taken for the consideration of the Cabinet for their approval.

16. So far, the Policies which have been approved by the Cabinet pertain to selection of
heads of public sector corporations and bodies, Training of officers, Performance Management,
Promotion Policy, Rotation and Directory Retirement rules. The status of progress made up to
date is as follows:

i) A transparent procedure for selection of Chief Executives, Managing Directors and

heads of public sector organizations and enterprises through an open merit based
competitive process has been put in place since 2019. Sixty two such positions have
been filled so far following this procedure which is aimed at finding the right person
for the right job.
ii) Systematic training of ex cadre and non-cadre officers on the lines of the Cadre
services has been made mandatory for promotion. Mid-career and senior
management training courses at National Institutes of Management (NIMs) have
been divided in two parts—the first half would be common training course at NIMs
while the second part would take place at the Specialized Training Institutions
(STIs) in their respective professional fields.
iii) For Performance Management, key performance indicators (KPIs) for goals for the
year would be agreed upon by the officer and the supervisor replacing the present
highly subjective evaluation process. Only top 20, percent would be placed in
Outstanding category and their annual increments would be twice as much as those
of the fully satisfactory categories. Those who get below average performance
reports would get no increment.

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 iv) Promotion for senior posts would no longer be based on seniority but on the past
performance reports, training institutions’ assessment and evaluation by Selection
Boards about the potential of the candidates to occupy higher positions. Rotation
among Provincial and Federal Governments for All Pakistan Service officers would
form part of the eligibility for promotion to the next grade.
v) Under the Directory Retirement Rules which have been notified, Officers who have
been superseded or shown unsatisfactory performance consistently would be retired
after completing twenty years of service by independent Boards.
vi) In order to attract specialized and technical skills of high order from among the
private sector and overseas Pakistanis two new streams of recruitment have been
opened up. Management Positions (MP) scales and Special Professional Pay
Scales (SPPS) scales with attractive packages much beyond the existing BPS scales
have been introduced. These positions would be filled purely on merit through an
open competitive process, policy guidelines have been developed to recruit,
remunerate, evaluate their performance have been issued. A cabinet Committee
considers the proposals for conversion of the posts to MP and SPP scales and
decides on the basis of justification and rationale for such conversion.
vii) To assist the Ministers in-charge of technical Ministries, 14 posts of Technical
Advisers with expertise in that Ministry’s business have been created in the
Minister’s offices
viii) It has been decided to induct the officers of the Provincial Civil Services into the
Pakistan Administrative service at grade 19 through the Federal Public Service
Commission
17. The proposals that are yet to be approved by the Cabinet are as follows:

i) Induction and Recruitment: After thorough discussion with the Federal Public
Service Commission the proposals for Induction and Recruitment have been
finalized and would be submitted soon for Cabinet’s approval. The initial screening
tests and selection of mandatory electives to match the requirements of the
occupational group at CSS examination are the innovative feature of the proposed
recruitment system
ii) For Pay and compensation a study has been completed by PIDE but a Pay and
Pension Commission has been formed to review all proposals for rationalizing
salary structure and the current system of pensions.
iii) Amendments in Efficiency and Discipline Rules and the Federal Services Tribunal
for making internal accountability more effective were finalized by the Task Force
and are under review by the Establishment Division for presentation to the CCIR
and the Cabinet
iv) A proposal is under consideration to recruit technical experts on pre identified grade
20 positions in those Divisions and Ministries that deal with complex technical
issues. The existing recruitment rules for ex cadre positions would have to be
revised so that the existing technical positions in various grades can be filled
through hiring of suitably qualified, skilled and experienced persons from the
private sector instead of promotion only

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 v) The Cabinet, just like the Musharraf Government and his chief Ministers and the
Prime Minister at that time, did not agree with the proposal on the Security of tenure
and adopted a policy for Federal Secretaries to be selected by a committee
consisting of Ministers and Secretaries that would recommend a panel of three
candidates to the Prime Minister against each vacant post. The selected officers
would have a fixed tenure for two years but could be removed in the initial six
months on the recommendation of the Minister incharge. This action has been
criticized by many civil servants as it yields undue political influence in the
appointment of the Secretary of the Division. The counter argument given by the
Cabinet members was that if they were to be held accountable for results according
to the performance contract signed with the Prime Minister, they should have a say
in selecting the team leader of their management team. In their opinion this would
minimize frictions and tensions that may hinder smooth functioning of the Ministry.
18. The Cabinet has formed a Cabinet Committee on Institutional Reforms (CCIR) that
meets regularly to monitor implementation of these reforms, consider new ideas and proposals
in four areas (a) Restructuring of the federal government (b) Strengthening selected key
institutions of governance (c) Civil Service Reforms and (d) Business Process Reengineering.
The Committee consists of three Ministers, one Adviser, two Special Assistants and Secretaries
Cabinet, Establishment, Finance and Law Divisions. The decisions of CCIR are considered by
the Cabinet for ratification.

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 Annex-1
Composition and Sub-groups of the Prime Minister’s Task Force on Civil Service Reforms
The Prime Minister was pleased to approve the constitution of the Task Force on Civil Service
Reforms through notification on 28th August 2018. At present, the Task Force comprises of:
i) Dr. Ishrat Husain, Advisor to PM on Institutional Reforms and Austerity –
Chairman
ii) Mr. Shahid Kardar, VC Beacon House National University
iii) Dr. Sania Nishtar, Heart file
iv) Mr. Suleiman Ghani, Retired Federal Secretary
v) Dr. Nadeem ul Haq, former Deputy Chairman, Planning Commission
vi) Mr. Salman Akram Raja, Lawyer
vii) Mr. Ali Cheema, LUMS
viii) Mr. Umair Javed, LUMS
ix) Mr. Ejaz Ahmed Qureshi, Former Federal Secretary
x) Ms. Naheed Durrani, Secretary, Ministry of Climate Change
xi) Syed Nadeem Hussain Rizvi, FBR
xii) Ms. Aisha Farooq, FBR
xiii) Mr. Muhammad Tahir Khan, National Police Academy
xiv) Secretary Cabinet or his nominee
xv) Secretary Establishment or his nominee
xvi) Secretary Planning or his nominee
xvii) Secretary Finance or his nominee
xviii) Chief Secretary / Additional Chief Secretary, Punjab
xix) Chief Secretary / Additional Chief Secretary, Sindh
xx) Chief Secretary / Additional Chief Secretary, KPK
xxi) Chief Secretary / Additional Chief Secretary, Balochistan

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 Annex-2

Sub-Groups of the Task Force on Civil Service Reforms

Performance Management, Promotion and Career Planning
• Mr. Shahid Kardar (lead) • Secretary Establishment
• Ms. Tasnim Aslam • Secretary Finance
• Mr. Salman Akram Raja • Secretary Planning
• Ms. Naheed Shah Durrani
Induction & Recruitment
• Mr. Nadeem ul Haq (lead)
• Mr. Suleman Ghani
• Mr. Umair Javed
Training and Learning
• Mr. Suleman Ghani (lead)
• Mr. Nadeem ul Haq
• Mr. Umair Javed
Pay and Compensation
• Mr. Shahid Kardar (lead)
• Mr. Nadeem ul Haq
• Mr. Javed Sikander, Planning Commission
Discipline and Accountability
• Mr. Salman A. Raja (lead)
• Secretary Establishment
• Mr. Shaukat Ali, Secretary Food, Punjab
Ex-cadre / Technical Civil Servants
• Secretary Establishment
• Ms. Naheed Shah Durrani
• Mr. Javed Sikander, Planning Commission

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PART 1: APPROVED REFORMS UNDER
IMPLEMENTATION

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 CHAPTER 1 TRAINING
1. Federal civil servants in Pakistan are inducted through the CSS Competitive
Examination and are provided post induction training at Civil Services Academy, which is
called Common Training Program (CTP) and Specialised Training Program (STP) at
respective training academies of all the Occupational Groups. Later in the various stages of
service, mandatory training programs including Mid-Career Management Course (MCMC),
Senior Management Course (SMC), National Management Course (NMC) are attended by the
civil servants. There is however, increasing consensus on the fact that these courses are not
always able to build the skills and expertise, required for carrying out next level
responsibilities.

2. In addition to civil servants recruited through CSS, other non-cadre or ex-cadre civil
servants also serve in the federal government and form a majority of the total. Out of
approximately 29,000 federal civil servants, only 6000 who are recruited through the CSS were
receiving training under the prevalent system.

3. To make improvements to the general training regime and expand training to ex-cadre
and non-cadre officers of the federal government, a summary was presented to the Federal
Cabinet by the Establishment Division which was approved in September 2019. According to
the decision of the Federal Cabinet recorded in detail in this section below, all non-cadre and
ex-cadre federal civil servants will receive post induction training for 3-6 months in relevant
areas of general management along the structure of the Common Training Program. The tenure
of MCMC/NIM/SMC will be split into two for specialists whereby they will receive a portion
of domain specific training at Specialised Training Institutes (STIs). For ex-cadre officers this
training will be arranged by their parent Ministries. The NSPP will act as a standard setter for
all training institutes in the country and to attract high-calibre, well qualified trainers to the
NSPP, the incentive structure offered to its employees will be revised. Lastly, according to the
decision of the Federal Cabinet, all training institutes within the country will be made
autonomous and run by independent Board of Directors which will comprise of individuals
from the academia, private sector, development practitioners, retired civil servants etc.
Linkages between these institutes and foreign universities will also be made to encourage
research, academic development and enhanced professional networking.

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1.1. WORKING PAPER OF THE TASK FORCE ON NATIONAL
TRAINING STRATEGY FOR CIVIL SERVICES
1. The responsibilities for imparting training to civil servants are at present divided among
various Ministries/divisions/agencies. Establishment Division is the agency of the Government
of Pakistan that is responsible for recruitment to the Central Superior Services (CSS)
examination, held annually through the Federal Public Service Commission (FPSC).
Establishment Division also organizes common training for the new recruits into these services,
through NSPP and manages specifically four services/ occupational groups i.e Pakistan
Administrative Service, Police Service of Pakistan, Secretariat and Office Management Group.
Training of CSS selected cadres is entrusted to the AGP, FBR, Commerce, Railways, Defence,
Information, Foreign, Postal Services Ministries.

Present Status of Training Profile:

2. Management training for civil servants takes three main forms

Pre-Service Training:
i) Common Training Program (CTP) for CSS Probationers:
The Civil Services Academy Walton, provides pre-service training to Grade 17 officer
appointed as probationers to the Central Superior Services. CSA is now a constituent unit
of the National School of Public Policy (NSPP).
ii) Specialized training Program (STP):
The CSA, Upper Mall provides specialized training program for PAS probationers. In
addition, there are 10 other specialized training institutions providing training to the
probationers selected for other Central Superior Services.
In-Service Training:
i) Secretariat Training Institute (STI):
STI provides both probationary and in-service training to the directly recruited and
promoted section officers of the Federal Government. The training of officers and staff of
the autonomous bodies under Federal Government has also been included in its purview.
ii) Pakistan Provincial Services Academy (PPSA):
PPSA, Peshawar was established to impart pre-service training to the probationary officers
of the Provincial Civil Service cadre. Provincial Civil Service officers of all the four
provinces of Pakistan viz the Punjab, KP, Sindh and Balochistan were being trained in the
academy. Governments of Punjab & Sindh have now made their own arrangements.
iii) National Institutes of Management Institutes (NIM)
NIM administers in service training courses of 14 and 16 weeks for Middle managers and
senior managers serving in the Federal and Provincial Governments belonging to both
cadre and non-cadre and ex cadre services. Successful completion of these courses serve as
a pre-condition for promotion of the participating officers from 18 to 19 and 19 to 20
grades, respectively.
iv) Pakistan Academy for Rural Development (PARD), Peshawar:

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 PARD arranges in-service training on selected topics/issues for Federal and Provincial
Government Officers. The academy ‘s training program in the past comprised regular eight-
week courses for Tehsil, District and Divisional level officers.
v) National Defense University (NDU):
NDU provides a few seats to civil service officers of BS- 20 for training which is considered
equivalent to training at NMC
vi) National Management College (NMC)
NMC is an apex-level in-service institution catering exclusively to the training of senior
officers of BS-20 drawn from all the civil services. The training at NDU and NMC is a pre-
requisite for promotion to BS-21.
Training Abroad:
3. Training of “selected personnel” is arranged by the respective Ministries/ Divisions
through their own foreign courses or by EAD through technical assistance programs abroad.
This training is totally ad hoc, unstructured without any relevance to career planning. For
example, under the Public Sector Capacity Building project financed by the World Bank,
officers in BS 17-19 were sent under Professional Development Program for obtaining master’s
degrees and senior officers in BS-20/21 attended the Kennedy School at Harvard under
Executive Development Program During 2006=2011. Most of the officers upon return were
not placed in posts that could benefit from their newly acquired skill sets and knowledge to
boost the capacity of the Ministries/agencies.

4. The Federal Public Service Commission recruits 1400 or more specialists or technical
persons annually, for non-cadre officer positions in BS-17 and above, in different Ministries of
the Government in contrast to 260 officers in the generalist cadre services and cadres. No
systematic effort is made for either post-induction or in-service training of these officers who
are controlled by different Divisions and Ministries.

5. The Board of Governors of NSPP had at one time decided on the introduction of
Common Training Program (CTP) for ex-cadre officers, after their initial recruitment by the
FPSC. It is not known as to what happened to that subsequently. More than 60% officers of the
Federal Government belonging to ex-cadre positions do not undergo any training in their career
to upgrade their technical skills. This huge gap has seriously impaired the capacity of the
Government in designing and implementing projects and programmes requiring specialist
inputs. Now, one the recommendation of the Task Force, training of ex-cadre officers has been
initiated.

6. Similarly, the Provincial Governments have not accorded priority or resources for the
continuous training of their officers – both generalists as well as specialists. The demands
arising out of the devolution to local tiers of government, have made so obvious that the officers
at District and Tehsil levels lack the capacity, in planning, managing, operating and delivering
public services in a cost effective and efficient manner.

Transfer of foreign training to Establishment Division from EAD

7. On the recommendation of the CCIR, Establishment Division has initiated process for
the transfer of foreign trainings from Economic Affairs Division. A summary has been initiated
for the purpose.
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 Proposed Strategy for Training
8. Training has been accorded inadequate attention in the management and development
of human resources deployed in the Civil Services. Historically, post induction training for the
civil servants selected for Central Superior Services had been the main focus of attention. More
recently, the formation of National School of Public Policy (NSPP) has spurred management
training at middle and senior level positions and links have been established between
performance at training courses and promotions. The following are the goals of a new strategy
for training of civil servants across all disciplines, cadres, professions at the three tiers of the
Government

i) Strengthen the institutional infrastructure, delivery, incentives and standards of

training of STIs
ii) Transform NSPP into an apex institution setting standards, curriculum, pedagogy,
assessment methods for all STIs
iii) Expand in service training opportunities for the majority of officers working outside
the cadre services and
iv) Upgrade the quality of training institutions in the Provincial Governments,
particularly for capacity building at the local government level.
How can these goals be achieved?
(a) Management of training at the Federal and Provincial Governments
9. In view of the importance, expanding role and growing responsibilities in the field of
training, the management of this function at the Federal and Provincial Government levels
requires consolidation and reorganization The Establishment Division , renamed as Human
Resources Management Division (HRM) and the Services Departments in the provinces to be
similarly renamed and revamped would be responsible for a decentralized training model under
which the policies, standards, monitoring would be administered by the HRM. They would
also ensure that all eligible officers have been afforded the relevant training opportunity at the
opportune time at various stages of their career. The actual design, , development and delivery
of training courses would be carried out by the NSPP and the STIs as the case may be.

10. The responsibilities of the cadre controlling Ministries and all other Ministries which
have ex cadre or non-cadre officers working under their control would be as follows:

i) Carry out Training Needs Assessment (TNA) of all cadre and ex-cadre officers.
ii) Select and place the participants in various training courses according to TNA and
career advancement requirements.
iii) Monitor, track and maintain, an updated scorecard of training received by each
officer.
iv) Advise training delivery institutions to design and organize training courses,
workshops to fill in specific skill gaps.
v) Utilize the academic institutions and non-government training institutions, to
augment the training resources in the public sector.

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 vi) Coordinate all public sector training institutions, for optional utilization of the
training infrastructure and resources available.
vii) Undertake impact assessments of training courses after regular interval.
It is suggested that until such time that a Training Wing is formed, the existing Management
Services Wing, under the Establishment Division, can be strengthened and upgraded to perform
this role and handle additional work assigned to it.
(b) Training of ex-cadre officers
11. The Engineers, Accountants, Economists, Medical Doctors, Educationists, Agriculture
experts, Scientists, Financial Analysts etc. who form the bulk of officers’ grades in the Federal
and Provincial Governments, should be provided in-service training in their respective
professions after certain intervals of time. The successful completion and certification of the
prescribed courses should be made a pre-requisite for promotion to the next grade.

12. There are some existing institutions that can be mandated to design these training
courses, while in other cases new institutions such as an Engineering Academy may be set up
for the design and delivery of professional in-service training. The details of the ex-cadre
employees of the Miniseries are at Annex-I.

(c) Training of Provincial Officers

13. The Provincial Governments are setting up the Provincial Management Academies for
the training of their newly inducted generalist officers. These academies should be asked to
expand their activities to in-service training, on the lines of the Federal Government. As the
majority of the officers of these Governments and District Governments are in the field of
education, health, police, agriculture, engineering and municipal services, professional training
of these officers should also be made mandatory and linked to their promotion.

(d) Incentives, facilities and standards in specialized and professional training

institutions
14. To attract best staff members to serve as faculty members in various training
institutions, it is necessary to bring the compensation, incentives and facilities admissible to
them at par with those offered at the constituent units of NSPP. It is proposed that the decisions
taken by the NSPP Board of Governors in respect to its constituent units on salaries,
allowances, facilities, additional points etc. should also be made applicable to all training
institutions. In return, the standards of instruction, pedagogy, testing and certification in all
these institutions should meet the standards prescribed by NSPP. We expect that as the NSPP
units have begun to attract officers of high calibre to work as instructional staff, these incentives
will be able to add quality staff to other specialized training institutions also.

(e) Governance structure of training institutions

15. There is a great deal of variation in the current governance structure of the training
institutions, ranging from subordinate offices to autonomous bodies. We recommend that all
training institutions should be autonomous bodies with their own boards of directors, chaired
either by the Minister or Secretary of the Division or Department concerned, but consisting of
eminent persons in their fields. The Board should enjoy the financial, administrative and
operational powers to manage the training institutions in an effective manner.

187
16. These training institutions should also be mandated to develop the capacity for policy
research in their respective areas of expertise and thus provide inputs to the Ministries in their
policy formulation work. As these institutions would be offering better remuneration than is
available in the regular Ministry, they will be able to attract the right kind of skills, which can
in turn be used by the Ministries to their advantage.

***********

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1.2. PROPOSALS OF THE TASK FORCE ON TRAINING FOR CIVIL
SERVANTS
Introduction
1. It is widely perceived and believed that the quality of public administration has
gradually decayed and is unable to serve the needs of the people. Doubts over competence,
capacity and behaviour of civil servants have frequently been voiced from both inside and
outside the bureaucracy and is one of the most vocalised concerns regarding the institution.

2. Capacity building within the bureaucracy is strongly linked to the training of officers
at post-induction stage and subsequently throughout the career. Training courses for civil
servants ought to become an integral part of developing competencies required to carry out the
responsibilities of the job in addition to on-the-job training and mentoring and coaching by the
supervisors. Career progression and advancement depends both on performance on-the-job as
well as training achievements. Given the due weightage given to training in acquiring
competencies as well as career progression, it is necessary to review the current training
system, identify its deficiencies and weaknesses and propose changes for the future.

3. It is widely accepted that current training modules are too general in nature to instil
skills that may assist them in the next-in-line job or career path later. At an early stage in their
career, the domain knowledge should form a large part of training with attention to behavioural
competencies and some time devoted to managerial skills including soft skills. As the officer
progresses on the career ladder, the mix between these three competencies keeps on altering
and at the Grade 21/22 levels, greater emphasis is placed on leadership competencies. At
present the courses often fail to enhance the social and inter-personal adroitness of trainees.
Additionally, training courses are currently standardised, following a one-size-fits-all approach
that does not allow for improvement in areas specific to the needs of individual officers.

4. In light of these concerns, a survey was conducted to solicit the opinion of future and
serving civil servants on their experience of training offered to them. The pre-service survey
concerned probationers at the Civil Services Academy prior to their first posting. Batches from
the past three years (2015-16, 2016-17, 2017-18) were surveyed in this exercise during their
Common Training Program (CTP) covering the entire population of probationers. A sample of
the officers at training while in service were also surveyed during their MCMC, SMC and
NMC courses. The questions sought the respondents’ views on the current training curriculum
and the utility of those modules to their individual learning and future job requirements. The
questionnaires also asked respondents on their opinions of the kind of topics that ought to be
added to the curriculum to help them advance further.

Evidence
5. The results of the survey identified the following challenges currently facing the
government on training:

i) Courses are based on general content that has limited relevance to specialised work
that civil servants are assigned at their jobs
ii) Training courses do not nurture specialisation in different sub-fields of policy which
is the need of the hour given the changing nature of government

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 iii) The current training system focuses overwhelmingly on mid-career and senior civil
servants and is wanting in the realm of training imparted to lower ranks who form
the vast majority of government servants in the country and also often form the
interface between the government and the public
6. The responses signalled a mismatch between the content taught at the courses and the
skills and knowledge required on the job following the conclusion of the courses. There was
also a general lack of enthusiasm among trainees about their courses which are considered
more a requirement to complete for future promotions than an exciting interval in the careers
of civil servants providing an opportunity for the enhancement of their individual
competencies. The younger respondents from the batches at CSA advocated for more courses
on topics including time management, stress management and writing skills. Additionally, civil
servants in service noted that the gap between the CTP and the MCMC was too wide and
shorter, more specialised courses in between this period would help bridge gaps in knowledge
and skills. The surveys found a need for the incorporation of IT in the training modules at these
courses. Among senior and mid-career civil servants there was a significant lack of IT skills
needed for swift coordination and efficient administration.

7. The results of these surveys signal ample space for reform in the area of training for
civil servants. The Task Force has therefore offered the following proposals:

i. Improvement in Pre-Service Training:

There is a need to inculcate soft skills at the pre-service stage during the Common
Training Program and the Specialised Training Programme. These skills include but
are not limited to writing skills, stress management, public speaking, media
management and interface with the general public. Civil servants at the lowest grades
often have the greatest exposure to the public and hence, it is imperative that the
government invest in improving their skills in terms of communicating the
government’s policies and interacting with the public.
ii. Self-identification of deficiencies and access to online courses:
Arguably one of the best ways to increase the value of training for civil servants is to
allow for the self-identification of areas where they may feel challenged and wanting
in specific skills. Standardised courses run the risk of failing to offer value addition to
all candidates equally. Tailor made programs in accordance to the specific needs of
individual officers may offer greater dividends not only for the individual concerned
but for the government in general in the long run.
Additionally, online courses would allow officers to avail training and skill
enhancement while on the job. Whereas the current training courses require them to
leave their stations and be physically present at a training institute, online courses would
allow greater flexibility, more specialisation and may be a more efficient way to
increase the capacity of individual officers.
iii. Linking training to postings:
While training is linked to promotion, there is a need to link training to postings as well.
This would directly challenge the current standardised curriculum offered at training
institutes. Training modules tailored to the specific needs of different occupational
groups as well as the primary subject of previous, current and future postings of

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 individual officers would allow for greater specialisation in their fields and also a shift
towards a more academic focus on the subject at hand. The first few years following
independence, the country’s bureaucracy was able to create much academic value in
the form of papers and publications. A similar culture that would give weightage to
value addition would go a long way in returning the bureaucratic set-up to its former
repute.
iv. Bifurcation of Training courses
The present Mid-Career Management course (MCMC) and Senior Management Course
(SMC) spread over 10 weeks and 14 weeks are offered at the National Institutes of
Management (NIMs) for potential Grade 18 and 19 officers respectively. While these
generalized courses are useful for networking across functional groups and also provide
common foundational courses, simulations and research opportunities they need to be
bifurcated in two parts. The first part would be the Common course for all participants
on the same lines as offered by the NIMs while the second part would be conducted by
specialized training institutions (STIs) tailor made for bringing the officers up to date
in their areas of specialization and equip them with skills and competencies to shoulder
the responsibilities for the next job.
V. Improvement in training infrastructure:
Physical infrastructure in the form of IT labs and libraries need to be improved at
training institutes. Additionally, the existing IT infrastructure and learning equipment
needs modernisation. Ease of access to journals is important if an academic culture is
to be promoted at training institutes.
vi. Returning prestige to the task of training officers:
It is noted that appointments at training institutes is a matter of much prestige in other
institutions of the state, most notably in the military. However, in the civil service,
despite financial incentives and locational advantages, postings and leadership roles at
training institutes are not considered to be rewarding posts instead they are more often
viewed as a step down by most officers. A more permanent solution in the form of
better human resource at these training facilities is required to make them attractive
options for qualified and dynamic staff.
Conclusion
8. This working paper is the result of the work done by a sub-group within the Task Force
on Civil Service Reforms. A stock-take event was also held with the partnership of the Ministry
of Planning, Development and Reform and UNDP Pakistan where the plan for future reforms
in the area of training, among others, was discussed and deliberated upon. The proposals
offered in this working paper are an amalgam of the thoughts and ideas shared at these forums
and are meant to inform future work by the Task Force on this matter.

9. Training rightly remains an important component of the promotion criteria for officers
and this pivotal position it is given ought to be mirrored in its relevance to future performance
and postings as well. To optimise the advantages reaped from the current training regime, it is
imperative to consider amendments and improvements in the current system to tailor it to the
needs of the coming generations.

***********

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1.3. PROPOSALS DISCUSSED BY CABINET ON TRAINING
1. The following proposals were placed before the Federal Cabinet:

i) Post-induction training for 3-6 months in the areas of government organisation

structures, procedures, rules, regulations, soft skills such as team building, inter-
personal and communication skills etc. would be imparted to those entering the
Federal Government in ex or non-cadre positions. This training will be organised
by the National School of Public Policy (NSPP) at Islamabad, Karachi, Lahore,
Peshawar, and Quetta.
ii) The tenure of MCMC/NIM/NMC courses will be split into two parts for specialised
cadres, one part at the MCMC/NIM/NMC followed by domain specific training at
the Specialised Training Institutes (STIs). For ex-cadre specialists, the relevant
Ministry/Division would arrange domain specific training courses linked to
promotion.
iii) The NSPP will be an apex body for standard settings, monitoring and quality
assistance. The selection of participants, design, context and delivery of courses
would be decentralised to the respective training institution.
iv) To attract high caliber officers of integrity, behavior and competence, the selection
method of faculty, directing staff and the incentive structure of proposed
Specialised Training Institutes shall be brought at par with that of NSPP.
v) All the training institutes shall be made autonomous with their own Boards of
Governors drawn from academia, practitioners, retired civil servants etc. Linkages
with leading universities and research organisations shall be established.
Cabinet Decision
2. The Cabinet at its meeting held on September 17, 2019 approved the proposal of (i)
Post – Induction training for 3 – 6 months in the areas of government organization structures,
procedures, rules & regulations: -

i) Regulations, soft skills such as team building inter-personal and communication

skills etc. would be imparted to those entering the Federal Government in ex or non-
cadre positions. This training will be organized by National School of Public Policy
(NSPP) at Islamabad, Karachi, Lahore, Peshawar and Quetta.
ii) The tenure of MCMC/NIM/NMC courses would be split into two parts for
specialized cadres, one part at the MCMC/NIM/NMC followed by domain specific
training at the Specialized Training Institute (STIs). For ex-cadre specialists, the
relevant Ministry/Division would arrange domain specific training courses linked
to promotion to the next grade.
iii) The NSPP will be an apex body for standard settings, monitoring and quality
assistance. The selection of participants, design, content and delivery of courses
would be decentralized to the respective training institution. To attract high caliber
officers of integrity, behaviour and competence, the selection method of Faculty,
Directing Staff and the incentive structure of proposed Specialized Training
Institute shall be brought at part with that of NSPP.

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 iv) All the training institutes shall be made autonomous with their own Boards of
Governors drawn from academia, practitioners, retired civil servants etc. Linkages
with leading universities and research organization shall be established.
Current Status
3. MCMC has been split.

4. Training sessions for Ex. Cadre were initiated in 9 Ministries in April 2020 but later
postponed due to COVID.

Action by: Establishment Division/Nine Divisions

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 Annex-I

STRENGTH OF EX-CADRE OFFICERS WORKING IN MINISTRIES/ DIVISIONS/

DEPARTMENTS

Sr.
DIVISIONS 17 18 19 20 21 22 TOTAL
No.

Sanctioned 510 180 53 18 2 1 764

1 Aviation Division
Actual 372 146 30 11 2 0 561

Sanctioned 26 109 30 15 3 2 185

2 Cabinet Division
Actual 54 23 9 2 0 0 88

Sanctioned 20 32 15 5 2 1 75
Climate Change
3
Division
Actual 13 18 5 2 1 0 39

Sanctioned 217 139 63 23 4 1 447

4 Commerce Division
Actual 59 47 26 10 0 0 142

Sanctioned 373 149 65 28 10 0 625

Communications
5
Division
Actual 196 76 8 6 1 0 487

Sanctioned 4804 1386 369 47 8 2 6616

6 Defence Division
Actual 3387 972 238 22 0 0 4619

Sanctioned 38 48 22 8 2 1 119
7 Defence Production
Actual 31 16 6 5 0 0 58

Sanctioned 11 26 5 9 2 1 54
Economic Affairs
8
Division, Islamabad.
Actual 10 12 3 0 0 0 25

Establishment Sanctioned 115 149 60 26 4 2 356

9
Division Actual 97 62 20 7 1 0 187

Federal Education & Sanctioned 3297 1022 481 36 1 0 4837

10 Professional
Training Division Actual 2615 881 389 24 0 0 3909

Sanctioned 2960 1839 290 175 44 8 5316

11 Finance Division
Actual 1642 1134 36 27 7 0 2846

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 Foreign Affairs Sanctioned 88 164 130 109 40 12 543
Division Main,
12 (Including Pakistan
Missions Abroad), Actual 4 5 0 0 0 0 9
Islamabad.

Sanctioned 369 104 29 8 2 0 531

Housing & Works
13
Division
Actual 285 97 23 4 1 0 405

Sanctioned 52 26 12 4 0 2 96
Human Rights
14
Division
Actual 42 18 7 4 0 0 71

Sanctioned 39 14 11 6 2 1 73
Industries &
15
Production Division
Actual 10 6 2 0 0 0 44

Information & Sanctioned 47 23 16 7 0 0 93

16 Broadcasting
Division Actual 40 23 9 7 0 0 79

Information Sanctioned 22 24 5 3 1 1 56
Technology &
17
Telecommunications
Actual 18 13 1 2 0 0 34
Division

Inter Provincial Sanctioned 84 36 22 8 5 2 157

18 Coordination
Division Actual 44 14 11 7 0 0 76

Sanctioned 2801 1006 448 63 21 3 4342

19 Interior Division
Actual 1797 637 336 49 0 0 2819

Kashmir Affairs & Sanctioned 18 6 4 2 1 1 32

20 Gilgit Baltistan
Division Actual 12 4 3 1 0 0 20

Sanctioned 150 91 57 21 154 10 483

Law & Justice
21
Division
Actual 87 57 41 12 98 9 304

Sanctioned 27 26 9 5 1 1 80
Maritime Affairs
22
Division
Actual 17 10 5 0 0 0 42

Sanctioned 132 63 27 12 3 1 238

Narcotics Control
23
Division
Actual 70 26 6 3 0 0 105

24 Sanctioned 193 65 41 19 2 1 321

National Food

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 Security &Research
Actual 106 43 25 11 0 0 185
Division

National Health Sanctioned 1419 495 181 86 2 0 2183

Services
25 Regulations &
Coordination Actual 970 161 72 45 0 0 1248
Division

National History Sanctioned 61 29 13 7 0 1 111

26 and Literary
Heritage Division Actual 44 14 8 4 0 0 71

Sanctioned 4 1 2 1 2 1 11
National Security
27
Division, Islamabad.
Actual 3 0 0 0 0 0 3

Overseas Pakistanis Sanctioned 60 59 24 6 11 2 162

and Human
28 Resource
Development Actual 51 32 10 0 0 0 93
Division

Parliamentary Sanctioned 19 3 7 3 1 1 34
29 Affairs Division,
Islamabad. Actual 6 3 0 0 0 0 9

Sanctioned 172 67 31 6 1 0 277

30 Petroleum Division
Actual 127 38 23 2 0 0 190

Planning Sanctioned 656 330 180 66 12 2 1246

31 Development and
Reform Division Actual 343 211 134 39 0 0 727

Poverty Alleviation Sanctioned 19 2 5 2 1 1 30

32 and Social Safety
Division Actual 1 3 0 0 0 0 4

Sanctioned 10 1 5 1 0 0 17
33 Power Division
Actual 10 1 0 1 0 0 12

Sanctioned 2 4 3 1 0 1 11
Privatization
34
Division
Actual 0 1 2 0 0 0 3

Sanctioned 749 420 104 56 12 3 1344

35 Railways Division
Actual 177 196 89 41 0 0 512

36 Sanctioned 46 29 19 7 2 1 104
Religious Affairs

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 and Inter-faith
Actual 39 25 17 6 0 0 87
Harmony Division

Sanctioned 700 1046 459 258 82 10 2555

37 Revenue Division
Actual 152 343 19 5 0 0 519

Science & Sanctioned 3 10 12 1 0 0 26

38 Technology
Division Islamabad. Actual 3 2 10 1 0 0 16

Sanctioned 58 21 11 6 1 1 98
States and Frontier
39
Regions Division
Actual 41 10 5 4 0 0 60

Sanctioned 17 22 14 8 3 0 64
Water Resources
40
Division
Actual 11 10 8 5 0 0 34

Sanctioned 20388 9266 3334 1172 444 78 34712

Grand Total
Actual 12986 5390 1636 369 111 9 20742

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 CHAPTER 2 PERFORMANCE MANAGEMENT AND
PROMOTIONS
1. The prevailing system of performance management has proved to be inadequate as it
was highly subjective and did not allow for a robust, quantifiable and objective assessment of
individual performances. Most of the evaluation reports had upward bias as most of the officers
end up receiving outstanding or very good ratings at their Annual Confidential Report. This
system failed to differentiate high performing individuals from mediocre and poor or below
average. The annual increments were given to every one across the board and thus these were
disincentive to work hard and put in best efforts.

2. The Task Force developed proposals to abandon the present Annual Confidential
Report (ACR) and replace it with an objective based key performance indicators driven
performance evaluation report (PER); forced ranking system is to be introduced and yearly
increments / bonuses tied to measures performance.

3. These proposals were finalized and presented by the Establishment Division to the
Federal Cabinet which approved the summary in September 2019. The approved changes as
detailed below also include a performance contract, which the Prime Minister will enter into
with every Minister in the Cabinet. The performance indicators against which officers will be
assessed will derive from these contracts agreed upon between the PM and his/her Ministers.
The targets set for officers will be objective and measurable so as to effectively assess their
performance against those indicators. Officers will be ranked according to a forced ranking
system whereby a ministry or cadre will be allowed to place 20% as Outstanding, 30% as Very
Good, 30% as Good, 10% as Average and 10% as Below Average. The officers who will attain
outstanding will earn twice as much as the rest in the form of merit increment. Those falling
below average will not earn any increment. Priority in allocation of government housing will
be given to the top 20%.

4. The new PER itself has also been restructured to include sections dedicated to (1)
Objectives and goals for the year, (2) Key Performance Indicators, (3) Evaluation by the
Reporting Officer and (4) Development / Training needs. These reforms aimed at retaining
only those who are performing well and effectively filter out over time those officers whose
performance is not up to the mark.

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2.1. WORKING PAPER OF THE TASK FORCE ON PROMOTION
POLICY AND PERFORMANCE EVALUATION
1. The current legal framework for promotion of civil servants is provided in the Civil
Servants Act 1973 and the Civil Servants (Appointment, Promotion and Transfer) Rules. Two
broad criteria for promotion of Civil Servants under these rules are, promotion on the basis of
seniority cum-fitness and selection on merit. Posts in BS-19 and higher are selection posts.
Promotion to posts in BS-19 to 21 is processed through the prescribed Selection Boards, on the
criteria of excellence and comparative merit. Promotion to posts in BS-22 is made on merit by
the High-Powered Selection Board headed by the Prime Minister. Posts in BS-17 to 18 are non-
selection posts. Promotion to these posts is processed through Departmental Promotion
Committees, on the criteria of seniority-cum-fitness. Integrity and performance in the existing
grade are key factor in determining a civil servant’s fitness for promotion.

Following are the eligibility criteria for an officer to be considered for promotion:
i) Minimum length of active service for promotion to higher grades.
ii) A clear disciplinary record.
iii) Required Performance Evaluation Report (PER) threshold.
iv) Successful completion of training course
2. The present Promotion Policy in its execution has proved to be unsatisfactory as an
instrument for incentivizing civil servants. There are no objective indicators to evaluate
performance, making it difficult to implement it in a transparent and uniform manner.
Accordingly, decisions taken in almost every promotion related meeting are challenged in the
superior courts. Civil Servants file frequent writ petitions, challenging their supersession,
creating legal difficulties and challenges for the government. There is therefore a need to re-
visit the promotion policy to make it a more effective tool of performance management and
career planning. The main issues arising out of promotion policy are as follow: -

i) There is no mention of evaluating integrity which is one of the criteria in the

Promotion Policy although PER forms require the supervisory officer to comment
on integrity. In absence of any objective evaluation method, reliance is placed on
reports of intelligence agencies. This practice is against the basic principles of fair
play and justice, as the officer concerned is neither aware of the allegations against
him nor is provided an opportunity to respond to the allegations contained in the
Intelligence Report. This inevitably lands the Government in a legal imbroglio.
Officers superseded on the basis of a negative intelligence report contest the
decision taken against them on the grounds that they were neither provided the
reasons for the decision nor an opportunity to defend themselves.
ii) The present Promotion Policy provides, that for promotion to posts in BS scales 19,
20 & 21, a civil servant must successfully complete mandatory training at NSPP,
NDU or NIM. Although the weightage for performance in these trainings has
recently been enhanced, there is a need for making training as a conduit for
acquiring certain skills and leadership qualities that would help them in discharge
of their duties at the next level of responsibility. There is a need to bifurcate the
generalized managerial training and introduce specialized training particularly for
ex cadre and non-cadre officers.

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 iii) There are no guidelines governing an officer’s career profile, although diversity of
experience is considered one of the factors for promotion to the next grade. There
are plenty of instances when officers have been superseded for not possessing
meaningful or diversified experience required for higher responsibilities. This
appears to be an unjust criterion since the career planning mechanism in the
Establishment Division and Services Departments in the provinces is weak and
cannot ensure that a civil servant is able to acquire diverse professional experience
in the span of his or her career.
iv) Though merit is recognized as the basis of promotion to higher posts, the existing
policy does not clearly explain the factors and considerations governing selection
on merit, other than laying down the eligibility criteria which in itself is not
sufficient. The present system of quantification of Annual Confidential Reports
(ACRs) and the threshold required for consideration for promotion suffer from
serious flaws. The large weight attached to the required threshold for ACR for
promotion purposes, has resulted in a scramble by the reportees, to force their
assessing officers to award them the qualifying marks for meeting the required
threshold. The PER system itself is highly subjective, contains irrelevant and non-
measurable attributes and is a stick used by some of the immediate superiors, to
force obedience and obsequiousness among their subordinates. A flawed PER
system and the undue weight assigned to the PER have rendered the promotion
policy an ineffective tool for career development.
3. There has been some realization about the flaws in the current promotion policy and
some of the steps initiated recently are as following:

i) In order to provide representation to all groups in the Federal Secretariat and place
officers with diverse experience, SRO 88(1)/2014 dated 10-02-2014 was issued to
amend Civil Services of Pakistan (Composition and Cadre) Rules, 1954.
Resultantly groups which had limited prospect of promotion have benefitted from
the apportionment of share in Federal Secretariat. Services/Groups like Railways,
Information, Commerce & Trade, Military Lands and Cantonment have been
apportioned BS-22 posts for the first time for incentivized performance of officers
in these cadres. This policy needs to be extended to provide opportunities for career
progression to specialists in non-cadre and ex cadre streams who are presently
excluded.
ii) Establishment Division carried out an extensive exercise in specifying the Job
Description for each post (BS-17& above) accompanied by Key Performance
Indicators (KPIs) with specific weight assigned to each KPI depending upon its
importance in 2015. A New Annual Assessment Report (AAR) Form for BS-17 &
18 officers was prepared by Establishment Division. After consultation with all the
stakeholders, a summary was sent to the Prime Minister Office to implement the
newly designed AAR Form from 1st January 2016. The AAR was intended to make
the assessment objective since evaluation was proposed to be made numeric instead
of generic with 60% of weightage proposed to be assigned to KPIs. Management
Services Wing was assigned the task to facilitate Ministries/Divisions in the process
of formulation of KPIs for their BS-17 & 18 positions. This proposal could not be
approved, however.

200
 iii) Establishment Division also obtained approval of the Competent Authority for
making the promotion to posts in BS-19, a selection post on the grounds that over-
reliance on PERs did not allow the best candidates to compete for senior positions.
Establishment Division also got the weightage of training enhanced to 35 percent
to reduce reliance on the PER’s.
iv) The weightage given to performance at various training levels was enhanced with
a view to decrease reliance on PERs for the purpose of promotion.
Proposed Way Forward
4. All the above steps, important as they are, do not achieve the purpose of revamping the
entire promotion policy. To rationalize the criteria for promotion and to ensure strict
observance of merit and transparency, the following recommendations are made:

i) An objective quantifiable, measurable, and verifiable Performance Management

System (PMS) should be introduced in place of the existing system.
ii) Posts up to grade 18 would remain as non-selection posts. Promotion could take
place on seniority–cum-fitness, integrity, and performance in these grades. Grade
19 and above posts would be selection posts. Promotion would be made on the basis
of performance and competencies acquired as reflected in the revised PERs and
training appraisal reports.
iii) Training for promotion to Grade 19 to 20 would be geared more towards behavioral
and operational competencies including knowledge of areas in which the officer
wishes to specialize. At the other end, promotion from Grade 21 to 22 would require
greater emphasis on leadership competencies i.e. inter-personal, teamwork,
communication skills, etc.
iv) Past performance as reflected through PERs quantification and synopses should
give weightage to performance only in the last two grades and to a few recent
assignments.
v) Career planning for officers belonging to various Services/ Groups is to be
effectively managed by the Establishment Division and by administrative heads of
other Services/ Groups. All Services/ Groups should have clearly defined career
paths, so that career planning for each officer is in his professional and
organization’s overall interest. Career paths need to be defined and the officers are
posted in different positions in accordance with the plan for the individual. The
terms like well-rounded experience, hard and difficult assignments also require
clarity in Estacode, to help in evaluation and design of an officer’s career.
vi) Recourse to intelligence agencies reports about an officer’s integrity should only be
made if the officer is provided an opportunity to explain and respond to the
allegations contained in the report.
vii) The working of the Central Selection Board needs to be strengthened. A large Board
consisting of senior officers drawn from diverse backgrounds and experiences
would offset the personal biases and prejudices of a Board consisting only of a few
members. The risk of officers making approaches to a limited number of Board
members is also mitigated this way. But the Board members should be encouraged
to speak candidly, backed by evidence and specific instances. The discussion at the

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 Board should remain strictly confidential and only the decision should be recorded
in the minutes. Board members should make a collective judgment by gauging
demonstrated performance, breadth of experience and training assessments. The
Board should be able to judge an officer’s capacity, leadership qualities and
potential to shoulder higher responsibilities, as reflected through career pattern and
performance in difficult and challenging assignments.
viii) Civil servants who are in specialist cadres such as doctors, teachers, professors,
research scientists and incumbents of purely technical posts, should also be
governed by the above criteria, for the purpose of promotions to posts involving
administrative responsibilities. In case of posts involving purely professional and
technical duties, two streams of promotions should be considered. One- the
structural promotions against vacancies and the other-professional promotions on
the job where excellence and achievements in professional duties need to be
recognized and rewarded.
5. Establishment Division is requested to

i) Review the existing system of promotions and guidelines provided by superior

courts in this regard.
ii) Evaluate the proposed way forward in the paper and make recommendations for the
overhaul of promotion policy.
iii) Indicate legal, procedural, and administrative changes required to implement the
recommended promotion policy.
iv) Present its findings to the entire task force and revise recommendations on the basis
of its feedback.
New Promotion Policy
6. Over the past three years, a major objective of the government has been to create a
system whereby promotions within the civil service are based on merit and performance. In
this manner, it is aimed that only those civil servants whose performance and reputation merits
promotion to the highest policy-making positions in the government should be elevated to those
grades whereas the rest should either continue to serve in their current grades or be asked to
resign in the case of adverse reports, consecutive super-cession by promotion boards or
continuously unsatisfactory performance.

7. The rules stipulate the criteria for the composition of Central Selection Boards,
Departmental Selection Boards and Departmental Promotion Committees as well as the
subjects under consideration of the relevant boards. It lays down the powers of the appointing
authority who may accept or reject the recommendations of the Board. Perhaps the most salient
feature of the rules is the eligibility criteria for consideration for promotion which is dependent
on the fulfilment of length of service required for promotion to a post, satisfactory completion
of mandatory training, possession of qualification and experience for a post, fulfilment of all
mandatory conditions of the rotation policy, fulfilment of policy for field posting, and of any
other terms and conditions in force. The rules state the weightage of various factors in
promotion decisions with the following breakdown: 40% for ‘Quantifications of PERs’, 30%
for ‘Training Evaluation Reports’ and 30% for ‘Evaluation by CSB and DSB’.

202
8. The rules also lay down the conditions for deferment as well as the conditions for
supersession of an officer. In addition, the rules state the conditions for consideration for
promotion after deferment/supersession. In this manner these rules lay out an effective
mechanism to filter good candidates from the average performers and end the elevation of
officers who are not fit for promotion.

Current Status
9. With this background, the government has notified new promotion policy- in more
objective assessment in the shape of giving more weightage to the reports of the mandatory
training and collective assessment of the members of the Board has been accorded. The policy
was challenged in the court of law, but Islamabad High Court has upheld the policy. Now, all
the promotion boards are being held in line with the principles of the new Promotion Policy
notified by the Establishment Division.

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2.2. PROPOSALS DISCUSSED BY THE CABINET ON
PERFORMANCE MANAGEMENT SYSTEM AND DECISIONS
1. The recommendations presented to the Cabinet were as follows: -

i) The PM would enter into a performance contract with each Minister, with specific
goals and targets to be monitored periodically. The performance goals of the
officers working under the Ministry would be aligned to add derived from these
performance contracts.
ii) Performance evaluation would be driven by a set of objectives / targets agreed
between the officer and supervisor for the year. Key performance indicators that
would be measurable and verifiable would be used to determine whether the agreed
goals have been achieved or not. Each division can evaluate the officers in
accordance with the following restrictions:
• 20% Outstanding
• 30% Very Good
• 30% Good
• 10% Average
• 10% Below Average
iii) Those placed in outstanding category would earn twice as much in the form of
annual merit increase as compared to those placed in other categories. Those falling
below average would receive no merit increase. In allocation of government
housing priority would be given to the top 20%.
iv) A new PER proforma based on the job description is being developed which would
consist of the following entries:
• Objectives and goals for the year
• Key Performance Indicators
• Evaluation by the Reporting Officer
• Development / Training needs
Cabinet Decision
2. The Cabinet at its meeting held on September 17, 2019 approved the following
proposals:

i) The PM would enter into a performance contract with each Minister, with specific
goals and targets to be monitored periodically. The performance goals of the
officers working under the Ministry would be aligned to and derived from these
performance contacts.
ii) Performance evaluation would be driven by a set of objectives/targets agreed
between the officer and supervisor for the year. Key performance indicators that
would be measurable and verifiable would be used to determine whether the agreed
goals have been achieved or not. Each Division can evaluate the officers in
204
 accordance with the following restrictions: 20% Outstanding, 30% Very Good, 30%
Good, 10% Average and 10% below average
iii) Those placed in outstanding category would receive twice as much in form of
annual merit increase as compared to those placed in other categories. Those failing
below average would receive no merit increase. In allocation of government
housing priority would be given to the top 20%
iv) A new PER proforma base on the job description is being developed which would
consist of the following entries:
• Objectives and goals for the year
• Key Performance Indicators
• Evaluation by the Reporting Officer
• Development/Training needs
Current Status
3. Performance agreements were signed between the PM and the Ministries in January,
2021 and are being reviewed every quarter. Now, SAPM on Establishment is getting detailed
agreements prepared in consultation with all Ministries for the remaining period of the present
government.

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2.3 GUIDELINES FOR PERFORMANCE MANAGEMENT SYSTEM1
1. The purpose of a robust performance system is to develop high caliber human resources
in public sector and mainly in the civil services rewarding those who do well in their jobs,
counsel and develop those who are weak and weed out those who continue to remain indifferent
and underperform in delivering their work objectives. Training, skill upgradation, career
progression and compensation would be linked to performance outcomes.

2. The current system of Annual Confidential Reports (ACRs) does not distinguish
between good, weak and poor performers. The Reports are highly subjective in nature and
driven by and large by the biases, whims and caprices of the supervising officers rather than
on evidence and facts. In an effort “not to make ripples” most of the reporting officers end up
awarding outstanding, excellent and high commendatory reports indiscriminately. The annual
increments are granted across the board without any reference to actual performance on the
job. An overall organizational culture of mediocrity is incubated due to lack of recognition for
high caliber work, undifferentiated career progression or compensation differential.

3. The weakness of the current performance appraisal process is further compounded by

a lack of consistency across departments in their appraisal systems. This makes it further
difficult to highlight what constitutes across the same grade employees good performance over
those that are mediocre or worse. A lot of litigation and heartburning among the employees has
arisen due to the absence of clear criteria under the current system with measurable indicators.
The lowering of weightage to performance appraisal in the promotion policy has been
necessitated due to highly uniform nature of reports tilting excessively towards one extreme --
outstanding and excellent. As soon as the new objective based and Key Performance
Indicators( KPI ) driven performance appraisal system is put in place , due consideration would
be given to increase the weightage of Performance appraisal reports in the Promotion policy..

4. If the present ACR system is allowed to continue along its current path, this will
inevitably lead to a further lowering of standards, resulting in a badly equipped workforce
which lacks the confidence, motivation and skills to meet the demands of modern government
responsive to the service delivery needs of the common citizens, and an economy that can
compete in the international arena. Indeed, one would only need to look at developing countries
such as those in the ASEAN block as well as states such as China, and the way in which they
are working to ensure their public administrations evolve effectively to deal with the challenges
of bringing prosperity to the majority of their population while participating in a dynamic
global economy.

5. The primary objective therefore is putting in place an effective performance

management and appraisal system that would hopefully bring the desired improvements in
public service delivery , facilitate ease of doing business, reduce the regulatory overburden and
develop an institutional mechanism for individual accountability. Performance appraisal would
also enable the public sector organizations to identify, from within their workforce, those
requiring trainings and capacity building so that they perform the jobs more efficiently and
effectively. At the same time capacities are built to ensure that higher positions are manned by
individuals with the right attitudes, skill sets and knowledge. For the reasons, amongst the

1
These guidelines would apply to all Government Ministries, departments, autonomous bodies and other public
sector organizations which are not following an open, transparent, objective based key performance indicators
driven appraisal system.
206
various facets of institutional reforms, performance evaluation of government officers is
considered as critical.

6. The Cabinet concurred that the core deficiencies in the present performance evaluation
system include lack of connection between the performance goals of the
Ministry/Division/Executive Department and performance evaluation of officers serving there.
Furthermore, the present performance evaluation system is highly subjective and dependent
upon the whims of the supervising officer as hardly any distinction is made among good,
satisfactory and poor performers. Performance on the job has no link with annual
compensation awards, as everyone is given the same amount of increment & increase in salary
and the same quantum of honoraria, if any. Moreover, the present PER proforma does not
provide any substantive information about the officer’s capability or potential for the future

7. The Cabinet therefore decided to revamp the Performance Management System by

introducing the following measures: -

i) The PM would enter into a performance contract with each Minister, with specific
goals and targets to be monitored periodically. The performance goals of the
officers working under the Ministry would be aligned to and derived from these
performance contracts.
ii) Performance evaluation would be driven by a set of objectives / targets agreed
between the officer and supervisor for the year. Key performance indicators that
would be measurable and verifiable would be used to determine whether the agreed
goals have been achieved or not. Each Division can evaluate the officers in
accordance with the following restrictions:
iii) 20% Outstanding, 30% Very Good, 30% Good, 10% Average and 10% below
average.
iv) Those placed in outstanding category would receive twice as much in form of
annual merit increase as compared to those placed in other categories. Those falling
below average would receive no merit increase. In allocation of government
housing priority would be given to the top 20%.
v) A new PER proforma based on the job description is being developed which would
consist of the following entries: -
• Objectives and goals for the year.
• Key Performance Indicators.
• Evaluation by the Reporting Officer.
• Development/Training needs.
Guiding Principles
4. The vision for Pakistan’s civil service through an effective performance management
of its public servants will underpin and shape the way in which the public sector delivers public
goods and services. This will bring Pakistan’s civil service at a closer par with its international
counterparts. The guiding principle is to put in place and implement a strengthened
performance management process that acts as a development tool for the human resources,
discerns clearly good performer from indifferent and poor one and sets out parameters and
metrics that are transparent, objective and unbiased. Subsequently it is the capability,

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motivation and skills of the workforce, which will form one of the main drives for achieving
the long term goals of civil service reform package. The proposed framework of performance
Management System would be driven by the following guidelines.

i) A move towards an open and transparent appraisal system, ensuring that post holder
and reporting officer are clear about both objectives, and the way in which they link
up with the overarching work plan of the organization/Ministry/Department and
the medium term budgetary framework. This will ensure that there is clarity from
the outset regarding objectives and that these are realistic, achievable and also
challenging. Both parties would discuss these goals and agree to these before they
are noted in the appraisal process. The mid-year review would be used to ensure
that objectives remain up to date and relevant to the work plan, and that good
progress is made on these. The end of year performance report would then be an
accurate and realistic assessment of the individual’s performance.
ii) Greater ability to effectively manage poor performance. The need to identify those
officers who regularly achieve and surpass objectives over those who do not, is
crucial in shaping how an organization develops. The lack of consistency in
separating good officers from those that may lack skills to deliver agreed work
objectives should involve corrective action to tackle this issue.
iii) Need to address issues surrounding under performance, where reporting officers
can set out clearly with the officer, where the areas of under performance lie,
address the underlying problem and set out more realistic goals if necessary. If left
unchecked, both poor and under performance would result in an environment where
capable employees are stretched beyond capacity to meet deadlines and cover work
that other areas of the organization have failed to deliver. In addition, factors such
as the lack of recognition of significant achievements and success will also mean
that the civil service is unable to harness the strengths of high caliber individuals,
who have a strong potential for future leadership within the organization.
iv) Highlight any skills gaps and how best to address these. Effective performance
management will always seek to address the training needs of the workforce;
enhancing and development core skills so that individuals and the organization are
fully equipped to deliver objectives and strategic aims. Subsequently the remit
would also include a focus on the continued development of both individuals and
teams.
v) Promote consistency in the appraisal process, so that personnel across departments
are monitored using the same criteria. Consistency will also work to remedy any
motivational issues; so that the workforce is confident in the subsequent
opportunities for career progression will be routed through a clear and fair process.
This would also enable the workforce to take an active interest in developing
transferable skills, that would further aid in career progression.
vi) Monitor and evaluate all staff, across the grade structure to distinguish between
those who do their jobs well, those who lack skills to do the jobs as effectively as
they would wish and those who deliberately under perform.
vii) Informed decision making to ensure that the relevant courses and training are made
available to individuals and teams, while ensuring that value for money is also
factored into the business case for training.

208
 viii) An appellate system would be put in place in which grievances from staff against
unfair or biased report would be addressed and resolved.
Responsibilities of Reporting Officer:
5. The Reporting officers will require good inter personal skills, a fair, un biased and
objective attitude and a high level of integrity in making this system work. The ability to both
praise work done well, as well being constructive when addressing problems surrounding poor
or under performance. They should exhibit clear leadership in coaching, counselling,
motivating and managing staff expectations whilst empowering staff to carry out their work
without creating undue impediments.

6. One of the key indicators of the reporting officer’s own performance would be the
compliance by the given deadlines by which reports are to be submitted. The outcomes of the
appeals against the decisions would also be taken into account in the performance appraisal of
the reporting officers while they would also be provided coaching and counselling.

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 CHAPTER 3 DIRECTORY RETIREMENT
1. In order to ensure effective performance management of civil service, it is very
important that an incentive structure be devised that rewards top and statistically performing
officials and weeds out those who are not performing well. Unfortunately, such mechanisms
are completely absent in the public sector of Pakistan and it is presumed that working for the
government till the age of 60 is a vested right. Due to the non-removal of inefficient staff, the
promotion prospects of incumbents are also adversely affected leading to further loss of
motivation. The Civil Servant Act 1973 did allow for the compulsory retirement of officials
after 20 years of service. However, this provision was never utilized due to the absence of
relevant rules. The Establishment Division has recently notified landmark Directory
Retirement Rules that address this problem.

2. After due consultations with all stakeholders, the Civil Servants (Directory Retirement
from Service) Rules 2020 were notified by the Establishment Division on April 15th, 2020.
Multiple meetings of the various boards have been held under these rules. The rules aim to
identify and ultimately remove inefficient officials through a well-defined process so that
productivity in the Federal Government can improve. The criteria for this action have been
clearly defined under the rules so as to minimize bias and safeguard against persecution and
political victimization. The long-term impact of these rules will result in significant
improvement in the overall efficiency of the civil service in the Federal Government.

3. The salient features of the rules are:

i) Mandatory evaluation of every official/officer after completion of 20 years of

service.
ii) Multiple Retirement Boards have been formulated to evaluate personnel in various
pay scales.
iii) Identified civil servant will be provided an opportunity of personal hearing.
iv) The person retired under these rules will be eligible for pension and other benefits
v) The criteria for retirement under these rules include adverse PERs, supersession in
promotion boards and involvement in corrupt practices.
Current Status
4. The Establishment Division has notified these rules and now they have to ensure their
effective implementation.

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 CHAPTER 4 EFFICIENCY AND DISCIPLINE RULES
1. The presence of adequate mechanisms of internal accountability are critically important
to maintain the effectiveness and integrity of a civil service. In the Pakistani context, such rules
did exist in the form of the Civil Servants (Efficiency and Discipline) Rules, 1973 (E&D rules).
However, these rules were never updated to reflect the changing governance methodologies
and therefore had become ineffective, over the passage of time. The vacuum created by the
non-effectiveness of these rules was filled through the creation of various external
accountability bodies which further complicated the situation by creating unrest and
apprehensions in the Civil Service leading to loss of motivation and an unhealthy environment
of fear. The solution to this problem lies in strengthening of internal accountability mechanisms
which are transparent, just and representative.
2. To address these issues, the Establishment Division started a comprehensive exercise
to revise the E&D rules. The Task Force of the PM on Civil Service reforms also examined
this area thoroughly and made its own set of recommendations which were forwarded to the
Establishment Division. The Division also consulted various other relevant stakeholders and
took input from them. The end result of this exercise was an extensive revision of the E&D
rules which were notified on 11th December, 2020 and are now in effect.The salient features
of the new rules are:
i. In order to solve the problem of in-ordinate delay in the finalization of inquiries the
redundant tier of Authorized Officer has been abolished. Now there are only two tiers
the Authority and the Inquiry officer.
ii. Clear timelines have been notified so that the inquiries and E&D processes are not
delayed.
iii. Plea bargains and voluntary return of ill-gotten wealth have now been classified as
misconduct.
iv. The rules and processes have been made more transparent and clearer.
v. The concept of “living beyond means” has been introduced to ensure integrity of civil
servants.
3. The much-needed revision of the E&D rules will go a long towards establishing a
culture of integrity and competitiveness in the civil service of the federal government. It will
also reduce the unhealthy ingress made by external accountability bodies by strengthening the
internal accountability mechanisms. The quality and pace of disciplinary proceedings will
improve which will result in more effective accountability. All of these are expected to directly
contribute towards improvements in public service delivery.
Current Status
4. Establishment Division to monitor the process and outcomes of E&D proceedings and
to ensure their timely closure. Federal Services Tribunal Act needs to be revised also.

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 CHAPTER-5 SECURITY OF TENURE
1. One of the most important problems facing bureaucracy is the frequent transfer of civil
servants. This undermines service delivery because managers are often not able to stay in place
long enough to complete the tasks assigned to them or institute and sustain reforms. This issue
has been discussed in the Task Forces and there is a general consensus among the members
that tenure of any posting should be around three years, which is regarded as normal time
frame, and this needs to be respected. Whimsical transfers before normal time period should
be avoided, and officer can only be posted out before this on disciplinary matters. Subsequent
conversations with the civil servants of all grades and backgrounds have fortified the belief that
the first step towards de politicization of bureaucracy lies in ensuring the sanctity of tenure.
The arbitrary, punitive, and whimsical nature of transfers has been a major driver of
unquestioned loyalty to the ruling class. It is also pertinent to point out that important initiatives
of the Government and the policies, programs and projects could not be implemented within
the stipulated time or within the projected cost envelope because of the lack of continuity in
the tenures of key civil servants. Instances were brought to the notice of the Commission where
Provincial Secretaries were transferred after an average stint of 6 months. Short tenures also
make it very difficult to hold officers accountable for their performance and undermine service
delivery to the citizens.

2. An essential ingredient to empower civil servants and hold them accountable for results
is a guarantee of stable tenure. Among other things this would definitely enhance the
productivity of a civil servant as the security of tenure would enable an officer to deliver in a
more professional manner. Empowered civil servant can be transformed into an effective
instrument for innovation in service delivery.

Proposals to the Cabinet on Security of Tenure

3. If there is one single action that can make a positive difference to the quality of
governance in the country, it is to effectively enforce the policy related to security of tenure
given in the Estacode, which is:

“The normal tenure of an officer on the same post should be three (03)
years. Posting of an officer on the same post beyond the normal tenure
will require concurrence of the competent authority, in each case”.
4. The Supreme court decision in Anita Turab case has already laid down the principles
that protect an officer from premature transfer from the post before completion of the stipulated
tenure.

5. It is recommended that the Prime Minister/Chief Minister at the federal/provincial level

should decide regarding posting of Secretaries/Heads of Departments and autonomous bodies/
Commissioners and Deputy Commissioners/ IG, DIG and District Police officers at the
federal/provincial/district level on the basis of consideration of a panel of three officers
proposed by the Establishment Division or S&GA Department as the case may be. Once the
officer has been selected through this process he/she should not be transferred until the
completion of the tenure i.e. 3 (three) years.

6. Only in cases where a disciplinary action is initiated against the officer for corruption,
negligence of duties, insubordination, misconduct, or failure to meet the performance targets
assigned to him/ her etc. and evidence has been established, the Prime Minister/ Chief Minister

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can decide that the officer should be moved out of the office before completing the posting
tenure. The Minister In charge or the Secretary can also move the Prime Minister/ Chief
Minister for the transfer before completion of the tenure by reducing in writing the reasons for
such an action.

7. In view of the position explained above the approval and faithful enforcement of this
proposal will greatly help in restoring the confidence of civil servants as stability of tenure is a
crucial factor for the success of any reform’s agenda.

Cabinet Decision
8. A summary was submitted to the Federal Cabinet on the subject matter by the
Establishment Division. The Cabinet at its meeting held on February 21, 2019 made the
following decisions: -

i) Selection Committee for the position of senior officers shall comprise the following
members
Adviser to PM on Establishment Head of the Committee
Mr. Shafqat Mahmood Member
Secretary Establishment Member
Secretary to PM Member
ii) The Committee will recommend suitable officers in BS-22 and BS-21 for all
Federal civil posts including Chief Secretaries and Inspector General, Police of
Provinces/AJK/Gilgit-Baltistan.
iii) Officers from BS-21 shall also be included and considered in the pool for the
appointment of Federal Secretaries.
iv) The normal tenure on the post should be two (02) years. Continuation of tenure will
be subject to review by the Minister in charge after initial six (06) months.
v) Normal tenure of two (02) years can be extended to three (03) years on the basis of
performance review by the Minister in charge
Current Status
9. Being implemented but not strictly and faithfully.

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 CHAPTER 6 ROTATION POLICY FOR PAS AND PSP
OFFICERS
1. Pakistan Administrative Service (PAS) and Police Service of Pakistan (PSP) are two of
the All-Pakistan Services (APS) as defined in Article 240 of the Constitution. These services
were created to manage the affairs of the federal and provincial governments with the vision
that these officers, through their working experiences in the Federal and Provincial
Governments, will be able to contribute more effectively towards national integration and
cohesive/representative policy formulation. To achieve this vision, it is important that a
comprehensive Rotation Policy for these officers be developed. The previous policies suffered
from various problems including non-rotation of All Pakistan Services (APS) female officers,
non-linkage of rotation with promotions and shortage of APS officers in the underdeveloped
provinces of the country.

2. The Establishment Division through extensive consultations with all the stakeholders
drafted and notified a new rotation policy for APS officers to address the issues. The Rotation
Policy for PAS/PSP Officers 2020 was notified on 5th August, 2020. The salient features of
the policy are:

i) Male officers will serve in the province of first allocation till their promotion to BS-
18 or 5 years from the date they join the province. Similarly female officers will
also serve until their promotion on BS-18 or 3 years from the date they join the
province.
ii) No transfer, on any grounds will be made before the completion of the prescribed
period.
iii) No PAS/PSP officer in BS-20 or above shall be allowed to serve in a province for
more than ten years and officer who complete ten years of continuous service will
be reallocated to another government.
iv) Promotion of officers has been linked to mandatory rotation.
v) Wedlock policy will not be applicable on PAS/PSP officers for any relaxation in
rotation policy.
vi) No exemption will be given on basis of gender.
Current Status
3. In accordance with the policy, 22 officers of All-Pakistan Services in BS-20 have
already been transferred to various governments in the first phase. The rotation of officers will
continue and be done bi-annually as per the laid-out criteria. It is envisioned that the new
Rotation Policy will provide for a more equitable distribution of officers in various
governments and also alleviate the issue of shortages. The concept of All-Pakistan Services
will be strengthened and all officers will be provided adequate opportunities to serve across the
federation before they are appointed at senior positions in the governments.

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 CHAPTER 7 INDUCTION OF PMS OFFICERS INTO PAS
1. Pakistan Administrative Service (PAS) is one of the All-Pakistan Services as defined
under the article 240 of the Constitution. In order to make the Pakistan Administrative Service
more representative of the provincial bureaucracies, there had been demand to induct officers
of Provincial Services into PAS. In light of this demand, the Civil Service of Pakistan
(Composition and Cadre) Rule, 1954 were amended in 2014. However detailed rules could not
be drafted to outline the induction process and therefore the induction never materialized.

2. After 2018, the IRC arranged multiple meetings with all the stakeholders on this
agenda. Visit were made to all the provincial headquarters and detailed deliberations were held
with members of the provincial services. The Establishment Division also became actively
involved in this area and conducted its own set of consultation with all the provinces. A final
comprehensive meeting was held on July 20th, 2020 in PM office with the representatives of
all the various provincial civil service officers’ associations. In that meeting too, this issue was
discussed. The minutes of the meeting are attached in the annexure.

3. As a result of all these discussions, the Establishment Division notified the PMS/PCS
induction into Pakistan Administrative Service Rules, 2020 on 23-02-2021. These rules are a
landmark achievement towards enhancing the representation of provincial officers in the All-
Pakistan Service PAS. As per these rules, the process for the first ever induction of PMS
officers into PAS for 51 posts has been initiated by the FPSC.

4. The salient features of the new rules are:

i) PMS/PCS officers of the four provinces, AJK and Gilgit Baltistan will be eligible
to apply for induction into PAS after having served 12 years or more in BS-17 and
above and who are currently in BS-19.
ii) Induction of these officers will be made in BS-19 as per provincial/regional quotas
iii) Induction shall be made on the recommendation of the FPSC so as to ensure merit
and transparency.
iv) FPSC will make recommendation through a competitive process that will involve a
written examination of 300 marks and an interview of 100 marks.
5. As a result of these inductions, in addition to the enhanced representation of provincial
officers into PAS, the promotion prospects of the PMS/PCS officers will also improve. The
induction will strengthen national integration and also improve the capacity of PAS service
through the utilization of region-specific experiences of the inducted PMS/PCS officers.
Current Status
6. FPSC is holding induction examination for PMS/PCS officers.

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 CHAPTER 8 SELECTION PROCESS OF THE CHIEF
EXECUTIVES IN PUBLIC SECTOR ENTITIES
1. Federal Government of Pakistan has 460 constitutional bodies, statutory
corporations, state owned enterprises, regulatory bodies, financial institutions, listed
and unlisted companies, autonomous bodies etc. These organizations play a critical role in the
economic and social life of the country. Until such time that reform plans for
these organizations are finalized or their future is decided, it is essential that a transparent,
merit-based System of the selection of the Chief Executives of these bodies is put in place
immediately giving credibility to the present government in meeting its commitment
for institutional strengthening.
2. With this background, a discussion was held to chalk out a procedure for the merit
based, transparent and competitive selection for head these entities. The purpose was not only
to protect the meagre resources of the state, but also their financial turnaround.
3. With lots of deliberation in the Task Forces, with Establishment Division, Ministry of
Law and Justice, a selection process of Chief Executives / Administrative Heads of Statutory
Bodies, Autonomous /Semi-Autonomous Bodies, Corporation, Public Sector Companies and
Banks governed by Banking Nationalization Act has been developed, which has also been
approved by the Federal Government. A Summary of these guidelines is as under: -
Cabinet Decision
4. The Cabinet in its meeting held on March, 19, 2019 approved the following selection
process for the appointment of Chief Executive/ Administrative Heads of the entities:
i. There shall be a Selection Committee constituted for the purpose of Selecting Chief
Executives/Administrative Heads of the entities. The Selection Committee shall be
a recommending body for proposing a short list of suitable candidates. The
composition of the committee would vary with the nature of the organization and
the job. The Selection Committee shall consist of:
a. Minister In charge of the Administrative Division under which the institution
falls as per rules of business, 1973 as Chairman. (Where the charge of a
Ministry/Division is held by Prime Minister, the selection committee shall be
headed by a Minister In-charge/Minister of State/Adviser/Special Assistant to
the Prime Minister, as nominated by the Prime Minister).
b. Secretary of the Administrative Division under which the institution falls as per
Rules of Business, 1973 as member.
c. One to three experts having domain knowledge to be nominated as Member by
the concerned Minister In Charge.
d. The non-executive Chairman of the Board of Directors or a senior member of
the Board of Directors of the institution in cases where such board exists; and
where such Board does not exist, a person to be nominated by the Minister in
Charge as member.
ii. The concerned Ministry/Division will carry out the Secretariat functions including
preparation of the records of all the candidates eligible for interview, recording and

216
 circulation the minutes of the Committee meeting and preparing the short list
approved by the Committee.
iii. Each requisitioning Ministry/Division shall furnish job description, eligibility
criteria and skills required for the job. The Selection Committee will decide the
evaluation parameters for the job. The concerned division will place a public
advertisement in the leading newspapers and post advertisement on the relevant
websites of the Government.
iv. The concerned Division will submit the list of eligible candidates to the Selection
Committee for initial review. After this initial review, the concerned Division will
arrange interviews for the shortlisted candidates. The Chairman of the selection
committee will forward a list of 3 to 5 candidates to the appointing authority.
v. The appointing authority can select any one of the candidates recommended by the
Selection Committee. The appointing authority, if not satisfied with the
recommended candidates, shall ask for a fresh panel. The Chief Executive thus
selected will be appointed on contract for a fixed tenure as prescribed in the relevant
law or as advertised.
vi. In case an officer working in the Government or Armed Forces is selected for the
job of Chief Executive and he/she decides to opt for the associated compensation
package he/she would have to seek premature retirement or resign from the
Government.
II. Amendments in Legal Framework:
i. Amendment in Para 1(i) of Establishment Division’s O.M No. 6/4/96-R-3, dated
ii. 10-05-1997 by replacing the entry in third column (Selection Procedure) with
“Selection Committee constituted with the approval of the Federal Government”;
iii. Amendment in Establishment Division’s O.M No. 1(72)/2002-E-6, dated 12th
October, 2018 as amended from time to time by replacing the Selection Board with
“Selection Committee” – constituted with the approval of the Federal Government”;
iv. Appointments in Statutory/Regulatory Bodies shall continue to be governed under
the rules, If framed, made under the relevant statues and if there are no rules and
until such rules are framed, the appointments shall be regulated as provided in the
cases of Autonomous/Semi-Autonomous/MP Scale appointments as at Para (i) and
(ii) above;
v. Matter will be referred to Securities & Exchange Commission of Pakistan for
amendment in Rule 5(2) of the Public Sector Companies (Corporate Governance)
Rules, 2013 and consequential/ancillary amendments.
5. The Cabinet further desired that requisite amendments in the rules/regulations may be
made at the earliest in the light of aforementioned decisions to enable initiation of recruitment
process for shortlisted SOEs.
6. The Cabinet at its meeting held on November 17, 2020 approved that the concerned
Ministry/Divisions, in order to lend transparency shall, in the first instance, advertise the post,
and in case no suitable candidate is found the matter may be placed before CCIR for allowing
or otherwise, recruitment to the said post through headhunting.

217
7. The Cabinet further directed that Establishment Division shall explore the possibility
of selection of a panel of headhunting firms to be used by the Ministries/Divisions, instead of
separate engagement of headhunting firm in every single case, to save time and cost.
Current Status
8. The process is being followed and 62 CEOs/MDs have so far been appointed on merit
in a transparent and competitive manner. Moreover, selection of the panel of Head-hunting
firms pending with the Establishment Division.
SELECTION MADE UNDER THE NEW PROCEDURE AS OF JULY, 2021
I. CEOs/MDs

Sr.# Post Ministry/Division Name

1. President NBP Finance Mr. Arif Usman
2. Chairman, SECP -do- Mr. Amir Khan
3. Chairman, NIT -do- Mr. Adnan Afridi
4. President ZTBL -do- Mr. Shahbaz Jameel
5. CEO Pak Kuwait -do- Mr. Mubashar Maqbool
6. CEI Pak. Brunei. -do- Ms. Aysha Aziz Khan.
7. Chairman, NEPRA Cabinet Division Mr. Touseef Farooqi
8. Chairman, EPTB Religious Affairs Dr. Amir Ahmed
9. CEO Pak Iran Finance Division
10. VC PIDE Planning & Development Dr. Nadeemul Haq
11. DG Debt management Finance Division. Mr. A. Rahman Warriach
12. Chairman BISP PASS Ms. Sania Nishtar
Information &
13. MD PTV Mr. Aamer Manzoor
Broadcasting.
14. Member OGRA Cabinet Division Mr. Mohammad Arif
Chairman, Strategic
15. NSD Mr. Moeed Yusuf
Planning Unit.
16. Chairman PTA Cabinet Division Maj. Gen. Amir Azeem
17. Exec. Director NITB. IT & Telecom Div. Mr. Shahabat Ali
Mr. Admiral Hassan Nasir
18. Chairman PQA M/o Maritime
Shah
19. MD, PPIB Power Division Mr. Shahjahan Mirza.
20. CEO, AEDB Power Division Dr. Rana Jabbar
21. CEO, TDAP Commerce Mr. Arif Ahmad Khan
22. MD, NEECA Power Ms. Nida Rizwan Farid
Director, Debt
23. Finance Division Mr. Umar Zahid
Management.
24. CEO, EXIM Bank -do- Mr. Irfan Bukhari
25. CEO, PPP Authority -do- Malik Ahmed Khan
ED, National Power Industries & Production
26. Mr. Ali Javed Hamdani
Parks management co. Division.
CEO, Engineering
27. -do- Mr. Raza Abbas Shah
Development Board.

218
28. CEO, PIDC -do- Mr. Rizwan Bhatti
Federal Insurance
29. Law Division Mr. Khawar Jameel
Ombudsman
CEO, National
30. Commerce Division Mr. Khalid Hamid
Insurance Corp.
Chairman, Pakistan Federal Education &
31. Dr. Yusuf Khuskh
Academy of Letters Profession Training.
CEO, National
32. Productivity Industries Division. Mr. Alamgir Chaudhry
Organization.
Chairperson Tariff Robina Athar
33. Commerce Division
Commission.
34. CEO, SMEDA Industries Mr. Hashim Raza
35. MD, OGDCL. Petroleum Division Mr. Shahid Salim Khan
36. MD PSO -do- Syed Mohammad Taha
37. MD, PMDC. -do- Mr. Farhan Shafi
38. MD, GHPL Power Division. Mr. Masood Nabi
39. President, SME Bank Finance Division. Mr. Dilshad Ali Ahmed
40. MD, PESB IT & Telecom Division Mr. Osman Nasir
CEO, Agro Food
41. Industries Division Mr. Munawar Hussain
Processing.
42. Chairperson, CCP Finance Division Ms. Rahat Kaunain
Science & Technology
43. DG, NIE Mr. Irfan Rabbani
Division.
44. DG, PNCA -do- Ismat Gul Khattak
45. CEO, USF IT & Telecom Division Mr.Haris Mahmood
46. MD,PARCO Petroleum Division Mr. Shahid Mahmood Khan
Chairman, Federal
Board of Intermediate
47. Education Division. Mr. Qaiser Alam
and Secondary
Education.
Executive Director,
48. Postal Life Insurance Commerce Division. Mr. Naeem Akhtar
Corporation.
Executive Director,
49. Frequency allocation Cabinet Division. Brig. Tahir Mahmood.
Board.
MD, House Building
50. Finance Division. Mr. Imran Ahad
Finance Corporation.
Chairman, State Life
51. Commerce Division Mr. Shoaib Javed Hussain
Insurance Corporation.
Science and Technology
52. MD, STEDEC Mr. Amjad Awan.
Division.
DG, National Institute Science and Technology
53. Dr. Samina Kidwai.
of Oceanography Division.
54. MD, Sui Northern. Petroleum Division. Mr. Ali Javaid Hamdani.
55. MD, Sui Southern. Petroleum Division. Mr. Imran Farouqi.
56. DG, HDIP. Petroleum Division. Dr. Saeed Jadoon.

219
 CEO Pakistan Stone
57. Industries Division Mr. Babar Miraj Shami
Development
MD, National
Transmission
58. Power Division Mr. Azaz Ahmed
Development
Corporation
59. Chairman NADRA Interior Division Mr. Tariq Malik
60. Chairman OGRA Cabinet Division Mr. Masroor Khan
CEO Sindh
61. Infrastructure Planning Division Mr. Nadeem Lodhi
Development Co
62. CEO Karachi Tools Industries Division Mr. Mansoor Ahmed

II. Other Senior Executive positions

Sr.# Post Ministry/Division Name

1. Commissioner, SECP Finance Division Mr. Farukh Sabzwari
2. Member, CCP -do- Ms. Shaista Bano
3. -do- -do- Ms. Bushra Malik
4. DG, Debt Management -do- Mr. A. Rahman Warraich
5. Director, Debt -do- Mr. Umar Zahid
Management
6. Director Debt -do-
Management
7. Member, CCP -do- Mr. Mujtaba Lodhi
8. -do- -do- Mr. Shamaila Lone
9. Commissioner, SECP -do- Ms. Sadia Khan
10. Member, Tariff Commerce Division Ms. Anjum Assad Amin
Commission
11. Member Gas OGRA Mr. Muhmmad Arif
12. Member Oil OGRA Mr. Zainul Abedin
13. -do- -do- Mr. Mohammad Saleem

14 Chief Economist Planning Division Mr. Mohammad Ahmed

Zubair

15. CIO FBR Mr. Mansoor Azam

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 CHAPTER 9 MP AND SPP SCALE POLICY
1. Attracting specialized and well-qualified human resource to the public sector has been
a struggle due to lower pay packages and limited career progression opportunities. These
recruitment efforts are particularly important at the highest grades where officers are
responsible for major policy making decisions that heavily impact ordinary citizens. To amend
the existing policies governing the recruitment of specialized human resource and to attract
experienced and well-qualified professionals, the Government of Pakistan introduced the
Management Positions (MP) and Special Professional Pay Scales (SPPS) Policies. These scales
were comprehensively revised in June, 2020 to align the needs of the public sector and skillset
of the private sector.
2. The MP Scales Policy, 2020 provides for the appointment of qualified professionals
from the open market on a tenure basis against MP Scale positions within the Ministries/
divisions and their subordinate, attached semi-autonomous, autonomous, and regulatory bodies
across the federal government. Prior to this, Finance Division was regarded as the custodian of
the MP Policy, but that was limited only to the admissible perk and privileges and pay package.
So there existed a void, which needed to be bridged. As matters relating to HR, are fall in the
domain of the Establishment Division, therefore, now the control and amendment, in it has
been entrusted to Establishment Division. Policy in June, 2020 has been notified by
Establishment Division and later amendment in the Policy also by the same Division.
3. To ensure that the positions indicated as MP scale are identified appropriately, the
policy provides for a detailed needs assessment that must be carried out prior to the finalization
of the status of these posts. This assessment includes a justification by Ministries requesting
these posts, a collaborative effort by the Finance and Establishment divisions prior to the
creation of MP scale posts and the provision of thorough terms of reference for the requested
appointments.
4. The policy requires easy public access to the advertisement for such posts which should
be included in at least two national dailies. Upon application, a Scrutiny Committee,
comprising of officers from within the relevant department, is empowered to consider
applications against the eligibility criteria and shortlist eligible candidates for further
consideration. The Selection Committee is responsible for interviews and meeting all
requirements of the recruitment process for the selection of names to be considered by the
Prime Minister for the final decision. The policy further offers details on the specification the
terms and conditions for these posts, performance evaluation for selected professionals and
contract extension.
5. As the primary aim of the creation of MP Scales is to recruit talented and well-qualified
professionals from the open market, officers of the civil service will not normally be considered
for these positions however, those who meet the criteria may apply. It is hoped that through the
implementation of this policy, specialist expertise can be brought into the Divisions and
departments of the federal government to assist in providing more targeted service delivery,
integrating efficient practices from the private and non-profit sectors in public sector operations
and introducing technological solutions and best practices to tackle challenges relating to
public service provision.
Special Professional Pay Scale Policy
6. The Government notified a SPPS policy in April, 2019 to attract top professionals in
the public service. These scales attract better remuneration than the MP Scales and are designed

221
to attract top of the line professionals from across the world. Generally, hiring process for both
these polies is similar.
Revisions of Policy
7. The MP Policy has been extensively revised in June, 2020 to expand its coverage and
utility. The academic qualification and experience have been updated and standardized. In
order to allow room for any deviation in the criterion, a committee headed by the Secretary
Establishment Division has created to tackle such specific issues. With these changes in the
Policy, now more and more institutions and organizations are adopting the MP Policy for hiring
experts from the private sector. In addition to this, due to its being an all-encompassing
document, some of the organizations like Planning Commission and Pakistan Bureau of
Statistics have adopted the recent MP Policy, by shunning the departments policies for HR
hiring.
8. Recently, CCIR has also recommended that all civil servants can also have one posting
in MP in their entire career, which is not allowed as of now. Establishment Division has been
tasked to work out its modalities. The matter is presently with the Secretaries Committee.
Current Status
9. Regular appointments are being made under MP and SPP Scales.

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 CHAPTER 10 CONVERSION OF POSTS INTO
MANAGEMENT AND SPECIAL PAY SCALE
1. There is a regular need for contractual appointments of experts in the Federal
Government for various positions. To attract the best talent from the market, there are two
primary categories of special pay scales that are available A) Management Pay Scales (MPs)
1, 2 and 3 B) Special Pay Scales (SPPS) 1,2 and 3. The criteria for appointment under MPs has
been defined under the MP Scales policy 2020 as updated by the Establishment Division vide
OM no. 1/3/2020-E-6/E-8 dated 24th May, 2021. The selection criteria for appointment under
SPPS have also been defined by Establishment Division vide OM No.1/11/2018-E-6 dated
03.12.2019. These two policies clearly outline the processes involved in the creation of new
MP and SPPS scale posts.
2. The two policies mentioned above deal with the creation of new posts in special pay
scales. However, a need was felt by the Federal Government to create a new process whereby
existing senior posts can be converted into these special pay scales. Through this process the
Ministries and Division would be given the flexibility to hire technical and management experts
in lieu of their vacant senior positions. The Federal Cabinet in its meeting on 10th December,
2019 and 14th January, 2020 decided to create a new Cabinet Committee to convert existing
posts into these special pay scales. The members of the Committee were notified as follows by
the Cabinet Division vide notification no. F.2-CM-2020-D dated 20th February, 2020.
i. Adviser to the Prime Minister on Institutional Reforms and Austerity as Chair
ii. Federal Minister on Federal Education and Professional Training
iii. Secretary Establishment Division
iv. Secretary Finance Division
3. The Committee in its first meeting decided that the IRC would serve as the Secretariat
for this committee for the purpose of receiving proposals, circulating working papers and
recording minutes of the meeting. After deliberations, it was also decided that the Committee
would consider proposals drafted as per a specific working paper the specimen of which is as
below: -
Specimen of the proposal for conversion of posts
i. Title of the post with BPS
ii. Is this a promotion post as per existing rules (Y/N)
iii. Description of organization with annual budget and total employees (max 45 words)
iv. Job Description for the post (max 45 words)
v. Rationale for conversion of the post (max 45 words)
vi. Proposed education qualifications
vii. Proposed experience requirements
viii. Proposed five Key Performance Indicators with annual targets
ix. Is there any suitable serving officer available in the Division for the post?

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4. Since its inception the committee has met multiple times and existing posts have been
converted into more than 25 posts in special pay scales. Details are given below:

Conversion of Post into

S# Ministry Department
MP/SPS Scale
Ministry of Federal Academy of Education Conversion of Director
1. Education & planning & Management General BS- 21 From basic pay
Professional Training (AEPAM) scale to MP-I Scale
The committee approved the
Auditor General of Auditor General of creation of 10 posts of MP
2.
Pakistan Pakistan / DAGP Scales (5 in MP-I and 5 in MP-
II)
Pakistan Council of
Scientific Conversion of the Chairman
Ministry of Science & & Industrial Research PCSIR into MP -I Scale
3.
Technology (PCSIR)
Pakistan Science Conversion of the 01 post of
Foundation (PSF) PSF into MP -I Scale
Ministry of Inter Conversion of post of Director
4. Provisional Pakistan Sports Board General Sport Board BS-20
Coordination into MP-II Scale
Pakistan Railway Accounts Conversion of five posts to
5. Ministry of Railways
Department MP-I Scale
Enhancement of pay scale of
State Life Insurance
6. Ministry of Commerce Chairman SLIC from MP-I to
Corporation
SPSS -I
Post of Pakistan
Ministry of Water Pakistan Commission for
7. Commissioner for Indus water
Resources Indus Water (PCIW)
BPS -21 to SPS –III
Ministry of Planning Conversion of the post of Chief
Planning Commission of
8. & Development & Economist into Special
Pakistan
Special Initiative Professional Pay Scale
Ministry of Overseas
9. EOBI Chairman EOBI into MP-1
Pakistanis and HRD
10. Ministry of Commerce PRCL CEO PRCL into SPPS-3
Establishment Two posts of DGs have been
11. MS Wing
Division converted into MP-1

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 CHAPTER 11 TECHNICAL POSITIONS IN FEDERAL
SECRETARIAT FROM PRIVATE SECTOR
1. Federal Secretariat comprises 40 Divisions dealing with the policy making in the
domain of economic, technical, social and general management. These Divisions provide
secretariat support to the Federal Government comprising Prime Minister and Cabinet. These
Divisions are interconnected and rely heavily on the mutual consultations and collective
wisdom for the decision making, which has a legal backing derived from the Rules of Business,
1973. Posts in the Federal Secretariat are primarily manned by cadre officers of PAS,
Secretariat and OMG, who are all generalists. Some posts in BS 21 and 20 have been allocated
for all other Occupational Groups and services as notified by Establishment Division in April,
2015.
2. The Federal Government in view of the rising complexity of decision-making can
benefit from the breadth of knowledge, integrated view of cross-functional linkages and the
management skills of the generalists and in-depth specialized knowledge and advise of
technical exports. The binary of ‘generalists vs specialists’ in 21st century world is outdated.
A hybrid model relying on the two is required to curb complacency, promote innovative
thinking and transfer best practices from private and non-government sector. Pakistan has so
far followed Career Based Senior Executive model rather than Positions Based Senior
Executive Service. Both these models are prevalent in many countries.
3. A brief description with their pros and cons is summarised below:
Career-Based Senior Executive – Global perspective
i. Found in Pakistan, France, Italy, Japan, South Korea, Malaysia, and Spain.
ii. Recruitment at the entry level through competitive examinations.
iii. They are trained and groomed to become elite corps and then put on an accelerated
career trajectory.
iv. The advantage of its closed nature is that there is common culture and value system,
and an enviable degree of esprit de corps, a combination that facilitates excellent
communication across the governmental spectrum.
Position-Based Senior Executive Service (SES)
i. Found in Australia, Belgium, New Zealand, UK, USA, Netherlands.
ii. The appointments to identified senior positions are made from a wider pool
comprising all civil servants who are qualified to apply as well as those applicants
from the private sector with relevant domain competency and experience.
iii. Its openness is its basic strength. All professional cadres in the government and
even those outside the government can compete for selected top positions.
iv. This makes it possible for lateral entrants to bring in their own work culture which
enables renewal and adaptiveness in government organizations.
v. However, the bulk of appointments in the position-based system is from among
career civil servants.
vi. In the American SES, only 10% of the positions are filled up by “outsiders”. In
Australia, recruitment to the SES from outside the Australian Public Service has
ranged from 25% in 1992-93 to 14% in 2000-01. 20% of Korea’s career-based SES
is now recruited from the open market.

225
Comparison
4. Career management is more decentralized in the position-based system as compared
with the career-based system. While members of the career-based SES are employed from the
time of recruitment to the age of retirement, the position-based SES is on the basis of contracts.
In both cases, performance standards are stipulated in advance and appraised rigorously.
Emergent Trends in Governance
5. With the passage of time, the governance has become complex and specially with the
emergence of modern finance and technologies, unprecedented growth of Information and
Communication Technologies, interconnectivity of the global economies, the pace of change
has become very fast. Technologies become obsolete within days. Civil servants hired by
Government of Pakistan are career civil servants and are not exposed to the working of private
sector.
Proposal of Inducting Technical Experts in the Federal Secretariat
6. In view of the above, there is need to open up the Federal Secretariat for the private
sector academia and thinktanks to improve the quality of the decision making in the secretariat.
This induction can be at mid-level i.e., at BS 19 and 20 and for 3-5 years tenure. In this first
go, some seats can be allocated for induction from the private sector especially in the technical
and economic Divisions of the Federal Secretariat.
Current Status
7. Accordingly, Establishment Division has chalked out a scheme to hire few technical
experts from private sector, having relevant background, skills and experience to work as
Deputy Secretary and Joint Secretary in the Federal Secretariat. For the purpose, Establishment
Division has earmarked ten posts of Joint Secretaries and Deputy Secretaries each. The hiring
process is underway.

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 CHAPTER 12. TECHNICAL ADVISERS IN SELECTED
MINISTRIES TO ASSIST MINISTERS
1. As stated earlier, Government decision making process is a complex and multifaceted
phenomenon. The key to a successful government is its ability to make informed and
technically sound strategic decisions. In today’s world of specialization and technological
advancement, one way of doing such decision making is by seeking the advice of high-level
domain experts. Globally, there is an established system of soliciting policy advice from
specialists at the Ministerial level in addition to the support from the civil service. Countries
with better rating in governance indices such as United Kingdom, Canada and Norway have
been using this system successfully. The present Government has made increased use of Task
Forces consisting of experts drawn from the private sector, academia, practitioners, retired civil
servants etc.
2. This one-off arrangement, to be meaningful, has to be followed up with implementation
of recommendations of the Task Force approved by the Cabinet. Some of the actions would
require technical and domain knowledge and expertise. As the Minister Incharge would be
responsible for delivery of results and held accountable, he/she would need some high level
technical advisory support to examine the proposals submitted by the Ministry, to assess the
feasibility of the Task Force recommendations and thus to make informed decisions.
Therefore, it was felt that there was a need for a Technical Adviser in the Minister’s office that
can assist them in these examinations.
3. According to the Rules of Business also, the Minister has a twofold duty to assist the
Prime Minister in the formulation of policy on one hand, and on the other the business of the
division for which he is responsible would be disposed of under his authority. It is therefore
imperative that the Minister’s judgement regarding a policy choice is based upon sound
comprehension of the issue as well as an awareness of the alternate strategic choices. Secretary
to the relevant Ministry or Division is an important policy link and is also the execution arm of
the government. However, by the very structure of existing civil service, a secretary rarely has
the technical expertise required to advise comprehensively on important policy decisions.
Technical Advisors in the Ministers’ office can therefore strengthen the office of the Ministers
by providing sound technical advice during the process of policy formulation, policy review
and monitoring of progress and evaluation of results.
Decision
8. The Prime Minister approved this proposal on a summary moved by Establishment
Division. Initially 15 posts were created on 21st February, 2019, which were later increased to
17 posts, in the following Ministries:
i. Finance Division
ii. Ministry of Science and Technology
iii. Ministry of Federal Education and Professional Training
iv. Ministry of Energy (Petroleum) Division
v. Ministry of Power Division
vi. Ministry of Water Resources
vii. Establishment Division
viii. Aviation Division
ix. Ministry of National Food Security & Research
x. Ministry of Maritime Affairs

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 xi. Ministry of Industries & Production
xii. Ministry of Information Technology & Telecom
xiii. Ministry of Information & Broadcasting
xiv. Ministry of Climate Change
xv. M/o of National Health Services, Regulation & Coordination
xvi. Commerce and Textile Division (Two Posts)
Current Status
9. So far, only Ministry of Federal Education and Professional Training has recruited a
Technical Adviser, while process is underway in Aviation, Information and Maritime
Divisions. Establishment Division has vetted ToRs of 14 Divisions for Technical Advisers.
Establishment Division may be authorized to transfer these positions from those where there is
reluctance or indifference to the Ministries, who are interested in availing the services of such
advisers.

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PART II REFORMS UNDER REVIEW AND
DELIBERATIONS

229
 CHAPTER 13 INDUCTION AND RECRUITMENT
1. The existing system of recruitment to the Civil Services of Pakistan due to the
standardized nature of the civil service examinations, with little focus on the specialized areas
of service, is inadequate in so far as the vast majority of applicants who join the civil service
are not equipped to deal with the domain specific requirements of their respective occupational
groups. Induction into two different modes (a) induction at entry level i.e Grade 17 for 12
occupational groups (Cadres) through a competitive Central Superior Services (CSS)
examination held every year (b) ad-hoc selection at Grade 17-21 for Ex-Cadre and non-Cadre
Vacancies as and when these arise. Those recruited through the central Superior Services are
generalists and rise to occupy most managerial positions in the District and Provincial
Administration, Police, Federal and Provincial Secretariats, Foreign Office, Audit and
Accounts, Revenue Collection, Railways, Post Office, information Military Lands and
Cantonments, Trade and Commerce Ministries and departments. Ex –Cadre and Non-Cadre
officers also recruited through the Federal Public Service Commission are specialists and
consist mainly of teachers, health professionals, engineers, accountants, IT experts,
economists, scientists, agriculture researcher etc.
2. For this reason, the Task Force on Civil Service Reforms proposed changes to the
induction system for the civil service. A study was conducted involving fresh recruits
undergoing their Common Training Program soliciting their views on the existing examination
and recruitment system. This study fed into the proposals presented later for consideration and
discussion by the Task Force.
3. To begin with, it was found that the FPSC recruitment cycle has elongated and stretches
over 1 to 1.5 years keeping the vacancies open for extended period. Multiple consultative
sessions and meetings were held with representatives from the Federal Public Service
Commission and the Establishment Division on the need to introduce a possible screening test
for the CSS examination as well as integrate technology driven solutions in order to reduce the
workload on the FPSC.
4. The proposals pertaining to the CSS examination posit a system based on three distinct
stages. At Stage 1 a Screening Test is to be carried out to filter out those who are non-serious
candidates and only the serious applicants meeting certain threshold advance to the next stage.
This stage is predicted to significantly lower the total number of eligible candidates moving
forward. Stage 2 will comprise of mandatory subjects to be taken by all candidates similar to
those taken presently with the addition of Public Administration and Governance. Stage 3 will
comprise of examinations in elective/optional subjects that will align the service group with
the preference of the Candidates. This stage will require applicants to choose from different
subjects that will act as pre-requisites for placement in different occupational groups. A detail
of these stages agreed upon jointly by the IRC, Establishment Division and the FPSC are
detailed ahead in this section.
5. The Federal Cabinet was presented with these proposals on which it expressed some
reservations. However, the proposal will be taken back to the Cabinet by the Establishment
Division following further work on the details.

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13.1. PROPOSALS OF THE SUB-GROUP OF THE TASK FORCE ON
CIVIL SERVICE INDUCTION
Introduction and Rationale
1. Contemporary tasks of the civil services involve formulation, implementation, and
oversight of public policy, as well as administration of the delivery of essential services. There
is considerable consensus that absence of domain-specific knowledge, as well as a failure to
recruit high-quality talent has resulted in the decline of civil service performance in these key
areas. These failings justify the rationale for the policy proposals, which seek to inculcate
mechanisms that will help draw in high-quality talent into government service, reduce the
burden of domain-knowledge training on under-resourced General and Specialized Training
Institutes (GTIs and STIs), and retain the positive spill overs of quality and stability that accrue
through generalist recruitment. For the purpose of clarity, it must be mentioned at the outset
that these proposals concern FPSC-led recruitment into the occupational groups of the Civil
Services through the Competitive Examination (CSS).
Baseline Analysis
2. The current mechanism of recruitment aimed at attracting talent at a young age for
pursuing a generalist career path carries little space to channel substantive, domain specific
knowledge. Candidates appearing for the CSS undertake exam in subject combinations that
have little relationship with their occupational group preferences (and ultimately, allocations).
While the FPSC has introduced structured rules to the way optional exam subjects can be
chosen, the persistence of particular subject combinations with little relevance to the
knowledge-requirements of civil servants for particular occupational groups remains an
unsettled issue.
3. Data from exam performance review, examiner reports, and profile of appearing
candidates shows that most candidates struggle to clear the exam; candidates from a select
group of high-ranked public and private-sector universities perform better than others; a large
number of applicants drop out of the process given that only 50% of those who register actually
appear at the exam. While the concerns regarding quality of CSS candidates mirror a larger
crisis of learning in Pakistan’s education sector, it is proposed to maximize benefits from the
Competitive Examination within the given constraints.
Principles of Reform
4. It is proposed that the induction process should be geared to test three distinct aspects
for determining a candidate’s suitability. These are: i) problem-solving, analytical, and
articulation ability; ii) domain-specific knowledge; and iii) cognition, aptitude, and motivation.
5. The testing process should be designed in a way to reduce the burden on FPSC and its
chosen examiners. Currently, examiners have to go through all sections of nearly 11,000
candidates appearing for the CE, which creates problems of consistency, quality, and equitable
treatment.
Proposed Reforms
6. Four different stages in a sequence would be utilized to select the most suitable
candidates for various occupational groups. At stage one, the existing compulsory section of
the Competitive Exam would be converted into a screening test open to all applicants for
determining problem-solving and analytical ability, along the lines of a standardized exam
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(SAT/GRE). It can include coverage of subjects such as Pakistan Studies and Islamic Studies
but should primarily be used to test candidates’ ability to solve basic logical and mathematical
problems, as well as English language comprehension. An additional English composition
section can also be added to test the candidate’s articulation ability.
7. Performance/outcome in the compulsory section will be valid for three years, along the
lines of other standardized tests. Cut-off thresholds would be used in a way that adequate
number of candidates become available in proportion to the regional quotas for subsequent
stages. To illustrate this point if rural Sindh has 10 vacancies to fill, there ought to be a pool of
at least 50 candidates emerging out of the screening test.
8. Candidates clearing the compulsory exam or Stage 1 will be subjected at Stage 2 to a
range of psychometric evaluations to determine their aptitude and motivation towards
government service. These exercises can draw in from the experience of generalist recruitment
in other countries, where candidates take several sets of psychometric tests, including the Perry
Public Service Motivation test, which determines pro-social motivation of civil servants.
9. Candidates who clear the second stage of evaluation – i.e., psychometric testing – can
then become eligible to sit for a range of domain-specific optional exam clusters i.e., Stage 3.
These exams will be administered separately and consist of a combination of subjects relevant
to the requirements of different occupational groups. Candidates can appear for as many
optional exam clusters as they prefer, but successful allocation to linked occupational groups
can only happen if a candidate has appeared for its respective cluster. In the first instance, four
exam clusters are proposed – one Public Administration for (PAS, OMG, PG, MLCG, RCTG,
IG), second for Public Finance, Commerce, and Trade for (IRS, PCS, PAAS, CTG), third for
Pakistan Police Service for (PSP) and fourth for Foreign and International Affairs (FSP).
10. Level of knowledge testing in each cluster will be at introductory university level. Over
time, this will lead to a series of advantages:
i. It will shift the burden of imparting introductory specialized knowledge from the
Specialized Training Institutes on to the candidates
ii. It will eventually influence the curricula of higher education institutions as they
cater to growing demands in these specialized subjects
iii. Will partially resolve problem of residual dissatisfied talent being allocated to
occupational groups perceived to be misaligned with their preferences and
aptitudes.
11. At the final stage i.e., Stage 4, interviews would be conducted by the Federal Public
Service Commission to prepare the list of selected candidates in order of merit and make
allocations to different service cadres.
12. To summarize the present, one single competitive examination system would be
replaced by the separate cluster-based examinations. An additional stage will be introduced
i.e., screening test which would subsume the existing compulsory part of the written
examination.

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13.2 OUTLINE OF THE PROPOSED CSS EXAMINATION SYSTEM
1. The Federal Public Service Commission (FPSC) is mandated under sub-section (1) of
Section 7 of the Federal Public Service Commission Ordinance, 1977, to conduct tests and
examinations for recruitment of persons to All-Pakistan Services, the civil services of the
Federation and civil posts in connection with the affairs of the Federation in basic pay scales
16 and above or equivalent.
2. The FPSC employs two methods of recruitment: (i) Central Superior Service (CSS)
Competitive Examination annually for posts belonging to 12 Occupational Groups under All-
Pakistan Service and civil services of the federation; and (ii) General Recruitment for selection
against other civil and ex-cadre posts in basic pay scale 16 and above in various Ministries, as
and when a requisition is furnished to the FPSC. The current structure of CSS Examination is
in vogue since 2000.
3. Currently, the Competitive Examination comprises of four components:
(i) Eligible candidates appearing in written examination comprising 6 compulsory
subjects (English Composition, English Essay, Pakistan Affairs, Current Affairs,
Everyday Science, Islamiat and 6 optional subjects to be selected out of 40 subjects.
(ii) Candidates qualifying the written examination are eligible to take (i) medical
examination; (ii) psychological examination; and (iii) viva voce.
4. The number of applicants for the CSS Examination has been rising unabated. It has
increased from 9,056 in CE-2009 to 24,008 in CE-2018, an increase of 165 percent. Out of this,
actual eligible candidates taking the Competitive Examination has risen from 5,707 in CE-2009
to 11,887 in CE-2018, a growth of 108 percent. This tremendous growth is generating various
challenges including: (a) checking around 12000 examination answer-sheets by an examiner
which compromises assessment objectivity; (b) completion of all four components and group
allocation takes around 14-16 months; however, some candidates, even after completing all
four components successfully, do not secure any group allocation because of non-availability
of vacancy; and (c) lowers the aggregate pass percentage every year due to higher denominator
(number of candidates taking the examination).
5. Many countries have reformed their civil service examination moving to use of modern
techniques for selection such as Australia, Canada, Malaysia, Singapore, South Korea, and
United Kingdom. Most SAARC countries while sticking to conventional written examination
have introduced screening Test before candidates can undertake main examination. India has
introduced Civil Services (Preliminary) Examination-Papers I and II of 200 marks each;
likewise, Bangladesh, Sri Lanka, Malaysia have introduced similar preliminary tests. This
filters non-serious candidates and allows only quality candidates to take the main examination.
It also helps in reducing the time cycle to complete the process.
6. Secondly, FPSC allocates Occupational Services/Groups to the successful candidates
based on their merit, candidates’ choice ranking and provincial quota. Nevertheless, there is a
general perception the current system results in a relatively skewed distribution of talent to
certain service groups and some important services get successful candidates who are quite low
in the merit list. Proposals have been in the field for conducting separate examination for each
service/group or cluster of services/groups inviting candidates with similar academic
background. Blending the CSS Competitive Examination with Domain Specific and/or Cluster
Based will allow induction of officers who are likely to have academic background. Many

233
countries have now adapted domain based competitive examination or recruitment. The pros
and cons of this option are as under:
Pros:
• Close match between educational qualifications and requirement of the aspired job.
• Improved response to job-specific training.
• Greater potential for specialization in a particular field leading to enhanced
efficiency and professionalism.
• Transparent and merit based.
Cons:
• Reduction in talent pool and selection base.
• Reduction in career options as well as horizontal movement for candidates
• Talent may remain unevenly distributed.
7. The Federal Public Service Commission, after intense deliberations on the Task Force’s
recommendations, proposes the following:
(i) Civil Service Screening Test: A Civil Service Screening Test (CSST) of 200 Marks
of three hours twenty minutes duration may be introduced from Competitive
Examination-2020 with a qualifying threshold of 33 percent or 66 marks. Only the
candidates qualifying the CSST may be allowed to take the CSS Written Examination
of that year in the ratio of 1:20 subject to availability (top 20 qualifying candidates for
1 vacancy in respective domicile/quota). There will be no ceiling on number of attempts
for taking CSST within eligible age prescribed for the CSS Competitive Examination.
It will standardize the quality of candidates appearing in the CSS examination and will
reduce the time-cycle. Proposed Scheme of CSST is at Annex-I.
(ii) Proposed Clusters: The current 12 Occupational Services/Groups may be re-grouped
under three clusters: (a) Administrative and Diplomatic Services including PAS, PSP,
FSP, and OMG; (b) Finance and Accounts Services including IRS, PCS, C&T, PAAS;
and (c) Support Services including Postal, Railways, ML&CG, and Information Group.
(iii) Domain Specific and/or Cluster Based Examination: To ensure that the candidates
opting for different Occupational Services/Groups can demonstrate semblance of skills
and knowledge which are essential to meet the requirements of that Service/Group, it
is proposed that:
(a) All candidates will take four compulsory subjects of 300 Marks which may be
restructured as follows:
(i) English Precis and Composition 50 Marks
(ii) English Essay 100 Marks
(iii) Islamiyat or Comparative Study of Major Religions 50 Marks
(iv) Public Administration and Governance 100 Marks

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 (b) In addition to compulsory subjects, a candidate shall be required to take 9
subjects of 900 marks including (i) mandatory subjects prescribed for the
relevant domain preferred by him/her under Cluster I, II and III below; and (ii)
remaining subjects can be selected from the General List of Optional subjects
(Annex-V).
Cluster/Domain Specific Subjects
Cluster-I Marks Cluster-II Marks Cluster-III Marks
Pakistan
IRS/PCS/C&T
Administrative
Service Economics Postal/Railways
100 100 100
Economics Business Business Admin.
100 100
Administration
Political Science
100 100
Corporate Law
Law
PAAS
Police Service of ML&CG
Pakistan Accounting & Auditing-
100 I 100 Town Planning & 100
Political Science Urban
100 Accounting & Auditing- 100 Development
Criminology
II
100 100
Law
Business Admn.
Foreign Service of Information
Pakistan Group
International 100 Journalism & Mass 100
Relations Communication
100
International Law Sociology
100 100
Economics
Office Management
Group
100
Political Science
100
Economics

(c) Or A candidate may choose 9 subjects from Clusters I, II and III subjects to
make up 900 marks to become eligible for consideration for more than one
Service/Occupational Group. The proposed scheme is iterated below:
S.No. Subjects Chosen from Cluster I Marks Eligibility of a Candidate for
Consideration for:
1. Law 100 PAS
2. Economics 100

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 3. Political Science 100
4. Criminology 100 PAS, PSP
5. International Relations 100 PAS, PSP, FSP and OMG
6. International Law 100
Total 600
7. Business Administration 100 IRS, PCS, C&T, Postal Group and
Railways Group in addition to above
8. Corporate Law 100
9. Accounting & Auditing-I/II 100 PAAS in addition to above
OR Journalism and Mass Communication 100 Information Group
OR Town Planning and Urban 100 ML&CG
Development

Explanation
8. If a candidate aspires for PAS, he/she shall mandatorily take Economics, Political
Science and Law. In addition to this, (i) he/she can choose Criminology, International Relations
and International Law which will make him/her eligible for consideration for PAS, PSP and
FSP; (ii) he/she can choose Criminology, Business Administration and Corporate Law in
addition to above subjects to become eligible for consideration for PAS, PSP, IRS, PCS, and
C&T and so on.
(d) A candidate shall not be allowed to repeat the domain subject from the General
list of Optional Subjects.
(e) A Candidate shall not be allowed to opt for more one subjects from amongst
Urdu, Punjabi, Sindhi, Pashto, Balochi, Persian and Arabic
OR
9. Alternately, all candidates may be asked to take a combination of domain related (a
minimum of three subjects) and six subjects in addition to compulsory subjects. The
disadvantage is that he/she will not be considered for more than one domain.
10. Federal Public Services Commission shall propose necessary enabling provisions in the
CSS Competition Examination Rules for vetting by the Ministry of Law and Justice to
operationalize the approved proposal and prescribe syllabus for each stage of the Examination
including Preliminary Examination and Domain based Competitive Examination and related
measures.
Psychometric Evaluation:
11. To determine candidates’ aptitude and motivation towards civil service, psychometric
evaluation of the candidates qualifying the written examination is now generally used in most
developed and developing countries. This system will help in augmenting the existing
Psychological Assessment System of FPSC which lacks the required skills-set as well as
requisite capacity. The FPSC proposes to commission a study and identify manpower, logistics

236
and development of testing modules to implement this initiative. A PC-II will be prepared to
seek approval of the competent forum along with allocation of resources.
Automation and MIS in FPSC.
12. The exponential increase in the workload of the FPSC during the last five-seven years
makes it is essential to digitalize the whole system of the Commission including Computer
Based Testing, developing in-house Questions Bank, Case Studies, and equip it with modern
tools and techniques. While the Commission has been undertaking internal reforms, it is
important to transform the Commission. Research and Development capacity of FPSC also
needs to be enhanced. To achieve this objective, it is proposed that a comprehensive scheme is
prepared separately for seeking approval of the concerned forum.

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13.3 AGREED REFORMS IN CSS EXAMINATION
1. The Prime Minister’s Task Force on Civil Service Reform has proposed reforms in the
CSS examination system to include a screening test for determining problem solving and
analytical abilities, psychometric evaluation to determine the aptitude and motivation towards
civil service and domain specific written exam separate for clusters. Each cluster is proposed
to have subjects relevant with respective occupational groups / services. Allocations have to be
linked with passing the exam of respective cluster.
2. After inclusive deliberations and multiple consultation sessions with the Task Force,
the Commission recommends following measures for adoption and implementation of the
reform proposals:
i. Screening Test: It is direly needed to introduce a preliminary screening test for CSS
Competitive Examination. It will bring the number of candidates to a manageable scale,
substantially curtail the CSS exam time scale cycle, and will save logistic hassle / costs.
It will also help to improve standardization in assessment besides improving
applications versus appearance ratio. The contents of the screening test, sifting
mechanism from all quotas and relevant details have been worked out in draft
amendment rules. The screening test may be implemented w.e.f. CSS CSS 2020.
ii. Domain specific cluster-based exam: Keeping in view the need to bring some kind of
academic relevance to the opted service group and the sheer number of candidates
giving preference to certain occupational groups within the CSS cadres, it is proposed
to segregate the CSS cadres into three clusters and to allocate mandatory subjects for
each cluster having a nexus with the general functions of the respective services. The
move is likely to push the selection process from a very broad generalisation to a certain
degree of domain specification.
iii. Psychometric evaluation: To determine candidates’ aptitude and motivation towards
civil service, FPSC intends to gradually introduce psychometric evaluation to augment
the existing Psychological Assessment System. However, FPSC currently lacks the
capacity to implement the same as the requisite skill sets are scarce even in the local
market. A detailed study would be required to institute and strategize implementation
of this initiative.
iv. System Automation / MIS: The exponential and disproportionate increase in the
number of applicants, archaic paper-based system of subjective examinations and
limited use of I.T. etc. are some of the challenges that the Commission seeks to address.
To serve its clientele with credibility in a transparent and effective manner, the
Commission suggests addition of ICT based initiatives relating to Computer Based
Testing (CBT) and Development of Question Bank. Research and Development
capacity of FPSC also needs to be enhanced. A proposal has been worked out and a
PC-I will be initiated for it in case of approval.

238
Current status
3. The proposal for introducing these changes in the CSS exam are being finalized by
Establishment Division in consultation with the FPSC. Due to transfer of Secretary,
Establishment and sudden death of Chairman FPSC with Covid-19, the deliberations have
taken longer than usual. Once finalized, Establishment Division will submit the case for
introducing these changes in the CSS Examination.

239
 Annex-I
Proposed Scheme for Civil Service Screening Test (CSST)
1. The CSST shall consist of one paper of 200 marks.
2. Duration of the Test shall be three hours twenty minutes
3. The CSST shall be based on Multiple Choice Questions (MCQs), each carrying one
mark, and will examine the candidates in the following subjects:
Subjects Sub-Percentage Percentage
English (Grammar Usage, Comprehension, Vocabulary) 30
General Abilities 30
Section 1. Basic Arithmetic, Algebra & Geometry 10
Section 2. Logical Problem Solving and Analytical Abilities 10
Section 3. Mental Abilities 10
General Knowledge 30
Section 1. Everyday Science 10
Section 2. Current Affairs 10
Section 3. Pakistan Affairs 10
Islamiat or Comparative Study of Major Religions 10
Total 100

4. The Federal Public Service Examination shall notify the Syllabi for CSST separately
for wide dissemination.
5. The topics listed in the syllabus are only indicative for the general guidance of the
candidates and cannot be deemed as exhaustive list.
6. There will be no limit on the number of times a candidate can appear for the Screening
Test if he or she is within the age limit prescribed for the CSS Competitive
Examination. The three chances for the candidates to appear in the main examination
will remain intact.
7. The standard of question would be what is expected of a person who, has a keen sense
of awareness and is knowledgeable, without having done any specific subject
specialization.
8. The threshold for qualifying CSST shall be 33 percent marks or 66 marks.
9. Answer sheets shall be marked through Optical Mark Reader Scanners to achieve
optimal level of efficiency and accuracy.
10. Candidates not qualifying the CSST shall not be eligible to take the main CSS
Examination

240
11. The CSST shall be only for the purposes of selecting candidates who would be eligible
to take the Main CSS Examination and the marks obtained in the CSST shall not be
counted towards the final merit of the candidates.

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CHAPTER 14 PAPER ON REORGANISATION OF TRAINING
& POLICY RESEARCH INSTITUTES
1. A survey of the Federal Government training institutions was carried out which
revealed that there were 35 training institutions under various Ministries that are engaged in
training of civil servants of all kinds. National School of Public School has seven institutions
under its control for conducting National, Senior, Mid-Career and Post induction training
courses
Need
2. These training institutes have been developed in an adhoc fashion with no overarching
study of the need of the modern economy. It is therefore, proposed to first identify the priority
areas for training, assess whether the existing institutes meet the future requirements,
streamline them, and come up with new institutions to fill in the gap.
3. The main thrust of the proposals contained in this paper, just like the earlier papers on
Recruitment and Training, is that the specialists and professionals in Ministries now referred
to as ‘ex-cadre’ receive no systematic training for upgrading their technical and professional
skills. This neglect has a major negative effect on the quality of investment and operations of
our development projects. As discussed in several meetings of the Task Force good policy and
governance work requires specialists. Several missing institutes which cater to the needs of
these specialists and cluster around the key components of our future economic and social
development are therefore to be set up. The existing physical infrastructure facilities available
in the Government as a whole have to be reorganized and reconfigured for setting up these
institutes but the main emphasis is to build up the faculty, curriculum, pedagogy, assessment,
and testing and to link them with career progression in an integral manner.
4. In China, Korea and Japan where rotation of officers in the Ministries takes place at
regular intervals these research and training institutes have provided continuity in domain
expertise and policy innovation. The substantive inputs into policy formulation, identification,
and design of projects etc. by these institutes have improved the quality of decision making.
Financial Loss
5. The Government incurs financial losses year after year due to cost overruns, poor
designs, weak engineering specification, inadequate supervision, and cost controls. The
engineers working for the Government after receiving their first degree are seldom exposed to
the latest techniques of project management and new developments in materials, processes etc.
As two-third of the public sector development expenditure is incurred on energy and
infrastructure there is need to establish new training institutes for these sectors with the
objective of upgrading the technical and managerial skills of the staff involved in the
formulation and implementation of the development projects in these fields. Similarly, medical
doctors, teachers, agriculture and livestock specialists, economists and financial experts etc.
working in the Federal Government have to keep themselves abreast of the latest developments
in their respective fields
Soft Skills
6. The other missing ingredient of training of civil servants in Pakistan is the inculcation
of soft skills – values, and ethics, attitudes, orientation, inter-personal skills, team building,
communication skills and respect for citizens. Even if it is assumed that many of our civil
servants may have improved technical, managerial skills and professional knowledge through
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training courses their behaviour and attitudes need to be altered. Soft skills training in values
and attitudes should not only form part of their training but the practice of these skills in their
jobs should be part of the criteria for promotion.
Principles
7. The basic underlying principle of the proposed re-organization is to combine training,
continuing education, and policy research as a critical service arm to the Ministries. These
institutions (a) will provide post-induction, refresher, mid-career, senior management training
courses, workshops, and seminars, (b) will be responsible for on-the job training and evaluation
and (c) carry out policy research. The merger of policy research and training functions under a
single institution will have several advantages:
i. the scarce expert resources will be pooled with a critical mass available in a field
ii. training will benefit from research inputs while research studies will fill in the
knowledge gaps identified by the participants and the policy makers.
iii. physical infrastructure facilities will be commonly shared and operational costs
minimized.
iv. administrative burden of overseeing multiple institutions on the Ministry will be
reduced.
v. linkage with the universities research institutes and think tanks would be strengthened.
Governance Structure
8. The existing training and research institutes classified by their size, importance and
potential have been re-grouped into eight main clusters. Each cluster institute will be an
autonomous body governed by an independent Board of Directors and a Chief Executive
reporting to the Board. They will be run by boards of directors consisting of learned,
professional and eminent citizens with no political affiliation. The board will oversee and
review administrative and financial performance of the institution. The Secretary of the
Division would chair the Board to ensure that the training imparted by these Institutes is
relevant and policy research work is responsive to the needs of the Division. In absence of this
arrangement, it is quite possible that the Institutes may turn into academic institutions. There
will be an academic advisory committee consisting mainly of academics and professional
domain experts in their respective field for reviewing the curriculum, research and pedagogical
tools and assessment methods.
Financial Autonomy
9. The institutes would enjoy financial autonomy and be allowed a single line budget. The
representative of the Ministry of Finance (MoF) on the Board of Directors will enjoy the
powers of veto on only those proposals that create any future unfunded financial liabilities that
may have to be picked up by the Government of Pakistan. The Annual Budget proposals
submitted to the MoF will be accompanied by a Business Plan and all new proposals have to
be justified on the basis of this plan. However, once the government budgetary grant is
approved by the Parliament for the Institute the Chief Executive will have the delegated powers
to manage the budget including the powers of re-appropriation from one head to another and
no references will be made to the Ministry of Finance for their prior approval or concurrence.
The development budget proposals will be processed and approved by the DDWP or CDWP
according to the size of the project. The Planning Commission will be responsible for

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monitoring and evaluation of the development projects of the Institute. An annual report
including the achievements and financial statements will be presented to the Parliament as a
tool for accountability. Auditor General of Pakistan will be responsible for the annual audit of
the Institute. The income generated by the Institute including grants, donations, fees etc. will
form part of the budget of the institute that will be approved by the Board of Directors and
operated by the Chief Executive and can be spent on the activities included in the Business
Plan approved by the BoD. While training institutes will have their own budgets within the
national budget, they may raise money in 3 ways:
i. Each ministry will be charged for the candidates sent but at a subsidized cost. Each
ministry will need to show that training expenditures are about 2% of their total annual
costs.
ii. Provincial and local government may also participate in these institutions at the same
cost as the federal employees.
iii. Private sector and civil society members can attend courses but at a fee that covers cost.
Staffing
10. The hiring and firing powers in respect to staff of all grades regular or contractual will
vest with the BoD and no references or prior clearances for recruitment, promotion, termination
will be necessary from the Establishment Division. The service rules, guidelines and the
procedures for recruitment, promotion, termination and human resource management policies
for the Institute would be formulated by the BoD in consultation with the representative of the
Establishment Division on the Board.
11. The staff will essentially comprise of
i. Professors of practice: Well-known retired professionals who have worked in the sector
including the officers on deputation from Government Ministries/departments who
meet the specified eligibility criteria
ii. Professors and lecturers: In keeping with HEC eligibility requirements capable of
research, policy analysis in the respective domains.
iii. RAs and administrative supporting staff
iv. Guest Lecturers: Guest lectures will be part of core curriculum
Course Offerings:
12. The course structure will be carefully determined in consultations with Ministries,
academia, think tanks, domain experts. It will be flexible and will vary according to the specific
job requirements of the selected participants. The offerings may vary from
i. A day to two weeks specific to the particular needs that have been identified in
Performance Evaluation Reports under Development needs.
ii. Customized courses on specific skills or domain knowledge as required by
departments and agencies
iii. Regular mid-career mandatory courses for career progression: These courses would be
a mix of Generalized courses presently offered by NSPP and NIMs and those proposed
for Specialized Training Institutions (STIs) that would be heavily weighted for
promotions, career path planning and performance requirements. All career officers
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 will be provided opportunities to attend these courses and reflected in their performance
reports. Not taking a course in the year for which they were nominated and failing to
keep the attendance will make them ineligible for promotions, merit increases and
performance-based rewards.
13. Each institute will be required to show some research, arrange annual conference and
show clear contribution to policy debates.
Incentive Structure
14. The incentives for the teaching staff and researchers at all the reconfigured proposed
institutes would be comparable to those provided to the NSPP instructors provided they are
selected on merit through a transparent and competitive basis. To attract the best talent to these
institutes the salary structure of the instructional and research staff will be detached from the
Basic Pay Scales (BPS) and determined by the Board of Directors. The cadre or ex-cadre
officers deputed to serve in these institutes would also be given extra points for their promotion.
These incentives would be able to attract the best and the brightest serving officers to these
training institutes. Those securing the top positions at the training courses can be retained by
the Institutes as faculty members for a fixed tenure. Foreign Trainings would also be targeted
at those who are willing to serve as the faculty members at these institutes.
15. For the trainees the performance at the various training courses will be linked to their
promotion. This linkage will bring the best out of the participants provided the contents,
pedagogical tools, assessment systems are robust and related to the jobs they are going to
perform subsequently.
16. Proposed Training and Policy Research Clusters
i. National School of Public Policy (NSPP) with its constituent colleges, institutes and
centres will serve as the apex organization for delivering managerial and leadership
training for officers of cadres and services and ex-cadres at Grades 17 to 20. It will also
carry out research in the areas of public policy, public administration issues, civil
services etc. also produce case studies and also hold policy debates. Affiliation or
collaboration with institutes such as the Institute of Public Policy Research in the UK
or LKY School of Public policy in Singapore may be established for this purpose The
common post-induction training of the newly recruited officers both cadre and ex-cadre
will be organized at the Civil Service Academy, Walton followed by training at the
STIs. The NIMs and National Management College will conduct mid-career and senior
management and leadership courses. The present mid-career, SMC and NMC courses
would be split into two parts—one for all officers for a limited duration to be offered
by NIMs and NMC on the existing lines and the other to be offered for domain
knowledge by the respective specialized training institutions described below. The
NMC course would pay greater attention to Leadership competencies particularly team
building and teamwork across the Ministries/ agencies, soft skills and may incorporate
best practices from other developing countries while MCMC and SMC course would
build up the competencies including behavioural and operational for shouldering the
managerial responsibilities at the next grade. Duplication and overlapping by changing
the labels of the courses should be avoided. Pedagogical tools such as case studies
prepared by the NMC staff should be encouraged in addition to syndicate reports,
individual term papers, presentations on select topics. Assessment methods need to be
standardized across training institutions.

245
 ii. Institute of Fiscal Policy and Financial Management (IFPPM); This institute will cater
to the specialized needs of the fiscal and financial managers of the Federal Government
at all levels – post induction, mid-career, refresher, senior workshops – and also carry
out research in fiscal policy, domestic resource mobilization, taxation, audit and
accounts and debt issues.
iii. The existing Audit and Accounts Academy, Income Tax Academy and Customs &
Excise Academy will become training arms with expanded responsibilities for policy
research in their respective areas. The officers of the National Savings, Debt Office
and the different Wings of the Ministry of Finance, Revenue Division, Economic
Affairs Division will be trained at this Institute.
iv. Energy Policy Institute (EPI); The institute will be responsible for the technical training,
and policy research needs of the Ministries of Water and Power, Petroleum and Natural
Resources, WAPDA, NEPRA, OGRA, PPIB and the organizations working under these
Ministries. The Hydrocarbon Development Institute, ENAR Petro-tech Services,
should become part of this institute. Professional Training Courses for new recruits,
mid-career officers and senior officers in technical fields to upgrade their knowledge
and skills and familiarize them with new technologies, techniques and processes would
be carried out by the institute. Policy research in all the areas of energy will be part of
its mandate.
v. Infrastructure Policy Institute (IPI); This institute, like Energy Policy Institute will meet
the specialized training needs of the Ministries of Railways, Water reservoirs and
infrastructure, Communications, Ports and Shipping and Civil Aviation and
Infrastructure project facility. Training and research – will form the basic mandate of
this institute.
vi. NTRC, Pakistan Railways Academy will become part of the IPI. Professional training
of infrastructure engineers and technicians at post induction, mid-career, refresher and
senior managers level will be provided by IPI. As public-private partnerships in
infrastructure is likely to be the most common mode in the future the Institute will have
a multidisciplinary approach in which engineers, lawyers, economists, cost accountants
and planners work together to develop model concession agreements, monitoring and
enforcement tools and exit strategies.
vii. Human Development Policy Institute (HDPI): will serve the Ministries of Education,
Health, HUMAN Rights, Social Protection. The existing Academy of Educational
Planning and Management, Health Service Academy, National Institute of Science and
Technical Education, Pakistan Manpower Institute, National Institute of Labour and
Training, National Institute of Population Studies will become part of the HDPI and
restructured.
viii. Industrial and Trade Policy Institute (ITPI); This institute will serve the Ministries of
Industries and Commerce, Pakistan Institute of Management, Pakistan Institute of
Trade and Development, NPO will become part of ITPI and restructured.
ix. Agriculture and Environment Policy Institute (AEPI); This institute will serve
Ministries of Food Security, Climate Change and Water Resources (consumption &
usage) Agriculture Policy Institute will become part of AEPI and restructured. The
Social Sciences Wing of PARC and the proposed API will have to develop a

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 collaborative research agenda with clear division of labor for policy inputs and long-
term research studies.
x. National Police Academy; will continue to function its present form under its Board of
Governors. The NPA will have to develop the capacity for policy research that can be
of aid to the Interior Division NACTA and Law Enforcing Agencies
In addition to the above eight major training and policy research institutes the following
training institutions should be retained as attached departments of the Ministries concerned.
i. Foreign Service Academy: The orientation of Foreign Service Officers has to be
completely changed and they should be groomed to become effective in economic and
commercial diplomacy. The present division of work between Foreign Services
Officers focusing on bilateral political affairs only and other Ministries handling
Commerce, Information needs to be revisited. Except for a few key missions this
artificial division is neither cost effective nor meaningful.
ii. Planning & Development: Pakistan Planning and Management Institute
iii. Information & BroadcastingInformation Services Academy
17. These institutes and their facilities should also be made available for training of the
Provincial Government officers as well as those of the autonomous bodies. In some instances,
such as Energy or Infrastructure or Human Development mixed training in which private sector
participants attend the courses along with public sector may prove useful.
18. Policy research at these institutes should be carried out by the regular staff of the
Institutes, the specialized staff hired for specific assignments projects, the contractual staff,
visiting research fellows and also in collaboration with other universities academic and
research institutions. A few serving officers should also be allowed paid research stints on
competitive basis.

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 CHART SHOWING EXISTING AND PROPOSED TRAINING INSTITUTES

S.
EXISTING PROPOSED
No.
1. National Management College
National Institute of Management (NIM),
2.
Lahore.
National Institute of Management (NIM),
3.
Peshawar.
4. National Institute of Management (NIM), Quetta. Constituent Colleges, Institutes
and Academies of the National
National Institute of Management (NIM), School of Public Policy
5.
Karachi.
National Institute of Management (NIM),
6.
Islamabad.
7. Civil Service Academy
8. Secretariat Training Institute
Academy of Educational Planning and
9.
Management
Human Development Policy
10. Pakistan Manpower Institute. Institute
11. Health Services Academy
12. National Institute of Population Studies Pakistan Health Research
13. National Research Institute of Fertility Control Council

14. Agriculture Policy Institute

Agriculture, Food and
15. Academy for rural Development
Environment Policy Institute
16. A.H.K. National Centre for Rural Development.
17. Pakistan Railway Academy
18. National Transport Research Centre Infrastructure Policy Institute
19. Eco Postal Staff College
20. Audit and Accounts Academy
Institute of Fiscal Policy and
21. D.G. of IRS Training
Financial Management.
22. D.G. of Customs Training
23. Pakistan Institute for Trade and Development. Industry and Trade Policy
24. Pakistan Institute of Management. Institute

248
25. Engineering Development Board.
26. Pakistan Industrial Technical Assistance Centre.
27. Fertilizer Research Institute.
28. National Productivity Organization
Pakistan Planning and Management Institute
29. PPMI
(PPMI)
30. Information Services Academy (ISA) Proposed Media University
31. Foreign Service Academy (FSA) FSA
32. National Police Academy (NPA) National Police Training and
33. National Police Bureau (NPB) Research Institute

National Academy for Prisons Administration

34. NAPA
(NAPA)
Hydrocarbon Development Institute of Pakistan Proposed Energy Policy
35.
(HDIP) Institute

*************

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 CHAPTER 15 CAREER PLANNING AND PROGRESSION
1. Core issues plaguing the civil servants from induction to retirement have been cited
frequently by reform commissions and these inter alia include outdated recruitment
mechanism, politicization, demoralization, corruption, lack of relevant expertise and
knowledge, fluidity in job descriptions and subjective evaluations. Establishment Division
worked on the identified problems and keeping in view the firsthand knowledge of issues faced
and probable measures which can mitigate the problems being faced in the career planning of
officers, a set of recommendations was developed. Following recommendations on career
progression of civil servants of Pakistan Administrative Service (PAS), Police Service of
Pakistan (PSP) and Office Management Group (OMG)/Secretariat Group are placed for
consideration:
Induction
Percentile scores: Disparity of marks between sciences and social sciences may be removed
in the CSS exam as this allows candidates with pure sciences to score exceptionally high marks
without affording the same opportunity to candidates appearing in humanities. There is no
required parameter of pure science in government service, which should give the advantage in
scores. Percentile scores may be introduced to ensure equal opportunity.
Provincial Quota: Special quota with limited number of seats for least developed areas may
be based on educational background and not on domicile alone. Twelve years of education in
area of domicile and earning two degrees can be a mandatory requirement for special
dispensation through provincial quota.
Upper Age Limit at 28 years: Younger officers have a better chance of absorbing core ethical
values and moral standards. They are devoid of cynicism and more receptive to grooming and
public service idealism.
Removal of age relaxation policy for government servants: There is no justification for
keeping the upper age limit flexible to accommodate existing government employees and
negating fundamental right to equal opportunity in employment. Existing qualification should
be sufficient to allow second or third attempt at changing groups or service without further age
relaxation. Government officers should not be above 28 years of age at the time of CSS exam.
Pre-Service Training
Behavioral and Psychological examination: Psychological support and counselling should
be available on campus. Periodical psychological evaluation should form part of profile
evaluation by professional experts and not faculty. Sanctioned posts among all governments.
Least rotated officers will be transferred to highest shortage government. Gender concessions
and wedlock policy will not apply for female officers.
Language Learning: Officers must have relevant field experience and knowledge of one local
language to have a better understanding of the socio-cultural context at the end of 4 to 6 years.
Innovation: Developing innovative means to improve service delivery with lasting impact is
highly recommended especially so as ICT tools are available to improve systems. This can be
a bench mark for public service delivery evaluation along with other performance indicators.
The innovation can be recorded as success or failure and linked with the case study at each
place of posting, which is to be developed by individual officers for teaching at CSA, MCMC,
SMC and NMC levels.

250
Tenure Security: The offices have to feel secure in their place of posting with focused
devotion to duty without apprehensions of sudden replacement or external interference. If
current practice of frequent transfers without justification is not curtailed, officers will continue
to seek alternate networks for career progression. Public service delivery and performance
indictors become irrelevant in such circumstances
Placement in Federal and Provincial Secretariat: PAS and PSP officers can have tenures in
Federal and Provincial Secretariats to gain experience at the policy level. This would give a
career break and relieve exhaustion of continuous field experience. OMG officers shall
complete two tenures in Federal Government in two main Ministries of diverse sectors. These
can form groups for two tenures specialization in two distinct areas.
Recommendations
i. The Central Superior Services will be replaced with The Central Services of Pakistan.
Other professionals such as Engineers, Doctors etc. who have a critical mass of numbers
to form a pyramidal structure may also be grouped under separate cadres.
ii. Service Rules for each cadre would be framed in a manner in which cadre posts at each
level, career paths, promotion ladder and eligibility criteria are clearly laid out. New
Service Rules will be made if they do not already exist and existing Service Rules will
be reviewed if they are not in line with the above- mentioned objectives.
iii. Future Placement and postings would be based on the following criteria:
• Nature of experience gained
• Expertise acquired
• Appraisal reports of the training institutes
• Dossier of Performance Evaluation Reports
iv. On the pattern of selection of commercial attaches/counselors, all foreign postings
(except those in foreign missions where officers belonging to the Foreign Service of
Pakistan are posted) and foreign training facilities, should be filled in through an open,
competitive process in which any officer meeting the eligibility criteria can apply. Upon
the completion of the foreign assignment the officers may be appointed in the
Ministry/Ministries that require their skills for a period of 3 to 5 years.
v. Promotion Policy should be clearly codified based on the following criteria:
a) Past experience record including fulfilling rotation policy if applicable
b) Appraisal reports of the Training Institutes
c) Ratings given at Performance Evaluation
d) Marks given by the Selection Board including that of reputation and integrity
vi. Vacant posts in Grade 19 to 21 in Federal Secretariat should be filled through a
competitive internal job vacancy system which would be open to all officers in that
grade. The Minister, Secretary of the Division and Secretary Establishment would
interview all the candidates, review their service record and select the candidate to fill
the vacancy.
vii. Technical Adviser posts have been created in 17 Ministries and some of them are
moving ahead with recruitment. It is proposed that these 17 Ministries should surrender
a few posts in Grade 19 to 21. These posts would then be advertised by the FPSC to
select technical experts from the private sector, academia, overseas Pakistani etc.
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 CHAPTER 16 PAY AND COMPENSATION
One of the critical components of the integrated Human Resource value chain is the
compensation and benefits package offered by the Government. Since 1973 reforms, Civil
Services have failed to attract, retain and, motivate the best talent from our universities and
higher educational Institutions as the balance between job security and compensation has been
disturbed. The damage done by unified pay scales where a neurosurgeon and a Private
Secretary are placed in the same grade or a teacher and a clerk enjoying the same compensation
has proved detrimental to the morale and motivation of Civil Servants. It is impossible to raise
the salary of professionals who should earn premium because of their education, skills, and
experience as such, because any raise automatically increases the salaries of those all placed in
the grade, indiscriminately.
2. Another major distortion that has been created in Government employment is that 95%
of the work force in the Federal Government belongs to Grades 1-16 i.e., support staff category.
They consume 85 % of the total salary and allowances bill. It is also worth noting that their
compensation is much higher than that of their counterparts in the Private Sector. On the other
hand, the compensation paid to officers in Grades 17-22 accounts for only 15% of the total
wage bill and their take home pay is much lower than their peers in the private sector. In
addition, there are disparities within the Government Ministries and agencies where some of
them are paid twice as much in the same grades as other. This creates heart burning and
dissatisfaction and lowers the overall productivity. There is another myth that the perk in form
of subsidized government housing jacks up the total benefits for the higher-grade of civil
servants. It is a matter of fact that only 15 percent of the officers receive this perk while 85
percent get paid partly sum in the form of House rent allowance.
3. The other explosive bomb threatening the public finances of the country is ever
expanding pension bill. Pay as you go scheme currently is in force with generous and liberal
benefits to the individual and survivor family members and increase in life expectancy is
proving to be a severe drain on public exchequer. Pension reform, if not undertaken
immediately, would soon outstrip the total revenue collection.
4. Acknowledging a need to consider changes to the existing compensation scheme in
place, the Task Force on Civil Service Reforms formed a sub-group on Pay and Compensation
comprising of Mr. Shahid Kardar, Dr. Nadeem-ul-Haque and Mr. Javed Sikander (Planning
Commission). Following detailed discussions and research, the sub-group presented its
findings and recommendations in the working paper added below in this section.
5. In addition to the work done by this sub-group, a more detailed study on civil servant’s
compensation was commissioned by the government and led by a team of researchers based at
the Pakistan Institute of Development Economic (PIDE). This team and project was headed by
Dr. Nadeem-ul-Haque who is part of the Task Force on Civil Service Reforms. The PIDE study
has been completed and published. Its findings are controversial and have been referred to the
Pay and Pension Commission for review and discussion.
6. To ascertain the degree to which any changes can be brought about the compensation
system in place for civil servants, a Pay and Pension Commission has been formed and notified
on 13th November 2020. The Commission is headed by Ms. Nargis Sethi who is herself an
experienced former civil servant. The Commission is currently working on producing its report
and recommendations with regular meetings convened under the leadership of Ms. Sethi. The
report once complete will be presented to the Prime Minister and be placed before the Federal
Cabinet for its decision and/or feedback. The composition of the Commission is at Annex-I.
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16.1 WORKING PAPER ON RATIONALIZING PAY AND
COMPENSATION
Before the introduction of unified pay scales through the civil services reform in 1970s,
the pay was linked with the position held by the officer and the level of responsibilities assigned
to him or her. An equal pay, irrespective of the level of professional responsibility and output
has served as a disincentive for civil servants. Each job was placed within a particular scale,
with the result that officials with widely different functions, level of responsibility, skill
intensity and divergent job descriptions ended up at the same point in the scale. This created
several problems; one, that the government was unable to signal its policy priority in terms of
sectoral governance; two, pay revisions could not be done optimally since any substantive and
realistic pay increases would have to be done across the board for all the civil servants and the
cost of doing so would be exorbitant leading to strong inflationary pressures ;three , the
government could not pay adequate premium to meet skills in short supply and thus compete
in the local labour markets; fourth, the compression ratio was lowered dramatically. The PIDE
study has estimated that the compression ratio of basic pay scales and allowances fell
dramatically after the introduction of the Unified pay scales i.e. from 25 in 1970s to 10 in recent
times. In other countries the average ratio is 1:30. The result has been pay stagnation, erosion
of the purchasing power of higher level of civil servants due to inadequate remuneration, and
inability to recruit high skilled human resources. The myth about extensive perks is also not
proven by evidence. The perks in non-monetary terms allowed to higher civil servants are
discretionary, selective, and inequitably distributed limited to only 15 percent of the total civil
servants creating heart burning and demotivation among the majority who do not enjoy these
benefits. The situation has been exacerbated in the last ten years by introducing variable
allowances and exceptionally high pay packages for a chosen few among the same group of
civil servants without any transparency in the process of selection for those coveted posts.
Those excluded are trapped in a low expectation equilibrium, where there is no incentive for
working harder or disincentive for not working to their optimum capacity. The average
efficiency and productivity of civil servants has consequently taken a deep dive downwards.
2. Under the old pay regime there was a trade-off between job satisfaction, job security
on one hand and low pay. Those who were driven by job satisfaction and job security made a
deliberate choice in favour of low compensation. Since the 1973 reforms where job security
was taken away and uncertainty about career progression has increased this equation has
broken off. Talented young men and women who still would like to join the public service
under a conducive working environment are no longer interested. Another major constraint is
the skewness in the compensation package in favour of Grades 1-16 staff who get higher
salaries relative to their private sector counterparts based on comparable skill sets. 85 percent
of pay and allowances in the Federal budget therefore accrue to this group while the more
qualified and skilled officers in Grade 17-22 who get much lower than their comparators in
private sector receive only 15 percent of the total wage bill. Accordingly, this paper is an
attempt to propose measures aimed at rationalizing the entire scheme of pay and compensation
so that talented young men and women are not only attracted to join civil service but are also
retained and motivated.
Situation Analysis
3. Pakistan’s Federal Government has an actual staff strength of close to one Million,
excluding the Armed Forces. During last five years from 2012-13 to 2016-17, the size of the
Federal Government, excluding the Armed Forces and Autonomous Bodies, in respect of its
sanctioned and actual strength of employees shows increases of 5.73% and 5.26% (on average
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basis) respectively. Size of Federal Government in respect of sanctioned and actual strength is
649,176 and 570,553 posts on 1st July, 2016. Sanctioned and actual strength of employees in
2016-17 in respect of 203 autonomous / semi-autonomous bodies / corporations / authorities
under the Federal Government are 488,667 and 396,053 posts respectively2. So, the Civilian
Work Force in federal government is divided as follows based on the actual strength as of
July, 2016:
Autonomous Bodies 396,053
Federal Government 453,019
Civilians paid out of Defence budget 117,533
Total 966,605

4. Public sector is no longer the major employer in the country but has expanded
employment despite retrenchment of many activities in wake of privatization of state-owned
enterprises, liberalization, deregulation and growth in employment opportunities in the private
sector. Another way is to examine the claims the public-sector places on the country’s
resources. Federal Government wage bill as a percentage of Total Government expenditure
was about 3%-4% of the total government spending, but this is more a reflection of the low
salaries paid to the Government officers. However, given the precarious fiscal position of the
Government, due to large subsides paid for petroleum, power, wheat, railways, transport and
aviation services, the additional burden imposed by a revision of the compensation package for
civil servants should be manageable within the prudent limits of fiscal deficit.
5. In terms of the budgetary outlays, the total estimated wage bill of the Federal
Government for running of Civil Government stands at Rs.242 billion for FY2018-19. If the
pensions are included, the total amount increases to Rs.324 billion. This accounts for 8% total
current expenditure, excluding the foreign loan payments. The challenge for the policy makers
is therefore to rationalize the compensation and benefits package, without breaching this
budgetary ceiling.
6. A further division of the civil servants by BS scales shows that more than 95% of them
are working in BS 1-16 scales, while less than 5% percent are occupying BS 17-22 position.
The Table below shows the scale wise distribution of support staff in the Federal Secretariat.
The unskilled and low skilled workforce accounts for more than one half of the Federal
Government employees. There is thus an obvious case for rationalizing the service structure
to make more financial resources available for compensating the officers’ cadre batter.

2 Annual Statistical Bulletin of Federal Government Employees 2016-17, PPARC, Establishment

Division, Government of Pakistan

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 BPS Scale - Wise Distribution of Federal Secretariat Employees
Supporting Staff Percentage Share

BPS Percentage (%)

BS - 1-4 28.36
BS-5 23.23
BS-6 10.98
BS-7 10.28
BS-8 2.63
BS-9 7.53
BS-10 -
BS-11 3.22
BS-12 -
BS-13 -
BS-14 4.88
BS-15 -
BS-16 6.32

Earlier Approaches
6. Pay and Compensation benefits that the civil servants receive have remained an active
area of interest within the domain of previous reform agendas. There has been a consensus
nevertheless that the benefits of a decent living wage, far exceed its costs over time. Some of
the previous efforts at rationalizing the salary and compensation for the civil servants are
reproduced below along with specific recommendations made during these efforts.
7. A study by Faiz Bilquees3 in 2006 argued that the widening gap in the emoluments of
government employees versus the public-sector corporations and private sector employees has
a strong bearing on the motivation and ability to work. Similarly, the Pay and Pension
Committee 2004 had carried out a comparison of the public-sector employees with those
working in identical or similar positions in the private sector and found that public sector wages
have fallen significantly behind and “the gap at senior levels is unacceptably large and suggests
that a higher rate of growth of senior level compensation is justified, to both recruit the needed
talent and to retain it”. NCGR in its recommendations for the Civil Services Reforms
advocated a differentiated approach, to not only enhance the salaries of civil servants but also
to make up the large gap in wages of the senior level civil servants. The present practice of a
uniform, across the board, adhoc increase is not helping resolve the problem.
8. One of the ways the Federal (and the Provincial as well) government has tackled the
issue of inadequate compensation, is to institute MP scales, award special, post and project
allowances to officers occupying certain specified positions. However, the proliferation of MP
scales, particularly to serving and retired government officers is needed to be brought under a
system which ensures that transparency is introduced in the process of selection for these posts,

3 Bilquees, Faiz., 2006. Civil Servants’ Salary Structure. PIDE Working Papers, 2006:4. Pakistan
Institute of Development Economics, Islamabad.

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guidelines are issued, and criteria are laid down. Equal opportunities should be available to all
aspirants, rather than to a chosen few. There is no harm in attracting experts from outside the
Government to fill in the skill gaps, but they should be brought in for a fixed tenure on contract
basis, in a well laid out, transparent manner. Their performance on the job should be evaluated
based on the objective indicators and those who do not meet those indicators should be
dispensed with.
9. National Commission on Government Reforms (NCGR) focused on the benefits of
increased compensation and their quantification. It observed that although all the benefits were
not measurable, some of them were quite obvious e.g. reduction in corruption and leakages, as
those driven by the needs of maintaining a minimum lifestyle, would no longer be tempted if
they were paid well. Second, an increase in efficiency and productivity arising out of better
employee satisfaction would improve the service delivery to the citizens. Third, the waste and
callousness in government spending that arises from an indifferent attitude of those involved
in these activities would be minimized. Other complementary reforms such as introduction and
adoption of e-Government, business process re-engineering, leaner government and
accountability measures would reinforce the benefits.
10. NCGR, after a thorough analysis, recommended the following as way forward in terms
for revising the compensation structure of the civil servants:
i. Include the three (Special Relief Allowance, Ad-hoc, relief and Special Additional
Allowance) in the Basic Pay. This amounts to a 40% increase in Basic Pay of Civil
Servants. Because it is absorption of current allowances, it does not add to expenditures
on the pay side; but it has an upward effect on pension liabilities. However, this is
compensated by the proposed Parametric Pension Reforms.
ii. Increase the Regular Allowances i.e. Housing, Conveyance; Khidmat; Qualification
Pay, Senior Post Allowance, Entertainment Allowance.
iii. Introduce Parametric Reforms and Proposed Systemic Reforms in the Pension System
for current employees. as spelled out in the Report of the Pay and Pension Committee
(PPC)
iv. Significantly increase Human Resource Management capacity in the government,
beginning with the Establishment Division. This “capacity” will positively impact on
increase in productivity.
v. Introduce Pay for Performance in selected Divisions, Education and Health
Departments of the Federal and Provincial Governments beginning in 2008-09 and
expand the programme to the entire Federal Government in a few years.
vi. Introduce a TWO- PART Compensation Increase System comprising (i) inflation
adjustment; and (ii) Merit (against performance).
The inflation component should be automatic and related to (not necessarily equal to) the
increase in CPI. Such an adjustment should be available to all employees, to adjust their
compensation for increase in the price level.
The merit component should be reserved for the better performers. A Bell-Curve Forced
Ranking System may be considered on a pilot basis in a few Divisions. The merit component
should be significantly (a multiple) larger than the inflation component.
i. Introduce indexing for pensions to maintain purchasing power of pensioners.

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 ii. Initiate JOB-CONENT Evaluation in a few divisions and broaden the programme over
a few years.
iii. Introduce Health Insurance for government employees. This should be done in phases
spanning over a few years.
iv. Introduce the link of Housing Allowance with Home Ownership. This will also be a
multi-phase activity.
v. Revise MP Scales and all MP contractors should have Performance Contracts.
vi. Professional Comparators Surveys should be carried out after every three years, to
provide information for structural changes in the level and composition of
compensation. Those Surveys would also be useful for periodic adjustments in MP
Scales.
11. In view of the importance of delivery of essential public services, security of life and
property and easy access to justice, the 2010 Pay and Pension Commission recommended
exclusion of the Departments of Education, Health, Police (including Civil Armed Forces) and
Judiciary from the Basic Pay scales. These departments would have their separate pay scales
which would also include an element of scarcity premium based on local labour market
conditions. To illustrate this point if female science teachers are not available in Awaran, they
should be paid a premium over and above their point in the pay scale compared to their
counterparts in Quetta.
12. Various proposals/suggestions were considered in the meetings of the Task Forces to
review the pay package of the civil servants. Broadly, following is the crux of the discussion:
i. Review the existing system of pay and compensation given to the civil servants through
Uniform Pay Scales. A gradual process of delinking some positions such as Teachers
at all levels, Health professionals, Scientists, Engineers, Town planners Architects and
Technologists from the Unified Pay scales and having their own pay scales may be
introduced over a specified period of time. Universities, Tertiary medical hospitals,
Metropolitan Corporations, Scientific and Research organizations etc. should be
allowed to set their own compensation packages,
ii. Evaluate the regime of Special Pay Scales such as MP Scales and Project Allowances
with a view to bring them under a transparent and uniform system
iii. Identify a proposed way forward in the light of work done by previous
Commissions/Committees and make recommendations for the overhaul of Pay and
Compensation policies.
iv. Indicate legal, procedural, and administrative changes required to implement the
recommended promotion policy.
v. Present its findings to the entire task force and revise recommendations based on its
feedback.
Pension
13. Another issue, which is becoming serious in Pakistan is the payment of the pension. In
Pakistan, pension is paid out of the tax revenue and government is following defined benefit
scheme. Civil servants are not required to make contribution for this. Now, the pension bill for
the federal and provincial governments is increasing at alarming speed, which appears to be
257
unmanageable in the coming years. In order to tackle this problem, just like other developed
countries, there is a need to establish a pension fund and move away from the defined benefit
scheme.
Decision
14. In order to deal with both issues of pay and pension, the Federal Government has
notified a Pay and Pension Commission headed by Mr. Nargis Sethi. The composition of the
Commission is at Annex-I. The report of the Commission is awaited.

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 Annex-I
Formation of the Pay and Pension Commission
GOVERNMENT OF PAKISTAN
FINANCE DIVISION
***
No. F. 1 (1) Imp/2020-498 Islamabad, 13th November 2020
NOTIFICATION
Subject: CONSTITUTION OF PAY AND PENSION COMMISSION, 2020
In compliance of the orders of the Prime Minister’s Office vide u.o. No.
836/SPM/2020, dated 12-11-2020 the revised composition of the Pay and Pension Commission
is as follows:
PRIVATE MEMBERS
1. Ms. Nargis Sethi, Chairperson
Former Federal Secretary
2. Mr. Muneer Qureshi Member
Retired Civil Servant
3. Ms. Nazrat Bashir Member
Retired Civil Servant
4. Mr. Habib Ullah Khan Member
Retired Civil Servant
5. Mr. Saud Mirza Member
Retired Civil Servant
6. Dr. Masood Akhtar Chaudhry Member
Retired Civil Servant
7. Mr. Mehfooz Ali Khan Member
Retired Civil Servant
8. Dr. Noor Alam Member
Retired Civil Servant
9. Vice Admiral Shah Sohail Masood (R) Member
Vice Admiral Pakistan Navy,
MD Bahria Foundation
10. Brig. (R) Mohammad Ashraf Member

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 Veterans of Pakistan
11. Ms. Nausheen Ahmed Member
Company Secretary, ICI (Pakistan) Limited
12. Mr. Aquil Raza Khoja Member
Private Sector
MEMBERS (EX-OFFICIO)
13. Secretary Member
Finance Division, Government of Pakistan
14. Secretary Member
Establishment Division, Government of Pakistan
15. Secretary Member
Defence Division, Government of Pakistan
16. Secretary Member
Finance Department, Government of Punjab
17. Secretary Member
Finance Department, Government of Sindh
18. Secretary Member
Finance Department, Government of Khyber
Pakhtunkhwa
19. Secretary Member
Finance Department,
Government of Balochistan
20. Secretary Member
Finance Department, Government of AJ&K
21. Secretary Member
Finance Department,
Government of Gilgit Baltistan
22. An Officer of BS-21 of the Member
Auditor General of Pakistan
23. An Officer of BS-21 of the Member
Controller General of Accounts

260
 24. Director General PP&A, GHQ Member
Defence Division, Government of Pakistan
25. Joint Secretary Member / Secretary
Finance Division, Government of Pakistan
2. Finance Division O.M.No.F.1(1) Imp/2020-164, dated 16-04-2020 stands amended to
the above extent.

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 CHAPTER 17 NATIONAL EXECUTIVE SERVICE (NES)
In the year 2002 the Establishment Division (Estab.) initiated a proposal for the creation
of an Economic Management Group (EMG) in response to the Chief Executive’s directive to
study the feasibility of creating an economic cadre of officers in the Federal Government.
2. The Establishment Division articulated the need for creating streams of professional
Civil Servants to staff policy-formulation positions in the Federal Government. The basic idea
was to competitively select and specially train competent individuals to pursue predetermined
patterns of career growth and invigorate the Federal Government with the required quality and
capacity for policy formulation.
3. The proposal of the Estab. was placed before the Cabinet in its meeting held on 21st
August 2002, and it was decided that a holistic view of all the professional streams should be
taken and the proposal should be finalized in coordination with the National Reconstruction
Bureau, (NRB), and submitted to the Cabinet by mid-September 2002.
4. The NRB, in the meantime, had also prepared a paper on “Reconstruction of Civil
Services - A New Framework”, dealing with the entire spectrum of Civil Service Reforms. A
presentation was made to the Cabinet on 6th November, 2002, where it was decided that since
the politically elected government would be in place shortly, it would be appropriate to present
the Reconstruction proposals (including NES) to the incoming Cabinet for decision.
5, The issue of Civil Service Reforms remained dormant, until the National Commission
for Government Reforms (NCGR) was mandated to look at the reorganization of Civil Services
of Pakistan in a holistic manner. A framework paper outlining the proposed reorganization of
the Civil Services of Pakistan, at All Pakistan, Federal, Provincial and District levels was
produced by the NCGR.
6. The present paper elaborates upon one of the most critical components of the proposed
framework i.e. the NES. An earlier draft was deliberated by the Federal Secretaries’ Committee
on 22nd December, 2006 and recommendations made by the Sub-Committee of the Secretaries
finalized in April, 2007 were incorporated in this revised draft. The Secretaries Sub-Committee
endorsed the need for creating a N.E.S and made many useful suggestions that form part of the
present proposal.
7. The purpose of creating a NES is to identify, develop and place the best talent in policy
making positions by drawing upon the entire pool of Civil Servants and other talent from the
entire country irrespective of their original cadre, service or affiliation. This presumes that there
will be no barriers to entry in NES either for any group or cadre of the Civil Servants or to any
suitable professionals from outside the Civil Services. The only stipulation is that the
candidates should meet the pre-specified eligibility criteria and then cross the hurdle of a
competitive process open to all. The objectives of good governance emphasize responsiveness
to the complex problems faced by the Public and place persistent demands on the capacity and
intellectual endowments of policymakers in the government. Furthermore, the jobs in public
sector require highly specialized skills in economics, social development, technical
professions, regulation and human resource management. The selectees for the high-level jobs
have to prove that they possess a mixture of substantive knowledge and skills combined with
leadership traits. The future knowledge-based economy can be effectively managed by
individuals who are able to demonstrate, display and practice these attributes.
8. The proposal for the NES was placed before the Task force on Civil Services Reforms
in 2019 which was of the view that in the first instance, reforms in Training, Performance
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Appraisal, Promotion Policy, and Retirement Rules may be undertaken. The reforms would
enable the competitive process for NES to make the selection for NES more effective and
objective.
9. As the decisions have now been taken on the reforms of Training, Performance
appraisal, Promotion Policy, Retirement Rules the proposal is being resubmitted to the
members of the Task Forces on Civil Services Reforms and the Implementation Committee on
Reorganizing the Federal Government for their review and comments. A meeting would be
scheduled once the present public health restrictions are relaxed. Alternatively, a meeting
through video link would be arranged if the separation remains unchanged.
Rationale and justification:
10. The present mode of the superior civil services that attract young men and women
through an open competitive examination and spend 30-35 years serving the government had
worked reasonably well in the first few decades after Independence. The challenges of the 21st
century for public service have become more complex. At the same time the Superior Services
are no longer attracting the best talent at the time of entry. Both the numbers of talented
candidates appearing at the examinations and the quality of the final selectees are on a
downward slope. There is a general dissatisfaction among the citizens on the responsiveness of
the civil servants in the delivery of basic public goods and services. Although a more broad-
based program of reforms in the judiciary and local government would address some of these
issues in a holistic manner the current role, responsibilities and incentives of the civil servants
require rethinking and redesign. Majority of the civil servants are also not satisfied with their
working environment – poor compensation, political interference, fear of NAB, the media and
judiciary, frequent postings and transfers and a general feeling of insecurity and absence of
support from the Government.
11. Therefore, this model of assured career path on the basis of an entry examination at a
young age is no longer applicable or sustainable any longer. A new hybrid model which
nurtures, promotes and draws upon the expertise and domain knowledge and combines it with
the broad-based experience, leadership traits and the ability to synthesize different perspectives
and policy inputs is therefore proposed as the way forward. Leadership traits are not exclusively
located within any one group but can be found across the groups too. There are examples in
Pakistan where a medical doctor has managed a tertiary hospital and medical college in a highly
effective and efficient manner and an engineer has successfully led WAPDA. The same
organization i.e. WAPDA has also been successfully led by several illustrious officers
belonging to the Civil Service of Pakistan. The lessons from these examples lead us to infer
that an amalgam of traits such as strategic leadership with execution capability , motivating
human resources and managing finances prudently,, and broad understanding of the larger
context in which policy decisions are taken –internal and external –should form the core of the
NES, burying the present adversarial binary—generalist vs specialist. NES would draw upon
the skills and experiences of both the generalists as well as specialists who exhibit the above
traits.
12. Many countries across the world have employed the model of what is generally referred
to as a Senior Public Service (SPS). Countries including Britain, Japan, South Korea and
Singapore in addition to others all have their own versions of senior public services distinct
from each other in regard to the degree of openness the system offers. Career-based and
position-based systems exist across the world, where career-based systems consist of senior
officers recruited into an elite permanent bureaucracy and promoted to the SPS overtime. This

263
system often does not offer room for recruitment to individuals from local and provincial
bureaucracies or to those beyond the government. A position-based system, by contrast, is often
considered more open as it allows for recruitment from within the elite bureaucracy but is also
accessible to other public servants at different levels of government and to private sector
candidates with appropriate experience. The proposed hybrid model i.e. The National
Executive Service is aimed at combining the advantages of Career-based and position-based
systems.
13. The bureaucracy at the higher levels, faces a three-pronged issue. Firstly, the requisite
specialist skills needed to serve the government in different fields are lacking among the
cohorts recruited even after spending decades in the service. As only this elite group of officers
rises to occupy key policy making positions, the lack of domain knowledge sometimes dilutes
the quality of work they are able to produce. Secondly, there is a mismatch between the skills
that officers possess and the jobs they are assigned to do. The prior qualifications and work
experience of an office are rarely taken into account when placement or posting or promotion
decisions are made with the result that the skills and experience of an officer in a certain field
remain underutilized or misallocated as they do not fit in with the job requirements. A third
issue has to do with the frequent and haphazard rotation of generalist across a wide variety of
fields from Religious Affairs to Finance without allowing them time and space to acquire
competency in any particular cluster of policy making.
14. The pull and push towards few posts that are considered more prestigious and lucrative
than others further distort the allocation process. This new hybrid model in the shape of a
National Executive Service (NES) would overcome these weaknesses to some extent. The
broad based and open competition among a large number of candidates processing different
skill sets would enrich the quality of intake. The linkage of past performance and training
outcomes to the selection process for NES would hopefully force the prospective candidates to
improve their efficiency and productivity and invest in their training seriously. The clustering
of Division / Ministries under four distinct streams and limiting rotations, promotions and
postings within the confines of the chosen stream would equip the generalists, who already
possess breadth of experience and management expertise with some domain knowledge and a
degree of specialization enhancing their decision-making capabilities. The uniformity of
compensation and much lucrative package for every one selected under NES would no longer
create a tilt towards some Ministries/Divisions. A National Executive Service (NES) that will
value specialization, properly post people where they are most suited and be above
occupational group allegiances and hierarchies existent today, can be an effectively address
some of these issues.
15. The next question that arises is; How would this cadre be carved out? All Pakistan
Services would be expanded to include a new cadre i.e. National Executive Service (NES). The
existing posts in the Federal Secretariat and some posts of the Provincial Secretariats would
form the core of the NES cadre, to begin with. The loss of these posts from the existing cadres
of All Pakistan Services and the federal Services would be offset by adding equal number of
posts in the equivalent grades to their respective cadres so that their promotion posts are in no
way adversely affected. (Para 52 below). Future recruitment to the Officer management group
(OMG) and the Secretariat Group would no longer be necessary after the creation of NES (more
details in the following paras).
16. Recruitment to NES would take place through an open, transparent process conducted
by the Federal Public Service Commission (FPSC). The FPSC Chairman is already the

264
Chairman of Central Selection Board for promotions from Grade 19 to 20 and Grade 20 to 21.
The FPSC would select the candidate on the basis of: -
i. Academic Qualification: Higher qualification will be given additional weightage
ii. Performance appraisal reports
iii. Training outcome
iv. Written examination
v. Structured Interviews
vi. Psychometric tests
17. There are several options for selection to NES, the number of streams within this service
and the tiers of government which will be manned by officers belonging to the NES. An
analysis of the various options on each one of these issues is presented in paragraphs below
Strategic Options
Selection to NES
18. The guiding principles for selection of NES would be: -
i. Open, transparent, merit based, performance driven process.
ii. (b).Provide equality of opportunity for all genres of civil servants who meet the
eligibility criteria without any consideration of the initial mode of recruitment.
iii. The selection would be conducted by the Federal Public Service Commission only.
iv. Regional representation and quotas for women and minorities would be observed.
19. Three different options for selection into NES have been analysed. Each of these
options has advantages and disadvantages which are summarized in the following paragraphs:
Option-I:
20. Each existing cadre (All Pakistan, Federal and Provincial Service) is apportioned a
fixed quota of posts based on their cadre strength for induction into the NES. Competitive
examination and interviews will be held by the Federal Public Service Commission but will be
restricted to the pool of eligible candidates belonging to the particular services e.g. If Pakistan
Customs Service (PCS) has three vacancies in NES to be filled in, only the officers belonging
to the PCS meeting the eligibility criteria will compete for these three vacancies. Candidates
from other services/ cadres will not be eligible to compete for these vacancies. The examination
and interviews will be common for all the candidates from all services / cadres but the final
induction will take place according to the respective allocation of vacancies for each service.
To further clarify this point let us assume that there are 10 vacancies to be filled in the National
Executive Service (NES) in a particular year. 03 vacancies are to be filled in from the Pakistan
Custom Service (PCS), 02 from Pakistan Foreign Service (PFS), 02 from Police Service of
Pakistan (PSP), 02 from Provincial Services and 01 from Inland Revenue Service (IRS). Only
officers from these services who meet the prescribed criteria will be eligible to appear at the
examination and, if qualified, will be called for the subsequent interview. The allocation of 10
positions in NES will follow the pattern of vacancies available for each service/cadre. In the
above example in case no candidate from PCS qualifies the written examination or the

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interview the vacancy will be carried forward to the next round for allocation to PCS and the
induction to NES this time around will be limited to only 07 positions. In other words, there is
no cross over of positions from one service to another.
Advantages:
(1) There will be support for the creation of NES from all the existing services/ cadres as
they will retain their entitlements and benefit from the earmarked quotas and
reservations proposed for each service/ cadre.
(2) The assurance of reservations in NES will continue to attract those candidates, who are
driven by the prospects of pre-determined career path to the highest grade positions
without any barriers, to join the services/ cadres at Grade-17 level
(3) The possibility of entering top policy positions through a competitive process could
promote a culture of improved performance and acquisition of knowledge and skills
among the aspiring junior and mid-level officers.
Disadvantages:
(1) The pool from which NES officers would be drawn will be much smaller and limited
reinforcing the present ‘exclusive’ and ‘entitlement-based progression’ inherent in the
superior services concept and violate the principles of open, merit based, performance
driven selection.
(2) It would also violate the principle of equality of opportunity for all civil servants
irrespective of their initial selection mode. The majority of the officers serving in non-
cadre or ex-cadre positions will become ineligible for induction into the NES
reinforcing the present state of widespread de-motivation and de-moralization and
exclusion of technical experts and specialists from policy formulation process.
(3) Regional representation will not be ensured fuelling the grievances of the smaller
provinces against non-representation at top policy making positions.
Option-II:
21. Civil servants belonging to cadres, non-cadre, ex-cadre, public sector entities and the
Provincial government can enter the NES through an open competitive process conducted by
the Federal Public Service Commission (FPSC) keeping the existing regional representation
quotas intact. The candidates will have to fulfil the eligibility criteria of years of experience,
professional qualifications, past performance record etc. The FPSC will prepare a list of
successful candidates in order of merit taking the regional representation and quotas for women
and minorities into account and recommend allocation into the various streams of NES. Upon
successful selection to the NES the officers will sever their connections with their previous
services/ cadres/ posts/ organizations and become part of the NES. Their inter-se seniority in
each NES stream will be based on the merit list prepared by the FPSC.
Advantages:
(1) NES will be able to broaden the intake by opening up the recruitment to attract the best
possible talent from Occupational Groups, provincial civil services, ex-cadre, non-
cadre, specialists and technical experts based on merit, competence and transparency
providing equality of opportunity to all. The possibility of attaining higher positions on
the basis of merit and performance rather than legacy of initial recruitment would,

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 hopefully, end the present inertia and motivate a vast majority of officers outside the
Superior Services towards greater diligence and make tangible contribution in their
respective fields
(2) Regional representation and quota system will redress the grievances of the smaller
provinces for non – representation at top policy level positions and non-participation in
higher level decision making.
(3) The attraction of fast-track career prospect by induction into NES will upgrade the
overall quality and performance of the Civil Servants in the lower grades aspiring for
entry into NES.
Disadvantages:
(1) The loss of opportunities for automatic advancement without any barriers that is
available at present to the incumbents of the existing occupational groups recruited
through Central Superior Service examination may create resentment among these who
believe they are under contractual obligation to occupy the positions which are being
taken away to form the NES cadre.
(2) The design of the written examination and structured interviews may have to be
carefully thought through to eliminate biases to favour any particular cohort of
candidates.
Option-III:
22. The recruitment to the NES may be opened up both to the public sector as well as
private sector instead of civil servants only. They have to go through the same competitive
process-written examination and interviews conducted by the Federal Public Service
Commission.
Advantages:
(1) Open competition would bring in talented professionals who have gained experience
outside the Government to bring in their knowledge and expertise in the service of the
Government.
(2) Private sector inductees may bring in fresh ideas and skills to improve the existing
government processes and also enrich the decision-making process.
Disadvantages:
(1) Striking equivalence of eligibility criteria between the Civil Servants and the outsiders may
invoke some controversy e.g. is Senior Vice President of a small company with a headcount
of 20 eligible to compete along with others in similar position in large firms having several
hundred or thousand employees? Huge variation and diversity in the designations in the
private sector may create difficulty in tightening the eligibility criteria and make a level
playing field for all the applicants. It is possible, given the increased propensity to legal
recourse, that the Government may find itself embroiled in protracted litigation.
(2) There may be difficulty in designing an examination and interview process that adequately
tests the substantive knowledge, skills and leadership qualities of the candidates coming
from various professional backgrounds in the private and public sector.

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(3) The induction of those from the private sector who are not familiar with the government
rules, regulations, procedures may risk the outcomes of the decision-making process
outweighing the benefits of substantive knowledge and skills they bring in.
Preferred Option:
23. Having examined the advantages and disadvantages of all the three options, the Option-
II is recommended at this stage. NES may be opened up to all civil servants in the Federal and
Provincial public sector employees- cadre, non-cadre and ex-cadre, autonomous bodies,
attached department, state owned enterprises, corporations, companies etc. A number of NES
positions in technical Ministries may be reserved for direct recruitment from outside the civil
service where the requisite qualified and experienced individuals are not available. Option II
will ensure induction of best possible human resources for policy making positions and for
development management. It will also help in nurturing professional competence, self-
confidence, a sense of pride and spirit de corps. There is likely to be a shift in the future from
mediocrity to excellence. By broadening the scope to the Provincial Civil Servants and ex-
cadre and non-cadre officers, the superior-inferior services dichotomy, and the feeling of a
denial of opportunity for advancement will disappear gradually and so will the inter-se rivalries
among the various cadres/ services for maintaining or enhancing their respective quotas and
entitlements. Instead of a zero-sum game in which all services / cadres are fighting for the
pieces of a fixed pie the culture of competition and merit will produce a positive sum game in
which anyone crossing the hurdle is selected without any regard to his or her previous service,
cadre or non-cadre affiliation.
24. One of the main benefits of adopting this option will be that the Federation will be
strengthened, and a sense of participation and national cohesion will be promoted. At this
juncture of our national life after the transfer of autonomy to the provinces, better distribution
of divisible pool of financial resources and broader regional representation at the higher
echelons of decision making, will make a significant difference in keeping the forces of
polarization and confrontation under control. The loss of a few positions on merit far exceeds
the huge benefits that will accrue due to enhanced trust and confidence in the Federation. Just
to give an example, calculations show that at the C.S.S. examination held in 2000 if all the
candidates were selected strictly according to the merit list ignoring regional representation the
deviation from those actually selected would have been 31 out of 204 posts i.e., about 15
percent. In other words, 85 percent of candidates were selected on pure merit. This deviation
should be acceptable to accommodate the candidates from the backward regions of the country.
For NES it is more likely that the extent of deviation from pure merit-based selection will be
even lower – perhaps 10 percent which is within an acceptable range.
Streams of NES
25. The next strategic choice relates to the number of streams within the NES. There is no
hard and fast rule that can provide the correct number of streams. The futile debate on
generalists vs specialists that has been a constant refrain of every Commission/ Committee on
Civil Service Reforms in the past need not be revisited. It may be recognized that there is a
continuum between technical skills and knowledge on one end, to strategic management and
leadership at the other. The NES streams should therefore strike a balance between technical
expertise and leadership qualities tilting more towards the latter for the positions of Secretary.
There can be several streams which may lead to too much sub-specialization or there could be
one stream that consists of everyone who qualifies through the competitive process. The
options examined in this paper are:

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Option-I:
One stream only to begin with, and subsequently creating more streams as required.
Advantages:
This option would by and large maintain status quo in the postings and placements at the
positions of Joint Secretary and above except that the competition for entry would be broad
based and open to all civil servants.
Disadvantages:
In this age of specialization, the emphasis on continuing with a single generalist cadre that can
move across all the 44 Divisions of the Federal Government and the Provincial Governments
seems to be misplaced.
Option-II:
Create four streams within NES, i.e., Economic Management, Social Sector Management,
Technology Management and General Management.
Advantages:
(1) An inclusionary and expansive approach providing opportunities to domain knowledge
experts also to advance to senior positions will boost their overall level of morale,
efficiency, and productivity at lower tiers.
(2) Some degree of specialization and sectoral knowledge will have a positive impact on
the quality of decision making. The matching between the skill sets possessed by an
officer and the job requirements would be much easier to strike.
(3) The acceptance of service structure is likely to be broad based as there is no
discriminatory or preferential treatment for any group of officers.
Disadvantages:
(1) The General Management Group officers will have a larger base and more opportunities
for rotation among Ministries.
(2) The promotion prospects to Grades-21 and 22 may not be uniform or equal for all three
streams of NES.
(3) The encadrement of positions within each stream may prove to be controversial
particularly in borderline cases which may fall within more than one stream.
Preferred Option:
26. The preferred option is to set up four streams forming NES as it would open up senior
executive positions to competition among all Federal and Provincial governments irrespective
of their previous background and affiliation. This option would also promote limited
specialization as the movement and transfers would take place within a limited cluster of
Division/Ministries. The current Federal Ministries/Divisions can be rearranged in the
following clusters. While the Ministry of Foreign Affairs would retain its current status with
no changes envisaged.

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 General
Economic Social Sectors Technical
Management
Poverty
Finance and Alleviation & Science&
1. 1. 1. Cabinet Division 1.
Revenue Social Technology
Protection.
National Information Tech.
Planning & Establishment
2. 2. Health 2. 2. &
Development Division
Services Telecommunication
Federal
Economic Education &
3. 3. 3. Defence Division 3. Petroleum
Affairs Professional
Training
Industries & Defence
4. 4. Human Rights 4. 4. Power
Production. Production Div.
National
Information,
Commerce & History &
5. 5. 5. Broadcasting & 5. Housing & Works
Textiles Literacy
Communications.
Heritage
National
Overseas
6. Food 6. 6. Interior 6. Climate Change
Pakistanis
Security
Religious Parliamentary Law & Justice
7. Privatization 7. 7. 7.
Affairs. Affairs Division
Inter-Provincial
8. Revenue 8. 8. Aviation.
coordination
Board of Kashmir Affairs
9. 9. 9. Communication.
Investment & GB
National Security
10. 10. Railways.
Division
11. Narcotics Control 11. Water Resources.
States & Frontier
12. 12. Maritime Affairs.
Regions.
The Present configuration of the Ministries/Divisions proposed to be placed under the four
streams of NES is placed at Annexure-I.
Tiers of Governments to be manned by NES
27. The third strategic choice relates to the placement policy of NES at various tiers of
government. Either the scope of the NES can be limited to the Federal Secretariat only or
expanded to man posts at all three tiers of the government, i.e., Local, Provincial, and Federal
levels. This choice is extremely important as it relates to inter-governmental relationship, and

270
also affects the constitution/structure of the service to be created. At the Federal Secretariat
there will be three hierarchical tiers (i) Deputy Secretary NES-III (ii) Joint Secretary NES-II
and (iii) Secretary NES-I. At the Provincial Secretariat also there will be three tiers (i) Deputy
Secretary PES-IV (ii) Additional Secretary PES-III and (iii) Secretary PES-II. Chief Secretary,
Chairman Planning and Development Department, Additional Chief Secretaries and other
designated positions in the provinces will be in NES/PES-I. These two options are analysed
below:
Option-I:
NES (including its streams), to man only the posts at the Federal Secretariat.
Advantages:
(1) There will be a neat separation of officers belonging to the Federal and Provincial
Governments and the Provincial Governments can choose the officers for their
Secretariat without prior clearance or requisition from the Federal Government.
(2) The intimate knowledge of the working and many rotational opportunities at the Federal
Ministries would speed up fostering of specialization.
(3) The management and development of the officers of NES would be much easier and
effective due to the limited size of the workforce in the NES.
Disadvantages:
(1) The absence of inter change of the officers between the Federal and Provincial
Secretariats may make decision making at the Federal level more abstract, remote from
the ground realities and non-responsive to the needs of the public at large.
(2) The harmony between the different Federating Units and the emergence of a national
outlook based on varying perspectives of the provinces may be harmed.
(3) The silo like, isolated mentality may give rise to more fractious and adversarial
relationship between the Federal and the Provincial Governments. The experience
gained by working at more than one level of government instils a sense of realism and
appreciation of other government’s position and viewpoints.
Option-II:
NES (including its streams), to man the posts at both the Federal and Provincial Secretariats,
Executive Departments. The Provincial Secretariat positions will be open to both the NES as
well as the Provincial Executive Service (PES) officers in the following ratios:
NES/PES-I 80:20 between NES and PES
NES/PES-II 40:60 between NES and PES
NES/PES-III 20:80 between NES and PES
PES-IV 100% for PES
In case the Federal Government cannot place the requisite numbers of NES officers at the
disposal of the Provincial Governments the ratio can be adjusted to accommodate PES officers

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Advantages:
(1) The true spirit and nature of the constitutional provision about an All-Pakistan Service
will be adhered to.
(2) The continuous flow and exchange of officers between the Federal and Provincial
Government would bring about coherence and consistency in national policy making
in national policy formulation and execution which is proving to be difficult since the
18th amendment.
(3) There will be greater national integration and better appreciation of the problems facing
the various geographical regions and segments of the society.
Disadvantages:
(1) The Provincial Governments will lose the freedom to select officers of their choice to
manage the policy making positions and will remain to some extent dependent on the
Federal Government.
(2) The reluctance of many officers living comfortably in the Provincial headquarters to
move physically to Islamabad may deprive the Federal Secretariat of quality manpower.
(3) The strains on managing a large number of incumbents, training them and looking after
their welfare can pose some problem.
Preferred Option:
28. The preferred option is Option II, as the sharing of NES positions between the Federal
and the Provincial Governments offers many advantages. The most persuasive argument in
favour of this option is that the policy making at the highest level in the Federal Government
will not be divorced from an intimate knowledge, understanding and appreciation of the issues,
constraints and problems faced at the Provincial and Local Government levels. This integration
is absolutely essential for generation of policy proposals that are feasible, widely acceptable
and practicable.
Regional Representation and Quota Preservation:
Option-I.
The NES cadre recruitment would follow the existing practice of regional representation and
quotas for women, minorities and disabled. The latest Cabinet decision of 17th January 2020,
on regional report laid down below would be applied to the recruitment of NES Cadre also: -
Merit 7.5%
Punjab 50%
Urban Sindh 7.6%
Rural Sindh 11.4%
KP 11.5%
Balochistan 6%
FATA 3%

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 GB 1%

Advantages:
(1) The backward regions of the country would have representation in higher policy making
process.
(2) A more coherent national viewpoint would inform the decision-making process due to
diversity of experiences among those formulating policies.
Disadvantages:
(1) The concept of merit-based cadre would be diluted as the quality of intake may not always
match the expected threshold.
(2) There may be a disincentive for some potential talented candidates who may otherwise
qualify but cannot make it due to quota restrictions.
Composition of NES Cadre:
29. The NES Cadre would be carved out of some posts belonging to Pakistan
Administrative Service (PAS) drawn from the Federal and Provincial governments. The NES
cadre would be expected to include the following posts of the Federal Secretariat: -
40 Secretary/Special Secretary or equivalent NES-I.
159 Joint Secretary or equivalent NES-II.
284 Deputy Secretary or equivalent NES-III.
483 Total
30. Along with those in the Provincial governments, the total initial strength would be
around 800, divided among the four NES streams. All the posts outside NES Cadre would be
open to the NES members, non-NES members, employees of the Provincial Governments
autonomous bodies, executive departments and private sector under the existing rules. No
changes are envisaged in that.
Current Occupational Group and the NES
31. Officers belonging to the existing occupational groups would have a choice to make
when they reach Grade-19 after completing minimum 10 years work experience. They can
either continue to serve in their respective cadres and move up vertically (the strength and posts
in Grades 20-22 of the existing cadres would remain intact) or appear at the competitive
examination for entry into NES. If an officer is selected for NES he/she has to sever the link
with his/her original cadre. If he/she is unsuccessful in getting into the NES stream he/she
would continue to remain a part of the original cadre retaining his/her seniority.
32. In order to allay the apprehensions of the young officers belonging to the Pakistan
Administrative Service which would lose a large number of Grade 20-22 posts in the Federal
and Provincial Secretariats to which they have been entitled under the present rules, there
would be a need to add new posts in Grades 20-22 to the Cadre of PAS. For example, as the
new local government system with more devolved powers and financial resources is
implemented, the posts of Chief Operating Officers (COOs) of all Metropolitan Corporations

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the highest non-elected executive can be added to the Cadre of PAS in Grade 22. While the
posts of Director General of Development Authorities or similar bodies can be placed in Grade
21 in PAS Cadre. The posts of COOs of the Municipal Corporations, Municipal Committees
and Tehsil Councils in Grades 21 and 20 would provide another avenue for career progression
of PAS Officers at the same pace as they are experiencing now. The introduction of NES would
therefore no longer adversely affect the career prospects or progresses of PAS Officers to
higher grades even if they do not opt for the NES. In actual practice, it is expected that a large
number of PAS officers would opt for NES due to the experience they gain and the outlook
they develop by serving in the field and the secretariat. The mechanics of actual division of the
posts between PAS and the Provincial Executive Service in the Provinces would have to be
worked out.
Unresolved Issues and Supporting Infrastructure for NES.
33. A number of issues will need to be resolved and supporting infrastructure put in place
before the NES can take off. These issues and support system requirements are discussed
below:
(a). Eligibility Criteria:
The eligibility criteria for applying for the NES and appearing at the competitive
examination will have to be developed in light of the proposed structure of the service.
Any officer belonging to the All Pakistan, Federal, Provincial Government who has
completed 10 years of service in Grades 17-18 with minimum prescribed academic
qualifications and satisfactory performance record can appear at the NES examination.
The performance record, the training record and assessments the number of rotational
assignments, should form part of the eligibility criteria for in-service candidates while
similar criteria have to be developed for the outsiders.
(b). FPSC Examination / Tests Procedure
(1) The FPSC would conduct the process of selection by combining a written examination,
structured interview and psychometric test with performance record and training
outcome. What weightage should be given to each of the five components of the
selection process is a question that needs discussion.
2) Type of Written Examination. Since the NES visualizes more than one specialized
stream, EMG, SMG, TMG and GMG focus of the exam will be on testing the analytical
abilities of the candidates as applied to the real-world issues facing the policy makers.
For example, the written examination could contain several parts the most important
being preparation of a summary on a particular issue proposing and analysing the
various options and recommending a certain course of action. The evidence, reasoning
and logic behind the recommendation would form the crux of the testing. The second
part of the written examination could contain questions or analysis pertaining to the
particular stream. However, candidates should be allowed to appear for all the four
streams and not limited in their choice.
(3) Interviews. The interview should be structured in a way that is able to gauge the
communication skills, motivational skills, team building, conflict resolution, inter
personal and leadership skills. The present practice of the Commission members asking
questions that tests memory recall of facts and figures needs to be replaced by more
sophisticated techniques of probing and assessing the potential of the candidates for
occupying high-level decision-making positions.
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(4) Psychometric tests. Psychometric tests should be designed and administered to assess
the stability, emotional quotient and problem-solving skills, the attitudes and values of
the candidates. Those who exhibit personality disorders or attitudes that are not
conducive to benign organizational culture should be screened out.
(5) Capacity Building of FPSC. The FPSC will have to build its own in-house capacity to
undertake the NES selection process. The composition of the membership, the criteria
for selection of members, the process through which the members are chosen, the tenure
of office and the reorganization and upgrading capabilities of the staff of the Federal
and Provincial Commission are some of the critical issues that need to be addressed.
(c). Restructuring of Establishment Division to Handle NES.
(1) The Establishment Division must build up its Human Resource Management (HRM)
capacity to manage computerized record keeping of individual officers ranging from
recruitment, post induction training, performance appraisal reports, career history, mid-
career, senior level and foreign training assessments, inventory of skills and promotion
not only for the NES, but also for all officers, working in the Federal Secretariat.
(2) Career Planning (CP). The CP Wing needs to be further strengthened and
computerized to carry out an effective career planning, not only of the NES, Pakistan
Administrative Service, and the Police Service but for all other officers working in the
Federal Government in close coordination with the parent departments. Job
descriptions will have to be developed for all non-cadre and ex-cadre jobs involving
technical / professional / specialized skills.
(3) Identification of Posts for NES. A very deliberate process of identification of posts
for inclusion in NES needs to be carried out by the Establishment Division for
classification and allocation to different streams of NES. There will, invariably, be
efforts and justifications by all Ministries/ Divisions / Departments / Autonomous
Bodies, to include maximum number of posts of NES in their respective organizations.
Interaction with all these organizations is very essential. However, Establishment
Division will need to withstand the group pressures and identify the MINIMUM
essential posts for NES. Although all the Secretariat positions would be included in the
NES a few key positions of critical importance outside the Secretariat may also be
included. Care should, however, be taken to ensure that all the professional and
occupational groups/ services/ cadres have adequate number of positions at each grade
in the pyramid of their own groups/service cadres and only positions in excess of this
configuration may be transferred to the NES.
(4) Seniority Issues. The issue of seniority creates all sorts of litigation at a mass scale.
The Occupational Groups’ vested interests and individual interests play a dominant role
in these matters. Establishment Division must lay down clearly defined rules to avoid
unnecessary and embarrassing litigations. Inter-se seniority would be determined from
the date of joining the NES stream. Initial seniority before induction in the NES would
become redundant.
(5) Promotion Issues. Similarly connected to seniority is the issue of promotions to the
next grade. The present system of CSB for promotion to Grades 20 and 21 and the
High-Powered Selection board for Grade 22 would continue to remain in place for NES
officer’s promotions from MP III to MP II and from MPII to MP I respectively. Clear,
fair, and transparent rules and regulations need to be laid down along with safeguards

275
 against violations. The officers selected to NES would have at least 20 years to spend
in this cadre before they retire. This will provide opportunities for several rotations,
sharpen their experiential learnings, and overcome the present problem where most of
the Secretaries are appointed only 2-3 years before their retirement. At this stage of the
career, level of commitment does not keep up with the rigor of the job.
(6) Age Factor. Should there be minimum age limit for induction into NES, as it has been
noticed that most candidates from Provincial and Local Government Services get left
out only because of age limits. Lower age limits tend to go in favour of CSS candidates
compared to other candidates. Age limit, if prescribed must create a level playing field
for all. In many countries age limits do not apply and younger people, if they qualify,
are selected to top cadres and positions.
(d). Training.
(1) Role of NSPP and other training institutions in the grooming and evaluation of NES
must be specified. National Institutes of Management (NIMs), NSPP and all other
training institutions should be asked to evaluate the candidates at their training courses
for suitability to NES.
(2) Initial Induction Training. There should be a post induction training organized by
NSPP for the NES recruits. Assessment reports Performance at both post induction and
mid-service training would be linked to promotion explicitly.
(3) Mid-Service Training. The National Management Course should be revisited in the
light of the NES’s requirements and organized in a way that responds to the needs for
shouldering higher responsibilities. Short duration courses on specific topics or skill
development may be offered through the year.
(e). Compensation Package.
34. In order to make the NES attractive and at the same time keep the financial burden on
the exchequer at a minimum possible level, the candidates at the first level (NES-III) must be
given a monetized package of MP-III while the officers promoted as Joint Secretary (NES-II)
should be given MP-II scale and Secretary (NES-I) MP-I scale. As the number of positions in
the equivalent grade at the Federal Secretariat does not exceed 1300 the financial implications
of this salary package will be quite modest. Those selected for NES cadre would have their
pensions frozen at the last salary drawn in their previous post. They would also not be entitled
to any Government housing.
(a) Future of the Secretariat Group.
35. While the terms and conditions of existing incumbents of the Secretariat Group would
not be altered as they would be grand fathered, future recruitment to OMG and the Secretariat
Group has to be discontinued for the following reasons: -
(1) Grade 17/18 Section officers would no longer be required in the Federal
Secretariat as the post of Deputy Secretary where the entry point would be
equivalent to Grade 20.
(2) E-Governance, shared filing and tracking system, fully loaded websites
containing all rules, regulations, circulars, Office memoranda, notifications, all
reference materials, and data banks would render the post of Grade 17/18
redundant.
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 (3) As the posts of Staff Officers in Grade 18, 19 and 20 would be created to assist
Deputy Secretaries, Joint Secretaries and Secretaries to promote horizontal
rather than vertical hierarchy their job requirements would not fit in with those
recruited as Section Officers.
36. The existing incumbents belonging to the OMG and SG would continue to have the
same terms and conditions of service. That can compete for the NES cadre or selection for Staff
officers or appointed against the vacancies in the Federal Government.
Transition Plan:
37. The creation of NES is interlinked with decisions on a number of critical issues without
which the present proposal will not be able to make the desired impact. While a number of
issues, have been discussed in the previous section there are at least three decisions for
transition from the present system to the NES. These are:
(i). Introduction of E-Government at the Federal and Provincial Secretariat for all
transactions – horizontal and vertical. Recruitment to Secretariat Group and the posts
of Section Officers would be discontinued once E-Government suite becomes fully
operational.
(ii). The pay structure of the NES has to be delinked from the BPS Grades and brought at
par with MP-I, MP-II and MP-III. The existing incumbents can be given the choice to
opt for the new scales or retain their grades along with their perks and facilities such as
housing etc. A defined contribution scheme for NES officers will be introduced.
(iii) The redesigned Performance Evaluation Reporting System (PER) that is open, goal-
oriented, development needs-based system is put in place. A new promotion policy that
gives weightage to the PERs, training and skills acquired, breadth and depth of
experience and evaluation by the Central Selection Board will have to be put in place.
(iv) In order to allay the concerns of the affected Cadres that their existing share and the
total number of posts in BPS 20, 21 and 22 will not be reduced, the cadre strengths and
composition of each group should be updated. Necessary posts will be created in the
Federal and Provincial Government to maintain existing allocations.
(v) In order to create minimum dislocation in the working of the government the existing
incumbents of the Federal and Provincial Secretariats in Grade 20-22 will be given the
option to be absorbed in the NES. This one-time initial recruitment into NES on NES-
I and NES-II will expedite the institutionalization of NES. Applicants in BPS 20 and
21 that apply for NES-II in NES will be evaluated by the CSB and applicants in Grade
22 will be selected for NES-I by HPSB. This initial induction will only be on 50% of
the seats i.e., 25 in NES-I and 150 in NES-II. Initial induction to NES-III on all seats
will be done by FPSC through the proposed competitive process.
(vi) Future vacancies in the NES cadre would be filled only through the proposed
competitive examination process in NES-III.
(vii). In order to improve transparency in postings, an online system will be implemented by
the Establishment Division that will solicit applications for vacant posts in the Federal
Secretariat. A high-powered board will then decide on the postings.
Conclusion

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38. The creation of the NES as an All-Pakistan Service has certain clear advantages as it
will be able to draw upon a large pool of talent from within the whole range of Civil Services
through an open, transparent competitive process. Regional representation and provincial quota
system will ensure that the smaller provinces have a sense of participation in the top-level
decision making. The specialization in four streams will equip the members of the cadre with
skills and knowledge required to analyze the complex issues of economy and society and
formulate appropriate strategies and policies. Fast track promotion prospects and attractive
compensation package will provide incentives for better performance, high quality output and
minimize corruption and rent-seeking.
Issues For Discussion
(1). Whether a NES should be created in addition to the existing All Pakistan Services and
Federal Occupational Groups?
(2). Should the NES consist of four specialized streams?
(3). Should the NES be an All-Pakistan Service sharing some posts in the Provincial
Secretariats?
(4). Is it advisable to delink the NES positions from the BPS grades and pay them monetized
salaries in the MP scale?
(5) Would the formation of NES raise the motivation, efficiency, and productivity of the
Government at large or demotivate the Occupational Groups that would no longer be
automatically entitled to occupy the posts under the NES?
(6) Whether the existing incumbents of the posts in BPS 20-22 in the Federal and
Provincial governments be given the opportunity to be absorbed in the NES or should
they along with other eligible candidates be screened by the CSB and HPSB for
induction?

***********

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NATIONAL EXECUTIVE SERVICE
Federal Secretariat All posts
Secretary NES-I
Joint Secretary NES-II
Deputy Secretary NES-III
Provincial Secretariat Shared with PES
Secretary NES-II
Joint Secretary NES-III
Selection by FPSC
Economic and
Finance Group
Social Sector Group
General Management Group

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 Annexure-I
PRESENT CONFIGURATION OF MINISTRIES/DIVISIONS PROPOSED TO BE
PLACED UNDER FOUR STREAMS OF NES
A. Technical Stream
S.No. DIVISIONS 17/18 19 20 21 22 Total
(SO) (DS) (JS) (AS) (S)
1. Aviation 11 4 2 0 1 18
2. Climate Change 10 5 3 1 1 20
3. Communications 6 2 2 1 1 12
4. Housing & Works 16 2 2 1 1 22
5. Information Technology and 7 2 2 1 1 13
Telecommunications

6. Law & Justice 20 5 3 1 1 30

7. Maritime Affairs 15 2 2 1 1 21
8. Petroleum and Natural Resources 10 4 2 2 1 19

9. Power 15 5 5 2 1 28
10. Railways 0 0 0 0 1 1
11. Science and Technology 8 2 2 1 1 14
12. Water Resources 6 3 2 0 1 12
Total 124 36 27 11 12 210

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B. Finance, Economic & Trade Stream
S.no. DIVISIONS 17/18 19 (DS) 20 (JS) 21 (AS) 22 (S) Total
(SO)
13. Commerce 35 15 8 2 1 61
(incld Textile)
14. Economic 45 16 8 2 1 72
Affairs
15. Finance 128 65 34 7 1 235
16. Industries & 28 10 6 2 1 47
Production
17. Planning, 18 5 6 2 1 32
Development
& Reform
18. National Food 10 5 2 1 1 19
Security &
Research
19. Privatisation 2 1 1 1 1 6
20. Revenue 4 2 1 1 1 9
Total 270 119 66 18 8 481

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C. Social Sector Development Stream
S.No. DIVISION 17/18 19 (DS) 20 (JS) 21 (AS) 22 (S) Total
(SO)
21. Federal Education & 13 6 4 1 1 25
Professional Training

22. Human Rights 4 2 1 0 1 8

23. National Health 12 6 3 1 1 23
Services Regulations
& Coordination**

24. National History & 9 4 2 0 1 16

Literary Heritage

25. Overseas Pakistanis 16 7 3 0 1 27

and Human Resource
Development

26. Religious Affairs and 9 7 5 1 1 23

Inter-faith Harmony

27. Poverty Alleviation 7 3 1 1 1 13

and Social Safety

Total 70 35 19 4 7 135

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D. General Management Stream
S.No. DIVISION 17/18 19 20 21 (AS) 22 (S) Total
(SO) (DS) (JS)
28. Cabinet 45 18 12 3 1 79
29. Defence 42 11 6 3 1 63
30. Defence Production 18 6 2 1 1 28
31. Establishment 63 23 8 2 1 97
32. Inter Provincial 14 7 4 2 1 28
Coordination
33. Interior 44 10 6 3 1 64
34. Kashmir Affairs & 9 2 1 1 1 14
Gilgit Baltistan

35. Narcotics Control 9 3 1 0 1 14

36. National Security 3 0 1 1 1 6
37. Parliamentary Affairs 12 7 3 1 1 24
38. Information and 8 2 1 1 1 13
Broadcasting
39. States & Frontier 12 5 2 0 1 20
Regions
Total 279 94 47 18 12 451
For all streams
Total (A+B+C+D) 743 284 159 51 39 1276

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17.1 MINUTES OF SECRETARIES COMMITTEE MEETING HELD ON
03-09-2020
In the meeting of the Secretaries Committee held on 03-09-2020, the proposal on the
creation of a National Executive Service was discussed in detail and a response by the
Secretaries Committee on the rationale and modalities of such an effort were recorded in the
minutes of the meeting as detailed below.
Item No. 2
Case No. SCM/04/2/2020 Proposal to create a National Executive Service
Dated: 03-09-2020 (NES)
Establishment Division
2. The Secretary Establishment Division, briefed the members on the proposal to create a
National Executive Service (NES). He informed the members that the proposal was the
initiative of the Advisor to the Prime Minister on Institutional Reforms and Austerity. The
Establishment Division was placing it before the Committee because the subject matter
pertained to the mandate of the Division. The forum was informed that the paper elaborates
upon one of the most critical components of the proposed framework that was initially
deliberated upon by the Secretaries Committee on 22nd December 2006 and recommendations
made by the Sub-Committee of the Secretaries Committee finalised in April 2007 were
incorporated in this revised draft.
3. It was further informed that the purpose of creating an NES was to identify, develop
and place the best talent in policy making positions by drawing upon the entire pool of Civil
Servants and other talent from the entire country, irrespective of their original cadre, service,
or affiliation.
Key Features of The Proposal
Strategic Options:
Following Strategic Options, in the proposed scheme, were highlighted.
Option I: Each existing cadre (All Pakistan, Federal and Provincial Services) is apportioned a
fixed quota of posts based on their cadre strength for induction into the NES. Competitive
examination and interviews will be held by the Federal Public Service Commission but will be
restricted to the pool of eligible candidates belonging to the particular services.
Option II: Civil servants belonging to cadres, non-cadre, ex-cadre, public sector entities and
the provincial governments can enter the NES through an open competitive process conducted
by the Federal Public Service Commission (FPSC), keeping the existing regional
representation quotas intact. The candidates will have to fulfil the eligibility criteria of years of
experience, professional qualifications, past performance record, etc.
Option III: The recruitment to the NES may be opened up to both the public sector as well as
private sector instead of civil servants only. They have to go through the competitive process,
written examination, and interviews, conducted by the Federal Public Service Commission.
The preferred option suggested by the Report is Option II.
Streams of NES:
Furthermore, the proposed scheme suggests following streams of NES.

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Options I: One stream only to begin with and subsequently creating more streams as required.
Option II: Four streams within NES, i.e., Economic Management, Social Sector Management,
Technology Management and General Management.
The preferred option is to set up four streams forming the NES, as it would open up senior
executive positions for competition among all Federal and Provincial governments irrespective
of their previous background and affiliation.
Tiers of governments to be manned by the NES:
4. The third strategic choice relates to the placement policy of NES at various tiers of the
government. Either the scope of the NES can be limited to the Federal Secretariat only or it can
be expanded to man the posts at all three tiers of the government, i.e., Local, Provincial and
Federal levels. At the Federal Secretariat, it is proposed to have three hierarchical tiers (i)
Deputy Secretary NES-III (ii) Joint Secretary NES-II and (iii) Secretary NES-I. At the
Provincial Secretariat too, there would be three tiers (i) Deputy Secretary PES-IV (ii)
Additional Secretary PES-III and (iii) Secretary PES-II. Chief Secretary, Chairman Planning
and Development Department, Additional Chief Secretaries and other designated positions in
the provinces will be in NES/PES-I. These two options are analysed below:
Option-I: NES (including its streams) to man only the posts at the Federal Secretariat.
Option-II: NES (including its streams) to man the posts at both the Federal and Provincial
Secretariats and in Executive Departments. The Provincial Secretariat’s positions will be
opened to both the NES as well as the Provincial Executive Service (PES) officers. In case the
Federal Government cannot place the requisite numbers of NES officers at the disposal of the
Provincial Governments, the ratio can be adjusted to accommodate PES officers.
Option-III: The Provincial Secretariat would continue to be manned by officers from the
Pakistan Administrative Service (PAS) and the Provincial Services, modified according to the
present arrangements. Provincial Executive Service (PES) will eventually replace the
Provincial Management Service (PMS).
Preferred Option: The preferred option, suggested by the Report, is Option-II.
Regional representation and quota preservation:
The NES cadre recruitment would follow the existing practice of regional representation and
quotas for women, minorities and disabled.
Future of the OMG and Secretariat Group:
While the terms and conditions of existing incumbents of the Secretariat Group would not be
altered, as they would be grandfathered, future recruitment to OMG and the Secretariat Group
would have to be discontinued.
Composition of NES Cadre:
5. In case the preferred option of NES as an All-Pakistan Service of accepted, the NES
Cadre would be carved out of some posts belonging to the Pakistan Administrative Service
(PAS) drawn from the Federal and Provincial governments. The NES cadre would be expected
to include the following posts of the Federal Secretariat:
a. Secretary or equivalent NES-I
b. Joint Secretary or equivalent NES-II
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 c. Deputy Secretary or equivalent NES-III
Issues For Discussion
6. The Secretary Establishment Division highlighted the following issues for discussion:
i. Whether a NES should be created in addition to the existing All Pakistan Services and
Federal Occupational Groups?
ii. Should the NES be limited to the Federal Government only?
iii. Should the NES consist of four specialised streams despite uneven distribution of posts
in different streams at the Federal level? This distribution may change if the provincial
secretariat positions are included.
iv. Should the recruitment to NES be made observing the existing regional representation
and quotas?
v. Is it advisable to delink the NES positions from the BPS grades and pay them monetized
salaries equivalent to the present MP scales?
vi. Would the formation of NES raise the motivation, efficiency, and productivity of the
Government at large or it would de-motivate the Occupational Groups that would no
longer be automatically entitled to occupy the posts under the NES?
vii. Whether the existing incumbents of the posts in BPS 20-22 in the Federal and
Provincial governments be given the opportunity to be absorbed in the NES or should
they, along with other eligible candidates, be screened by the CSB and HPSB for initial
induction?
Discussion by the Secretaries’ Committee
7. The Secretaries Committee deliberated upon the matter in detail and raised several
observations:
i. The premise that bureaucracy is all about technical people holds no logic, as the
bureaucracy is all about leadership required for helping policy makers in making
prudent policies and ensuring the implementation.
ii. Statistics reveal that highly qualified persons from prestigious universities are entering
the civil service for the past so many years. Therefore, the logic that the Superior
Services are no longer attracting the best talent at the time of entry does not hold ground.
iii. The Institutional Reforms Cell should have come up with a strong proposal for
reforming the civil services; inaction lies elsewhere, which has not been addressed.
iv. There is a need for an efficient and fair system of posting, transfer, and promotion of
the civil servants, with some degree of autonomy from external factors, instead of
creating further insecurity amongst the civil servants.
v. Many members raised the point that the proposal, if implemented, will bring about
massive change without addressing the cause of the main problem. The need of the hour
was to understand the problem, taking into account the modern-day challenges, and
then carving out a solution.

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 vi. The premise and solution are not related to each other. The proposal was neither on
modern lines nor was it progressive.
vii. Discontinuation of the Office Management Group would not be a viable option as
history shows that the OMG / Secretariat Group was discontinued three times in the
past and it created several difficulties for smooth running of the business of the federal
government.
viii. The proposal does not give explanation as to how the NES is going to deliver and
improve service delivery.
ix. The significance of generalists cannot be ruled out by the specialists. The need of
general management to align and guide the work of specialists would always be there.
x. The Civil Services in Pakistan are part of the Civil Services of the Commonwealth
Countries, which is working reasonably well in its original shape in other countries of
South Asia. The various attempts of reforming the Civil Services in Pakistan have not
produced the desired outcomes, rather they have created a negative impact on the Civil
Services.
xi. It is not the issue of generalists versus specialists. Public Policy is a specialised subject.
The Federal Secretariat does not necessarily have to be technical in nature as it helps
the Federal Government in taking and implementing its decisions.
xii. The Civil Service is a component of collective governance by the Federal Government.
There was a need to understand the problem and then reform gradually. Moreover, the
reform has to be carried out in a holistic manner; reforming just one segment would
only lead to further confusion.
xiii. It was also proposed by one of the members that on the model of the FBR reforms, the
task to reform each service / group can also be taken up after the input from the
Secretaries’ Committee.
xiv. A suggestion was given that the officers from mid-level bureaucracy should also be
made part of the deliberations and their input / feedback on the proposal of NES should
be considered while finalising it.
xv. The forum was informed that the matter was discussed during the last Cabinet Meeting,
and it was expected that the Secretaries Committee would deliberate upon the proposal
and tender its suggestion within a fortnight. The members, however, showed concerns
that the matter requires detailed evaluation and time of 10-15 days was not sufficient
for such an important task.
xvi. It was underscored that reform is an ongoing process and the Civil Services should seize
the opportunity and suggest viable proposals for improving the performance rather than
resisting the reform. There is always a room for improvement and instead of blocking
every effort for reforming the services, a proposal should be worked out which is
administratively viable, politically acceptable, and technically correct.
xvii. In the end, it was suggested that a Sub-committee may be constituted for further
deliberations on the proposal and to prepare a report, after incorporation of members’
points of view, and submit it in the next meeting of the Secretaries Committee for
consideration and finalisation.

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Decision
8. The Secretaries’ Committee appreciated the intent of the proposal, however,
considering the observations of the members, the Committee decided to constitute a Sub-
Committee to evaluate the proposal in detail and to propose recommendations for further
deliberation of the Secretaries’ Committee in its next meeting. The Sub-Committee shall
comprise of the following:
1. Secretary, Establishment Division Convener
2. Secretary, Cabinet Division Member
3. Secretary, Human Rights Division Member
4. Secretary, Overseas Pakistanis & Human Resource Development Division Member

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17.2 RESPONSE TO SECRETARIES COMMITTEE BY THE IRC
The Secretaries Committee considered in its meeting on 03-09-2020, the Working
Paper on the National Executive Service distributed by the Institutional Reforms Cell to solicit
feedback from all relevant stakeholders. In response to the Committee’s feedback, the Advisor
to the Prime Minister on Institutional Reforms & Austerity, Dr. Ishrat Husain shared his
thoughts in the letter re-produced below.
1. Let me begin by expressing my appreciation to the Secretaries Committee for their
thoughtfulness and hard work they have put in responding to our request for reviewing and
commenting on the proposal for establishing the National Executive Service (NES). Their
commitment to reforms in unquestionable. The point is as to how we converge on a shared
solution.
2. I realised that I should have placed this proposal in the much broader context of overall
reforms. The attached document “Reforming the Government in Pakistan: Rationale,
Principles, Proposed approach and Progress update” is an attempt to fill in this gap.
3. There is no doubt that the challenges facing the civil servants include political interference;
fear of accountability, media, and judiciary; frequent postings and transfers and general
feeling of insecurity and absence of support from the government are quite disturbing. The
way out is to strengthen the systems and processes minimise the discretionary powers and
that is the modest aim of the proposed reforms. It would be unrealistic to expect that at the
end of these reforms everything would be hunky dory. We do not live in an idealistic world
and may have to face challenges but to the extent that we can reduce the level of this stress
it would be fruitful. For example, the NAB Ordinance promulgated by the present
government that had excluded the misuse of authority and decisions taken in good faith
without malice or self-gratification from the purview of NAB was welcomed by the civil
servants by and large. Promotions to Grade 21 and 22 in last few years have been based on
merit and not on politicians’ sifarish. These promotions have also been upheld by the
judiciary. Appointments of heads of public sector organisations are made in a transparent
open competitive basis on merit and debated in the Cabinet. These small gains have to be
consolidated and expanded in order to overcome the legitimate concerns of the civil
servants. The frequency of transfers particularly in the provinces has been too rapid creating
uncertainty as well as loss of accountability for results.
4. There is hardly any disagreement on the contents of paras 51 to 78 of the ‘paper’. I would
like to thank each one of you and your predecessors for your support and assistance in
carrying forward this agenda of reforms. My interactions with the Secretaries during the
course of design and implementation committee deliberations were highly useful and I
learnt a lot during these sessions.
5. There are some misunderstandings which I would like to remove at the outset. The concept
of the NES is indigenous and is not borrowed from anywhere else. The reference in the
paper that we are trying to transplant the Senior Executive Service (SES) is totally
inaccurate. Cabinet members under the US Presidential system are by and large experts in
their respective areas and therefore the SES does not play that significant role as the checks
and balances in the system are quite robust. Inter-departmental movement among SES
officers is not the norm but rarity. All appointments above assistant secretary and
equivalent have to be ratified by the Senate and become political appointments to be held
at the discretion of the President. Our civil service model is based on the UK Parliamentary

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 system which itself has undergone radical changes over the last seven decades and is no
longer a faint reflection of the legacy left behind in the Indian Subcontinent.
6. The functional model of the UK Civil Service is “To create a more skilled and unified
organisation to transform services and achieve significant savings for the taxpayer, we are
developing 10 specialist areas of expertise i.e., Commercial, Communications, Corporate
Finance, Digital, Finance, HR, Internal Audit, Legal, Major Project Delivery and Property.
These cross-government functions provide professional services and support to
departments. The Civil Service is made up of 25 professions. Each profession has
developed its own competency framework, which supports the wider civil service
framework. The Civil Service is made up of a wide range of professional roles – from
communicators and engineers to procurement managers and lawyers. There are currently
28 recognised professions, each led by a head of profession.
7. The other misconception widely shared by the officers of the PAS is that NES is an attempt
to weaken and replace the PAS. Unfortunately, this is also far from the truth. NES is not
intended to replace the PAS but to supplement it. All existing positions of Assistant
Commissioners up to Commissioners in the field and many other encadred posts would be
retained and augmented by the posts of Chief Metropolitan Commissioners (Grades 21),
Chief Municipal Commissioners (Grades 20) and so on. We envisage that the proposed
local government system approved by Punjab and KP would confer enormous
administrative, legal, and financial powers to the local governments. For example, in
Lahore, the directly elected Mayor would be assisted by the Chief Executive. All bodies
such as LDA, WASA, Solid Waste Management, Urban Transit, Education, Health would
work directly under the Metropolitan Corporation. The Chief Executive would also be the
Principal Accounting Officer of the Corporation. Urban Property Tax has also been
assigned to these corporations. Their responsibilities are going to be much wider in scope
than that of the Secretary and the job satisfaction much higher. It is hard to foresee these
major changes from the rear-view mirror and past practices where the Municipal
Corporations were looked down upon with disdain. The cynicism and dissatisfaction with
this proposed change is quite understandable. The underlying idea is that there is a clear
need for highly talented officers to specialise in general management particularly in the
delivery of services at the District and Divisional level. It is also not far from clear to me
as to why a large proportion of NES posts would also not be taken up by PAS officers in
the competitive process because of their qualifications, broad experience, and relative
performance. NES posts in General Management sub cadre, in my humble opinion, are
more likely to end up with the officers of this service. In case the NES is not extended to
the provinces the posts of Secretariat belonging to their cadre would be retained. There are
several posts outside the Secretariat which also fall within their domain. The perceptual
difference in the relative importance of the Provincial and local governments can only be
resolved in the context of the future responsibility of the Government toward its citizens.
The centralised model of governance has been unable to touch the lives of the majority of
the citizens and given rise to inequalities and elite capture. We therefore need our best and
brightest to serve at the local level and that would make the difference.
8. I also disagree that the quality of CSS candidates has not gone down. In 1999, 10,000
candidates appeared and 1000 passed the examination for 126 job openings. The success
rate i.e., the number of candidates for each job opening was 7.9%. The number of
candidates in 2006 was down to 4125 and the success rate was 1.5 percent. By 2016 the
success rate was down to 1% as out of 9643 who appeared only 202 qualified against 199
job openings. This empirical evidence solidly supports the contention that we are not able
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 to attract the best and the brightest as we used to do in the past. There has been some
improvement in 2017 and 2018 in the number of candidates appearing.
9. The assertion that the entry level intake would suffer if those who join the PAS conceive
that the doors for senior posts would not open automatically but they have to cross an entry
barrier carries some weight as it has been expressed by some in our meetings too. Our
consultations with the young officers including those who had just joined the Academy
show a binary response. Those who were self-confident did not subscribe to this view but
there were others who felt that they had joined the Service on the basis of guarantee /
assurance that they could rise all the way to become Secretaries without any hindrance at
any stage of their career. Our aim is to encourage and draw more of those young men and
women who are confident of their abilities to surmount any barriers placed in their way and
prove their worth. Credentials and high academic qualifications are not good predictors of
subsequent on-the-job performance. Having dealt with many PhDs and foreign qualified
master’s degree holders in several international and national organisations it is my belief
that they are good enough for entry level appointments but some of them pale into
insignificance during the performance of duties in various complex assignments. PhD is
only the first step in the long and arduous journey towards excellence but to place it as a
proxy indicator of merit is highly problematic.
10. The NES paper clearly buries the flawed and emotive debate on the specialist’s vs
generalists as it has become totally outdated. In the 21st century we need a mixture of
substantive knowledge and domain expertise, on one hand, and leadership, team building,
communication, and conflict management skills with the ability to synthesize the diverse
inputs into a coherent and consistent policy framework. The future knowledge-based
economy can be effectively managed by individuals who are able to demonstrate, display
and practice these attributes. These attributes are not necessarily limited to one of other
group of practitioners but dispersed widely across a large segment. I have seen very
successful CSPs officers who have headed WAPDA but also some engineers who have
acquitted themselves admirably well in that job. To pre-determine or allocate any
leadership position or circumscribe its boundaries is not very prudential.
11. To re-emphasize, we are by no means replicating any foreign model but suggesting some
modifications in the existing structure for top managerial and leadership positions only.
These positions involve skills and knowledge which are not confined to any particular
group of people. The NES makes a departure by moving away from an exclusive to a more
inclusive and diverse skill intensive approach by widening the pool from which the future
leadership positions can be filled in irrespective of their initial entry allocation to an
occupational group or any other post. What are the distinguishing features of the proposed
NES?
i. There would be no automatic progression to the top positions (Grades 20-22) on the
basis of an examination held at the entry level. Another barrier after 12-15 years’
service has to be crossed and only those whose performance record is satisfactory, who
have been appraised positively by the training institutions at different levels and have
qualified at the written test and interview held by the FPSC would become eligible for
top positions.
ii. NES would be open to all civil servants – cadre, non-cadre, ex-cadre, provincial
services, autonomous bodies to attract the best talent and also provide equality of
opportunity for every civil servant if he/she crosses the barrier. The prevalent

291
 demotivation and demoralisation among the majority of the serving officers that
impairs the efficiency and productivity of the government would be minimised.
iii. The four streams would promote limited specialisation and domain knowledge that
would improve the quality of decision making.
iv. The existing adversarial tension between the generalist vs specialist would come to an
end as everyone who is selected can aspire to rise to higher offices as there would be
no pre-determined reservation or quotas.
12. All other considerations and modalities to shape the NES are unsettled and open to
discussion and deliberation. The purpose of the paper was to present various options,
analyse their pros and cons and propose a preferred option for each of the issue. The ‘paper’
has not addressed any one of these open issues as I believe they do not endorse the idea of
this All-Pakistan Service in the first place. There is a lot of merit in their proposal to expand
the scope of NES and include many other top positions which have been left outside the
Secretariat and this can be a starting point for possible widening the scope of the proposal.
I would certainly welcome the suggestions and thoughts of the Secretaries Committee on
this.
13. Let me address the three concluding paragraphs of this ‘paper’. The NCGR Report is no
longer the starting point as the latest proposal on the NES reflects the post 2010 and current
realities those of the coming years. Consultations were held widely at 50 different groups
of 1400 civil servants at all the provincial capitals and Islamabad. Younger officers serving
and in the Academy were also sought out specially to see their views.
14. The Secretaries Committee paper mentions that the PCS and technical experts can be
presently inducted in the federal secretariat, but this is a continuation of the present
reservation centric approach of filling in the positions and the NES makes a fundamental
departure from the existing approach.
15. The NES paper does stress that service delivery at the local levels would improve when our
best and brightest are asked to serve as heads of the administration coordinating all different
agencies at the Metropolitan, Municipal, Town, Tehsil governments. Their contribution
would be much richer for the welfare of the ordinary citizens compared to their prestigious
posts in the Federal Secretariat. These officers should be placed in higher equivalent grades,
incentivised, and empowered.
16. We fully agree that further improvements in induction, training, placements, and incentives
are pre-requisites for a successful transition to the NES. These reforms are at various stages
of implementation and by the time the NES structure is erected these would have been
functional. It is true, for example, that if we do not change our current Performance
Evaluation System there will not be much gain by designing the proposed structure.
17. While agreeing that the continuation of reforms during the last two years and their across-
the-board implementation are necessary, but I respectfully differ that no structural changes
are required. They are both necessary and sufficient for a meritocratic civil service required
for strong institutions and effective government aimed at maximising welfare of the citizens
of this country. My sense by talking to my colleagues in the Cabinet is that there is a strong
political will to bring about these fundamental structural changes along with the
incremental approach we are following in introducing the reforms in our Human Resource
policies.

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18. As a prelude to the creation of NES, the Establishment Division may be advised to
immediately create four streams of existing officers working in the Federal Secretariat i.e.,
Economic, Technical, Social Sectors and General Management and place them in the
respective stream of their choice matched with an assessment of their suitability. These
officers can then rotate within the Divisions belonging to that stream and placed within the
same cluster of divisions after they are promoted. Para 58 of the ‘paper’ alludes to this but
does not develop the idea fully. A transparent and open mechanism to allocate these officers
among the different streams can be developed for this purpose and this would be a major
step forward. This experiment would also provide insights for the implementation and
design parameters of the NES, if and when it is approved.
Current Status
19. For further deliberation and to devise a way forward, it was suggested by the Secretary’s
Committee to constitute a Sub-Committee headed by the Cabinet Secretary and comprising
Secretary, Establishment Division; Secretary, Information Technology and Telecom
Division; Secretary, Industries and Production Division; and Secretary, Overseas
Pakistanis, and Human Resource Development Division, to hold a meeting with the Federal
Minister for Education / Chairman CCIR, Advisor to the Prime Minister on IRA and SAPM
on Establishment. However, this meeting has not taken place. For the time being, the matter
has been put on ice.

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 CHAPTER 18 NEGATIVE LIST OF APPOINTMENTS OF
DUAL NATIONAL
The Cabinet in its meeting held on January 10, 2019 directed the Law Minister and
Adviser to the P.M on Institutional Reforms to chalk out the negative list of
positions/appointments, in light of the directions contained in Supreme Court of Pakistan’s
Judgment in the Dual Nationality Case.
2. The background of this issue is that the Supreme Court verdict in the dual nationality
case (Suo Moto Case No. 3 of 2018) on 15th December, 2018, declared that persons with dual
nationality could not retain important government positions as they should choose between a
government job and a foreign nationality. The court also ordered the federal and provincial
governments to develop criteria and Standard Operating Procedures requiring disclosure of the
intent to seek such foreign nationalities and permanent residence permits and adopt methods to
check such instances and enforce penalties for nondisclosure. Such criteria and standard
operating procedures should also be incorporated into the existing Efficiency and Discipline
rules/regulations etc. by way of amendment or be adopted independently.
3. The apex court had taken Suo Moto notice of the holders of dual nationality in
government employment and among members of the judiciary and sought reports from
registrars of the Supreme Court and high courts and the federal and provincial government
departments about persons with BPS-17 and above. It had also constituted a committee to look
into the matter. The committee was headed by the Director General of Federal Investigation
Agency and included the Chairman of National Database and Registration Authority; Director
General for Immigration and Passports; Secretary of the Interior Ministry, Additional Secretary
of Establishment Division; and Member (Administration) of the Federal Board of Revenue.
4. The apex court proposed to the federal government that “proper course would be for
the parliament to consider that the government should formulate negative list(s) of posts
within government service to which citizens holding dual nationality, or whose spouses are
dual nationals, should not normally be appointed for reasons of safeguarding national
security and/or vital national interest, except with the permission of the respective cabinets”.
Decision
5. The verdict had put the responsibility for formulating and implementing policies about
persons with dual nationality on the federal and provincial governments. Accordingly, the
Federal Cabinet at its meeting held on January 10, 2019, directed the Law Minister and Advisor
to the Prime Minister on Institutional Reforms to chalk out the negative list of posts/
appointments, in light of the directions contained in the Supreme Court of Pakistan’s
Judgement in the Dual Nationality Case.
Current Status
6, The Minister for Law and Justice and Adviser to the PM on IRA finalized the list and
submitted to the P.M Office, which referred it to the Secretaries Committee. The summary on
this subject has not yet been submitted for the consideration of the Cabinet.
*****

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 VOLUME 1-C
REPORT ON BUSINESS PROCESS
REENGINEERING
Contents
EXECUTIVE SUMMARY....................................................................................................... 295
PART I: APPROVED REFORMS .......................................................................................... 296
CHAPTER 1 AUTOMATION, DIGITIZATION AND E GOVERNMENT INITIATIVE
.................................................................................................................................................... 297
CHAPTER 2 PUBLIC FINANCIAL MANAGEMENT ....................................................... 301
2.1: PUBLIC FINANCIAL MANAGEMENT ACT 2019: SALIENT FEATURES ........... 303
2.2: REVISION OF FINANCIAL RULES ............................................................................. 305
2.3: INCREASING THE EFFICIENCY, TRANSPARENCY, AND EFFECTIVENESS OF
THE FINANCIAL ACCOUNTING AND BUDGETING SYSTEM (FABS)...................... 306
APPENDIX A: INITIAL WORKING PAPER ON DECENTRALIZATION OF
FINANCIAL MANAGEMENT ............................................................................................... 308
CHAPTER 3 REFORMS IN HUMAN RESOURCE MANAGEMENT PROCESSES ..... 313
3.1: UPGRADATION OF ESTABLISHMENT DIVISION AS INTEGRATED HUMAN
RESOURCE MANAGEMENT DIVISION............................................................................ 314
3.2: REVAMPING OF THE MANAGEMENT SERVICES WING TO BECOME THE
PIVOT FOR ORGANIZATIONAL DEVELOPMENT, CONSULTANCY SERVICES
AND ADMINISTRATIVE REFORMS .................................................................................. 316
3.3: REVISION OF THE ESTABLISHMENT CODE AND THE ESTABLISHMENT
MANUAL................................................................................................................................... 319
APPENDIX B: MANAGEMENT SERVICES WING .......................................................... 320
APPENDIX C: REVISION OF ESTACODE AND ESTABLISHMENT MANUAL ........ 328
CHAPTERS / CONTENTS IN THE PROPOSED ESTACODE ......................................... 333
CHAPTER 4 AMENDMENTS IN RULES OF BUSINESS, 1973 ....................................... 339
APPENDIX D NOTIFIED CHANGES IN THE RULES OF BUSINESS ........................... 348
CHAPTER 5 PAKISTAN REGULATORY MODERNIZATION INITIATIVE............... 352
PART II: REFORMS UNDER REVIEW AND FURTHER DELIBERATION ................ 354
CHAPTER 6 WORKING PAPER ON PROPOSED POWERS OF THE MINISTER AND
SECRETARY OF A DIVISION .............................................................................................. 355

i
EXECUTIVE SUMMARY
One of the main areas of focus at the Institutional Reforms Cell (IRC) was to re-engineer the
business processes in the Federal Secretariat. The current mode of functioning in the Federal
Secretariat is suffering from the following major problems:
i) Inordinate delay in the processing of work
ii) Over centralization of powers
iii) Delays in inter-ministerial communication
To alleviate these problems a three-pronged strategy was adopted with the following pillars:
i) Automation
ii) Delegation of powers
iii) Streamlining operations and interdependencies
2. Automation of business processes is the most effective panacea for improving
efficiency in the public sector of Pakistan. Numerous examples exist in the public sector of
Pakistan where the use of latest Information Technologies (IT) have transformed service
delivery and radically improved efficiency. Some recent examples include the automation of
business processes in SECP, FBR and NADRA. These organizations have become trend setters
in the public sector of Pakistan due to these reforms. Similarly, IT interventions spearheaded
by Punjab Information Technology Board and Performance Management and Reforms Unit in
Peshawar have radically enhanced performance of various sectors in the provincial
governments of Punjab and Khyber Pakhtunkhwa. Therefore, the IRC, through the National
Information Technology Board made a lot of effort to digitize the workings of the Federal
Secretariat and implement e-governance reforms. The progress achieved over the last two and
half years has been impressive. All Ministries and Divisions are now connected on the e-office
platform. The workings of Federal Cabinet have also been automated. The details are discussed
in this report.
3. Inter and Intra division delegation of powers is also critical in improving the functioning
of the Federal Secretariat. IRC spearheaded multiple reforms in this important area. Firstly,
through the landmark Public Financial Management Act 2019 important financial powers have
been delegated to all the Principal Accounting Officers (PAOs). The Financial Adviser
organizations have been disbanded and replaced by the offices of Chief Financial and Accounts
Officer (CFAOs). In addition, new suboffices of Accountant General Pakistan Revenue have
been created in 12 Ministries and Divisions to devolve pre-audit functions. To resolve the
problems in Technical Supplementary Grants, the demand heads have also been revised and
the latest financial budget of 2021-22 has been allocated under these new heads to empower
the PAOs. Reforms have also been undertaken to streamline hiring of consultants and contract
staff. In addition, reforms in the approval of new PSDP schemes have also been undertaken.
This volume discusses these reforms in detail.
4. Lastly, to streamline operations and interdivisional consultations several reforms were
initiated. The Rules of Business were rigorously studied and extensive changes in the rules of
business were recommended by the Prime Minister’s Task Forces. Many of these changes have
been notified. The Estacode has been extensively revised for ease of use. The new version of
Estacode has almost been completed. Other important reforms like a time limit on
interdivisional communications are under final stages of approval. Model service rules are
being designed by the Establishment Division to improve the recruitment and promotion
policies in the organizational entities of the Federal Government. This report also discusses
these reforms.

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PART I: APPROVED REFORMS

296
 CHAPTER 1 AUTOMATION, DIGITIZATION AND E
GOVERNMENT INITIATIVE
1. The growing significance and advantages of digital governance have compelled states
all around the world to adopt E-governance strategies to increase transparency, accountability,
and effectiveness within the government. E-governance is now becoming an important part of
statecraft in both developed and developing countries. E-governance has helped governments
to establish a direct relationship with its citizens while disseminating necessary information
regarding governmental operations and progress. Therefore, the IRC took the initiative of
bringing the Federal Ministries/Divisions on board.
2. The initial work in this domain was started under the E Governance Directorate (EGD)
which was established in 2002 to improve the ICT infrastructure in the country. The vision
introduced by EGD was to incorporate E-governance in the federal government divisions and
its organizations. Another primary aim of EGD was to deploy latest ICT facilities to improve
service delivery. In 2005, the government manifested its support towards e-governance
strategies by making them a part of five-year plan of federal government of Pakistan. However,
all these efforts eventually fizzled out and not much progress was made on ground. A study
performed in 2011 disclosed that 89 percent of respondents in the survey were expecting better
E-services to be introduced in Pakistan, and only 11 percent were satisfied with the current
services being offered by the government.
3. Under the direct directions of the Prime Minister, work on the introduction of E-
governance in the Federal Secretariat was initiated in 2018 by the IRC. The design strategy and
implementation were spearheaded by the National Information Technology Board (NITB).
Landmark progress has been achieved in this domain in the last three years. NITB rolled out a
new version of the e-Office suite in the Federal Secretariat to ensure efficiency, accuracy,
effectiveness, good governance, transparency, and accountability in decision making. The e-
office is now functional in all the forty (40) Ministries/Divisions in the Federal Secretariat and
more than fifty (50) attached organizations. More than ten thousand five hundred (10,500)
officials have been trained on this system. E-Office services are being provisioned through a
secure and dedicated optical fiber network. This progress is unprecedented in the history of the
public sector in Pakistan.
4. In addition, an innovative digital platform; the Pakistan’s Citizen Portal (PCP) was
inaugurated by the PM in 2018, for helping citizens launch complaints and provide suggestions
for improvements in governance. According to the latest statistics almost 2.5 million citizens
are registered with this portal. The estimated number of registered complaints through PCP is
2.1 million out of which 1.96 million have been resolved. In November 2018, the PM approved
a 5-year plan designed to work on increasing digital transaction accounts and digital payments.
A new micro payment gateway RAAST was launched by the State Bank for this purpose.
Alongside these efforts the government has also launched digital health initiatives with the help
of E-health cards at both national and provincial levels. The provincial governments have also
made significant efforts towards E-governance and have initiated novel G2G (government to
government), G2B (government to businesses) and G2C (government to citizens) and G2E
(government to employees) services.
5. In the wake of the Covid-19 pandemic, the government has been effectively utilizing
e-governance strategies for mobilizing its services. The government introduced geo-tracking
app for facilitating consultation with telecommunication companies. With the help of E-
services, authorities have been able to determine the hot spots of Covid-19 infections in the

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country. Tele-consultations are also being provided to the patients who are infected as well as
to non-infected individuals. The Ministry of Professional Education & Vocational Training
signed an agreement with PTV to develop a Tele-school so that students may continue their
education from home. Furthermore, a WhatsApp help line has also been launched to facilitate
efforts to counter the Covid-19 pandemic. Disbursement of emergency cash amounting to over
Rs 200 billion to 16 million households in a span of four months through the Ehsas program
was also done digitally. The performance of this Ehsas program has been lauded
internationally. All Covid-19 vaccinations are being recorded through a smart IT based system
developed by NADRA.
6. During the last three years, NITB has developed several E-governance applications for
better governance and service delivery. The major achievements of NITB are highlighted in
the following table:

E‐OFFICE PROJECT • E‐Office is successfully implemented in all

Ministries/Divisions in the Federal Government
• The new version of e-office was designed in house by
NITB
• More than 50 organizations of the Federal Government
are using e-office.
DIGITIZATION OF • The meetings of the Federal Cabinet have been
CABINET MEETINGS completely digitized and made paperless. A customized
software and tablet PC was introduced by NITB and the
whole process is now automated.
STRENGTHNING OF • The NITB has successfully implemented customized
ICT INFRASTRUCTURE solutions for the President Secretariat, National
AND AUTOMATION OF Assembly and Senate
PRESIDENT
SECRETARIAT,
NATIONAL ASSEMBLY
AND SENATE
SOFTWARE • Awardees’ database for cabinet division.
DEVELOPMENT • Multi instance case tracking system (MCTS) to automate
SERVICES the process of storing and tracking the legal cases.
• Islamabad city app designed for android based mobile
phones and available for download at Google play store
and NITB & CDA’s website
• Online visa portal to automate and develop an online
“Work Visa Application Processing System”
• COMPLAINT MANAGEMENT SYSTEM to ensure the
transparency of the project and to get feedback directly
from the citizens
• PC‐I TRACKING SYSTEM to resolve the queries from
ministries and departments regarding the delay in PC1
for CDWP Agenda
• CASE TRACKING SYSTEM a web based “Case
Tracking System” for the Attorney General of Pakistan

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 to automate the process of tracking legal cases
nationwide.
• ONLINE TELEPHONE DIRECTORY a web‐based
Telephone Directory of the employees of the Federal
Government
• E‐ORTHOPEDICS - The application mainly emphasizes
on collection of patient’s information, diagnosis of
fracture types, X‐rays, Doctor Decisions, Operations
etc.
• HUMAN RESOURCE MANAGEMENT SYSTEM
(HRMS) developed and deployed as the centralized HR
module for Ministry of Information & Telecom
(MOITT).
• RESUME MANAGER (ONLINE JOB PORTAL) an
online resume manager application that allows the
candidate to directly apply for advertised position
through the web
• TAX DEDUCTION APPLICATION Federal Board of
Revenue (FBR) had to ensure that the tax charged to the
citizens by CMO is reported properly to the Government
of Pakistan

5. Cabinet Decision: The Cabinet at its meeting held on March 19, 2019 approved the
proposals in regard to:
i) Detailed road map for implementation of E-Government in the Federal Government
prepared by the NITB with revised timelines, as endorsed by the P.M’s task force on
IT & Telecom.
ii) Position of the Chief Information Officer in MP – I Scale be re-designated as Chief
Information Technology Officer (CITO) and located at the Ministry of IT & Telecom.
6. Way forward: E-governance is the single most effective remedy for improving
efficiency in the public sector in Pakistan. Automation of business processes not only improves
efficiency but also improves transparency, responsiveness, and accountability. The following
recommendations are made by the IRC to continue the reforms in this area.
i) E-Governance reforms face a lot of bureaucratic inertia and therefore they require solid
backing of the highest administrative layer of any state. The commitment of the top
political leadership is a must for successful E-governance reforms.
ii) The head of NITB should be designated as the Chief Information Technology Officer
and work under the direct supervision of the PM.
iii) NITB should be made an autonomous authority and given adequate budget.
iv) A permanent E-Office directorate should be established within NITB for maintenance
and support of e-office software.
v) The workings of all Cabinet committees should be automated on the same lines as that
of the Cabinet.
vi) All summaries for PM and the Cabinet should also be automated on the same lines as
the automation of Cabinet meetings
vii) A comprehensive file tracking system should be developed to monitor and expedite
interdivisional movement of files.

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 viii) NITB should develop in house capacity for development of software as and
when needed by the Federal Government like the PMRU and PITB.
ix) The Citizen Portal application should be effectively linked to the performance
management and performance evaluations of all officers working in the Federal
Government.
x) A new GAN (Government Area Network) dedicated for secure G2G communications
should be created by the NTC.
xi) An IT cadre should be established for IT professionals working in the Federal
Secretariat and they should have their own pay scales comparable to market salaries.
xii) A high-level national database authority should be created to manage and analyze all
citizen specific data and it should have full interconnection with all existing databases
including NADRA, Passport, FBR, FIA, Police etc. Such a database is critical for
enhancing national security and broadening of the tax net.
7. Next Steps: To make NITB an autonomous authority an ordinance was promulgated
but that has since lapsed. A legislation incorporating the contents of the Ordinance needs to
passed through the Parliament. NITB should be given a core budget and a service agreed budget
for its operations.
Action by: Ministry of Parliamentary Affairs should expedite the legislation and Ministry
of Information Technology and Telecommunication should spearhead the reforms.

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 CHAPTER 2 PUBLIC FINANCIAL MANAGEMENT
1. Prudent Public Financial Management (PFM) is one of the most important components
of good governance. The Finance Division had devised a comprehensive PFM Reform Strategy
in 2017 with the following three core challenges:
i) Fiscal Sustainability: The Federal Government collects revenues to the tune of 13
percent of GDP, the bulk of which is transferred to the provinces. The remaining
resources are insufficient to meet the necessary expenditures. In addition, loss-making
Public Sector Entities (PSEs) put additional burden on the federal public finances.
ii) Budget Credibility: The approved Federal budget should represent improved policy
planning and implementation. It should also translate into effective service delivery to
the citizens.
iii) Government’s Investments (development budget): The system of public investment
management has become very inefficient over time and the emphasis on strategic
planning has become almost non-existent. This is adversely affecting the provision of
effective public services.
2. The PFM Reform Strategy identified the following six pillars to address these
challenges:
i) Fiscal Sustainability
ii) Revenue Mobilization
iii) Service Delivery and Results Based Management
iv) Public Investment Management and Public Private Partnerships
v) Transparency, Oversight and Accountability
vi) Vertical Coordination between Federal and Provincial Governments in PFM.
3. The Prime Minister’s Task Force on Restructuring of the Federal Government and
Austerity took the lead in the implementation of the strategy and recommended the following
priority areas:
i) Carry forward the PFM Reform Strategy drafted by the Finance Division
ii)Update and finalize the draft PFM law
iii)
Make the IFMIS/FABS/PIFRA system a more comprehensive tool for policymakers
iv)Improve accounting and audit functions primarily through the independence and
autonomy of the Auditor General of Pakistan and separation of audit and accounts
v) Start the process of decentralization of financial management to line ministries,
including institutionalizing CFAOs
4. Under the supervision, guidance and assistance of the Task Forces the Ministry of
Finance was successful in getting the Public Financial Management Act passed by the
Parliament in June 2019. This is the single biggest achievement towards sound financial
management in the history of the public sector of Pakistan. The law has now been in effect for
almost two years and is transforming the management of public sector finances in the country.
It has also become the headworks for various other significant PFM reforms that are now
underway. The achievements so far under these reforms are as follows:
i) Updating of Financial Rules
ii) Delegation of financial powers to Principal Accounting Officers (PAOs) including one
line budget
iii) Rationalization of demands under Budget 2021-22

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iv) Abolition of Financial Adviser (FA) organization and establishment of the offices of
Chief Financial and Accounts Officers (CFAOs)
v) Establishment of new sub offices of AGPR within the Ministry premises
vi) Updated Manual for Development Projects for quicker approval of development
projects and a new formula for release of funds
vii) Upgradation of Financial Accounting and Budgeting System (FABS)
viii) Passage of the Cash Management & Treasury Single Account Policy 2019-2029
and Rules 2020
ix) Passage of the Financial Management and Powers of Principal Accounting Officers
Regulations 2021

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2.1: PUBLIC FINANCIAL MANAGEMENT ACT 2019: SALIENT
FEATURES
1. The PFM Act 2019 has transformed the financial management procedures and
processes in the Federal Government and has also re-organized the organizational hierarchies
involved in the expenditure of public finances. Some of the salient features of this act are as
follow.
2. One of the most significant changes brought about by the PFM Act 2019 is the
disbanding of the Financial Advisers’ Organization (FAO). This organization had resulted in
over centralization of management of public expenditure thereby leading to inefficiency and
delays. Under the new regime the heads of federal ministries and divisions have been given
full autonomy to independently utilize development and non-development funds under their
jurisdictions. In accordance with Section 28 of the Act, the finance ministry recalled about 20
financial advisers and 42 deputy financial advisers from the Ministries and Divisions. They
were replaced with Chief Finance and Accounts Officers (CFAOs) who now work under the
direct supervision of the Secretary of the Division who is also the Principal Accounting Officer.
The Secretaries now have full control over yearly budget allocations. The power to
reappropriate funds would enable them to exercise time flexibility in their utilization of funds.
This delegation of financial powers will align the performance objectives with the budgetary
allocations and allow for better macro-economic, financial, and budgeting outcomes.
3. The new law has also introduced the important concept of Single National Treasury
Account that binds the ministries, divisions and attached organizations not to keep public funds
in commercial banks and all funds now remain in the government`s single treasury account.
These funds may be withdrawn by PAOs at any time in line with their allocations. The Finance
Division has issued the Treasury Single Account Rules 2020 under Sections 30 of the PFM
Act. The main objective of these rules is to ensure that emergent cash needs of the government
are adequately catered for. The rules will also allow for careful management of the federal cash
balance. The promulgation of these rules and the Single National Treasury Account will go a
long way towards alleviating the problem of emergency borrowing by the Federal Government
from private banks at high interest rates.
4. Under the new PFM Act significant changes have also been made to the existing
development planning regime. In this regard the Ministry of Planning Development and Special
Initiatives has issued an updated “Manual for Development Projects”. The development
projects have been trifurcated into three priority categories: (i) Projects which will have
maximum contribution to economic development, (ii) Projects which will result in direct
improvements in standards of living of the people and (iii) Projects that will connect the
provinces and regions for national integration. For the first time, the project cost estimates will
be done on market-based estimations and projects will be evaluated for quality assurance and
technical viability. Approval mechanism of PC-1s and other planning guidelines have also been
revised and streamlined to allow for more efficient operations. Powers for approval of projects
up to Rs. 2 billion have also been delegated from the Central Development Working party
(CDWP) to the Departmental Development Working Party (DDWP) which is headed by the
Secretary of the Division. The development cycle has also been revised significantly. Under
the new rules project cost overruns and delays will be investigated and properly audited.
5. The Finance Division under the PFM Act has also notified changes in the Budgetary
cycle. New Financial Management and Powers of Principal Accounting Officers Regulations
2021 have also been issued by the Finance Division under Section 27 of the ACT. These
regulations now provide clear guidelines for all PAOS in the Federal Government and will go

303
a long way in improving financial management, autonomy, and efficient monitoring. The rules
have also been streamlined for creation of new PAOs which will allow for further delegation
of powers by PAOs to organizations and offices under them.
6. Way Forward: Significant achievements have been made but a lot more work needs
to be done. The PFM ACT 2019 in Section 29 stipulates the creation of a new office of Chief
Internal Auditor under every PAO. This proposed reform is extremely important for scrupulous
financial management in divisions and ministries and needs to be implemented at the earliest.
As proposed by Section 27 of the ACT, commitment control systems also need to be introduced
in the cash flows in the Federal Government. This reform is also very important and
recommended for earliest implementation by the IRC. Lastly, as envisioned under Section 20
a sovereign wealth fund should be created through an Act of Parliament with the objective of
holding institutions and public assets for sound management and maximization of returns.
7. Next Steps:
i) AGPR should now switch over to online billing for all Government payments to ensure
transparency, efficiency and accountability. RAAST should be used for all G2G and
G2P payments.
ii) E-procurement should be enforced by PPRA in the next 12 months.
Action By: Ministry of Finance and AGP should lead these efforts

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2.2: REVISION OF FINANCIAL RULES
The Finance Division has undertaken a comprehensive exercise to update its rules, orders, and
regulations under the supervision of the IRC. This has been done to streamline the management
of public finances and to improve transparency and efficiency. A summary of changes is shown
in the table below. All the updated rules and regulations have been placed at the Finance
Division official website at their website address http://www.finance.gov.pk/circulars.html.
A list of the revised editions is given below:

No. Name of the Book

1. Compilation of General Orders regarding allowances

2 Compilation of Pay Scales

3 Compendium of Pension Rules and Orders

4 Civil Service Regulations - CSR

5 Fed. Treasury Rules Vol-I, Vol-II

6 General Financial Rules Vol-I, Vol-II

7 Compilation of Travelling Allowance Orders

8 Revised Leave Rules 1980

9 GPF Central Services Rules

10 Revised System of Financial Control and Budgeting

11 Compilation of General Orders regarding TA

12 Fundamental and Supplementary Rules Vol-I, II

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2.3: INCREASING THE EFFICIENCY, TRANSPARENCY, AND
EFFECTIVENESS OF THE FINANCIAL ACCOUNTING AND
BUDGETING SYSTEM (FABS)
1. The Task Force examined the performance of FABS and found that the FABS, currently
housed with the CGA, is being implemented to the extent that it captures receipts, budgets, and
expenditure of the Governments. However, certain gaps remain in the usage of the FABS
including detailed accounts of the self-accounting entities; delays in updating of data on the
system; non-utilization of certain modules and the non-usage of the system for analytical and
policy purposes.
2. Significant progress has been made to facilitate the CGA to overcome the present
deficiencies in financial and human resource availability. The Finance Division has restored
the budget head for FABS and has also approved a financial package for the restructuring of
FABS. In addition, the FABS terminals in the Ministries/Divisions have been activated and
have been handed over to the newly posted CFAOs. The utilization of existing modules for
asset management and commitment accounting is also being piloted. Furthermore, significant
work has been done at FABS for the development of new modules for online billing. Lastly,
the SAP system is also being extended to Pakistan Railways and other self-accounting entities.
3. Sub offices of the AGPR have been established in 12 Ministries and Divisions and
complete pre-audit functions have been devolved to these offices. These offices have been
greatly appreciated by the Divisions. These offices now need to be replicated in all the
remaining Ministries and Divisions in the Federal Government.
4. Way Forward: Firstly, there is a need to increase coverage of FABS to encompass the
following:
i) More frequent updating of information, especially on receipts and debt, including both
foreign and domestic debt (including integrating DeMFAS), to allow for more
comprehensive system and better cash management
ii) All Self-Accounting Entities should be integrated with the system in a modular fashion
where they retain their autonomy, but the Federal Ministry of Finance is able to monitor
in real-time the total picture of the finances including the provinces and these self-
accounting entities.
5. Improved budget management: While the modules to capture commitments and assets
are available in FABS, these are not fully utilized. Also, FABS terminals are available with
every ministry, but these are often just used for releases and little else – not even to track budget
utilization frequently. For this, there is a need to encourage line ministries to fully use FABS
to pull reports on budget utilization, as well as record commitments and assets, and manage
their cash requirements better.
6. Improved project-wise reporting: Mapping of PSDP with project codes and cost centers
has been done. There is a need for Ministry of Planning to work collaboratively with FABS
and share information to ensure that PSDP and the development budget are comprehensively
integrated into FABS.
7. Updating of NAM and Chart of Accounts: To adapt the accounting systems to the
changing use of technology and systems, there is a need to update NAM to fully integrate the
use of FABS in the government. Review and updating of the Chart of Accounts is needed to
fully capture the expenditure details in line with the new NAM and the requirements of the line
ministries.

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8. Lastly as discussed before also, complete automation of the AGPR and provincial
offices should be the end goal with the implementation of online billing throughout the federal
and provincial governments. Several discussions with the various stakeholders including the
CGA, AGPR, FABS and Finance Division have been held. Minutes of some of these meetings
are attached in the Appendix A. Online billing will transform cash flow management in the
public sector of Pakistan and will radically improve transparency, austerity, and efficiency.
Action By: AGP, CGA and AGPR should lead these efforts

307
APPENDIX A: INITIAL WORKING PAPER ON
DECENTRALIZATION OF FINANCIAL MANAGEMENT
1. This working paper served as the original roadmap for the Task Forces on PFM reforms.
The goal was to devise a mechanism to empower line ministries to make and execute their
budgets as per their needs, and to improve their ability to deliver services effectively.
2. The current situation at that time was identified to be suffering from the following
issues:
i) Centralized control of financial management with Finance Division and AGPR
ii) Budget preparation and budget inputting at FABS done at Finance Division, with
several iterations not being recorded
iii) Financial Advisers (FA) Organization used by Finance Division to maintain control
over the financial management of line ministries.
iv) Chief Finance and Accounts Officers (CFAOs) restricted to managing audit paras,
Departmental Accounts Committees (DACs) and Public Accounts Committee (PAC).
3. The Task Force subgroup proposed the following way forward:
i) Annual budgeting: FABS proposed ways of improving annual budget preparation by
rolling out budgeting modules to the line ministries. This will allow better planning and
budgeting, as well as save time and effort in Finance Division. The system will also be able
to capture all of the iterations of the budget during the year which can help identify the
flaws in the annual budgeting processes and enable decisions to correct them. However, it
would be too costly to roll out FABS to the DDOs (cost centers), so there is scope for
linking with the E-Office module proposed by NITB to provide cost-effective solutions for
automating budget making processes from DDO to the Ministry.
ii) Chief Financial Officers (CFOs): There is need to work out the need for Chief Financial
Officers (a professional accountant or financial management specialist), their exact job
descriptions, the estimated cost to the Government, and then develop a plan for phasing out
the FA Organisation and instituting CFOs. CFO may be appointed in each Ministry
replacing current CFAO and the Financial Adviser to assist the Principal Accounting
Officer to perform the following functions:
(a) Prepare Consolidated Annual Budget aligned with the MTBF of the Ministry
(b) Prepare quarterly and annual reports of finance and accounts to monitor periodic
progress regarding Annual Budget and MTBF and Report to PAO
(c) Asset protection, financial management and propriety of receipts and expenditures
assignment accounts, all procurement, maintenance and reconciliation of accounts
and risk management within the Ministry/ Department
(d) Internal Controls in the Ministry/Department
(e) All matters relating to Public Accounts Committee and Departmental Accounts
Committee, and
(f) Other such responsibilities that are notified by the PAO related to financial
management
4. The CGA will still be responsible for preparing the appropriation and finance accounts
and such other accounts as may be prescribed by rules for submission to the Auditor-General
each year; however, practice of Pre-Audit, an instrument of rent seeking, should be
discontinued.

308
i) mprovement in accountability mechanisms: With increased decentralization, there
is a need to improve accountability mechanisms to ensure fiscal discipline and improved
service delivery. There is a need to strengthen output-based budgeting and develop
accountability mechanisms in budget preparation and budget execution. Improving output-
based budgeting includes reviewing the outcomes and outputs, aligning of budgets to the
outputs and increasing the accountability of the outcomes, outputs, and budgets. This would
involve strengthening the functioning of the Priorities Committee and increasing its scope to
review outcomes, outputs, and indicators, as well as budgets comprehensively.
Minutes of the Progress Review Meeting about reforms in Department of CGA held on
06-05-2021

1. A meeting to discuss progress review of automation reforms in the department of the

Controller General of Accounts (CGA) was held on 06-05-2021 at 1 PM in room 343A in
Prime Minister’s Office under the chairmanship of Adviser to the Prime Minister for
Institutional Reforms and Austerity. The list of the participants is at Annex-1.
2. The Adviser started the meeting by welcoming all the participants and then inquired
about the progress made in the automation reforms in the CGA office since the last meeting.
The AGPR then informed the meeting about the progress on each of the reforms individually.
He first elaborated on the progress made on linking the FABS payment system with NADRA
and RAAST, the micropayment gateway of State Bank. He stated that the interlinking of the
FABS with NADRA is almost complete but the FABS directorate is facing some problem in
the interconnectivity of FABS with RAAST. The Deputy Controller General of Accounts
(DCGA) further explained that the main issue between the interconnection of FABS with
RAAST was of encryption of transactional data. Due to the customized security protocols of
the State Bank, new modules are being developed by FABS using help from SAP to
interconnect FABS with RAAST. 35% of the work in this regard has been completed and
hopefully the issue will be resolved soon. The Chair offered the team from FABS his full
support to resolve any communicational issues with the team at State Bank. DCGA welcomed
the offer and stated that they are already in contact with State Bank and in case of any difficulty
they will request the help of the Chair.
3. The DCGA also informed the Chair about the urgent need to expand the computing
cores of the servers at FABS. DCGA shared that an amount of approximately $670,000 will be
needed for the procurement of this hardware. The Chair requested the SJS Finance to
immediately setup a meeting between the FABS team and AFS (Budget) to resolve the issue
and directed the Finance Division to provide all the necessary resources in the next budget to
FABS. The Chair also requested the Finance Division to restore funds in the demand heads of
FABS in the upcoming budget. The SJS Finance assured the Chair of the resolution of these
issues at the earliest. The DCGA also brought to the notice of the Chair the pending arrears of
SAP and informed that the vendor may go into litigation if the payment is not made soon. The
Chair directed the Finance Division to also resolve this issue at the earliest since delay in
validated payment to a reputed international vendor like SAP may bring disrepute to the Federal
Government. SJS Finance agreed to the discuss and resolve this issue in the meeting with
AFS(Budget).
4. The DCGA then informed the Chair about the proposal to pilot online billing in one
division of the Federal Government. He stated that since this is an extensive exercise, a detailed
plan for the pilot needs to be prepared before its launch. He stated that for this purpose he has
contacted some international organizations to learn from their experiences. He explained his
discussion with the Malaysian Government’s Supreme Audit agency and informed that the
Malaysian agency has been using online billing for the whole government since 2010. The

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Malaysian system was developed by SAP and they are very happy with its results. The
installation of this system costed about $30 million in Malaysia. Estimates about the cost for a
similar system in Pakistan are around $20 million. The DCGA also stated that they are also
exploring the options of buying third party solution or the in-house development of software.
On this the Chair unequivocally stated that the payment solution of the Federal Government is
a critical system and the use of third-party piecemeal solutions or inhouse software
development for such a critical system may create problems subsequently in the smooth
operation of the system. The Chair appreciated the efforts of the DCGA to get feedback from
international agencies and further advised him to request proper Technical Assistance from the
Malaysian counterparts for this purpose. DS IRC then informed the committee that the IRC
recently had a meeting with representatives from SAP about the subject of online billing. The
SAP team had shared with the IRC a detailed plan for implementation of online billing in
Federal Secretariat and they had also expressed their willingness to do a pilot in one division
on pro bono basis. The Chair directed the CGA and DCGA to immediately make preparations
to start a pilot in one division of the Federal Government. He stated that this pilot will be a
major reform of critical importance. This pilot once initiated will create a lot of good will for
the AGP and CGA office and will be appreciated by the Cabinet and the Cabinet Committee
on Institutional Reforms (CCIR). The DCGA requested the Chair for two weeks to finalize the
proposal for this pilot.
5. Lastly the AGPR informed the Chair about the latest status of the AGPR suboffices in
the Ministries and Divisions. The AGPR submitted that 12 offices are already functional and
the sub-offices in Defence and Industries and Production Division are under implementation.
The Chair appreciated the excellent work done by AGPR in this regard.
6. At the end, the Chair stated that the first review of reforms in AGP office will be
conducted by CCIR in June. It is important that we achieve significant progress on the
discussed automation reforms before this meeting so that the CCIR and Cabinet are
appreciative of the progress. The meeting ended with a vote of thanks.
Decisions Matrix
S.No. Decision Responsibility Timeline
A meeting of DCGA, DG FABS, AFS
(Budget) to be held as soon as possible
to decide on allocation of resources for SJS (Exp)
1. Immediate
the hardware upgradation of FABS Finance.
server in next budget and to also resolve
outstanding payments to SAP
DCGA, DG
2. Interconnection of FABS with RAAST Immediate
FABS
Finalization of proposal to pilot online Two weeks. Progress to
CGA, DCGA,
3. billing in one Division of the Federal be reviewed by CCIR
DG FABS
Government in June
Functionalization of suboffices of AGPR Immediate. Progress to
4. in the ministries recently selected by AGPR be reviewed by CCIR
CCIR in June

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 Annex-1
List of participants of the Meeting 6-5-2021
i. Dr. Ishrat Husain, Advisor to the PM on Institutional Reforms & Austerity, Islamabad.
ii. Mr. Farrukh Ahmad Hamidi, Controller General of Accounts.
iii. Mr. Manzoor Ahmad Kayani, AGPR.
iv. Mr. Aamer Mahmood Hussain, SJS, Finance Division, Islamabad.
v. Mr. Shahzad Hassan, DCGA, FABS, Islamabad
vi. Mr. Hasan Masud, DG FABS, Islamabad
vii. Mr. Qamar Zaman, Joint Secretary, Institutional Reforms Cell (IRC)
viii. Altamash Janjua, DS IRC.
Minutes of Meeting with CGA office regarding restructuring of FABS held on 11th
June 2021
1. A meeting was held on 11th June 2021 in room 418-C of the Prime Minister’s office
regarding restructuring of the Financial Accounting and Budgeting System (FABS) of the
Controller General of Accounts (CGA) office. The meeting was chaired by Adviser to the
Prime Minister on Institutional Reforms and Austerity. The list of participants is attached at
Annexure-1.
2. The Chair started the meeting by stating that all the requests of CGA Office in respect
to creation of posts, budgeting allocations and payment of licensing fees have been approved.
He, therefore, felt that the CGA office has now to deliver on the priority tasks assigned to them.
He emphasized the need for the FAB system to be extended to cover all public financial
transactions at the earliest to allow for real time cash flow monitoring for the Federal
Government.
3. Deputy CGA (DCGA) then made a presentation on the restructuring of FABS. He
stated that the committee in Finance Division, which was tasked with the future restructuring
of FABS, had recommended that FABS be converted into a directorate and permanent posts
under basic pay scales be created for its staff. He then discussed the proposal of special
allowances for management and technical staff in FABS to retain the specialist manpower. On
this proposal, the Chair opined that the special allowance should only be for the technical staff
and not the management or non-technical staff. Considering the austerity measures in place and
to maintain uniformity in pay scales of cadre officers, any special allowance for cadre officers
will not be feasible. The Chair also suggested that the proposal should incorporate
performance-based allowances for the technical staff in order to ensure that they remain
motivated and keep their IT skills up to date with the latest trends.
4. In the meeting the issue of retaining essential specialists who may not be able to meet
the requirement, for recruitment under regular BPS was also discussed. It was decided that the
CGA office may explore the options of converting some vacant posts into special pay scales so
as to retain such manpower. Another option discussed was the possibility of hiring consultants
on short term basis. The Chair recommended to the CGA that he should maintain adequate
budget under the head of short-term consultancy to hire such experts if and when needed. The
Chair advised the CGA and his team to refine the proposal for strengthening of FABS under
these guidelines and then bring a detailed proposal through a summary for the approval of the
Cabinet Committee on Institutional Reforms (CCIR).
5. The AGPR then informed the Chair on the successful establishment of 4 new sub-
offices in the Ministries/Divisions identified by the CCIR. This was appreciated by the Chair
and he further directed the AGPR to undertake a work load analysis of bills being processed
by the AGPR and identify the remaining Ministries/Divisions with the highest billing volume.
AGPR agreed to undertake this analysis and submit a report in two weeks.

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6. The issue of online billing was also discussed. The DCGA informed that significant
work has been done on the development of new modules for this purpose. The AGPR
volunteered to pilot online billing in his department and this was warmly received by the
participants of the meeting. The Chair advised the CGA that online billing will be game changer
for public financial management reforms and will bring a lot of good will to his office. He
requested him to give special consideration to this area and initiate the pilot at the earliest.
DECISIONS MATRIX
S.NO. ACTION RESPONSIBILITY TIMELINE
1. Finalize the proposal for restructuring of DCGA Earliest
FABS
2. Workload analysis of Divisions / MinistriesAGPR Two Weeks
for processing of bills by AGPR
3. Pilot of online billing in AGPR CGA Earliest

Annexure-1
List of Participants in meeting on 11th June 2021
1. Dr. Ishrat Husain, Adviser to the Prime Minister on IRA, PMO, Islamabad
2. Mr. Farrukh Ahmad Hamidi, Controller General of Accounts, Islamabad
3. Mr. Shahzad Hasan, DCGA, Islamabad
4. Mr. Hasan Masud, DG, FABS, Islamabad
5. Mr. Qamar Zaman, JS, IRC, PMO, Islamabad
6. Mr. Altamash Janjua, DS, IRC, PMO, Islamabad

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 CHAPTER 3 REFORMS IN HUMAN RESOURCE
MANAGEMENT PROCESSES
1. The main challenge in efficient human resource management in the Federal
Government are the convoluted processes and rules involved in recruitment, promotions, and
severance that the Ministries, divisions, and the organizations attached with the Federal
Government have to follow. In this regard the IRC followed a two-pronged strategy. Firstly, a
lot of focus was given to the role of the Establishment Division. It was proposed that the
Establishment Division should be transformed into a Human Resource Management Division
for the whole of the Federal Government and in this transformation the main driver should be
the automation of business processes. To get the reforms started the Punjab Information
Technology Board (PITB) and Performance Management and Reform Unit (PMRU) in Khyber
Pakhtunkhwa were invited to study the business processes in Establishment Division. After
comprehensive analysis they submitted their proposals to the division and as a first step, the
Establishment Division selected PITB to digitize the career profiles of all officers belonging to
the PAS, OMG, Secretariat and PSP cadre. This was the first big step towards the automation
of Establishment Division. More work in this regard is ongoing and in the fiscal year 2021-22
significant funds have been allocated for the digitization of the Establishment Division. A lot
of work was also done on the reform and restructuring of the Management Services Wing.
These are discussed in detail separately.
2. The IRC also assisted and guided in the comprehensive updating of the Estacode and
the Establishment Manual. The purpose here was to make the documents user friendly, up to
date, easily accessible and electronically searchable. It was decided that the two documents
will only retain the currently in vogue rules and regulations. The process is almost complete,
and the new documents are near publication.
3. In addition, several other reforms have been implemented successfully and include the
following:
i) Streamlining of NOC requirement for appointments by Establishment Division
ii) Drafting of model service rules for organizations and approval of pending service rules
iii) New guidelines for management of surplus pool

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3.1: UPGRADATION OF ESTABLISHMENT DIVISION AS
INTEGRATED HUMAN RESOURCE MANAGEMENT DIVISION
1. There is a lack of efficient Human Resource (HR) management in the Federal
Government of Pakistan. The primary reason for this is the lack of a central agency to manage
the human resource of the entire Federal Government in a coherent and consistent manner. The
distortions, disparities and discrepancies in recruitment, promotion and compensation add to
demotivation and agitation among the employees. There is no single place at which policies
regarding human resource management value chain are formulated or monitored. The
Establishment Division primarily manages the four cadres of PAS, OMG, PSP, and the
Secretariat Group. The head of cadres for the other occupational groups are distributed amongst
multiple ministries and divisions. More glaring is the lack of any centralized agency catering
to the needs of the ex-cadre officers in the Federal Government which form the overwhelming
bulk of officers in the Federal Government. These officers are being supervised by their parent
ministries and most of them are being managed without any specially designed polices and
career progression plans.
2. To fill in this vacuum it is proposed that the Establishment Division should be upgraded
into a central Human Resource Management (HRM) Division for the complete Federal
Government. The envisioned scope of the HRM division was proposed as follows:
i) Develop the Human Resource Management Policies for the whole of Federal
Government including all cadre and ex-cadre officers. This will include policies for
Recruitment, Training, Performance Management, Career Progression including
Promotion, Efficiency and Conduct and Retirement
ii) Remain the primary cadre controller of the four Occupational Groups i.e. PAS, PSP,
SG, OMG, while other cadres and ex-cadres are controlled by their respective heads
iii) Assist the other cadre heads in administering the policies developed by the
Establishment Division.
iv) Function as the Data Bank Manager and ERP hub for HR in all Divisions
v) Formulate Job Descriptions and KPIs for all Divisions
vi) Identify the needs for restructuring of HR in Federal Government
vii) Monitor Implementation of HR Policies and publish annual performance reports
3. Way Forward: In order to achieve this goal, it was proposed that the automation of
business processes in Establishment Division will be the first priority. PITB has recently
completed the initial digitization of all profile records of officers belonging to PAS, PSP, OMG,
and Secretariat Group. In order to carry this automation forward it is recommended that either
PITB or PMRU be further deployed to chalk out a detailed strategic time bound plan for
implementation across the Ministries/Divisions. A state-of-the-art ERP system also needs to
be developed for the Establishment Division with the help of PITB or PMRU. The system
should be customized according to the business processes in all the sections and wings of
Division. Digitization of all rules, policies, regulations, instructions, and guidelines etc. is also
needed and should be completed at the earliest. This automation should firstly be introduced
for the four cadres being managed by the division and all future postings and promotion boards
should be done through this ERP. Integration of this ERP with the FABS module on HR should
also be pursued as it will ensure consistency between pay roll and the head count maintained
by the Establishment Division and Finance Division.
4. The ERP system should then be extended to all other Occupational Groups and ex-
cadre officers. The rules and policies should be customized and embedded in the ERP. Later
the Job Descriptions and KPIs for all officers should also be included in the ERP and their

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performance management and PERs should be completely automated. A lot of work in this
domain has been done by the PMRU and PITB and it is recommended that both of these public
sector agencies should be involved in the full automation and digitization of the Establishment
Division data procedure policies and operations.
Action By: Establishment Division should continue these efforts

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3.2: REVAMPING OF THE MANAGEMENT SERVICES WING TO
BECOME THE PIVOT FOR ORGANIZATIONAL DEVELOPMENT,
CONSULTANCY SERVICES AND ADMINISTRATIVE REFORMS
1. The IRC had recommended to the Establishment Division that a detailed study be
conducted to reform and revitalize the Management Services Wing in the Division. In this
regards a detailed study was conducted through the UNDP. Several meeting to discuss the
consultancy report were held by the SAPM on Establishment Division and a number of follow
up decisions have been taken. The salient recommendations of the report are summarized below
and the complete report is attached in the Appendix B.
2. The Management Services Wing (MS Wing) was made part of the Establishment
Division in 2001. The Wing was created with the vision that it will act as the management
consulting arm of the Federal Government and propose organizational and human resource
management reforms. It was to review the legal status of the organizational entities in the
Federal Government and conduct studies to measure and manage their performance. The Wing
was also supposed to provide expert advice in issues relating to the various components of
effective human resource management value chain including service rules, compensation
policies and recruitment and severance procedures and perform research. However, over time
the MS Wing has become dysfunctional and overly bureaucratic. The dynamism and
innovation needed in such a policy making institution has become totally absent.
3. The consultancy study was undertaken to propose a comprehensive action plan to
reform and revitalize the MS Wing. It used primary and secondary research instruments
including interviews of Member, DGs, Directors, Additional Secretary and SAPM
Establishment. Relevant documents and reports about the past work done by MS Wing were
also reviewed. Available literature on functioning of management services organizations in the
region was also consulted. The study proposes institutional strengthening of the MS Wing on
the following four pillars:
i) Conducive legal and operational environment.
ii) Strengthened role in civil service reform steering & knowledge management.
iii) Enhanced performance through human & Institutional development.
iv) Research promotion for public sector reform through collaboration & partnerships.
5. The study recommends a new vision for the organization which is: "To assist in
development of an efficient and effective public sector apparatus for management consulting
and public sector reforms which is responsive to government needs and geared to meet the
emerging challenges of modernization of public sector governance in Pakistan". It also
identifies the following key strategic goals:
i) To act as premier management consultancy organization for the federal government for
supporting an effective and efficient mechanism for structural and HR rationalization.
ii) To act as reform custodian and follow up/M&E arm of the federal government to
support public sector reform interventions.
iii) To act as focal agency for undertaking functional review of federal government
organizations and steering management reforms in public sector entities
iv) To promote high value research and knowledge development in governance reforms
through partnership building and cooperation with donors and premier research entities.

316
 v) To act as intellectual hub for promoting innovation and piloting best practices in public
sector governance.
vi) To act as capacity enhancement conduit for the public sector entities through training
of human resource.
6. The report discusses in detail the actions needed to achieve all of the goals mentioned
above and also proposes an implementation plan. The key recommendations from the report
are:
i) Amendments in the Rules of Business/Secretariat Instructions to add implementation
force to MS wing's Recommendations.
ii) Additional role for MS wing to act as implementation follow-up arm and reporting &
lesson learning fulcrum of government on public sector reform programs (secretariat
support to CCIR in close coordination with Institutional Reforms Cell (IRC)).
iii) Taking lead on analytical work, development of working papers and follow up of the
recommendations in close collaboration with IRC.
iv) Functional Specialization within MS wing on pertinent themes of public sector reforms,
e.g. HRD /HRM, organizational restructuring & rationalization, performance management,
management consulting, reform tracking, M&E/KPIs, Knowledge management,
communication system automation.
v) Institutional restructuring of MS wing to transform its vertical hierarchy towards "Team
Structure", which is based on specific technical skills, and which will be refined and
constantly modified as per emerging needs of assignments from time to time.
vi) Collaboration between MS wing & lead academic / operational research entities for
improving quality and professional rigor in the outputs of MS Wing, including, adherence
to well-designed donor/ partner collaboration strategy for linking with other technical
assistance projects within Government.
vii) Mainstreaming of management consulting role of MS wing through proactive outreach
to clients about its in-house consulting capacities.
viii) MS wing to operate based on annual work plans, to enable regular progress
tracking and evaluations of results.
7. Way Forward: As proposed in the report the functional alignment of the various wings
of the MS Wing has been completed. The following recommendations are made as the way
forward:
i) There is a need to make the MS Wing the permanent Secretariat for the CCIR. In this
regard the placement of MS Wing in the Cabinet Division may be explored.
ii) Existing senior posts in MS Wing need to be converted into MP-I pay scales in lieu of
surrendering of vacant posts in the Wing in BS-16 and below. This will allow for the
infusion of the badly needed expert human capital into the organization.
iii) Rigorous capacity building of existing officers should be undertaken. Existing
promotion rules of the Wing need to be revised to allow for promotions to be linked with
higher relevant educational qualifications.

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 iv) The MS Wing should develop close links with the various international aid agencies to
allow for closer cooperation and also assistance in procuring technical consultancies if and
when needed.
Action By: Establishment Division should lead the efforts to implement the agreed
recommendations.

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3.3: REVISION OF THE ESTABLISHMENT CODE AND THE
ESTABLISHMENT MANUAL
1. Establishment Manual and Estacode are two documents that are published by the
Establishment Division. The Estacode is a widely used document in the Federal Government
and is a compendium of laws, rules, instructions, and orders for speedy and judicious disposal
of human resource and personnel matters. Establishment Manual was created to provide
historical background of the rules regulating service matters.
2. Unfortunately, over time, a growing duplication between the two documents has taken
place. Therefore, it was decided that there is an urgent need to revise the two documents and
to clearly delineate the contents of the Estacode and Establishment Manual and include the
latest valid instructions in these documents. All outdated content needs to be removed and
properly archived. In order to achieve the above goals, the following scheme was proposed:
i) Establishment Manual will contain only historical data and those regulations that are
used sporadically.
ii) Establishment Code will contain all the latest updated laws, rules, regulations, policies,
directives, instructions, circulars, office memoranda, procedures, and forms etc. that are
currently in force and are used in day-to-day operations.
3. The table of contents of the Estacode was also revised to facilitate ease of use. It was
also advised that relevant footnotes will be added in the two documents to explain the
chronology of changes if any. Cross-references in text and hyperlinks in the online versions of
the documents will also be provided.
4. The PPARC is currently undertaking the revision of the two documents. Several
meetings have been held for this purpose. Initially the focus was on the revision of the Estacode
since it is more widely used. The new table of contents of the Estacode and the minutes of the
relevant meetings are attached in the Appendix B of this report. The revision of Estacode is
expected to be completed by the end of 2021.
Action By: Establishment Division to finalize and widely disseminate the revised
Estacode and Establishment Manual and display prominently on its website.

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APPENDIX B: MANAGEMENT SERVICES WING
Consultant Report on Revamping of the Management Services Wing to become the
pivot of Organizational Development, Consultancy Services and Administrative
Reforms
Executive Summary
1. Management Services Wing (MS Wing) was made part of the Establishment Division
in 2001. The wing acts as management consulting arm of the federal government, assisting
ministries and divisions in determining legal status of entities, staff training, managing surplus
pool, review & revision of recruitment policy and looking after devolution matters.
Establishment Division commissioned an institutional assessment study with the purpose to
revamp MS Wing. The findings of institutional assessment have highlighted several challenges
and constraints which have historically hampered efforts for improving the performance of MS
Wing in line with its declared objectives.
2. The study is based on primary and secondary research instruments including, literature
review, data collection, focus group discussions and key informant interviews including,
Member, DGs, Directors, Additional Secretary and SAPM Establishment. Relevant documents
/ reports including MS wing's role in implementation of 18th amendment was reviewed.
Available literature on functioning of management services organizations from similar
jurisdictions in the region was also reviewed. The assessment study was carried out at
individual staff level, organizational level and the enabling -environment level.
3. Key recommendations based on the findings of this study include suggested
amendments in the Rules of Business / Secretariat Instructions, revised role for MS wing to act
as implementation arm for all public sector reform programs, functional specialization within
MS wing, institutional restructuring of MS wing to transform its vertical hierarchy towards
"Team Structure", based on technical skills, collaboration with lead academic / operational
research entities, proactive outreach to client ministries / divisions about in-house consulting
capacities and for administrative improvement, recommendation for effective operational and
strategic planning coupled with regular progress tracking and evaluations of results.
4. Based on review findings the strategy proposed to transform MS Wing will help
modernize it as a viable entity besides performing its mandates more effectively and efficiently.
To achieve this revised vision, goals and objectives are being suggested. For the strategy roll-
out a time-bound and prioritized institutional development plan is also being suggested. The
plan is to fill existing gaps while simultaneously gearing it up to be responsive to technical
assistance needs of public sector reform agenda of the government of Pakistan.
5. MS Wing institutional strengthening strategy is predicated upon four pillars guided by
mutually complimentary principles. These key pillars include:
i) Conducive legal and operational environment;
ii) Strengthened role in civil service reform steering & knowledge management;
iii) Enhanced performance through human & Institutional development;
iv) Research promotion for public sector reform through collaboration & partnerships.
6. Implementation strategy for the proposed reform and revamping program will include
putting in place a well-defined accountability and reporting provision for timely removal of
identified hurdles, formulation of measurable KPIs and monitoring framework for tracking
implementation progress, proper sequencing of mutually supportive and demand-based reform
interventions and effective linkages and communication strategy.

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7. A revision is suggested in vision of MSW as "To assist in development of an efficient
and effective public sector apparatus for management consulting and public sector reforms
which is responsive to government needs and geared to meet the emerging challenges of
modernization of public sector governance in Pakistan" and strategic goals with corresponding
key actions as given below are suggested.
1. To act as premier management consultancy organization for the federal government for
supporting an effective and efficient mechanism for structural and HR rationalization.
Key Actions: Amendment in Rules of Business; Insertion at Serial No 10 of Schedule-ll under
Sub-rule 3(3) of Rules of Business to add "the recommendations of MS Wing tendered in areas
of its mandate shall be binding on the recipient organizations unless contested by the recipient
entity: provided, in case of the disagreement on recommendations by MS Wing. the matter will
be decided through formal meeting between MS Wing and recipient entity, to be chaired bv a
designated Additional Secretary of the Establishment Division", is suggested.
2. To act as reform custodian and follow up/M&E arm of the federal government to
support public sector reform interventions

Key Actions: MS Wing represented through a DG in all commissions / committees constituted

for reforms and reorganization of public sector organizations. MS Wing should be notified as
Secretariat for ICC and IRC and any future task force or entity mandated to implement public
sector reforms.
3. To act as focal agency for undertaking functional review of federal government
organizations and steering management reforms in public sector entities

Key Actions: MS Wing to be restructured to comprise work streams such as Human Resource
Development, Organization Restructuring & Rationalization, Performance Management,
Monitoring and Evaluation & Reform Tracking, Civil Service Reforms, Legal and Procedural
Systems and ICT and E-Governance. Functional specialization should be followed by
rationalization of support staff, revised operational systems for transitioning from a hierarchical
organization to a flexible and efficient entity with expertise-based teams, formulation of
effective communication and results dissemination strategy, strategic and operational level
annual work plans, A comprehensive knowledge management system, continuous
administration of capacity building programs and well defined policy for need based hiring of
external experts.
4. To promote high value research and knowledge development in governance reforms
through partnership building and cooperation with donors and premier research entities.
Key Actions: Strengthen PPARC for quality policy & researches outputs. Create linkages with
lead academic and public policy research entities (including PIDE, PIM, LUMS, PERI and
IBA etc.).
5. To act as intellectual hub for promoting innovation and piloting best practices in
public sector governance.

Key Actions: Establish collaboration with international donors such as World Bank, UK
Aid/FCDO, US Aid, and ADB etc. for research and innovations in public sector reform
thematic areas. Establish dedicated innovation and best practices unit in MS Wing to steer the
implementation of innovation award scheme.
6. To act as capacity enhancement conduit for the public sector entities through
training of human resource.

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Key Actions: Design and roll out short duration trainings and orientation sessions for the
officials of federal government in areas of organizational development/restructuring,
performance management, change management and innovation for improved service delivery;
Collaborate with federal government training institutions for delivering tailor-made courses
and orientation sessions on HRD themes during MCMC and SMC trainings.
Present institutional strengthening plan for MS Wing is proposed to be implemented through
in- house resources as well as by hiring services of a competent consulting firm. The plan
envisages various categories of interventions, including legal/policy amendments in existing
framework, consulting support during transition, capacity building of MS Wing officers and
creation of ICT strategy.
Funding for this reform program for MS Wing can be secured from donor or government
sources. It is also proposed that roll out of the plan may be led by a dedicated Additional
Secretary of Establishment Division or through Special Secretary, Establishment Division
while overall guidance will be provided by a steering committee with representation from
Advisor IRC and SAPM Establishment.
1. Introduction:
Management Services (MS) Wing was made part of the Establishment Division in 2001. The
wing is mandated to act as management consulting arm of the federal government. The Wing
endeavors to introduce best practices in the realm of public administration and provides census
data for improved decision making through Pakistan Public Administration Research Centre
(PPARC). Additionally, it assists various ministries and divisions in determining legal status
of federal entities, staff training, managing surplus pool, review & revision of recruitment
policy and looking after devolution matters. The Wing has conducted several research studies
with concrete recommendations on various management subjects of organizational structures,
staffing, KPIs, recruitment policies for the federal government. In order to align MS wing with
modern day best practice management consulting service delivery Establishment Division
commissioned a study with the purpose to revamp MS Wing. The study aims to undertake
broader purpose & capacity assessment of MS Wing for identifying gaps and weaknesses in its
functioning. Based on the assessment, the present report suggests future strategy & structural
changes required to transform it in a modern and smart organizations fully geared to perform
its mandated and assigned responsibilities within federal government, especially related to
public sector reforms.
2. Methodology:
The present study has employed a mix of primary and secondary research instruments
including, literature review, data collection, focus group discussions and key informant
interviews. The expected output of the assignment was discussed and agreed in an interactive
consultative session held with key stakeholders including, Member MS Wing, All DGs of MS
Wing, Additional Secretary Establishment Division with Special Assistant to the Prime
Minister on Establishment in Chair. Several one-to-one meetings and focused group
discussions were held with key officials of MS Wing including, DGs, Directors and Assistant
Directors. Review of relevant documents was also carried out. Information about specifics on
functioning and performance of MS Wing over last ten years was collected through a
comprehensive template, designed in line with information needs of the study template
prepared by the consultant. An effort was also made to review available literature on
functioning of management services organizations from similar jurisdictions in the region.
Lastly, history of public sector reforms and MS Wing's role in the context of outcomes form

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18th constitutional amendment-led devolution was also reviewed.
An effort was made to undertake institutional assessment at three distinct levels:
i) Individual level: Covering awareness, knowledge, skills and competencies;
ii) Organizational Level: Covering performance, current roles, responsibilities, mandate,
organizational objectives and vision; coordination and linking or communicating with
stakeholders, HRM, budget allocations, monitoring and evaluation (M&E) through KPIs etc.
and;
iii) Enabling environment level: Covering legal provisions, rules, SOPS, alignment and
integration within government, political economy; political commitment and strategic level
ownership among the leaders.
Findings of the exercise have been designed to cover all these dimensions for informed capacity
assessment.
3. Key Recommendations from Institutional Assessment
i) Amendments in the Rules of Business/Secretariat Instructions to add implementation
force to MS wing's Recommendations.
ii) Additional role for MS wing to act as implementation follow-up arm and reporting &
lesson learning fulcrum of government on public sector reform programs (secretariat
support to CCIR in close coordination with Institutional Reforms Cell (IRC)).
iii) Taking lead on analytical work, development of working papers and follow up of the
recommendations in close collaboration with IRC.
iv) Functional Specialization within MS wing on pertinent themes of public sector reforms,
e.g. HRD /HRM, organizational restructuring & rationalization, performance management,
management consulting, reform tracking, M&E/KPIs, Knowledge management,
communication system automation.
v) Institutional restructuring of MS wing to transform its vertical hierarchy towards "Team
Structure", which is based on specific technical skills and which will be refined and
constantly modified as per emerging needs of assignments from time to time.
vi) Collaboration between MS wing & lead academic / operational research entities for
improving quality and professional rigor in the outputs of MS Wing, including, adherence
to well-designed donor/ partner collaboration strategy for linking with other technical
assistance projects within Government.
vii) Mainstreaming of management consulting role of MS wing through proactive outreach
to clients about its in-house consulting capacities.
viii) MS wing to operate based on annual work plans, to enable regular progress
tracking and evaluations of results.
4. Future Strategy for Strengthening MSW's Functioning:
Based on review findings, following strategy is being proposed to facilitate transformation of
MSW so that it is enabled to modernize itself as a viable entity besides performing its mandates
more effectively and efficiently. To achieve this end, revised vision and goals as well as
strategic objectives have been assigned to MS Wing. These are based upon review of best
practices on provision of management consulting support besides robust feedback received

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during assessment phase. The report presents suggested actions which are doable, efficient and
technically sound and are in sync with objectives of broader public sector reform vision of the
government. In order to roll out the strategic vision and goals, a time-bound and prioritized
institutional development plan has been developed to achieve purpose of the strategy. The plan
seeks to address the existing capacity gaps within MS Wing while simultaneously gearing it up
to be responsive to technical assistance needs of the ambitious public sector reform agenda of
the government of Pakistan.
5. Key Pillars of MSW Strategic Plan for Institutional Strengthening
MS Wing institutional strengthening strategy is predicated upon four pillars and is guided by
five, mutually complimentary principles. These key pillars include:
i) Conducive legal and operational environment;
ii) Strengthened role in civil service reform steering & knowledge management;
iii) Enhanced performance through human & Institutional development;
iv) Research promotion for public sector reform through collaboration & partnerships.
The four key pillars will be implemented by adhering to the following principles:
i) For every action and intervention under this plan, a well-defined accountability and
reporting provision will be put in place so that implementation hurdles are timely
identified and addressed.
ii) Objectives and interventions under the proposed plan have been made clearly
measurable through KPIs. The M&E plan will ensure tracking of progress and quantification
of results achieved.
iii) Institutional reform interventions have been designed to address the challenges in a
mutually supportive and sequential manner.
iv) The reform plan has been prepared on the basis of need assessment and key informant
interviews which have highlighted the specific areas where institutional reform and capacity
building are required.
v) Horizontal and Vertical Linkages have been provided for simultaneously addressing
diverse needs of various stakeholders towards common organizational development goals and
objectives.
5.1 Strategic Vision
"MSW to be transformed as an efficient and effective public sector apparatus for
management consulting and public sector reforms which is responsive to government needs
and geared to meet the emerging challenges for modernization of public sector governance
in Pakistan"
5.2 Strategic Goals
Institutional development and strengthening of MSW is proposed to be followed through
working around six distinct goals, each translated into reform measures or key actions. These
strategic goals include the following:

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 i) To act as premier management consultancy organization for the federal
government for putting in place an effective and efficient mechanism for structural
and HR rationalization
ii) To act as reform custodian and follow up/M&E arm of the federal government to
support public sector reform interventions
iii) To act as focal agency for undertaking functional review of federal government
organizations and steering management reforms in public sector entities
iv) To promote high value research and knowledge development in governance
reforms through partnership building and twining with donors and premier
research entities
v) To act as intellectual hub for promoting innovation and piloting best practices in
public sector governance
vi) To act as capacity enhancement conduit for the public sector entities through
training of human resource.
5.3 Strategic Goals and Key Actions.
Strategic Goal 1:
To act as premier management consultancy organization for the federal government for
supporting an effective and efficient mechanism for structural and HR rationalization
Strategic Goal 2:
To act as reform custodian and follow up/M&E arm of the federal government to support public
sector reform interventions
Key Actions
i) MSW to be given due representation (not below the rank of Director General) in all
commissions / committees constituted for reforms and reorganization of public sector
organizations,
ii) MSW to be notified as Secretariat for Implementation CCIR, Institutional Reforms Cell
(IRC) and any future task force or entity mandated to implement public sector reforms,
iii) MSW to establish electronic data base and knowledge repository, (to be updated
periodically), covering deliberations, decisions and outcomes of the public sector reform
initiatives from time to time in addition to ensuring implementation follow up & monitoring
of the decisions being rolled out through IRC.
iv) MSW to be notified as focal point for coordination with public sector reform cells
dealing with issues of restructuring of public sector organizations
Strategic Goal 3:
To introduce functional specialization in MSW to help it act as an efficient focal agency for
undertaking organizational review and for steering management reforms in public sector
entities

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Key Actions
MSW to be restructured to comprise of following work streams:
1. Human Resource Development
2. Organization Restructuring & Rationalization
3. Performance Management
4. Monitoring and Evaluation & Reform Tracking
5. Civil Service Reforms
6. Legal and Procedural Systems
7. ICT and E-Governance
i) Functional specialization within MSW to be complimented by rationalization of
support staff as percentage of organizational overall strength
ii) MSW to revise its operational systems for transitioning from a hierarchical organization
to a flexible and efficient entity where HR capacities are deployed as expertise-based
teams from time to time for performing clearly defined roles and tasks.
iii) Core areas of expertise and technical capacities for consultancy services within MSW
to be communicated to all public sector entities through a well-structured and focused
communication protocol
iv) Annual Work Plan of MSW to be developed through a structured and formal annual
outreach and engagement exercise after assessing consulting needs among federal
government for implementation through in a time-bound and measurable fashion
v) Mechanism for dissemination of findings and outputs to clients and follow up on
progress tracking and results sharing to be devised and implemented.
vi) Design and implementation of continuous learning and specialization plan to be
developed & implemented for core team within MSW across technical skill sets of
relevance as per MSW's mandate.
vii) Design and implementation of a capacity building plan to enhance key management
capacities within MSW including Project Management Skills, Information
Management System, Financial Management Skills, Personnel and Team Management
Skills, Mentoring Skills, Political Consensus Building Skills and Leadership.
viii) Design and implementation of a capacity building plan to enhance key
administrative capacities including ICT, Rules of Business & official procedures, office
management capacities, performance management system, results-based Management,
accountability for results.
ix) Policy and procedure for hiring external experts in addition to the in-house consulting
team of MS Wing to be rolled out.
Strategic Goal 4:
To act as research arm for issues in public policy and public sector governance

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Key Actions
i. Function review of PPARC to be carried out to assess quality of research outputs and
efficiency of the organization followed by implementation of an institutional development
plan. b) Linkage and partnerships to be established between MSW and lead public policy
research entities (including PIDE, Pakistan Institute of Management and other federal
entities as well as provincial institutions including Punjab Economic Research Institute) to
conduct applied research on themes of public policy and public sector reforms

Strategic Goal 5:
To act as knowledge hub for promoting innovation and piloting best practices in public sector
governance
Key Actions
i) To establish collaboration with international donors including World Bank (WB),
FCDO/DfID, Asian Development Bank (ADB) and other premier public policy research
institutions for undertaking action research and innovations within public sector reform
thematic areas. ii) To establish dedicated Innovation and Best Practices Unit in MSW to
steer the implementation of Innovation Award Scheme
Strategic Goal 6:
To act as capacity enhancement conduit for the public sector entities through training of human
resource.
Key Actions
To design and roll out short duration trainings and orientation sessions for the officials of
federal government in areas of organizational development/restructuring, performance
management, change management and innovation for improved service delivery; b) To
collaborate with federal government training institutions for delivering tailor-made courses and
orientation sessions on HRD themes (relevant for MSW) during MCMC and SMC trainings
Implementation Arrangements for the Strategy
Institutional strengthening plan for MSW is proposed to be implemented through in-house
resources as well as by hiring services of a competent consulting firm. The plan envisages
various categories of interventions, including legal/policy amendments in existing framework;
roll out of restructuring plan for MSW through consulting support for transition and
transformation; design and roll of restructuring and capacity building plan for MSW including
development of training material and automation and ICT-related interventions. It is proposed
that Establishment Division may provide funding for implementing institutional development
plan through some existing grant or through a dedicated PC-1. It is pertinent to mention that
the present capacity and strength of MSW may not be sufficient to start initial roll out and
implementation of the institutional development plan; it would need to be augmented and
strengthened through additional resources. It is also proposed that roll out of the plan may be
led by a dedicated Additional Secretary of Establishment Division or through Special
Secretary, Establishment Division while overall guidance me be provided by a steering
committee with representation from Planning, Establishment Divisions and office of Special
Assistant to Prime Minister.

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APPENDIX C: REVISION OF ESTACODE AND ESTABLISHMENT
MANUAL
Minutes of the Meeting held for Updating the Establishment Code and Manual on 10-
27-2020
1. A meeting was held on 10-27-2020 at 10:00 a.m. in Room 343A of Prime Minister’s
Office under the chairmanship of Dr. Ishrat Husain Advisor to the Prime Minister on
Institutional Reforms and Austerity (IRA), to discuss and finalize the updating of the
Establishment Code (Estacode) and Establishment Manual (Manual) by Pakistan Public
Administration Research Center (PPARC). The list of the participants is at Annex-1.
2. The Chair started the meeting and elaborated on the need to clearly delineate the
contents of the Estacode and Establishment Manual. He explained that currently there is
duplication in the two documents and there is a need to clearly separate their contents for ease
of access and use by the reader. The Chair further advised that there is also a need to update
and only include the latest valid information in these documents. All outdated content needs to
be removed and properly archived. In order to achieve the above goals, the Chair directed that
the following scheme be followed:
i) Establishment Manual will contain only Constitutional provisions, Acts/Ordinances
and statutes of legislation.
ii) Establishment Code will contain all the latest updated rules, regulations, policies,
directives, instructions, circulars, office memoranda, procedures and forms etc.
3. This scheme ensures that there is no duplication in the two documents.
4. The Chair further clearly directed that all information included in the two documents
should be the latest information and relevant footnote should be added in the two documents
to explain the chronology of changes if any. No outdated information should be part of the two
documents. These directions of the Chair were agreed to by all the participants. To reduce the
physical size of the documents, the Chair advised the PPARC to use cross-references in text
and hyperlinks in the online versions of the documents.
5. DG PPARC and staff from PPARC then made a comprehensive presentation about the
proposed contents of the Estacode and Manual in light of the directions of the Chair. The Chair
identified some revisions which were duly noted by the staff from PPARC for correction.
PPARC also recommended the continuation of existing separate handbooks for topics like
financial rules, staff welfare etc. This was agreed to by the Chair. The Chair also appreciated
the efforts made by the PPARC for this exercise.
6. The Chair then enquired from the PPARC about the status of collection of data. It was
informed that relevant updated data has been collected from Finance Division and 2 wings of
Establishment Division. Data from 5 wings of Establishment Division is awaited. The Chair
advised the present Additional Secretary (AS) Establishment to act as the focal person in this
regard and expedite the collection of all relevant data. He also requested the AS and DG to
apprise him of the latest developments in this regard on monthly basis. The Chair directed the
PPARC to upload the first completed electronic version of the drafts on the website of
Establishment Division by 1st March, 2020. These drafts will then be shared with Secretaries
Committee to obtain the views of the Secretaries.
7. DG PPARC proposed to the Chair that representative of the PPARC should also be
involved in delivering lectures in the various training institutes of the Federal Government to
train and inform the under-training officers about the Estacode and Manual. This proposal was
appreciated by the Chair and he advised the Establishment Division to communicate the
proposal to various training institutes. On another proposal by DG PPARC, the Chair advised

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DG PPARC to analyze new and existing rules and regulations and send recommendations to
the Institutional Reforms Cell (IRC). He also appreciated the intention of DG PPARC to
restructure PPARC and increase the presence of specialist manpower and recommended him
to prepare a comprehensive proposal in this regard and forward the same to IRC.
8. At the end of the meeting, the Chair advised Establishment Division to revise the
Division’s current policy of issuing amendments/corrigendum to existing rules and policies.
He advised that the amendments/corrigendas should not be issued in piecemeal fashion since
this cause a lot of confusion. Any corrigendum/amendment should be issued as a complete
document containing the whole policy/rules/procedures with footnotes to highlight the changes
being made. This will ensure that the Divisions/Ministries and other organizations always
receive the latest and complete policy whenever a change is made. The Chair then thanked all
the participants and ended the meeting.
Decisions:
9. The Chair directed the DG PPARC to ensure that there is no duplication in contents of
Estacode and Manual.
10. The Chair directed the DG PPARC to ensure that two documents contain only the latest
in vogue information with appropriate footnotes to explain the chronology of
amendments/updating.
11. To reduce the physical size of the documents, the Chair directed the PPARC to use
cross-references in text and hyperlinks in the online version of the documents.
12. The Chair advised the Additional Secretary (AS) Establishment to act as the focal
person and expedite the collection of all relevant updated data from Establishment Division.
He also requested the AS and DG PPARC to apprise him of the latest developments in this
regard on monthly basis.
13. The Chair directed the PPARC to upload the first completed electronic versions of the
drafts on the website of Establishment Division by 1st March, 2020.
14. The Chair agreed to the proposal of DG PPARC and advised the Establishment Division
Training Wing to communicate with relevant training institutes about the participation of
PPARC to deliver lectures about Estacode and Manual
15. The Chair advised DG PPARC to analyze new and existing rules and regulations and
send recommendations to the Institutional Reforms Cell (IRC) for streamlining them.
16. The Chair agreed to the proposal of DG PPARC to restructure PPARC. He
recommended him to prepare a comprehensive proposal in this regard and forward the same to
IRC.
17. The Chair advised Establishment Division to revise the Division’s current policy of
issuing amendments/corrigenda for existing rules and policies. He advised that the
amendments/corrigendum should not be issued in piecemeal fashion since this causes a lot of
confusion. Any corrigendum/amendment should be issued as a complete document containing
the whole policy/rules/procedures with footnotes to highlight the changes made.

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Minutes of the Meeting held on 1/19/2021 to Discuss Progress on the Updating of ESTA
CODE

1. A meeting was held on 2-10-2021 at 10:30 a.m. in Room 343A of Prime Minister’s
Office under the chairmanship of Dr. Ishrat Husain, Advisor to the Prime Minister on
Institutional Reforms and Austerity (IRA), to discuss the progress on the updating of
Establishment Manual and Code. Representatives from Establishment Division, MS Wing and
PPARC. The detailed list of the participants is attached at Annex-1.
2. The Chair started the meeting and inquired from the representatives of PPARC about
the latest progress on the updating of the two documents. He underlined the main goal of this
exercise which is to streamline the business processes in the Federal Government and improve
the efficiency of official work. Director PPARC and Deputy Director PPARC explained in
detail the progress achieved so far. The material for all the 10 chapters of Estacode has been
collected and 3 chapters have already been sent to Establishment Division for vetting. 3 more
Chapters will be forwarded to the Division by the end of February 2021 and the remaining 5
Chapters will be sent to the Establishment Division by the end of April 2021. The Chair advised
Special Secretary to supervise this exercise of updating and vetting of materials and requested
him to provide all the requisite support to PPARC for timely completion of the exercise. The
representatives from PPARC confirmed that the exercise is on track for completion by the
given deadline of June, 2021. The Chair acknowledged the efforts and directed that the first
priority should be given on the timely completion of Estacode since this document is used
frequently for official work.
3. The Chair then directed the PPARC to ensure that only the latest up to date rules,
regulations and policies should be present in the Establishment code. All previous rules,
guidelines and historical backgrounds should be included in the Establishment Manual. The
Chair further advised the PPARC to ensure that the Establishment Manual and Code should
have similar indexation where the current in vogue material should be placed in Estacode and
the historical materials be placed in the Establishment Manual. Special Secretary
Establishment seconded the guidelines given by the Advisor. The Chair directed Member, MS
Wing to help supervise the work of PPARC in this domain for the first three chapters that have
been completed. The Chair also directed that the Chapter on relevant laws, ordinances and
constitution should be now placed in the Estacode. Furthermore, he opined that the online
version of the document should be properly hyperlinked and combined together into one corpus
so that the reader can be facilitated in text searches.
4. Before concluding the meeting, the Chair advised the Establishment Division to review
the current practice of issuing piecemeal addendums and revisions. He advised the Special
Secretary that whenever the Division issues any revision or change in a policy, the
communication should include the complete document with the corrections/changes
highlighted using footnotes. Special Secretary apprised the Chair that the Division is already
working on the implementation of this directive. The meeting then ended with a vote of thanks.

330
Decisions Matrix
S.No. Decision Responsibility Timeline
SS,
Special Secretary Establishment Division to
Establishment
5. supervise the timey updating and vetting of 30th May, 2021
Division and
all materials for the Establishment Code.
PPARC
Estacode to contain all the relevant up to date
Member MS
rules, regulations and policies in force. All 28th February,
6. WING,
historical and background material should be 2021
PPARC
made part of Establishment manual.
Indexation of Estacode and Manual should
7. PPARC 30 April, 2021
be similar
Communication of rules and policies by ED
Establishment
8. should in the form of complete document Immediate
Division
with footnotes showing revisions

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 Annex-I
List of participants of the meeting on 10-02-2021

i) Dr. Ishrat Husain, Advisor to the PM on Institutional Reforms & Austerity, Islamabad.
ii) Mr. Ishrat Ali, Special Secretary, Establishment Division, Islamabad
iii) Mr. Akhtar Jan Wazir, Additional Secretary Establishment Division, Islamabad.
iv) Mr. Atiq Hussain Khokhar, Member MS Wing
v) Mr. Abdul Majeed Naiche, Director, PPARC
vi) Mr. Qamar Zaman, Joint Secretary, Institutional Reforms Cell (IRC).
vii) Altamash Janjua, Deputy Secretary, IRC.

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 CHAPTERS / CONTENTS IN THE PROPOSED ESTACODE
1. Civil Services Structure
1.1 Constitutional Provisions
1.2 C.S. P Resolution and Principal Decisions of Government
1.3 Framework of Rules and Procedures Applicable to Occupational
Groups/Services
1.4 Central Secretariat Service (Class I) Rules, 1965
1.5 Occupational Groups and Services (Probation, Training and Seniority) Rules,
1990
1.6 Determination of Inter-se-Seniority of Officers of All Occupational Groups
1.7 The Police Order, 2002
1.8 Change of Occupational Groups/ Services-Compliance with Instructions
2. Recruitment & Induction
2.1 Recruitment Policy for Federal Services/ Autonomous Bodies/ Coporations-
2014
2.2 Framing of Recruitment Rules of Project Posts
2.3 Provincial/Regional Quotas for Recruitment to the Civil Posts under the
Federal Government
2.4 CSS-Competitive Examination Rules, 2019
2.5 Constitutional Provisions
2.6 Federal Public Service Commission Ordinance, 1977 (No. XLV of 1977)
2.7 Nomination of Departmental Representatives to Assist the Commission at the
Interviews for Various Posts
2.8 Section 2(b) of Civil Servants Act, 1973 (Act No. LXXI of 1973)
2.9 General Conditions Regarding Postings, Transfers and Deputation-F.R. 15.
2.10 Eligibility of Officers for Appointment in Secretariat Posts
2.11 Provisions Relating to Commissioned Officers and Other Ranks Recruited or
Inducted on Regular Basis or on Contract in Civil Posts-Terms and Conditions
3. Appointments
3.1 Appointments/Promotions or Transfers to Posts in BPS-18 with Special Pay.
3.2 Current/Additional Charge and Acting Charge Appointments.
3.3 Other Short-Term Appointments
3.4 Appointment on Contract Basis

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 3.5 Provision of Government Accommodation to all Government Servants
Employed on Contract after Superannuation
3.6 Government Policy in Regard to Autonomous Bodies Established through
Resolutions
3.7 Guidelines for Appointment of Consultants
3.8 Sacked Employees (Re-instatement) Act,2010.
3.9 MP Scales Appointment policy 2002
3.10 SPPS Appointment policy
3.11 Appointment policy for Heads of SOEs
4. Revised Leave Rules
4.1 Revised Leave Rules, 1980
4.2 Explanatory Instructions For Filling Up The Leave Account Form
4.3 Clarification of Withdrawal of Request of LPR/Retirement After Sanction/
Notification
4.4 Permission To Seek Private Employment by Civil Servants During LPR Within
Two Years of Retirement
4.5 Special Instructions Relevant To Leave of Civil Servants: Absence from
Headquarters
4.6 Grant of Leave to Government Servants for the Period Spent in Giving Evidence
Otherwise than on Behalf of the State in a Criminal/Civil Case not Connected
with their Official Duties
4.7 Grant of Leave to Officers Transferred to Other Posts
4.8 Grant of Extraordinary Leave (Leave without Pay) under Rule 9 of the Revised
Leave Rules, 1980
4.9 Grant of Special Leave to Khuddam-ul-Hajjaj
4.10 Leave Reserve under the Section Officers' Scheme and its Proper Utilization
4.11 Grant of Study Leave Outside Pakistan
4.12 Casual Leave – Grant of Maximum Leave at a Time
4.13 Grant of Leave to Secretaries, Heads of Departments and Heads of
Autonomous/Semi-Autonomous Bodies/ Corporations
4.14 Expeditious Processing of Cases Where a Medical Authority Certified that a
Government Servant is Permanently Incapacitated for Service
4.15 Employment of Government Servants with NGOs or Private Organization
within Pakistan
5. Transfer, Posting, Rotation
5.1 General Conditions Regarding Postings, Transfers and Deputation-F.R. 15.

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 5.2 Procedure for Selection of Candidates for Appointment in Pakistan Missions
Abroad
5.3 Rotation Policy for PAS/PSP Officers, 2020
5.4 Grant of Leave to Transferred Officers
5.5 Diplomatic Status to Civilian Officers of Other Ministries/ Divisions Posted in
Pakistan Missions Abroad
5.6 Government Servants (Applications for Services and Posts) Rules, 1966
5.7 Failure of the Provincial Governments and Federal Ministries/ Divisions to
Inform the F.P.S.C. about Withholding of Application Within One Month of the
Closing Date Not to Affect the Candidate's Selection/ Appointment
5.8 Explanation of the Term “deputation”
5.9 Grant of Deputation Allowance
5.10 Right of Reversion to Temporary Government Servants
5.11 Application of Section Officers for Ex-Cadre Posts
5.12 Deputationists from Provincial Governments
5.13 Bar Against Allowing Officers to go on Deputation Against Lower Posts
5.14 Benefit of Promotion in Parent Cadre while in Foreign Service
5.15 Recovery of Leave Salary and Pension Contribution in Respect of Federal
Government Employees on Deputation to Foreign Service within Pakistan or
Abroad
5.16 Receiving or Soliciting Direct Offers of Appointment from Private Firms/
Organizations
5.17 Functions of the Special Selection Board
5.18 Standard Terms and Conditions of Service for Government Servants who
proceed for Service Abroad
5.19 SOPs For Recalling of Officers posted on Deputation against Pakistan’s
Positions Abroad
5.20 Deputation of Pakistanis in International Organizations as Short-Term
Consultant
5.21 Policy Concerning Promotion of Civil Servants on Deputation Abroad
5.22 Publicity of Vacancies in International Agencies, Foreign Governments and
Private Organization
5.23 Deployment of Police Personnel in UN Missions
5.24 Recruitment to “Excluded Posts” and of Persons in Subordinate Offices for
Appointment in Secretariat/ Attached Departments
6. Training, Career Planning & Promotion

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 6.1 National Institute
6.2 Pakistan Administrative Service Academy
6.3 Secretariat Training Institute
6.4 Revision of Exemption Policy from Mandatory Training.
6.5 Exemption from NIM and Staff College/NDU Course.
6.6 Recruitment Policy for Federal Services/Autonomous Bodies/Corporations-
2014
6.7 Civil Servants (Appointment, Promotion and Transfer) Rules,1973.
6.8 Promotion Policy (October 1982)
6.9 Revision of Promotion Policy (October-2007)
6.10 Setting Up of Departmental Promotion Committee for Promotion to Posts up to
and Including BPS 18
6.11 Promotion/Direct Recruitment Quota
6.12 Proforma Promotion
6.13 Civil Servants (Seniority) Rules,1993
6.14 Civil Servants Promotion (BPS-18 to BPS-21) Rules,2019
7. Conduct, Efficiency & Discipline
7.1 Government Servants (Conduct) Rules, 1964
7.2 Receipt of Gifts – Toshakhana Rules
7.3 Prohibition to be Chief Guests
7.4 Declaration of Property Held and Acquired by Government Servants
7.5 Amendments in Government Servants Conduct Rules, 1964 and Submission of
Declaration of Income and Assets Held and Acquired by Government Servants
and Corporation Employees
7.6 Private Medical Practice by Government Servants
7.7 Membership of British Library
7.8 Premature Leakage of Information to the Press/Media
7.9 Taking Part in Politics - Bar against Supporting Student Agitations
7.10 Propagation of Sectarian Creed
7.11 Permission to Representatives of Service Associations to Attend Various
Meetings
7.12 Channel of Communication between Recognized Service Associations and
Government
7.13 Correspondence with Foreign Missions

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 7.14 Government Servants (Marriage with Foreign Nationals) Rules, 1962
7.15 Government Servants (Efficiency and Discipline) Rules, 1973
7.16 Designation of Appointing Authority under Rule 6 of the Civil Servants
(Appointment, Promotion and Transfer) Rules, 1973 and Designation of
Authorized Officer under the Government
7.17 Specification of Major Penalty in the Show Cause Notice Issued Under
Government Servants (Efficiency and Discipline) Rules, 1973
7.18 Approval for Placing a Government Servant under Suspension
7.19 Apprising DPC/CSB of Disciplinary Proceedings
7.20 T.A. Admissible to Witnesses and Accused Government Servant Summoned by
an Inquiry Officer
7.21 Participation of Government Servants in Drinking Parties
7.22 Committals to Prison -[CSR194]
7.23 Strictures Passed by Courts Against Government Servants
7.24 Submission of Forged Documents in Support of Age/ Educational
Qualifications
7.25 The Federal Investigation Agency, Act 1974 (Act VIII of 1975)
7.26 National Accountability Ordinance No. XVIII of 1999
7.27 Repeal of Removal from Service (Special Powers) Ordinance, 2000
7.28 The Service Tribunals Act, 1973 (Act No. LXX of 1973)
7.29 The Service Tribunals (Procedure)Rules, 1974
7.30 Defence of Cases in the Tribunal and Law Courts
7.31 Civil Servants (Appeal) Rules, 1977
7.32 Determinations of the ‘Appellate Authority’ in Terms of Civil Servants
(Appeal) Rules, 1977
8. Performance Management System (TBD)
9. Compensation, Budget, and Financial Rules
9.1 BPS
9.2 Allowances
9.3 The Civil Service Regulation (C.S.R)
9.4 Compilation of the Fundamental Rules and the Supplementary Rules Vol-II
9.6 Compilation of General Orders relating to Travelling Allowance
9.7 GFR
10. Retirement, Termination & Severance

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10.1 C.S.R. 436. Notice of Discharge on the Abolition of Post to Permanent
Employees
10.2 Reversion to Lower Grade/ Post
10.3 Retirement on Completion of Sixtieth Year of Age
10.4 Withdrawal of Applications for Premature Retirement
10.5 Indication of Date of Superannuation of Officers Proposed for Appointment to
Tenure Posts
10.6 Future Good Conduct of Pensioners
10.7 Grant of Medical Allowance to Civil Pensioners of the Federal Government
10.8 Traveling Allowance for Journey on Retirement
10.9 Employment after Retirement - Policy and Procedure Re-employment After
Superannuation
10.10 Continuation in Service Beyond Superannuation
10.11 Request for Re-employment by Officers Retired
10.12 Ex-Government Servants (Employment with Foreign Governments)
(Prohibition) Act, 1966 (Act No. XII of 1966)
10.14 Re-employment – Pay Fixation
10.15 Civil Servants (Directory Retirement from Service) Rules, 2020.

338
 CHAPTER 4 AMENDMENTS IN RULES OF BUSINESS, 1973
1. Article 99(3) of the Constitution provides “The Federal Government shall also make
rules for the allocation and transaction of its business”, while Article 90(1) provides the
mechanism for the exercise of the executive authority of the Federal Government “the
executive authority of the Federation shall be exercised in the name of the President by the
Federal Government, consisting of the Prime Minister and the Federal Ministers”. Thus, the
exercise of executive authority of the Federation is a constitutional mandate of the Federal
Government, which consists of the Prime Minister and Federal Ministers. The same has been
re-emphasized by the Supreme Court of Pakistan in its judgement reported as PLD 2016 SC
808 which has re-defined the Federal Government as the Federal Cabinet. In view of the above
constitutional dispensation, it is the Cabinet which has the mandate to exercise the executive
authority of the Federation by framing of policies on subjects listed in the Federal Legislative
List (Part I) of the Fourth Schedule of the Constitution, in the manner as provided in the Rules
of Business, framed under the Constitution.
2. Owing to a loose definition of Federal Government, till the pronouncement of judgment
of the Supreme Court in 2016, the role of Cabinet had been diluted and the power seems to
have been concentrated in the Prime Minister. Thus, the Rules of Business were in need to be
amended to bring them in conformity with the constitutional scheme which envisages a Cabinet
Form of Government instead of Prime Ministerial form of Government. A special subgroup of
the Task Force of the PM was assigned the task of recommending changes in the Rules of
Business in the light of the principles enunciated by the Supreme Court in its judgement
regarding the definition and constitutional role of Federal Government besides some issues
being faced by Administrative Secretaries in day-to-day functioning. The rationale for
amending the Rules of Business, 1973 (ROB) stems from the following:
i) Moving towards a Cabinet form of Government by empowering the Cabinet as per the
constitutional scheme.
ii) Principles enunciated by the Supreme Court in its judgement; and
iii) Issues faced by administrative Secretaries and the Prime Minister’s Office while
handling summaries for the Prime Minister/President/Cabinet
3. In view of the above, the Task Force examined in detail the existing ROBs and after
detailed deliberations recommended the following changes/amendments in the existing ROBs
for efficient administration, compliance with Supreme Court’s judgement and more
importantly bringing the transaction of Government’s business in line with the constitutional
dispensation by empowering the Cabinet in its primary function of policy formulation. These
recommendations have been reproduced below along with their rationale.
S.No. Existing Provision Proposed Rationale
Rule 2(ix) “Government
Rule 2(ix) “Government means the Federal
As per Article 90 of the
1 means the Federal Government consisting of
Constitution
Government” the Prime Minister and the
Federal Ministers”
Rule 2(x) “Leader of the Rule 2(x) “Leader of the
It is not necessary that
House means the Minister House means the Minister,
Leader of the House is
2 appointed by the Prime or a Senator appointed by
a Minister e.g. Leader
Minister to regulate official the Prime Minister to
of the House in Senate
business in the Assembly or regulate official business

339
 the Senate or the Majlis-e- in the Assembly or the is Senator Shibli Faraz
Shoora (Parliament) in joint Senate or the Majlis-e- who is not a Minister
sitting as the case may be” Shoora (Parliament) in
joint sitting as the case
may be”
Rule 2(xiii) “Minister There is a need to
means the Federal Minister- Rule 2(xiii) “Minister define Federal Minister
in-charge of the Ministry to means and includes a and Minister of State
3 which a particular case Federal Minister, a separately keeping in
pertains and includes a Minister without portfolio view provisions of
Minister without portfolio and a Minister of State” Article 90 and 91(6) of
and a Minister of State” the Constitution
Rule 2(xxi) “Federal
Minister means a
Defined separately to
Minister-in-charge of a
make a distinction
4 NEW INSERTION Ministry or Division
between a Federal
appointed by the President
Minister and MOS
under Article 92(1) of the
Constitution”
Rule 2(xxii) “Minister of
State means the Minister,
except the Federal Defined separately to
Minister as provided in make a distinction
5 NEW INSERTION
Article 91(6) and between a Federal
appointed by the President Minister and MOS
under Article 92(1) of the
Constitution”
Rule 2(xv) “Majlis-e-
Rule 2(xv) “Majlis-e-
Shoora (Parliament) Brings it in line with
Shoora (Parliament) means
6 means the President, the Article 50 of the
the National Assembly and
National Assembly and Constitution
the Senate”
the Senate”
Framing, amending,
and modifying the
Rules of Business is
Rule 3(2) “The Prime Rule 3(2) “Government
the exclusive domain
Minister may, whenever may, whenever necessary,
of the Cabinet, as Per
7 necessary, constitute a new constitute a new Ministry
Article 99(3), and thus
Ministry consisting of one consisting of one or more
any allocation of
or more Divisions” Divisions”
business requires the
approval of Cabinet,
not the Prime Minister.
Framing, amending,
Proviso to Rule 3(3) Proviso to Rule 3(3)
and modifying the
“Provided that the “Provided that the
Rules of Business is
distribution of business or distribution of business or
the exclusive domain
8 the constitution of the the constitution of the
of the Cabinet, as Per
Division may be modified Division may be modified
Article 99(3), and thus
from time to time by the from time to time by the
any modification in
Prime Minister” Government”
distribution of business

340
 requires the approval
of Cabinet, not the
Prime Minister.
Rule 3(4) “The Prime
Rule 3(4) “The Prime
Minister shall allocate
Minister shall allocate
amongst his Ministers the Brings clarity vis-a-vis
amongst his Ministers the
business of Government the question whether
9 business of Government by
by assigning a Division or Division(s) can be
assigning several Divisions
several Divisions specified assigned to a Minister
specified in Schedule I to
in Schedule I to the charge
the charge of a Minister”
of a Minister”
Second Proviso to Rule
3(4) “Provided further that Redundant after clarity
10 Omitted
more than one Division may in Rule 3(4) above
be assigned to a Minister”
Current Rules of
Second Proviso to Rule
Business do not
3(4) “Provided further that
provide for delegation
for a Division or Ministry
of powers of Minister-
not assigned to any
in-charge to any other
Minister, the Prime
Minister. Those
11 NEW INSERTION Minister may delegate,
Divisions/Ministries in
any or some of his powers
charge of a Prime
of Federal
Minister over burdens
Minister/Minister-in-
him, thus there is a
charge to any other
need to provide for this
Minister”
delegation
The Ministers are
required to send all
policy decisions to the
Prime Minister as per
existing dispensation,
Rule 5(1) “No important leading to over-
Rule 5(1) “No important
policy decision shall be centralization in the
policy decision shall be
12 taken except with the PMO. In order to
taken except with the
approval of the Prime empower the Cabinet,
approval of the Cabinet”
Minister” this change is being
proposed which would
also provide for
convergence of policy
formulation at the
Cabinet level.
The Ministers are
required to send all
Rule 5(2) “It shall be the Rule 5(2) “It shall be the policy decisions to the
duty of a Minister to assist duty of a Minister to assist Prime Minister as per
13
the Prime Minister in the the Cabinet in the existing dispensation,
formulation of policy” formulation of policy” leading to over-
centralization in the
PMO. In order to

341
 empower the Cabinet,
this change is being
proposed which would
also provide for
convergence of policy
formulation at the
Cabinet level
Cabinet, being
Rule 5(12) “The Cabinet Rule 5(12) “The Cabinet custodian and framer
Division shall obtain orders Division shall obtain of Rules of Business,
14
of the Prime Minister where orders of the Cabinet should have the power
necessary” where necessary” to interpret and not the
Prime Minister
Rule 8(1A) “The Division
should normally furnish its
views to the referring
Rule 8(1A) “The Division
Division within a fortnight To bring efficiency and
should normally furnish its
of the receipt of reference. avoid unending delay
15 views to the referring
If no response is received in inter-ministerial
Division within a fortnight
within thirty days, the consultations
of the receipt of reference”
opinion of the referring
Division shall be deemed
to have been concurred”
Rule 9(1) “There shall be
a Secretaries’ Committee
Rule 9(1) “There shall be a
to discuss matters referred
Secretaries’ Committee to
to it by a Division, a
discuss matters referred to it
Minister, the Prime Provides Cabinet the
by a Division, a Minister or
Minister or the Cabinet, option to refer a matter
the Prime Minister, in which
in which collective to Secretaries
16 collective experience and
experience and collective Committee, which is
collective wisdom of the
wisdom of the senior currently not provided
senior officers could be
officers could be in the Rules
consulted, to the benefit of
consulted, to the benefit of
the subject under
the subject under
consideration”
consideration”

Rule 15(1)(a):
“Cases involving important
The Prime Minister
policy or departure from
Rule 15(1)(a): may not allow
important policy.
“Cases involving departure from a
Note: Departure from policy
17 departure from a previous previous decision of
includes departure from
decision of the Prime the Cabinet, thereby
previous decision of the
Minister” undermining its
Cabinet or the Prime
authority
Minister”

Rule 15(1)(c) “cases where The Prime Minister

18 it is proposed that the Omitted cannot take a decision
Federal Government on behalf of the

342
 undertake the Federal Government
implementation of an (Cabinet); thus the
international agreement same should be omitted
relating to a subject in the from here and placed
provincial field” as a new entry under
Rule 16(1) i.e. Cases to
be brought before the
Cabinet as Rule
16(1)(p)
The Rule is vague as it
does not elaborate the
word ‘vital”. The
current formulation is
Rule 16(1)(j) “cases vague and coincides
Rule 16(1)(j) “cases involving more than one with existing Rule 5(1)
involving vital political, Ministry/Division and as well. It is proposed
19
economic and having impact on political, that cases involving
administrative policies” economic and more than one Division
administrative policies” shall be placed before
Cabinet having a
bearing on political,
economic, and
administrative policies
Current dispensation
allows the Prime
Minister to allow
departure from a
Rule 16(1) (m) “cases
previous decision of
involving departure of a
the Cabinet, thereby
Rule 16(1) (m) “any case previous decision of the
undermining its
desired by the Prime Cabinet”
authority. This
20 Minister to be referred to the
anomaly is being
Cabinet” (n) any case desired by
rectified by conferring
the Prime Minister to be
the power to depart
referred to the Cabinet”
from an earlier
decision of the Cabinet
to the cabinet itself,
instead of the Prime
Minister
Rule 15(1)(c) “cases where Rule 16(1)(p) “cases Since Federal
it is proposed that the where it is proposed that Government means the
Federal Government the Federal Government Cabinet, the entry
undertake the undertake the needs to be moved
21
implementation of an implementation of an from Reference to the
international agreement international agreement Prime Minister to
relating to a subject in the relating to a subject in the Cases to be brought
provincial field” provincial field” before the Cabinet
Rule 16(2): As per Supreme Court
22 “Notwithstanding the Omitted. Judgement in PLD
provisions of sub-rule (1), 2016 SC 808. Prior to

343
 the Prime Minister may in the aforesaid
any case give directions as Judgement, in terms of
to the manner of its disposal certain provisions of
without prior reference to Rules of Business,
the Cabinet.” 1973 including rule
16(2), the Prime
Minister had the
powers to decide a case
without reference to
the Federal Cabinet.
That very provision
was annulled by the
Apex Court.
Rule 18(1) “In respect of all
Rule 18(1) “In respect of
cases to be submitted to the
all cases to be submitted
Cabinet, the Secretary of
to the Cabinet, the
the Division concerned
Secretary of the Division
shall transmit to the
concerned shall transmit
Cabinet Secretary a
to the Cabinet Secretary a This change shall
concise, lucid and printed
concise, lucid and printed empower the MOS to
memorandum of the case
memorandum of the case authorize submission
(hereinafter referred to as
(hereinafter referred to as of summary to the
the "summary"), giving the
the "summary"), giving Cabinet, instead of
23 background and relevant
the background and being sent to PM where
facts, the points for
relevant facts, the points PM is the Minister-in-
decision and the
for decision and the charge, thereby saving
recommendations of the
recommendations of the time and reducing
Minister-in-Charge. In the
Minister. In the event of burden on PM
event of views of the
views of the Division
Division being different
being different from the
from the views of the
views of the Minister,
Minister, both the views
both the views shall be
shall be included in the
included in the summary”
summary”
Rule 22(5) “There shall be
an Executive Committee
of the National Economic
Council (ECNEC) to be
ECNEC has no legal
appointed by the Prime
basis. This addition
24 NEW INSERTION Minister. The Terms of
will provide the desired
Reference, of ECNEC,
cover.
shall be notified by the
Cabinet Division with the
approval of the Prime
Minister”
Rule 48 “No Division shall Article 145(1) provides
Rule 48 “No Division
issue a directive to the for direction from the
shall issue a directive to
25 Governor of the Province President; hence the
the Governor of the
under clause (1) of Article said rule has been
Province under Article
145 without the specific brought in line with the

344
 approval of the Prime 145 (1) without the constitutional
Minister” approval of the President” provision
Rule 49(3) “The Rule 49(3) “The
implementation of an implementation of an
international agreement in international agreement in
the Provincial field shall the Provincial field shall Since the rule 15(1)(c)
normally be the normally be the has been omitted and a
responsibility of the responsibility of the corresponding entry
26
Provincial Government Provincial Government has been inserted in
unless in any case specific unless in any case specific rule 16(1)(o); hence the
orders of the Prime Minister orders of the Cabinet are corresponding change
are obtained by the Division obtained by the Division
concerned in accordance concerned in accordance
with rule 15(1)(c)” with rule 16(1)(p)”
Rule 57 allows the
Prime Minister to relax
the provisions of rules
ibid. This needs to be
deleted as Rules are
Rule 57 “The Prime framed by the Cabinet
Rule 57 “The Cabinet may
Minister may permit, where and the authority which
permit, where it considers
he considers it necessary, makes the rules should
27 it necessary, relaxation of
relaxation of the provisions relax/amend/modify
the provisions of these
of these rules in individual etc. Further, this power
rules in individual cases”
cases” of the Prime Minister
undermines the
authority of the
Cabinet

This Note restricts the

officers of
Schedule IV Note under Presidency/PMO to the
Serial No. 2 “The inclusion extent of issuing orders
of these officers is intended in respect of matters
to enable them to execute only related to their
orders in the name of the respective offices,
28 Omitted
President in respect of such while these officers
matters only as relate to the also convey
staff in the President’s directions/orders of the
Secretariat (Public) or PM/President under
Prime Minister’s Office”. their own signatures.
This omission will
remove this limitation.
Schedule V-A Article 90(1) and 99(3)
“Serial No. 1B. empower the Cabinet,
29 Rules for the Omitted and not the Prime
convenient transaction of Minister, as per
business of the Federal Supreme Court

345
 Government. – Article 90 Judgement to frame
& 99.” Rules of Business
Schedule V-A “Serial No. Rule 6 of Civil
21 Disciplinary matter in Servants
respect of all officers in (Appointment,
whose cases the Prime Promotion & Transfer)
Schedule V-A “Serial No. Minister is the Rules, 1973 delegates
21 Disciplinary matter in Appointing Authority the power to
respect of all officers under within the meaning of administrative
the Federal Government, Rule 6 of Civil Servants Secretaries for officers
30
and Provincial Chief (Appointment, in BS19 and below,
Secretaries, including Promotion & Transfer) thus the words “all
imposition of major/minor Rules, 1973 or under any officers under the
penalties” other law or rules, and Federal Government”
Provincial Chief is not in line with the
Secretaries, including said provision and thus
imposition of major/minor has been suitably
penalties” amended.
Sl. No. 23 of Schedule-
VA, which requires
submission of cases to
the Prime Minister for
decision regarding
Omitted. appointments which
Schedule V-A
Rule 16(1)(o) are required to be made
“Serial No. 23.
“Appointment required to by the “Government”
Appointment required to be
be made by the under any law for the
31 made by the Government
Government under any time being in force,
under any law for the time
law for the time being in requires to be deleted
being in force”
force” may be inserted since the word
instead “Government” now
means the Cabinet and
may be inserted in
Rule 16(1) i.e. “List of
cases to be brought
before the cabinet”.
Cabinet Decision:
4. The Cabinet at its meeting held on January 10, 2019 decided that with a view to achieve
objective of efficient decision making by the Government functionaries, simplifying
procedures and streamlining the Inter – Ministerial Consultations, the advisor to P.M on
Institutional Reforms and Advisor to the P.M on Establishment will suggest
amendments/improvements in relevant rules, regulations and governance structure.
5. The proposed changes recommended by the Task Force were incorporated into a
summary by the Cabinet Division and were analyzed in detail by the Prime Minister’s Office
and the Ministry of Law and Justice. The draft was later also considered by the Cabinet
Committee on Institutional Reforms (CCIR). The CCIR made some further refinements and
also incorporated the suggestions made by the PM office and Ministry of Law and Justice. The
revised draft was then approved by the Cabinet. Significant changes in ROBs were notified by
the Cabinet Division on 27th May 2021. The approved updated Rules of Business are attached

346
in Appendix D and the complete document can be downloaded from this hyperlink:
https://cabinet.gov.pk/SiteImage/Misc/files/Rules%20of%20Business%2C%201973%20as%
20amended%20upto%2027-05-2021-i(1).pdf
6. Way Forward: There is still room for improvements in the ROBs as has been reiterated
by the CCIR and the IRC. There are two main issues that have been frequently discussed and
have been recommended by CCIR. Firstly, is the issue of inordinate delays in inter-ministerial
consultations in the Federal Secretariat. These delays are hampering the timely disposal of
work in the Federal Secretariat. It was initially proposed that rule 8 1(A) of the ROB should be
amended so that a hard limit of 30 days be placed on all inter divisional consultations. It was
proposed, that in case a referred division does not reply back to the referring division within
30 days the concurrence of the referred division be assumed. However, this recommendation
was not agreed upon by the PM office and the Ministry of Law. Thereafter the CCIR proposed
a new mechanism where the Minister in Charge may write a DO letter to the referred Division
in case of delay and if a reply is not received after the DO letter, concurrence might be
presumed. A summary for the Cabinet in this regard has been initiated and this issue needs to
be resolved on priority.
7. The second issue relates to the efficient workings of the Cabinet committees and in
particular the CCIR. The current ROBs require that Cabinet committee can only make decisions
on summaries. For the CCIR this rule is problematic because for business reprocessing reforms
the ministries relevant are either Establishment Division or Cabinet Division for whom the PM
is the Minister In Charge. Therefore, no reform summary can be initiated before the prior
approval of the summary by the PM. This makes the whole process convoluted. Therefore, the
Cabinet and CCIR have both made recommendations to streamline this process and work is
underway in this domain.
Action: The views/comments of Ministry of Law and Justice are still awaited in this
domain and the Ministry should take responsibility for these reforms.

347
APPENDIX D NOTIFIED CHANGES IN THE RULES OF BUSINESS

TO BE PUBLISHED IN THE GAZETTE OF PAKISTAN

EXTRAORDINARY
GOVERNMENT OF PAKISTAN
CABINET SECRETARIAT
(CABINET DIVISION)
***
Islamabad, the 27th May, 2021.
NOTIFICATION
S.R.O. 623 (I)/2021.- In exercise of the powers conferred by Articles 90
and 99 of the Constitution of the Islamic Republic of Pakistan, the Federal
Government is pleased to direct that the following further amendments shall be made
in the Rules of Business, 1973, namely:-
In the aforesaid Rules,-
(1) in rule 2, in sub-rule (1),-
(i) for clause (x), the following shall be substituted, namely:-

“(x) “Leader of the House” means the Member of the Parliament

appointed by the Prime Minister to regulate official
business in the Assembly, the Senate or the Majlis-e-
Shoora (Parliament) in joint sitting, as the case may be;”;
and
(ii) for clause (xv), the following shall be substituted, namely:-

“(xv)“Majlis-e-Shoora (Parliament)” shall having the same

meaning as assigned thereto in Article 50 of the
Constitution of the Islamic Republic of Pakistan; ”;

(2) for rule 9, the following shall be substituted, namely:-

“9. Secretaries’ Committee.- (1) There shall be
a Secretaries’ Committee to discuss matters referred to it
by a Division, a Minister-in-charge, the Prime Minister or
the Cabinet, in which collective experience and collective
wisdom of the senior officers could be consulted, to the
benefit of the subject under consideration.
(2) All cases, wherein two or more Divisions
have different point of view, may be considered by the
Secretaries’ Committee for its resolution or firming up

348
 clear recommendations on the issues, before being
submitted to the Prime Minister or the Cabinet.
(3) All policy matters pertaining to the career
progression, service structure and terms and conditions of
civil servants may be placed before the Secretaries’
Committee for eliciting views and recommendation before
submission to the Prime Minister or the Cabinet.
(4) The Cabinet Secretary, at least once in a
quarter, shall present before the Cabinet a resume of the
decisions and recommendations made by Secretaries’
Committee on various issues.
(5) In a matter discussed in the Secretaries’
Committee, if the Secretary of a Division has agreed to a
proposal, it shall not be necessary to consult his Division
again on that proposal.
(6) When a matter is referred to a Committee or
working group and a Division is represented therein by an
officer of or above the rank of Joint Secretary, the agreed
decision of the Committee or working group shall be
treated as final and shall not be subjected to further scrutiny
in that Division.
(7) The Secretaries’ Committee shall meet at
least once a month unless there are no items for discussion.
(8) Other instructions regarding the submission
of cases to the Secretaries’ Committee shall be issued by
the Cabinet Division.”;
(3) in rule 15A, in sub-rule (1), after the word “Constitution” the words
“or under any other statutory provision” shall be inserted;
(4) in rule 16,-
(a) in sub-rule (1),-
(i) for clause (j), the following shall be substituted,
namely:-
“(j) cases involving a significant impact on political,
economic and administrative policies;”; and
(ii) in clause (l), the word “and” at the end shall be
omitted; and
(iii) in clause (m), for full stop at the end, the expression
“; and ” shall be substituted and thereafter the
following new clause (n) shall be added, namely:-
“(n) appointments required to be made by the
Government under any law for the time being in
force.”; and

349
 (b) sub-rule (2), shall be omitted;
(5) in rule 17, after sub-rule (2), the following new sub-rule (3), shall be
added, namely:-
“(3) Upon consideration of a case in the Cabinet,
the Cabinet, may constitute committees to further
deliberate on the issue and suggest further course of action.
The committee constituted under this sub-rule shall be
distinct from the Cabinet Committees constituted under
sub-rule (2) and, apart from the Cabinet members, may also
have other members, as the Cabinet may deem appropriate:
Provided that report or recommendations of such
committees, as the case may be, shall invariably be
presented before the Cabinet for consideration and a
decision in the matter, if so required.”;
(6) in rule 18, in sub-rule (1), for the word “Minister”, occurring for the
second time, the words “Minister-in-Charge” shall be substituted;
(7) in rule 22, after sub-rule (4), the following new sub-rule (5) shall be
added, namely:-
“(5) There shall be an Executive Committee of the
National Economic Council (ECNEC) to be appointed by
the Prime Minister. The terms of reference of ECNEC shall
be notified by the Cabinet Division with the approval of the
Prime Minister.”;

(8) in Schedule-II, in item 21, for entry 14, the following shall be
substituted, namely:-
“14. Courts and Tribunals, whether administrative or otherwise,
for the Federal subjects.”;
(9) in Schedule V-A, in the first column, against S. No. 21, for the entry
in the second column, the following shall be substituted,
namely :-
“Disciplinary matters in respect of all officers in whose cases
the Prime Minister is the Authority or the Appellate
Authority in terms of rules made or covered under the Civil
Servants Act, 1973 or under any other law or rules for the
time being in force.”; and
(10) in Schedule V-B, in the first column, after S. No. 57 and entries
relating thereto in the second and third columns, the following new S.
No. and corresponding entry relating thereto shall be added,
namely:-
“58. All such cases where any function is to be performed or any
orders have to be issued by the President or his specific
approval is required under any statutory provision.”.
350
[No. 4-11/2019-Min-I]

(KALEEM AHMAD
SHAHZAD)
Section Officer (Min-I)

The Manager
Printing Corporation of Pakistan Press
Islamabad
Copy forwarded to:-
1. Secretary to the President.
2. Secretary to the Prime Minister.
3. Secretaries/Additional Secretaries in-charge of Ministries/Divisions.
4. Secretaries, Senate/National Assembly, Secretariats, Islamabad.
5. Chief Secretaries of the Provincial Governments.

(KALEEM AHMAD SHAHZAD)

Section Officer (Min-I)
Tel: 9205303

351
 CHAPTER 5 PAKISTAN REGULATORY MODERNIZATION
INITIATIVE
1. Business regulations in Pakistan are outdated, convoluted and paper based. This directly
affects the ease of doing business and it is stunting the growth of private sector in the country.
The highly inefficient regulatory regime also results in corrupt and collusive practices which
directly increase the cost and time of doing business. These factors discourage both foreign and
domestic investments which are critical for the economic growth of the country. Many
countries of the world have successfully modernized their business regulatory regimes through
various innovations like regulatory guillotine, one window operations, end to end automation
etc. It is critical for the sustainable economic growth of Pakistan that the current regulatory
regime be modernized, liberalized and automated.
2. The present government paid a lot of emphasis on this critical area and the Board of
Investment in the PM office was given the main responsibility to spearhead these reforms. A
high-powered steering committee led by Adviser to the Prime Minister on Commerce and
Adviser to the Prime Minster on Institutional Reforms and Austerity was also formed to
monitor and supervise the progress in this domain. Over the last three years remarkable
progress has been achieved. Due to the reforms implemented the ranking of Pakistan in the
global ease of doing index has seen an unprecedented improvement of 28 places from 136 to
108. This index is maintained by the World Bank and Pakistan was singled out as one of the
top 10 global performers in the Doing Business Report 2020 by the Bank.
3. This main initiative in this area was the BOI’s Pakistan Regulatory Modernization
Initiative (PRMI). Under this program a concerted effort has been undertaken to simplify and
automate business regulations, licenses, certificates, permits and other requirements (RLCOs).
The PRMI has two phases. In the first phase, which is almost near completion, a comprehensive
audit of all existing RLCOs at all tiers of the government i.e. federal, provincial and local is
being undertaken. A completely online system has been developed that catalogues all these
RLCOs for each sector of the industry. During this phase detailed discussions with all
stakeholders including government departments, private businesses and chambers of
commerce from all over Pakistan are being regularly performed and a working group approach
has been utilized.
4. In the second phase of the project, which has also been initiated, the BOI is leading the
regulatory guillotine and modernization of RLCOs. Outdated RLCOs are either being
discarded altogether or are being reformed. In this area the BOI is actively collaborating with
all the provincial governments. This exercise will continue into next year until the whole
universe of business regulatory RLCOs has been exhaustively considered and reformed for
ease of doing business. A completely automated portal the Pakistan Business Portal is also
envisioned towards the end of this phase which will allow for full end-to-end automation of
regulatory compliance for foreign and domestic private businesses. This portal will be modeled
after the National Single Window that has been recently launched by the Pakistan Customs
Department.
5. Way Forward: The PRMI is a pioneer business regulatory reform initiative by the
Federal Government of Pakistan and needs to be institutionalized. The achievement of the
following milestones should be the way forward for this program.
i) Elimination of all unnecessary RLCOs at all tiers of government in Pakistan

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 ii) Simplified, streamlined consolidated stock of reformed RLCOs that are available online
in an easy and transparent fashion
iii) Pakistan Business Portal is successful implemented to completely automate the
regulatory regime for private businesses and it serves as a one-stop shop for dealing with
RLCOs.
iv) All relevant departments and officials that interact with private businesses in all
provincial district and federal government are trained for facilitation of private businesses.
Action By: BOI under the guidance of the Steering Committee should bring Pakistan
Business Portal to operational stage at the earliest.

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PART II: REFORMS UNDER REVIEW AND
FURTHER DELIBERATION

354
 CHAPTER 6 WORKING PAPER ON PROPOSED POWERS
OF THE MINISTER AND SECRETARY OF A DIVISION
1. Under the Rules of Business, the Division means “a self-contained administrative unit
responsible for the conduct of business of Federal Government in a distinct and specified sphere
and declared as such by the Federal Government”.
2. It is proposed that the Division will be the main policy making unit of the Government
with the functions of:
i) developing the vision, long and medium-term strategy and plans for the sector or
sub-sector
ii) preparing the policies in consultation with the stakeholders and getting them approved
by the Cabinet or Cabinet Committees and communicating them to the Executive
departments and autonomous bodies for implementation and monitoring the progress in
light of the milestones and indicators agreed upon.
iii) entering into performance agreements with the executive departments and autonomous
bodies for implementation and evaluating the outcomes
iv) formulating the budgetary proposals and submitting them to approval by the Ministry
of Finance and then keeping a track of the expenditure incurred.
v) preparing the development projects for processing through appropriate fora such as
DDWP, CDWP, ECNEC etc.
vi) monitoring, evaluating the progress, projects and policies implemented and assessing
the impact of the Executive Departments and the autonomous bodies under the Division’s
jurisdiction.
vii) developing human resource utilization plan and managing the human resources
allocated to the Division.
viii) continuously updating the business processes, procedures, rules and regulations,
setting up and enforcing service standards.
ix) initiating and carrying out legislative and Cabinet business including the decisions,
directives and orders received.
x) acting as the focal point for national, inter-provincial and international coordination,
collaboration and cooperation.
xi) Promoting private-public partnerships within the limits of government framework, and
xii) providing policy guidance and directives to regulatory agencies, executive departments
and autonomous bodies from time to time as specified under the laws.
3. The Secretary shall be the official head of the Division under the direct supervision of
the Minister in charge.
4. The Minister shall----
i) Formulate, evaluate and revise public policy in various spheres within his portfolio
which the Cabinet approves and seeks to implement. No important policy decision shall be
taken except with the approval of the Prime Minister. The Minister shall keep the Prime

355
 Minister informed of any important case disposed of by him without reference to the Prime
Minister.
ii) Seek the advice of the Secretary and Heads of Executive Departments in the
development of public policy, budgets, and legislation translating the approved policy;
iii) Initiate, present, defend and steer the legislation pertaining to the Division before the
Parliament and its various standing committees and ensure effectiveness and efficiency of
the Division and the Executive Departments
iv) Function within the statutes which his Division and Executive Departments administer;
v) Officiate or represent the government at meetings and functions on special occasions,
meet delegations and conduct negotiations, and may travel to represent government
interests relating to their Ministry or Division;
vi) Periodically review the work of the Division(s) within his portfolio, implementation of
approved policies, directives, and financial management;
vii) Record all decisions in writing or confirm verbal orders issued; and
viii) Subject to his general direction and control, authorize a Minister of State to deal
with a defined range of Division’s work including Parliamentary business
ix) Coordinate with other Ministries and organs of the government to resolve conflicts, and
differences of opinion
5. In the event of a difference of opinion between the Divisions concerned, the Minister
primarily concerned shall try to resolve the difference in consultation with the other Ministers
concerned. If no agreement is reached and the Minister primarily concerned desires to press
the case, the case shall be submitted to the Prime Minister or, if the Prime Minister so desires,
to the Cabinet: Provided that in a matter of urgency, the Minister primarily concerned may
submit the case to the Prime Minister at any stage: Provided further that where the Prime
Minister is the Minister-incharge, the final views of other Divisions concerned shall be
obtained before the case is submitted to the Prime Minister.
6. A Minister may ask to see a case of another Division if it is required for the disposal of
a case in his Division. The Minister for Finance may ask to see a case of any Division in which
a financial consideration is involved. While making such request the Minister shall give reasons
for which the case is called for and shall be dealt with under the general or special orders of the
Minister-incharge of the other Division. If for any reason, the case or relevant extracts from it,
cannot be made available the Minister of the Division shall explain the position to the Minister
making the request or bring the matter to the notice of the Prime Minister, if necessary.
7. The Division will have a three-tier structure: Secretary in Grade 21/22 , Additional
Secretary in Grade 20/21, Joint Secretary in Grade 19/20.; the grades would depend on the
work load and nature and complexity of the work entrusted to the Division. Joint Secretaries
in Grade-20/ 21 will head different wings of the Division entrusted with functional
responsibilities such as Planning, Finance and Budget, Human Resources Monitoring and
Evaluation, Technical etc. The actual numbers and configuration will vary in proportion to the
workload of each Ministry. Each Joint Secretary, assisted by several officers Grade 18/19, will
be initiating the examination and review of the matters pertaining to their units. Joint Secretary
would get technical staff in the field for which he is responsible. Staff officers in Grade 17, 18
and 19 would assist the DS, JS and Secretary. There would thus be a shift from vertical
hierarchy towards a more in-depth horizontal scrutiny.

356
8. Once the E-government takes firm hold, the Section officers SOs should be phased out
and further recruitment or promotion to Section Officer in the regular cadre discontinued. The
present cadre of Section Officer would be protected and promoted according to the existing
service conditions. E-Government tools including Enterprise Resource Planning platform
(ERP) and web based portal supported by intranet and local area network (LAN) and a National
Data warehouse should be utilized for exchange of emails, correspondence, storage, recording
, sharing and retrieval of files supported by web-based access to the laws, rules, regulations in
force, easily accessible data bases, uploading and downloading of forms and applications for
licences, permits, NOCs, visas and making payments by the citizens through mobile phone
applications. The institutional memory will reside in the electronic form occupies a lot of
valuable office space and the house record of files that difficult to access would no longer be
necessary.
9. The job description of Secretary is elaborated to provide further clarity. He/ She would
be the Principal Accounting officer of the Division working under the supervision and
accountable to the Minister in charge and the Prime Minister. For day to-day operations of the
Division/ Department, he/ she will take guidance from the Minister Incharge and keep him/her
fully informed. He/She shall manage the affairs of the Division efficiently, effectively,
economically and ethically and provide leadership, strategic direction and stewardship within
the Division. He/She shall maintain clear lines of communication with the Minister-in-Charge,
within the Division, and other executive departments under the Ministry and keep the Minister
informed of the working of the Division and of any important case disposed off without
reference to the Minister with reasons. He/She shall be responsible for the careful observance
of law, rules and regulations and, where he considers that there has been any material departure
from them, either in his own or any other Division, he shall bring the matter to the notice of
the Minister-in-Charge and if necessary, to the notice of the Prime Minister or the Cabinet. The
Secretary shall ensure execution of the sanctioned policy and delivery of government programs
and to achieve outcomes within Minister’s portfolio with other Secretaries in accordance with
law. The Secretary shall perform such other role as prescribed by the other laws and regulations
or assigned to him by the Federal Government. He/She will also identify relevant objectives
and goals and develop well-defined and implementable policies to enable achievement;
10. The Secretary along with the Minister will oversee and guide the Executive
Departments in the discharge of their functions. He/ She will either represent the Division on
the Board of the autonomous bodies or designate an officer not below the rank of Grade-21 to
represent him or her on the Boards.
11. The Secretary would be assisted in the discharge of his /her duties by Chief Finance
and Accounting Officer, Human Resource Manager, IT Manager, Planning Officer, Contracts
and Purchasing Officer and Legal Officer of the Division. In the technical ministries there
would be a Chief Technical Officer. These officers and their staff would possess specialized
skill in each one of the above fields. Depending on the workload some of these specialized
officers could be shared by a group of divisions/ departments
12. The Secretary would prepare the budget proposals for submission to the Ministry of
Finance, justify and defend these proposals before the appropriate fora but once the budgetary
allocations for the Divisions/ Department are approved by the Assembly the funds should be
placed at the disposal of the Secretary for expenditures in accordance with the budget. He/ She
should enjoy adequate autonomy in resource allocation within the overall budget ceilings to
use public resources in a responsible and efficient manner. The Finance Division would allocate
the budget and release the funds periodically to the Ministries/Division under two heads:

357
 i) Employee related expenses.
ii) Operational expenses.
13. The Secretary should also be allowed to make the best tradeoffs in consultation with
the Minister In-charge but not allowed to create new posts or acquire new assets which create
future financial liability without going the prior approval of Finance Division. The exception
would be where it is decided that prudence demands disposal of old vehicles and utilization of
sale proceeds to purchase new vehicles within the same amount. The Secretary can also be
provided the flexibility of using the employees related expenses to hire short term experts or
consultants instead of filling in sanctioned posts. Similarly, he can re-appropriate operational
expenses without the given budget in a way that obtains value for money. These powers have
already been delegated under the Public Finance Management Act.
14. The present system of Financial Accounting and Budgeting system (FABS) successor
to PIFRA established in 1996 is not working optimally as a management tool for the Secretary
and needs to be strengthened. Once the operational flexibility is allowed no requests for
supplementary grants should be admitted except in case of pressing unforeseen, unanticipated
or emergent demand that is justified and approved by the Cabinet. Other than that, the Secretary
would enjoy full powers to utilize the budget in accordance into the objective and targets
assigned to the Division under the performance agreements. The possible misuse of the
discretionary powers can be circumscribed by pre audit by the Internal Auditor and ex-post
financial/ performance audit by the Auditor General of Pakistan. The heads of key Executive
departments and autonomous bodies can be delegated the powers of Principal Accounting
officers for their organizations.
15. The Secretary should have the powers to select or requisition the services of officers
working under his/ her administrative control for the duration of a specified tenure subject to
safeguards. He/ She should be able to surrender the services of those found unsuitable for the
job by providing a justification and the reasons for such a surrender. As the appointing authority
of certain categories of employees, he/ she can hire and fire them according to the procedures
laid down in the Efficiency and Discipline Rules and the Directory Retirement Rules.
16. The approval of projects up to a certain limit as specified from time to time under the
Public Sector Development program has been delegated to the Divisions and the Planning
Ministry should have responsibility for mega projects only (to be defined by the Cabinet from
time to time). The processing of the entire value chain of Development projects (up to
prescribed threshold amount) i.e. pre and feasibility study, project preparation, appraisal and
review, approval, execution and monitoring would be the responsibility of the
Division/Department. The Departmental Development working Party (DDWP) headed by the
Secretary along with representative from Planning Division, Finance Division, Cabinet
Division, PPRA and other co-opted members would be responsible for review and approval of
these projects within the limit specified.
17. The Secretary of the Division/ Department would be subject to oversight by the
Minister, while the Establishment, Finance, Law, Planning and Cabinet Divisions (or the
corresponding departments in the provinces) would ascertain the validity of the decisions taken
and their consonance with the rules, regulations, directives and instructions in force. At another
level, the Auditor General and Public Accounts Committee, the Public Procurement Regulatory
Authority and the Monitoring and Evaluation Wing of the Planning Commission will carry out
inspection and review of the accounts, contracts and projects.
18. The Secretary and all other Principal Accounting Officers shall:

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 i) ensure that the resources authorized by the Parliament are used for the purposes
intended by the Parliament;
ii) provide assurance to Parliament and the public, through the Committee of Public
Accounts, that the Division/Department exercises the highest standards of probity in the
management of public funds;
iii) having personal accountability to Parliament for the economic, efficient and effective
use of resources;
iv) account for accurately and transparently for the department’s financial position and
transactions; and delegate financial, and other, authority and accountability to senior
colleagues.
Recommendation: This paper should be considered by Secretaries Committee followed
by CCIR and then taken forward to the Cabinet.

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 a

Volume I - D

Reports on the Restructuring of Key Public

Sector Institutions

i
 Contents

1. Federal Board of Revenue (FBR) ............................................................................... 2

2. Pakistan International Airlines (PIA) ......................................................................... 2

3. Pakistan Railways (PR) .............................................................................................. 2

4. Auditor General of Pakistan (AGP) Office ................................................................ 2

5. Competition Commission of Pakistan (CCP) ............................................................. 2

6. Evacuee Trust Property Board (ETPB) ...................................................................... 2

7. Capital Development Authority (CDA) ..................................................................... 2

8. Civil Aviation Authority (CAA) ................................................................................ 2

9. Pakistan Council of Scientific & Research (PCSIR) .................................................. 2

10. PARC Agrotech Company Private Limited (PATCO) ............................................ 2

11. Pakistan Council of Renewable Energy Technologies (PCRET) ............................ 2

12. Report on Financial Performance of State-Owned Enterprises (Commercial) ........ 2

13. Pakistan Halal Authority (PHA) ............................................................................... 2

14. Pakistan Council of Research in Water Resources (PCRWR) ................................. 2

ii
1. Federal Board of Revenue (FBR)

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1. After holding a series of meetings with Chairman and key Members of Federal Board
of Revenue, the Adviser to PM on Institutional Reforms & Austerity developed a roadmap for
comprehensive reforms in the Board. The plan was shared with FBR in August 2020 along
with a specific paper regarding Framework of FBR Reforms developed by the Adviser (which
is annexed at the end of this Section). Salient features of the reform’s agenda are as follows.

End Goals of the Reforms

2. The end goals of the reforms are to transform FBR into a first-rate organization that is
efficient, transparent, business friendly and has enhanced compliance with minimal human
interactions with the tax payers, with the specific objectives to:
i) Raise Tax/GDP ratio to 15% by year 5
ii) Raise Tax/GDP ratio to 15% by year 5
iii) Add 1.5 new tax payers to the existing tax base
iv) Phase out the withholding tax and Final tax regime within next three years to
increase the share of direct taxes
v) Curtail tax exemptions, rationalize tax slabs and lower threshold levels to broaden
the tax base
vi) Simplify laws. Rules, Codes, processes, tax returns and improve tax administration
vii) Introduce Tax based Audit
viii) Set up Track and Tracing system in 10 sectors
ix) Intensify electronic real time monitoring of production and sales of major tax
spinning sectors particularly Retail and Distribution to plug in loopholes in the
supply chain
3. Top priority should be given to automation, computerization, centralized data center,
data analytics and AI as the main tools that underpin all the above reform areas and are therefore
the cornerstone upon which the success of everything else depends.

Immediate Actions
4. The Adviser identified some short-term actions that can be taken by the FBR
immediately without much difficulty. These are described below -

Appointment of CIO
5. The job of the CIO will be spearheading the automation process, coupled with
digitization of the business processes. He will be supported by PRAL and other ICT
professional already working in FBR. Offer letter to Chief Information Officer (CIO) must be
issued as the matter is getting delayed. CIO will be assisted by Member (IT) during initial days,
which will help him in settling down and understating the peculiarities of the public sector. He
appreciated the Chairman’s initiative to appoint a senior officer of FBR to work with CIO as
the Domain expert and steer the process through.

HR Policies and Management

6. As the FBR reforms process has already kicked in, therefore, there is a need to capture
the low hanging fruits, which can yield immediate results. The performance of FBR in July,
2020 was appreciated and it was agreed to sustain the momentum. There is no need to
geographically expand FBR in the modern era of technology, rather FBR needs to enhance its
technological prowess by improving recruitment and training, making use of Artificial
Intelligence tools, renaming the training institutes as training academies, incentivising training
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by offering foreign trainings to best performers, extending further trainings by making use of
IBA and LUMS. This will generate interest of the officers in trainings and available funds in
this project must be utilized for this purpose. Furthermore, the ‘Performance Evaluation’ of the
officers should not be revenue target based alone, as it is likely to render their perspective
fixated, rather it must be broad-based. The officers must be evaluated on a bell curve, as
approved by the Cabinet- ranking in various grade must be made as part of the overall
Performance Evaluation.

Directory Retirement Rules

7. Government of Pakistan has already notified Directory Retirement Rules, which clearly
spell out the criterion to prematurely retire the bad performers. FBR may prepare list of such
delinquent officers and proceed for signaling effect.

Functional and Organizational Restructuring

8. The meetings of the following committees must be scheduled at regular intervals to
seek guidance and report progress
a) Steering Committee
b) Tax Policy Board
9. The FBR may be restructured comprising 8 members instead of present 13 members.
The re- designation of Chairman, FBR as PAO of the organization also needs to be evaluated.
The question of FBR as an autonomous body with administrative and financial powers remains
unsettled as the cadre officers of FBR have vouched for maintaining status of the civil servants.
This somewhat prohibits salary increases, hiring and firing of the HR and functional agility and
flexibility to hire human resource having requisite expertise from the private sector. The
Reforms team also needs to brainstorm this issue and come up with recommendation.
10. FBR headquarter should also delegate financial and administrative authority to heads
in the field formations. A proper codification of the delegated powers is required. The proposed
functionalized strengthening of LTOs and CTOs, extension of LTOs to other large cities, and
reassignment of duties of RTOs and the resource realignment with the above restructuring was
welcomed and should be immediately implemented.

Integration with 3rd Party Databases

11. The integration of IRIS, WEBOC and other internal databases and external such as
NADRA, AGPR, Excise and Taxation Department, Banks and PRA’s is vital and this needs to
be completed to make FBR a vital and efficient tax collection agency.

Track and Trace System.

12. Tender for installing Track and Trace System should be expedited for early installation
of the system. In the first phase, four sectors are to be roped in the system, and the system
would be expanded in second phase to cover remaining sectors.

Integrity Management
13. Member FBR informed that all the refund systems will be processed through online
systems by 1st September, 2020 and to achieve this, systems of FBR and would be integrated.
Expeditious implementation of this was stressed, considering the demand of the tax payers.

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Appellate and Alternate Dispute Resolution System
14. This should be revitalized for effective utilization of the forum. The proposal to appoint
Appellate CIRs, along LTOs, CTOs and RTOs and strengthening the Prosecution capacity in
these offices underway should be brought to culmination and the results evaluated. ADR
Committees should be formed, notified and assigned facilities to start their work.

Customs Side Reforms

i) Ease of doing business
ii) Facilitation of International Trade
iii) Curbing Smuggling
iv) Minimize Leakages through under invoicing and misdeclarations

Relationship with PRAL

15. PRAL is tasked for automation of FBR and this is technical hand of the agency. The
relationship between FBR and PRAL is also vital and it is imperative to make PRAL fully
functional for its optimum utilization. Clear demarcation of work, assignment of
responsibilities and accountabilities, the processes of engagement etc. between FBR and PRAL
need to be formalized in form of a MOU and SOPs and protocols notified for general
information of all relevant stakeholders.

Communication & Media Outreach

16. It was agreed to expedite the hiring of a Professional Media Management agency for
outreach and dissemination of the results achieved from the implementation of reforms and tax
payer facilitation measures taken. This will help in educating the tax payers to make use of
such services. FBR should post all present and previous reforms related reports on its website
for information and knowledge of the general public and for research purposes.

Monitoring & Evaluation

17. As the Reforms Wing has been established it should put in place a system of to monitor
and evaluate e all reforms initiatives, periodically update the FBR Council, the office of the
Prime Minister and Federal Cabinet on tasks completed.

Framework of Reforms
1. Automation and Business Process Reengineering including Simplification of Codes,
Rules, Laws and Procedures for filing taxes:
18. CIO and Senior FBR Domain expert to steer the implementation of the agenda through
PRAL and other vendors with specific timelines. Each project will be headed by a Project
Director who would be a FBR Officer teamed up with a counterpart from PRAL. This would
help in realigning all ICT services provided by PRAL to the business and operational
requirements of FBR and its field offices. Priority would be given to the following tasks:
i) Integration of 3rd party data bases e.g. NADRA, SBP, AGPR and Provincial
Governments etc. and FBR databases into a Centralized Data Centre, building data
analytics system that can provide real time statistics for operational and decision
support;

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 ii) Automated Business intelligence tools including strengthening the MIS system and
Dashboards for leadership at various levels.
iii) Track and Trace System and Electronic monitoring in 10 sectors.
iv) Widen Scope of POS System to cover large number of existing and potential
retailers with Real data transmission to FBR.
v) Reliable connectivity of field offices with the HQ with ready access to the Central
Data Centre.
vi) Development of a dynamic and interactive Web Portal containing all laws, rules,
SROs, OMs, instructions, procedures, forms that can be accessed by Tax payers.
vii) E-Governance for internal working of the FBR – Paperless filing, internal and
external communications. E-services for tax payers.
viii) Online tax payer ledger account with auto creation of notices, pre-populated
returns and system-based prompts for filing returns.
ix) ICT based surveys for sales tax registration.
x) Online Complaint Management System.
xi) Completely computerized issuance of Income Tax Refunds and non-export sector
sales tax refunds without any human interaction.
xii) Single system for filing sale tax return for Federal and Provincial taxes.
xiii) Increased use of Data analytics for detecting underreporting, undeclared
incomes etc.
2. Human Resource Policies and Management.
i) Attract, retain and motivate high caliber professional staff of integrity.
ii) Focus on Recruitment and Induction.
iii) Improvement in work environment and facilities.
iv) Training and Capacity Building: Academy instead of Directorates General -- can be
done immediately. Organize SMC and MCMC Specialized Courses for next grade
responsibilities. Focus on short-term thematic training courses. Link good
performance in local trainings with nominations for short-term foreign courses as
an incentive. Selections should be on competitive basis and trainings can be funded
through PRR.
v) Career Planning of Officers: Get rid of the dead wood through Early Retirement
Rules. Rotation and Transfer policy with fixed tenure of three years. Promotion
policy to be based on training outcome, performance reports and managerial
competence.
vi) Performance Evaluation -- (Bell curve approach): Goals agreed upon between the
employee and the reporting officer with predefined Key Performance Indicators.
There should be a panel for determining relative ranking for performance evaluation
of officers; and another neutral appellate committee of 03 persons, in case an officer
wishes to appeal against the decision of the Evaluation panel (to ensure objectivity
and arm’s length relationship).
vii) Compensation and benefits – Annual increments, Bonuses and honoraria based on
performance evaluation ranking and results achieved. For example, the top 20%
getting Outstanding or A ranking would get twice as much in annual increment
compared to those getting B ranking.
viii) Filling in existing Skill Gaps by induction of Sectoral and Functional Specialists
– Law, Accounting, Audit, IT, data analytics, Industry specialists in 10 sectors.
ix) Rationalize Professionals to support Staff Ratio. There is an imbalance between
officers and subordinate staff that needs to be rectified to improve efficiency,
facilitate tax payers and minimize discretionary powers of lower functionaries.

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3. Functional and Organizational Restructuring.
i) Revitalization of Policy Board and Steering Committee for guidance and ensuring
accountability for results.
ii) FBR should have more operational autonomy in implementing tax policy and
collecting taxes.
iii) Less focus on policy making and more on administration, enforcement and
implementation of policies.
iv) Financial autonomy: single line budget with powers of Principal Accounting officer
– Budget formulation, Execution, monitoring, expense authorization, internal audit
for payment _ to the Chairman FBR.
v) Reconfiguration of the Board itself by reducing the number of members from
thirteen to eight.
4. More Autonomy for Field Formation.
19. Devolution of administrative and financial powers to field officers with organizational
restructuring to incorporate functional responsibilities. Targets assigned for broad basing tax
net, increase the number of tax filers and the amount assigned per tax prayer.

5. Integrity management –
i) Create deterrence against corruption.
ii) Revise Efficiency and disciplinary Rules and take strict and expeditious action
against those found indulging in malpractices, neglect of duty etc.
6. Improving the Appellate System.
i) More focus on Alternate Dispute Resolution.
ii) Separation of Audit from Adjudication.
iii) Automation of appeal process.
7. Media management and Public Outreach.
i) Appoint a Media expert to head the Communications Office and engage an
advertisement agency for disseminating critical information about FBR, responding
to the media queries and stories placing facts in public domain.
ii) Use dynamic Website for interaction and social media for messaging.
iii) Local Advisory committees for stakeholder consultations.
iv) Make the Tax Reforms documents public.
v) Regular Publication of Quarterly and Annual Reports.
8. Focus of Customs Operations.
i) Ease of Doing Business – National Single window.
ii) Trade Facilitation measures – Increase Goods declaration through green channel
from 35% to 75%.
iii) Reducing the time and cost of logistics and clearances – online duty calculator.
iv) Reducing over/under invoicing smuggling etc.
v) Online transit trade portal.
9. Risk based Audit.
i) Completely automated system that allocates and assigns cases for audit using data
analytics and Business Intelligence tools, monitors and tracks and ensures
compliance.
ii) 95 Field audits in LTUs.

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10. Reduce the Scope of withholding tax regime and tax expenditures.
20. Low yielding withholding taxes that create distortions and unnecessary hassles for the
tax payers and act as a deterrent to tax compliances should be phased out. For the remaining
taxes, an automated monitoring and surveillance system should be set up for the whole value
chain. Tax expenditures should be assessed for their impact and those with low impact and high
revenue loss should be gradually phased out with sufficient advance notice.

11. Monitoring and Evaluation.

21. Reform Wing to monitor regularly and prepare reports for discussion and decisions at
the meetings of the Board-in-Council on monthly basis to review progress made, impediments
and difficulties faced, remedial measures to be taken. Focus on low hanging fruits e.g.
expeditious payments of refunds and revenue enhancement measures.

Implementation Timelines of Ongoing and Future Reforms Initiatives

INLAND REVENUE
Period: July 2020 – June 2021

Sr. Initiative Responsibility Timelines

Member IT/CIO 30th September, 2020

1 ICT based survey for Sales Tax Registration Member IR-Ops Subject to
procurement of
Member Policy tablets

Online taxpayer’s complaint& feedback Member IT/CIO

2 30th September, 2020
system Member IR-Ops

Member IR Policy
Simplification of Income Tax Return for
3 Salaried persons and SMEs ( Small retailers Member IT/CIO 30th September, 2020
with turnover less than 10m)

Strengthening of FBRs Integrity Management

4 Member HRM 31st October 2020
Mechanism

5 Restructuring of FBR Head Office Member Admin 31st October , 2020

Member Admin &

6 Restructuring of FBR Field Formations 31st October, 2020
Member IR/PCS Ops

Formulation of Transfer Posting & Member Admin &

7 31st October, 2020
Deputation Policy Member IR/PCS Ops

Strengthening of Revenue Analysis and Member SPR&S

8 31st December 2020
forecasting Unit in FBR Headquarters

Auto calculation of income tax payments Member IT/CIO

9 31st December 2020
(Advance Tax) Member Policy

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 Member IR-ops

Member IT/CIO

10 E-Appeals (Income Tax) Member IR-Ops 31st December 2020

Member Legal

31st December 2020

Pre-filled Returns (Phase-1 for salaries where
11 Member IT/CIO subject to 3rd party
data is available) – Ongoing
data linkages

Member IT/CIO & 31st Oct, 2020 (Pilot)

12 E-Office DG Customs 31st December 2020
Intelligence (Final Launch)

13 360 Degree view of taxpayers (TaxRay) Member IT/CIO 31st December 2020

31st December 2020

Data Sharing between FBR & Controller subject to
14 Member IT/CIO
General of Accounts (CGA) availability of data
of CGA

Member IR Policy
Automation of Sales Tax Processes (Return,
15 Member –IR-ops 31st December 2020
Refund &other Business Processes)
Member IT/CIO

Member Ops &

16 Establishment of LTO Multan 31st December 2020
Member Admin

Automation of Income Tax refunds (Phase- Member IT/CIO

17 31st December 2020
1- Payment) Member IR-OPS

Review and Rationalization of Income Tax

18 and Sales Tax and Federal Excise tax Member IR Policy 31ST December,2020
expenditures

Automation of Debt Collection (Recovery) Member IR Ops

19 31st December, 2020
System Member IT/CIO

Linkage with Third Party databases (Banks, 31st December, 2020

20 NADRA, SECP, Provincial Tax departments, Member IT/CIO subject to 3rd party
etc.) Data sharing and connectivity. data linkages

Member IR Pol & 31st December 2020

Strengthening, revitalizing and automation of Ops Rules, Processes
21 Prosecution and Dispute Resolution System
(Appellate and ADRC) Member IR Legal 31st March 2021

Member IT/CIO Automation

Hiring of a PR Agency for Media Member Reforms &

22 31st March, 2021
Management and Public Outreach Member FATE

23 Single system for filing Sales Tax returns Member IR Policy 31st March 2021
subject to

367
 Member –IR-ops concurrence of
Member IT/CIO Provincial Tax
Authorities

Establishing a system to ensure availability of

all tax related updated information through a
variety of user-friendly products (e.g. in the
24 Member FATE 31st March, 2021
form of guides, brochures, factsheets, forms,
web pages, FAQs, rulings, etc.) for
supporting voluntary tax compliance)

Rationalization/Reduction of Withholding
25 Member IR Policy 31stMarch 2021
Tax Regime

Member Admin
Decentralization of administrative powers to
26 Member Ops (IRS & 31st March, 2021
field formations
Ops)

IRS - Establishment of District Tax Offices –

Member Admin &
5 per year over the next 20 years to have full
Member IR Ops r
27 footprint of fiscal state authority all over the 31st March, 2021
Admin & Member IR
country. DTOs – (Gawadar, Loralai,
Ops
Tharparkar, Ghotki, Mingora)

IRS- Hiring of Contract based professional Member Admin &

28 30th June, 2021
staff (Inspectors, Auditors, Specialist) Member IR Ops

IRS- Repositioning of redundant non-

professional vacancies of 4,113 NQs, LDCs, Member Admin &
29 30th June, 2021
UDCs & Supervisors as SIs, ASIs and Member IR Ops
Sepoys

Expansion of Point of Sale System (POS) to

30 cover more and more business entities and Member IR Ops 30th June, 2021
areas.

Publication of Six Monthly Annual Revenue

31 Member FATE 30th June, 2021
Reports

Member IT/CIO

Member IR-ops
32 Computerized audit scheme (E-Audit) 30thJune, 2021
Member-Policy

Member-Audit

Track and Trace System and Electronic

33 Member IR Ops 30th June 2021
Monitoring

Broadening of Tax Base - through field

surveys, data analytics, third party data
34 Member IR Ops 30th June 2021
(Annual Targets, 10-15% new Payment filers
to be introduced by each Field Office)

CUSTOMS
Period: July 2020 – June 2021

368
Sr. Initiative Responsibility Timelines

1 Online Import Duties Calculator Member Cus Ops 30th September, 2020

Automation of Export Duty Drawback

2 Member Cus Ops 30th September 2020
payments

Automation of Approvals under Export

3 Member Cus Ops 30th October 2020
Promotion Schemes

4 TIR Multi Model automation module Member Cus Ops 30th November 2020

Transit trade portal accessible by importers

5 Member Cus Ops 30th November, 2020
through website (Customs)

Online Anti-Smuggling & confiscation of

6 Member Cus Ops 30th November, 2020
goods Portal (Customs)

31st October, 2020

Authorized Economic Operator Program: Pilot

7 Member Cus Ops
will facilitate trusted trade partners 31st December, 2020

Final launch

Clearance in the Sky: Filing of IGM before

8 Member Cus Ops 31st December, 2020
arrival of the airplane

E-Auction: wide access and increased

9 Member Cus Ops 31st December, 2020
revenue for Government

Automation of International Transshipment

10 Member Cus Ops 31st December, 2020
regime

Smart Examination: Focused examination,

11 real time feeding of data at container of the Member Cus Ops 31st December, 2020
terminal, GPS tagging

Strengthening, revitalizing and automation Member Legal Cus

12 of, Prosecution, Appellate and ADR 31ST December 2020
Systems in Customs Member Cus Pol

31st December, 2020

Automation Post Clearance Audit Process Rules and

Member Cus Ops
13 and enhanced Focus on Post Clearance Procedures
Audits DG PCA
31st March 2021

Automation

14 Implementation of Advance Ruling System Member Cus Ops 31st December, 2020

Review and Rationalization of existing

15 Customs Duty Exemptions (tax expenditures) Member Cus Pol 31st December, 2020
Regime

Automation of Debt Collection (Recovery)

16 Member Cus Ops 31st December, 2020
System

369
 31st December, 2020

Stock taking and automation of State Stocktaking

17 Member Cus Ops
Warehouses all over the country 31st March, 2020

Automation

Automation of Debt Collection (Recovery) Member Cus Ops

18 31st December, 2020
System

Virtual assessment: Faceless, no human

19 Member Cus Ops 31st March, 2021
interaction with trader/his agent

Decentralization of administrative powers to Member Admin

20 31st March, 2021
field formations Member Cus Ops

Bonded Warehouse System: will encourage

21 SMEs & provide real time inventory Member Cus Ops 30th June 2021
management

22 Integrated Risk Management system Member Cus Ops 30th June 2021

National Targeting Center: to provide a

23 single platform for all LEAs and other Member Cus Ops 30th June 2021
agencies

Trade Facilitation through Effective Customs

24 Risk Evaluation & Management (CREAM) Member Cus Ops 30th June 2021
system

Audits of Survey/Quota based,

25 Manufacturing Bonds, Export Facilitation Member Cus Op 30th June 2021
Schemes

ITTMS (Integrated Transit Management

Systems) – Torkham, Chaman and Wagha
26 Member Cus Ops 30th June 2021
Border Crossing Points Infrastructure
Development Project- Development Phase

National Single Window- Development and

27 Member Cus Ops 30th June 2021
Integration Phase

Border Management Initiative for control of

28 smuggling in western border areas of Member Customs 30th June 2021
Pakistan – Development Phase

INLAND REVENUE AND CUSTOMS

Period: July 2021 – June 2022

Sr. Initiative Responsibility Timelines

Member Admin &

1 Recruitment of specialized staff on contract
Member HRM Quarter wise
deadlines for FY
Re-defining job descriptions & Performance
2 Member HRM 2021-22 will be
Management System

370
 decided at the end of
3 Performance based bonuses & allowances Member HRM
FY 2020-21.

Monitoring and Evaluation of the Taxpayer

7 Audits conducted last year and automation of Member Audit 30th September 2021
the process

8 Pakistan Single Window, pilot launch Member Cus Ops 30th September 2021

31st December 2021

9 Automated Entry & Exit System at Ports Member Cus Ops

Automation and Computerization of FBR

Hqrs and Field Formations’ Business Member IT/CIO
Processes of Internal and External Member IR Ops,
10 30th June 2022
Communication, Processing , Decision Member Cus Ops,
Making and Monitoring - Paperless Working Member IR Admn
– Development Phase

Audit of FBR’s existing Computerization and

Automation capacity (both hardware and
11 software- IRS/Customs) for its efficacy and Member IT 30TH June 2022
sustainability as well as Future Need
Analysis for its robustness and continuity.

Automation and Computerization of FBR

Hqrs and Field Formations’ Business Member IT
Processes of Internal and External Member IR Ops,
12 30th June 2022
Communication, Processing , Decision Member Cus Ops,
Making and Monitoring – Paperless Working Member IR Admn
( First Phase)

13 Pakistan Single Window, final launch Member Cus Ops 30th June 2022

ITTMS (Integrated Transit Management

Systems) – Torkham, Chaman and Wagha
14 Member Cus Ops 30th June 2022
Border Crossing Points Infrastructure
Development Project- Development Phase

Border Management Initiative for control of

15 smuggling in western border areas of Member Cus Ops 30th June 2022
Pakistan – Development Phase

Automation and Computerization of FBR

Hqrs and Field Formations’ Business
Processes of Internal and External Member IT Member Roll out-
16
Communication, Processing , Decision IR & Cus Ops 30th June 2022
Making and Monitoring - Paperless Working
– Final Phase

INLAND REVENUE AND CUSTOMS

Period: July 2022 – June 2023

Sr. Initiative Responsibility Timelines

ITTMS (Integrated Transit Management Roll out by 30th June

1 Member Cus Ops
Systems) – Torkham, Chaman and Wagha 2023

371
 Border Crossing Points Infrastructure
Development Project- Roll out

Border Management Initiative for control of

Roll out by 30th June
2 smuggling in western border areas of Member Customs
2023
Pakistan – Roll out

Current Status
22. The Report “Framework for Reforms in FBR” was submitted to the Prime Minister on
2nd September 2020 with the recommendation that it may be implemented by the FBR and the
CCIR may be tasked to monitor the progress.

372
2. Pakistan International Airlines (PIA)

373
In its meeting held on 31st March 2020, the Federal Cabinet had directed the Advisor to PM on
Institutional Reforms & Austerity to propose reforms/restructuring in respect of, inter-alia, the
Pakistan International Airlines. Consequently, series of meetings were held to consult and take
the stakeholders on board including Aviation Division, Finance Division, Civil Aviation
Authority, members of PIA Board etc. Resultantly, a comprehensive roadmap for organization
and financial restructuring of PIA was prepared. The plan was shared with Aviation Division
which brought it before Economic Coordination Committee for consideration in its meeting
held on 7th April 2021. The details of the proposed plan were as under:

Executive Summary
The PIA has been facing substantial financial difficulties in carrying out its operations since
2008. With a negative equity of Rs.460 billion comprising bank loans of’Rs.326 billion and
other payables of Rs.118 billion at its balance sheet, the company neither remained a self-
sustained entity commercially nor operationally efficient and sustainable. By the year 2018,
once a symbol of national pride, PIA had virtually come to the point of ‘belly landing’ interalia
due to multiple policy failures including the high cost of flying an aged fleet of around 30 small
and medium sized aircrafts, many of them on unprofitable routes, with a highly politicized and
ill-trained workforce of over 14000 or around 500 per aircraft, one of highest HR-Aircraft ratio
in the world coupled with undesirable luggage of non-core functions such as ground services,
catering and courier service etc. Additionally, the company was put to face stiff competition in
the region and beyond through an uneven open-air policy. Frequent change of management,
experimentation, undue political interventions, wasteful expenditure, un-checked borrowings
and absence of sound internal accountability mechanism may be attributed as other key factors
for bringing the national flag carrier to its knees.
1. The incumbent Government was therefore confronted with three options: (i) Closing
down (ii) Privatization and (iii) Restructuring. The first option was considered and not found
to be feasible as it would create an inconvenience for ethnic Pakistanis who prefer PIA to other
carriers. The company possesses some very attractive legacy slots which, in case of closing
down, would be lost and regaining them would be extremely difficult for any Pakistani carrier
in the future. The second option also found to be unworkable for the time being given the
general state of the aviation industry. It is inconceivable that any private sector business or
government owned airline would venture to purchase a company with such heavy baggage to
lift. Air India has been on the block for sale for the last several years but has not been able to
find a buyer although its global network is much wider than that of PIA.
2. The more doable proposition appeared to be restructuring of the entity by way of a
surgical operation through which the present company is divided into two distinct entities: (a)
a Government-owned ‘bad’ company that takes away the financial liabilities off the balance
sheet of PIA along with some of its non-core assets, and (b) a new company carrying out the
core business with right sizing both in HR and business of the organization, retaining profitable
routes and on remaining routes code-sharing with other airlines, capitalizing on ethnic Diaspora
and religious tourism, modernization of fleet etc. The new PIA aims to have a smart fleet free
from dead wood and make a focused attempt to carry out the aviation business in a businesslike
manner. However, if the splitting the company in two entities may raise legal complications
and delay the process, then the Government of Pakistan (GoP) has to directly assume the
liabilities and convert them into equity. Ministry may be consulted for their views on this issue.
3. With a view to rescue the entity from imminent collapse, the Government’s timely
policy interventions including sizeable cash injection, appointment of new CEO, moratorium
on its payables to Civil Aviation Authority and placement of a new board of directors while
inducting financial, legal affairs and industry experts eventually halted the organization’s
374
highly likely downfall. It was however, clearly understood both by the government and the new
management of PIA that the organization’s restructuring was long awaited, which in the last
almost a decade remained kept pending for various reasons.
4. The proposal of restructuring is bolstered by the recent evidence of PIA’s performance
under the new management since 2019. The PIA management has demonstrated that despite
the ongoing crisis like situation due to Covid-19, it is still possible to make a recovery in
financial terms provided the debt and other outstanding liabilities are stripped off the entity’s
balance sheet and assumed by the Government of Pakistan. The financial statements of the
company for the year 2019 and the first three quarters of 2020 (when Covid-19 effects were in
full swing) demonstrate that despite the difficulties, the company was able to make an operating
profit. The national flag carrier was placed on the Defaulters list in October 2018 for failure to
hold an annual meeting and submit a statement of audited accounts for the year
ending December 2017. It is also important to mention that the new management has been able
to ensure statutory compliances and complete all pending audits, which has resulted in removal
of PIA from the Defaulter List in January, 2020.
5. After due consideration by the Board, it was not insisted on a medium-to-long term
business plan which is usually a pre-requisite for any kind of financial restructuring. The reason
is that the aviation industry is in a state of flux, lay-offs are taking place, mergers and
acquisitions are possible and the aircraft manufacturing and leasing industries are in a
recessionary state. Under the confluence of these uncertainties, imponderables and unknowns,
any business plan would be highly tentative, with room for a large degree of deviations from
the assumptions underpinning the plan.
6. The PIA Management was accordingly tasked to come up with an interim 3-year plan
of business reorganization which lays out the foundation for financial turnaround and
profitability for the new company. The key success indicator of this plan upon its completion
is that PIA would not approach the Government of Pakistan for any grants, loans, guarantees,
underwritings or financial support. PIA would use its restructured balance sheet, stripped of its
present financial liabilities, to raise its debt capital by obtaining a credit rating from S&P,
Moody’s or Fitch. The Government of Pakistan may choose to inject equity from time to time
as a shareholder in order to earn dividends under any future capital mobilization arrangements.
7. It may be argued quite understandably that such a large commitment of financial
resources should take place once the long-term Business Plan is developed and approved. In
normal circumstances, we would have also taken the same route but this might not be feasible
under the prevailing situation described below:
i) PIA may come to a standstill in its operations as it has exhausted its commercial
borrowing capacity and the decision to restructure its finances has been delayed
inordinately.
ii) The financing costs accruing on the balance sheet would add and amplify negative
equity of the company thus further weakening its financial health to be able to obtain
essential supplies from vendors on competitive rates.
iii) The turbulence in the global aviation industry arising from Covid-19 hiatus in
international travel does not permit us to make realistic and robust assumptions
about the parameters that normally underpin the Business Plan.
iv) The suspension of PIA flights to European routes and the delayed resumption of
flights to the U.S. market for the reasons beyond control of PIA do not convince us
that we should further delay this three-year restructuring plan for revival of financial
health of the company and allow creeping deterioration in its financial capacity.

375
 v) We have, however, put in place some safeguards and conditions under which the
GoP would assume these liabilities and enable PIA to clean up its balance sheet. To
this end, blue print of the ‘good’ and ‘bad’ PIA is as under:
vi) A special purpose vehicle (SPV) will be formed as ‘bad’ PIA with 100% GoP equity
to take care of the debt stock and properties belonging to PIA and its subsidiaries.
Creation of SPV, its management, business and income stream for debt servicing
are to be provided in the roadmap of the plan.
vii) PIA with necessary approvals in place will submit a comprehensive plan with
revised balance sheet of the ‘Good’ PIA keeping in view the core business, desired
workforce as per international best practices, rationalized routes and key elements
of open-air policy suitable to PIA. The proposal will also cater payables to CAA
and other liabilities.
viii) The Board of PIA would authorize an agreement to be signed between PIA and
the GoP laying down the specific milestones and timelines to be achieved by the
company.
ix) As the Management has proposed that with the aforesaid restructuring plan approval
there would be no further demand for loans, guarantees, concessions, subsidies or
any other financial relief to PIA in the future from the state exchequer. The concept
of keeping PIA airborne at the cost of the tax payer’s money needs to discouraged,
subsequent to this last lifeline.
x) In case of failure, the entire plan will be reviewed afresh including possibility of
withdrawal of GoP support etc.
8. It is a usual practice that the Business Plans are prepared by external consultants or
specialist firms but get seldom implemented faithfully as the Executives of the company do not
have ownership of the plan. The downside risk was that the management could easily extricate
itself by insisting that the externally prepared Business plan was flawed or unrealistic can be
minimized or ruled out in this case. In this case, the plan has been prepared by the management
itself and they can be held accountable for the results they have promised. It is preferable to
pinpoint the responsibility for the soundness of the plan and its implementation upon those who
formulated it. For these reasons we have accepted their three-year restructuring plan as the
basis for the agreement to be reached between the GoP and PIA. A review should take place in
2023 and if things do not improve the way they are planned other possible options such as Joint
venture with an operating airline with their management control or bringing in private equity
funds bringing in their own management or GOP keeping ownership but outsourcing
management should be explored. The present restructuring plan, if fully implemented, may
possibly reignite such interest.
9. The remaining part of this report outlines the background, the factors responsible for
the losses in the past and the salient features of the restructuring plan. An attempt has been
made to highlight the measures that have already been undertaken, as well as the measures that
are underway, with milestones and timelines included. Summary of the balance sheet
restructuring proposal as submitted by PIA to the Committee headed by Finance Secretary has
been given which will be considered by ECC and Cabinet. Finally, on the basis of the expected
outcomes of the proposed restructuring, financial projections for the years 2021 to 2023 are
presented. The assumptions underlying these projections are also stated as these have been
tested during discussions to assess their robustness.
10. The risks and challenges in implementing this plan have been outlined in the later part
of the report and their mitigation would require concerted ‘whole of the Government’s
approach’ in which the Aviation Division, Civil Aviation Authority and Finance Division have
to work together to closely monitor the situation and take corrective measures when required

376
expeditiously. If the present culture of ‘blame game’, ‘passing the buck’ and ‘clash of egos’ is
allowed to perpetuate among different stakeholders, it would worsen the situation.
11. We have, however, put in place some safeguards and conditions under which the GoP
would assume these liabilities and enable PIA to clean up its balance sheet. These have been
spelt out as part of the key contours of the plan. In case of violation of financial clauses of the
agreement or non-achievement of revenue targets, cost containments and operating profits, the
GoP would have the unfettered right to claw back the amount of equity injected, restore the
situation ex-ante and convert the equity into loans to be serviced by PIA. The amortization
schedule attached to the Restructuring Plan under which PIA had to replace the loan amounts
with equity would become null and void. The clauses pertaining to waiving or writing off or
adjusting the amounts payable to Civil Aviation Authority, Pakistan State Oil and to the Federal
Board of Revenue would be revoked and no longer valid.
12. It also needs to be emphasized that the European Union Aviation Safety Agency
(EASA) ban on PIA flights to Europe linked with the pilot licenses cancellation episode and
the State Safety Program in line with the International Civil Aviation Organization (ICAO)
requirements has to be resolved by Civil Aviation Authority (CAA) and Aviation Division,
immediately. The overall licensing issue needs a comprehensive response from Civil Aviation
Authority (CAA), failing this PIA would continue to be deprived of earnings from some
remunerative routes.
13. Going forward, next steps in this restructuring process include approval of the
Restructuring Plan by the PIA’s Board of Directors, broad based consultations with relevant
stakeholders interalia PM office, Law, Finance, Aviation Divisions, FBR, SECP and, approval
of the competent forum i.e. ECC/Cabinet. Following the necessary approvals, The Cabinet
Committee on Institutional Reforms may be tasked to review the progress on implementation,
performance of organization (Board oversight and management delivery) and submit a report
to the Cabinet every quarter.
14. Aviation Division will lead the restructuring process interalia in the following manners:
i) The Restructuring plan, although approved by the Board has to be endorsed by the
Board of Directors of PIA in form of a performance agreement with the Govt. of
Pakistan, shared with stakeholders including Law, Finance, Aviation Divisions and
PM office for their comments, reviewed by the ECC and approved by the Cabinet
for implementation. The key decision is the assumption of financial liabilities of
PIA by the Government of Pakistan.
ii) CAA, PSO and FBR may be directed, once the Cabinet approval is obtained, to
consider waive off/write off, adjust the amounts outstanding against PIA in a
manner consistent with their legal requirements and practices.
15. We owe a debt of gratitude to the PIA Board of Directors, Co-opted eminent Financial
and Industry experts for their valuable input and very useful advice throughout the process.
Due credit goes to Finance and Aviation Divisions to help finalize this plan by the PIA
management.

Background
16. Since 2008, PIA is continuously making heavy losses resulting in huge negative equity
and the Government of Pakistan has met these losses by providing guaranteed loans and loans
for markup payments. For now, the situation has reached a point, where the company is no
longer in a position to carry out its own routine commercial operations, such as the leasing of

377
aircrafts. The financial position has become so untenable that unless a major surgical operation
is carried out, PIA would no longer be a going concern.
17. Table 1 (below) shows that total losses incurred over the last decade reached Rs.405
billion. An analysis of the factors that have contributed to financial losses during this period
transpired as operating losses to the tune of (45% of the total losses), while financial costs to
service the debt accounts for another 38%. The cash flows do not permit the company to make
actual payments due.
Table 1: Factors Contributing to Financial Losses (2010 – 2019)1

(Amounts in Million Rs.)

Operating Exchange Total

Year Finance Cost Taxes
Profit / (Loss) Gain / (Loss) Losses

A B D E F=C+D+E

2019 (7,723) (11,693) (35,537) (498) (55,451)

2018 (32,080) (14,953) (20,385) 91 (67,327)

2017 (33,622) (2,188) (15,246) 50 (51,006)

2016 (31,341) (295) (13,159) (105) (44,900)

2015 (14,370) (2,066) (13,517) (2,577) (32,530)

2014 (18,043) 3,105 (14,373) (2,433) (31,744)

2013 (25,716) (6,407) (12,588) 389 (44,322)

2012 (11,699) (6,697) (11,380) (810) (30,586)

2011 (13,707) (4,219) (10,099) 1,258 (26,767)

2010 2,812 (2,092) (9,299) (12,207) (20,786)

Total (185,489) (47,505) (155,583) (16,842) (405,419)

18. Several other external and internal factors have contributed to this poor performance in
the past and recent times. Some of such organizational Issues were:
i) Frequent changes in management (14 CEOs/Chairmen were changed in 10 years)
ii) Undue influence exerted by unions and associations. In 2015, the government made
an effort through proposed Pakistan International Airlines Corporation
(Conversion) Ordinance, 2015 to introduce some reforms in PIA, however due to
countrywide strikes of the PIA employees (Joint Action Committee), Pakistan Air

1These amounts are shown as receivables on the books of Government of Pakistan with markup being capitalized.
378
 Lines Pilots Association (PALPA), the government shied away from the process,
and it was called off in February, 20162
iii) A general lack of accountability culture in the company
iv) Operations on non-profitable routes
v) 10-year audit conducted on the orders of Supreme Court revealed issues like
overstaffing; employees inducted on fake degrees, and extensive
malpractices/leakages in medical, ERP, spares procurement, hotels booking, Hajj
and Umrah groups and foreign postings etc.
19. In addition to above, a number of policies, regulatory and compliance issues have also
hindered the performance of PIA. Examples include:
i) Under the Air Service Agreements globally, slots are allocated to foreign airlines
on the basis of organic growth of the market and commercial reciprocity. However,
previous National Aviation Policy allowed extensive rights to the foreign airlines.
Resultantly, as many as 555 slots were allocated to foreign (especially gulf) carriers
as against the 239 slots which ought to have been allowed as per the benchmarks of
commercial reciprocity and market growth. This has eroded the competitive edge
which PIA vis-à-vis its resource rich competitors.
ii) The PIA being a corporate entity was as such expected to compete with domestic
and international airlines and show performance. However, at times, the company
has to resort to public sector procedures. A case in point is the procurements which
are made as per PPRA Rules. Undoubtedly, this lends transparency to the process,
the procedures involved are relatively more time consuming, which puts PIA in a
disadvantageous position compared to its competitors.
iii) More recently, serious compliance and regulatory issues have emerged since the
end of 2018. The external auditors had issued a ‘Disclaimer’ on the June 2017
financial statements of PIA and annual audits of two years were still pending.
Moreover, PIA was put on Defaulters Counter of PSX in October 2018. The pilot
licensing issue that surfaced after the PIA plane crash in Karachi in June, 2020 has
also led to the cancellation of flights to Europe and the UK, and the expected
opening up of the US market has also been put on hold.
20. Another recent external factor affecting the delivery service happened to be the global
pandemic phenomenon of Covid-19 which seriously impacted the aviation industry globally
during better part of the year 2020 and is still not over. PIA being no exception also took the
hit. Though, as will be seen in later part of this report, the company still managed to show some
good results in this period.
21. In order to be put PIA back on the path of recovery and revive it on stable footing, it
needs to undergo extensive organizational restructuring as well as a one-time restructuring of
balance sheet. The latter is described in Section 5 whereas salient features of the proposed
organizational restructuring plan, along with indicative financial benefits, are as follows:
Human Resource Restructuring

22. Overstaffing is one of the significant problems of PIA. Total existing strength of the
company (including both permanent and outsourced employees) is over 14,000 lending it the
Aircraft-to-HR Ratio of over 450, which is one of the highest in the world, while Qatar has

2https://www.dawn.com/news/1238419

379
133, Emirates 231, Turkish 94, and Etihad 2113. A sizeable chunk of these employees is
inefficient, politically-inducted and engaged in non-core services etc. On the top of it,
undesirable luggage of non-core functions such as ground services, catering and courier service
etc. is further adding the pressure. Additionally, the company was put to face stiff competition
in the region and beyond through an uneven open-air policy. An aviation company cannot
compete domestic and global rivals with such burden. In order to overcome this situation,
following measures are part of plan:
Voluntary Separation Scheme(VSS)

23. PIA will reduce the head count by 25% through offering a Voluntary Separation
Scheme. PIA was asked to undertake profiling exercise of its employees so that VSS is
selectively offered in order to retain the relatively efficient human resource. ECC / Cabinet has
approved the Scheme at a total cost of Rs.12.87 billion which will be borne by GoP. This will
result in annual savings of Rs.4.2 billion in salary expenditure. In three years’ time, total
savings of the company on this account will be equal to the cost of VSS.
Carving Out/Outsourcing Functions

24. PIA is in the process of carving out and outsourcing certain non-core functions as a part
of its functional restructuring (Details in succeeding paragraphs) which will further reduce the
employee count by approximately 4,000.
Improving Quality of HR

25. At present PIA has been restrained by the Supreme Court from making fresh hiring.
After the completion of HR rationalization exercise and subject to alleviation of Supreme Court
ban, PIA will conduct a thorough HR Need Assessment duly approved by the BoD before
hiring young and qualified personnel equipped with contemporary skills and suitable for
operating in the modern aviation industry environment. This will lift the overall quality of HR
adding to the brand image and performance of the company.
Operational Restructuring

26. In order to focus on its core business of aviation, PIA requires to get rid of some of its
non-core activities. This will improve the organizational efficiency not only by reducing HR
count and the resultant salary savings, but also by lending company the necessary flexibility in
hiring similar services from market at competitive rates, resulting in further savings and
efficiency.
27. To this end, outsourcing of following services is part of the restructuring plan:
i) Food services – Karachi & Islamabad
ii) Technical Ground Support
iii) Base Maintenance of Engineering Department
iv) In addition to above, Precision Engineering Complex is planned to be carved out to
Ministry of Defence, whereas the loss-making operations of SpeedEx Courier will
be closed.
28. This operational restructuring will take approx. 4,000 employees off the payroll of PIA.
After the completion of operational restructuring and VSS, the restructured PIA will comprise

3 https://tribune.com.pk/story/2265390/employment-ratio-pia-hires-500-employees-per-aircraft
380
of 7,500 employees only which will optimize the Staff-to-Aircraft Ratio to 250 as against the
existing value of 450. This will also bring about anticipated annual savings to the tune of Rs.7
billion in salary expenditure. Brief details of these planned interventions are as follows.
Food Services at Karachi and Islamabad

29. Other than Karachi and Islamabad, food services are already outsourced at other
domestic stations. The in-house food facilities maintained for the purpose have very old and
outdated equipment which requires huge investment for the needed revamping. Therefore, it is
planned to outsource the same to third party which will invest, manage and bear all the
operational expenses and in return PIA will pay them for the actual meal cost. This will
rationalize the head count by approx.633.
Technical Ground Support (TGS)

30. Technical Ground Support (TGS) provides ground handling services to PIA at 14
domestic airports in Pakistan. For this purpose, PIA has a staff of 628 and maintains a fleet of
300 vehicles. Most of the vehicles and equipment has completed the useful life cycle and are
their maintenance costs at present are economically not feasible. Upgrading the vehicles and
equipment again requires massive investments.
31. TGS is essential function for flight management. As per prevalent global practice, it is
managed by specialized companies instead by the airlines themselves. Therefore, PIA is
evaluating options for striking joint venture/operation & management contract with a third-
party which will invest and manage this function. In this manner, PIA will obtain efficient and
quality services at reasonable cost.
Base Maintenance of Engineering Department

32. Base Maintenance facility is part of PIA and is utilized for heavy checks of B777s &
A320. This facility accommodates tool stores, stockrooms, offices, support shops and amenities
with paint booths with a total employee-count of 1,967. The infrastructure is outdated and
requires heavy investment. Therefore, moving forward, it is planned that this function will be
outsourced to an independent entity.
Precision Engineering Complex

33. Precision Engineering Complex (PEC) manufactures high precision engineering parts
for the aerospace industry and a number of other industries. Being a non-core function, it has
been decided to carve out this department to Ministry of Defense (PAF). Through this
restructuring, PIA will be able secure annual savings of approx. Rs.330 million/annum and
head-count rationalizing by 429.
SpeedEx Courier

34. PIA launched Courier Services in 2003 with the brand name of SpeedEx. Initially, the
operations were started its operation at three major stations (Karachi, Lahore and Islamabad)
by utilizing the surplus space and resources. The unit currently employees a staff of 320 and is
not performing well. Operating expenses exceed the revenues. Due to this reason and further
in view of the fact that courier is a non-core activity for PIA, SpeedEx unit is planned to be
shut down. The cargo handled by SpeedEx will be channeled through normal cargo operations
of the company. This measure will bring about saving to the tune of Rs.35 million/annum for
the company.

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Product Development and Revenue Enhancement Measures

35. Following measures of the plan are aimed at enhancing customers’ experience and
satisfaction; adding to the brand image of the company, and increasing the profits through
ancillary revenues and offering better product:
Fleet Modernization

36. The existing fleet of PIA comprises of old wide and narrow body aircraft including
B777, A320 and ATR which are not fuel efficient and run high fuel costs. Furthermore, these
lack the facilities like in-flight entertainment, on-board internet and modern luxury seats etc.
Therefore, upgradation of aircraft fleet is necessary for improving product quality and to bring
about savings in fuel costs.
37. Accordingly, going forward, PIA will gradually replace the old fleet with relatively
newer fuel-efficient aircrafts. Leveraging the post-Covid situation, efforts will be made to lease
newer aircrafts at relatively cheaper rates in case of 8 planes whose lease will expire in 2021.
Apart from ensuring better customer experience and improved brand image, the newer aircrafts
are expected to bring about fuel costs savings to the tune of Rs.15-20 Million per annum per
aircraft and maintenance cost savings of around Rs.200 million plus per annum.
Network Optimization and Expansion

38. Over the next three years, PIA will aggressively pursue its network optimization and
expansion initiatives through code sharing arrangements which at present have been made with
Turkish Airlines, Thai Airways, Etihad and Pegasus Airline. The arrangements will be
extended to other airlines as well so as to gain access to wider networks where the Company
does not operate. Moreover, PIA has signed agreements in UK and Spain with local train and
bus operators for transportation of passengers from areas where PIA does not operate. Such
agreements will be also be expanded to more operators.
39. Through these initiatives, the seat factor is expected to gradually increase to around
82% by 2023 as compared to the existing 75%. As a consequence, the yields would also rise
adding to the operational revenues.
Routes Rationalization

40. PIA had been operating on loss-making routes due to a number of reasons including
inconsistent commercial approach, external pressures and lack of accountability etc. In this
regard, PIA has conducted analysis of profitable routes and a comprehensive route
rationalization exercise for each sector through Route Diagnostic Labs. As of result of this:
i) New profitable routes have been started.
ii) Loss making routes were discontinued.
iii) Additional frequencies on profitable routes have been mounted.
41. Detailed results of this exercise are reported in para 49. Over the next three years, PlA
will continue this strategy to analyze routes through Route Diagnostic Labs to achieve further
rationalization of routes as well as for exploring new markets.
Corporate Business Collaboration

42. PIA will focus on enhancing business collaboration with corporate houses especially
on domestic network. This will not only add premium to the brand image of PIA but will also
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contribute in enhancing revenues through resource sharing and bring value addition for
customers.
Use of Technology to Improve Sales and Customers Experience

43. PIA had been using Sabre Sonic system for passenger services for the last 19 years. The
system had limited functionality not meeting the modern-day customer expectations. During
2019, PIA has fully migrated to a new and state of the art Crane Passenger Services System
(PSS) acquired from a Turkish company. The exclusive arrangements with Sabre were
terminated resulting in substantial savings and greater flexibility.
44. Crane PSS is a suite of over 12 applications for Scheduling, Flight Operations, Fare
Filing, Disruptions, Departure Control, Weight & Balance and Central Reservation Control etc.
This will not only improve the business processes of the company but also bring about
improved system security, better customer-experience and new revenues streams as new
product lines are added by fully leveraging various modules in the coming days.
45. In addition to above, PIA is focusing on multiple GDS (Global Distribution System)
strategy for larger outreach for selling its services. Sabre, Travel Port and Amadeus has been
added to PIA distribution system without exclusivity. Addition of Amadeus has provided the
company with selling access to Amadeus-dominant markets in KSA, Gulf, Europe and Far
East. This strategy will continue in the coming days. In order to further boost the web sales,
PIA application will be revamped to add enhanced features and be made more user friendly.
46. Progress So Far and Performance Improvements: The new management of PIA has
demonstrated impressive efforts over the period of last two years to reinvigorate the company
and pull it out of operational losses. Not only some immediate measures were taken to counter
the imminent challenges, but also a sustained effort has been made to make progress on
continued restructuring as per plan outlined in the last Section. This Section enlists the
measures already taken by the new management and the ones underway, along with the
improvements in financial performance achieved as a result thereof over the last two years.
Measures Already Taken

47. A brief account of the measures already taken by the management over the period of
last two years is as under:
i) Contracts with suppliers that were not financially viable were terminated and
working agreement were reached with associations.
ii) US$ 15 Million stuck with Airbus since 2013 were recovered.
iii) Dispute with Air Asia was settled through International Chamber of Commerce
Arbitration and US$ 2 Million were recovered as a result thereof.
iv) A concerted effort was made to rationalize routes by conducting route diagnostic
labs as a result of which:
a. New profitable routes like Sialkot-Paris-Barcelona, Peshawar-Sharjah,
Peshawar Al-Ain, Sialkot-Sharjah, Lahore-Muscat, Islamabad-Doha,
Lahore-Bangkok-Kuala Lumpur and Multan-Sharjah were started
b. Loss making routes such as Bangkok, Dacca, Najaf etc. were discontinued.
c. Additional frequencies on profitable routes like Dubai, Jeddah and Medina
have been mounted.

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 v) 3 aircrafts grounded for several months were put back into operation using PIA’S
own resources. Similarly, various Technical Ground Services equipment was put
back to use.
vi) Customer service was improved focusing on the punctuality and regularity of
flights, aircraft cleanliness and improved food quality.
vii) Positioning flights and dead legs from aircraft and network operations were
removed.
viii) Effective monitoring and vigilance was ensured in all areas to eliminate
pilferage and leakages.
ix) Special emphasis was made on cargo business with monitoring of performance,
rationalization of cargo fares and a more effective liaison with all stakeholders. This
not only helped enhance cargo revenue, but also assisted in increasing exports of
goods.
x) Enhancement of higher ancillary revenue was achieved through measures like sale
of bulkhead seats, pre-allocation of seats, advance excess baggage etc.
xi) Significant savings of more than Rs.1 billion were achieved in 2019 alone by
termination of exclusive arrangement with Sabre Global Distribution System
(Sabre) and migration to new system (HITIT) with multiple GDS strategy.
xii) An austerity and cost-saving drive was initiated which included rationalization of
allowances and curtailment of unnecessary visits by officials both domestically and
internationally.
xiii) Employees with fake degrees were terminated in accordance with the decision
of honorable Supreme Court of Pakistan.
xiv) Strict discipline and accountability regime including Duty Time Management
System was brought about in the company. Expeditious finalization of disciplinary
cases was ensured.
xv) Significant savings were achieved in annual medical expenses through better
monitoring and controls
xvi) Aircrew flight rostering was improved with better system resulting in
discontinuation of unnecessary crew slips.
Regulatory Compliances
i) Pending external audits for the years 2017, 2018 and 2019 were successfully
completed in compliance with Companies Act and the AGMs were held.
ii) PIA has been removed from Pakistan Stock Exchange defaulter counter.
iii) Successful completion of detailed security and safety assessment by US Transport
Security Administration (TSA) and strict compliance with US Homeland Security
regime has led to PIA acquiring authorization for direct charter flights to/from the
USA for repatriation of stranded citizens. This has allowed for the first-ever PIA
direct flight to mainland USA as previously the flights to USA were via Manchester
or Frankfurt.
Measures Underway

48. Some of the restructuring initiatives under active implementation at present are as
under:
i) Voluntary Separation Scheme has been rolled out on 7th December 2020 after the
approval of government and employees had been asked to indicate the adopted
option by 22nd December 2020. Processing of approved cases might be completed
by 30th December 2020.

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 ii) Outsourcing of various non-core activities (details in previous Section) is at various
stages of implementation. Some activities are planned to be shortly completed as
per following deadlines:

d. Tendering process for food services at Karachi and Islamabad will be

completed by 31st December 2020 and outsourcing would take effect
by 1st quarter 2021.
e. Technical Ground Support would be outsourced in 2ndquarter of 2021 for
which tender processing is to be completed in 1st quarter.
f. Base Management Engineering Department will also be outsourced by or
before the end of 2ndquarter 2021.
i) Financial Consultant for transfer of Precision Engineering Complex to Ministry of
Defense has been appointed by PIA management which is in the process of making
valuations. Transfer is planned to be completed by the end of 2nd quarter 2021.
ii) Shutting down the operations of loss-making SpeedExis at an advanced stage and
the exercise is expected to be completed by 31st December 2020.
iii) One ATRs has been returned and efforts are under way to return at least one more
ATR without penalty.
iv) Some leased engines are also being returned.
v) Negotiations are underway with OEMs (Original Equipment Manufacturers) for
seeking relaxations and waivers in Component Support Program (CSP) payments
due to ongoing Covid-related situation. This will result in further cost cuttings.
Improvements in Performance

49. The above efforts have not only enhanced the overall working environment of the PIA,
but have also resulted in improvement of its financial performance in terms of reducing
operating losses and exhibiting profits. This is manifested by the audited profit and loss
statements of the company for the year 2019 and the available quarters of 2020 as under.

Year 2019
50. In the last year, the company has seen significant improvement in revenue and reduction
in operational losses as under:
i) Revenue increased by 42.5% compared to previous year.
ii) The company saw gross profit on its balance sheet after 8 years. Gross profit
amounting to Rs.7.8 billion was achieved in 2019 compared to gross loss of Rs.19.7
billion the previous year.
iii) Operational losses reduced by 75.9%.
iv) Charter revenue increased by 7 times.
v) 4% improvement in Seat Factor from 77.3% to 81.3%
vi) Passenger and Cargo Yields improved by 32% & 19% respectively

Year 2020
51. The ongoing year is marked with the global phenomenon of Covid-19 which adversely
affected the aviation industry world over. Seen in this backdrop, PIA has demonstrated
appreciable performance on its balance sheet:

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 i) During the first quarter of 2020, the company achieved 220% enhancement in gross
profits and a 61.9% reduction in operating losses reduction in this period as
compared to first quarter of 2019.
ii) In the third quarter (Jul-Sept 2020), PIA has again shown gross profit of Rs. 4
Billion and operating profit of Rs. 1.3 billion. In the challenging times, these profits
were achieved through more focus on charter revenue and cargo business, special
repatriation flights for stranded Pakistanis, and cost rationalization through
voluntary salary cuts etc.
iii) The projections for the last quarter of 2020 show a big jump in operating loss due
to two main reasons: (a) revenue is likely to be impacted as resurgence of Covid-19
would reduce air travel (b) the expenses booked under one-off VSS scheme under
salaries, wages and benefits amount to Rs. 3.2 billion. Additionally, expense of Rs
1.5 billion is expected to be booked on annual actuarial valuations
iv) The above efforts and the achievements clearly indicate that PIA was on the path of
recovery. Its transformation to a lean and efficient airline has high probability of
success provided the operational and financial restructuring plans remain on track.
52. A comparison of actual performance of PIA in the years 2019 and 2020 (with projected
figures of Q4) is given at Table 2 below.
Table 2: Comparison of PIA’s Performance in Years 2019 and 2020

(Amounts in Billion Rs.)

2020
2019
Q-1 Q-2 Q-3 Q-4* Total

Revenue 147,500 36,443 15,028 22,891 16,089 90,451

(12,307 (21,898
Fuel Cost (50,059)
)
(2,350) (3,425) (3,816)
)

Operating Expenses Other than

Fuel
(10,977 (28,895
Salaries, wages & benefits (27,121) (6,699) (5,717) (5,502)
) )

(17,764
Depreciation & Rentals (15,724) (4,422) (4,078) (3,813) (5,451)
)

(15,017
Maintenance (17,193) (4,407) (4,286) (2,489) (3,835)
)

Aeronautical, Crew Layover,

(10,703 (29,440
Insurance, Passenger related (47,227)
)
(7,331) (6,652) (4,754)
)
charges & Others
(107,265 (26,231 (21,412 (18,456 (25,018 (91,117
) ) ) ) ) )

Other Income 2,102 449 355 313 - 1,117

(105,163 (25,782 (21,057 (18,143 (25,018 (90,000

Net Other Operating Expenses ) ) ) ) ) )

Gross Profit** 7,822 1,145 (5,250) 4,034 (9,007) (9,078)

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 (12,745 (21,447
Operating Profit / (Loss) (7,722) (1,646) (8,379) 1,323
) )

*Projected figures.
** It is total revenue (including other income) minus direct expenses

Balance Sheet Restructuring

53. This Section is based on the proposals put forward by the PIA Management in
consultation with President National Bank of Pakistan, President Bank Al Falah, President
Bank of Punjab before the Financial Restructuring Committee headed by Finance Secretary.
The Committee has held six meetings attended by the Secretary Aviation, the above referred
professionals and others in which various possible options were discussed and analyzed. The
consensus view of the Committee was that financial restructuring in the absence of operational
efficiency and organizational restructuring would not achieve any tangible results. Thus,
financial restructuring is conditional on the measures to improve operational efficiency and
implement organizational restructuring.
54. Under that scenario, role of Government of Pakistan in assuming financial liabilities
off the PIA’s balance sheet would be the critical success factor. This would enable PIA to
mobilize long and short-term capital from financial market on the strength of its transformed
balance sheet without recourse to Government in the form of loans and guarantees.
55. The Committee reviewed the restructuring plan submitted by PIA, measures already
taken ongoing and future initiatives, and working assumptions behind financial projections of
company for next 3 years. The Committee would submit its recommendations separately and
without preempting the highly useful work done by them this report has benefitted from the
main thrust of the discussion which is reflected here. To summarize, it is assumed that liabilities
of Rs.457.1 billion currently on PIA’s balance sheet as indicated in Table 3 may be assumed
by the Government of Pakistan by conversion into equity:

Table 3: Summary of PIA Liabilities for Equity Conversion

Amount (Billion Rupees)

Description
(As on 30-9-2020)

GoP Guaranteed Loans 201.8

Loans from GoP 55.6

Loans on PIA Balance Sheet 52.9

Markup 16.1

Total Loans and Markup 326.4

Payable to PSO (Including Markup) 16.4

Payable to CAA 86.7

Taxes payable 14.7

Total Payable to GoP Institutions 117.8

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 VSS Amount 12.9

Total for Conversion into GoP Equity 457.1

56. Treatment of different components of liabilities can be as under:

57. The GoP is required to provide immediate relief of Rs. 202.8 billion to PIA in various
heads of account including loan and mark up relief, payable to Civil Aviation Authority,
Pakistan State Oil, taxes and VSS. This amount does not necessarily involve cash outflows but
adjustment as book entries i.e. accounting transfers. In addition, cost of such repayments for
GoP will be around Rs.57.8 billion, also by the end of CFY. Detailed amortization schedule
and projected cash flow are given at Annexure-I and its summary has hereunder: -
i) An amount (Rs.12.9 billion) has already been approved by the government for VSS
of the employees.
ii) Loans extended by GoP to PIA (amounting to Rs.55.6 billion) and the interest
accrued against such loans (Rs.13.6 billion out of total accrued markup of Rs.16.1
billion) will be adjusted as book entries.
iii) Receivables of Civil Aviation Authority to the tune of Rs.86.7 billion (to be updated
as of 31st Dec, 2020) may be considered for waiver or writing-off or adjustment as
one-time relief to PIA. However, PSO may be requested to waive-off the
outstanding amount of Rs.16.4 billion, subject to approval of their BoD as the GoP
cannot direct the private sector investors for waiver.
iv) The FBR may consider waiving the taxes due worth Rs.14.7 billion. The total
amount payable is Rs. 117.8 billion.
58. PIA would transfer the ownership properties belonging to PIACL to the SPV as created
with 100% GoP equity. Although the actual value of these assets is yet to be determined, if an
estimated amount of Rs.150-160 billion is realized from these hotels, the liabilities assumed by
the GoP (Loans and interest on direct loans to PIA, Government-guaranteed loans and loans
acquired by PIA against its balance sheet) would be reduced from Rs.326.4 billion to Rs.166-
176 billion.
59. Annexure-II is the depiction of PIA balance sheet after getting restructured as per plan
proposed above.

Risk and Challenges

60. Given the resolve of the government to revive PIA and the efforts being made by the
new management, the chances of success appear promising. However, the plans may hit a snag
due to a number of internal and external factors. A list of such foreseeable risk factors is as
under:
i) The single dominant factor that poses the biggest risk is the Government’s ability
in view of available fiscal space to allow PIA to clean up its balance sheet by
assuming the debt and liabilities amounting to approx. Rs.457 billion. In case this
risk is not mitigated, the restructuring plan would fail to accomplish the ultimate
goal of financial sustainability and operational autonomy.
ii) Second risk factor is the ban on PIA flights to Europe and delay in opening up US
routes due to pilots licensing episode and safety measures to be taken by the Civil
Aviation Authority (CAA) and the Aviation Division.

388
 iii) Thirdly, the growing competition with British Airways and Virgin Atlantic on
remunerative routes in the U.K and with Air Blue, Air Sial and other domestic
airlines would impose additional obligations on PIA to improve its service, in-flight
entertainment, fare discounts and cargo rates rationalization. This may increase
costs and diminish the projected revenue streams.
iv) The prolonged uncertainty arising out of Covid-19 and voluntary suspension of
domestic and international travelling is likely to pose a challenge in achieving the
expected revenue targets.
v) A favorable stance is expected from Saudi Government in respect of issuance of
Umrah visas and Pilgrims quota for Hajj. If this stance is modified for extraneous
reasons, it would also have a downward impact on the earnings.
61. Mitigation of above risk factors and dealing with any other arising exigencies requires
a concerted ‘whole of the Government’s approach’ in which the Aviation Division, Civil
Aviation Authority and Finance Division have to work together to closely monitor the situation
and take corrective measures as and when required in an expeditious manner.

Safeguards and Conditions

62. As described in previous Section, implementation of restructuring plans and
achievement of targeted results may be affected due to a number of external and internal risk
factors. In order to protect the interest of the Government under the circumstances, it is
advisable to put in place some safeguards and conditions under which the GoP would assume
these liabilities and enable PIA to clean up its balance sheet. These are spelled below:
i) The PIACL would transfer the ownership of properties belonging to PIA and
PIACL to the Government of Pakistan without any encumbrances. The proceeds
received from any market-based transactions would be applied towards the equity
injection.
ii) The Board of PIA would authorize an agreement to be signed between PIA and the
GoP laying down the specific milestones and timelines to be achieved by the
company.
iii) In case of violation of financial clauses of the agreement or non-achievement of
revenue targets, cost containments and operating profits, the GoP would have the
unfettered right to claw back the amount of equity injected, restore the situation ex-
ante and convert the equity into loans to be serviced by PIA. The amortization
schedule attached to the Restructuring Plan under which PIA had to replace the loan
amounts with equity would become null and void, and In case of failure, the entire
plan will be reviewed afresh including possibility of withdrawal of GoP
support etc. GOP may then explore the other options of outright privatization or
management contract outsourcing.
iv) The clauses pertaining to waiving or writing off the amounts payable to Civil
Aviation Authority, Pakistan State Oil and to the Federal Board of Revenue would
be revoked and no longer valid.

Financial Projections of Restructured PIA (NEW CO.)

63. Assuming that existing momentum of performance and reforms is maintained and the
balance sheet is restructured, it is projected that PIA will exhibit significant improvements over
the next three years in terms of both cash flows from operations as well as the profits. As per
company’s calculations, profit/loss before taxation figures over next three years will be as
reflected at Table 4. The revenue projections for 2021 show a big jump on the presumptions

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that the inoculation of vaccine against Covid-19 would lead to resumption of domestic and
international travel, and that the safety issues with European Union Aviation Safety Agency
(EASA) and Europe would be successfully settled and PIA gets permission to resume its
flights. It may be recalled that the actual revenue realized in 2019 was Rs 147.5 billion. Thus,
the year 2021 is projected at a level below the actual achievement.
Table 4: Projections of Profits/Loss before Taxes for Years 2021-23 (in Million Rs.)

Forecast

2020* 2021 2022 2023

Revenue 90,451 143,554 199,524 220,352

Operating Expenses

Fuel & Oil (21,898) (38,570) (56,254) (61,596)

(109,134 (133,23
Other than Fuel (89,999)
) 0) (141,841)

Operating Profit/(Loss) (21,447) (4,149) 10,040 16,915

Exchange Gain / (Loss) (6,694) - - -

Profit/(Loss) Before Interest & (28,14

(4,149) 10,040 16,915
Taxation 1)

(29,37
Finance Cost
2) (375) ** - -

(57,51
Profit/(Loss) Before Taxation (4,524) 10,040 16,915
3)

* Year 2020 figures include actual figures of Q1, Q2, Q3 and projected figures of Q4.
** This represents finance cost on loans borrowed by PIA on its own Balance Sheet.

64. Table 5 depicts the summary of cash flow projections over the same period.
Table 5: Cash Flow Projections for the Years 2021-23 (in Million Rs.)

Forecast

Cash flows 2020* 2021 2022 2023

Operating Profit/(Loss) (21,447) (4,149) 10,040 16,915

Add: Dep/Amortization 13,569 9,864 11,160 11,833

Add: Other non-cash exp.

5,085 5,150 5,665 5,971
(provisions)

Net Cash flow from

(2,793) 10,865 26,865 34,719
Operations

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 * Year 2020 figures include actual figures of Q1, Q2, Q3 and projected figures of Q4.

Key Assumptions
65. These above 3-year financial projections have been worked out on the basis of
following key assumptions:
i) Hajj and China operations are resumed back to pre-Covid levels by 2023.
ii) No additional aircraft is inducted in the years 2020 and 2021, whereas 3 new aircraft
will be inducted in the year 2022.
iii) One wide body and one narrow body aircraft are assumed on routine maintenance
throughout.
iv) VSS takes effect in the last quarter of 2020 as per projections.
v) Restructuring of the departments as stated above is assumed from 2021.
vi) Finance cost on loans is calculated till 31st Dec 2020 with the assumption that debt-
equity swap will take place by that time.
vii) Seat factor will be gradually increased to 82% over the 3 years from existing 74%
through aforesaid measures and as a consequence the yields would rise adding to
the operational revenues.
viii) Average KIBOR & LIBOR is assumed at 8.0% & 1.5% in 2021 respectively.

Recommendations

Policy Recommendations to Improve Environment for Aviation Industry in General

66. The recent global recession of aviation industry due to Covid-19 situation
notwithstanding, the ecosystem for the local aviation industry in general in Pakistan may be
improved through a number of measures which will naturally benefit the national flag carrier
as well. Recommendations in this regard are as under:
i) Civil Aviation Authority should play a more proactive role not only as the regulator
of the local aviation industry but also as the interface with international regulators
and agencies. More focus needs to be placed on ensuring that Pakistan remains
compliant to the regulations of ICAO (e.g. State Safety Program etc.) as well as
those of the local regulators at destinations of interest. Appointment of an aviation
industry professional from the market as DG CAA coupled with organizational
restructuring of the Authority will go a long way in achieving this.
ii) Aviation Division may ensure that grant of slots to foreign carriers is strictly on the
principle of reciprocity, so that the natural advantage of local airlines to provide
direct point-to-point connectivity to the Pakistani diaspora is optimally leveraged
to our advantage.
iii) Airports infrastructure in general and technical equipment in particular need to be
upgraded to facilitate the aviation companies. A case in point is the CAT-III
equipment required for landing during smog which is installed only at Lahore
airfield. Resultantly, flight schedule is severely disturbed during the winters each
year. For this purpose, the ongoing exercise of bifurcation of CAA into a regulating
authority and an infrastructure development company needs to be completed at the
earliest.
iv) Reportedly, review of the Aviation Policy is in the offing and recommendations are
being developed in this regard. As a policy, PIA and other local aviation companies
should be actively consulted whenever such exercise is carried out so as to address
their concerns.
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 v) During last three decades, few trends have become quite obvious in the airlines
business. Most of the state airlines have been privatized. These airlines are now
merely using the old national names/ symbols like British Airway, Japan airline,
Lufthansa, Qantas and few US airlines. These all are now owned by private fund
managers and investment houses. Airlines, which are in the public sector like Air
India, Malaysia Airline, South African Airways etc. are making heavy losses.
Around 20 airlines of the public sector have closed down in last thirty years and
many in the private sector. Only airlines of UAE are in public sector, but these are
also being operated by the Fund Managers, not per say by their national
governments, which provides the flexibility to take “decisions” and operate purely
in commercial terms. The airline industry has become a business with modicum and
declining margins due to burgeoning competition. In Pakistan, somehow, the
ecosystem required to take bold commercial decisions has fast lost its ground. GOP
particularly Aviation Division and CAA would have to take responsibility to
remove the unnecessary hurdles impeding the commercial operations of Pakistani
Airlines.

Recommendations specific to PIA

i) Implementation of PIA Organizational Restructuring Plan needs to be closely
monitored, not only to track the progress but also to facilitate the management in
overcoming difficulties if faced any. For this purpose, a Committee may be
constituted after considering the options for balance sheet restructuring OR
alternatively PIA may be tasked to present their quarterly progress before Cabinet
Committee on Reforms (CCIR) for review.
ii) Balance sheet restructuring is the biggest ticket item for public exchequer as for as
PIA restructuring process is concerned. In this regard, an earlier decision is of much
significance as financial projections have been made assuming that the process will
be completed by the end of year June 2021. To this end, Aviation Division may
finalize the proposal and initiate summary for ECC in due course with beforehand
consultation with Finance Division as Finance Division has to take up the matter
with IMF in the first place.
iii) Whereas it is important that Aviation Division being the administrative Division
maintains an oversight over PIA performance, it is equally important that company
should operate as an autonomous corporate organization. Therefore, PIA Board
should be allowed to act in an independent manner for the best interest of the
company with little lateral interferences. Administrative reorganization that
includes appointment of a Chief Commercial officer and experts in aviation
industry, may be necessary in light of the lean and focused Business opportunities.
Expensive office spaces and residential accommodation at stations from where the
PIA is withdrawing itself should be immediately disposed of. Health insurance in
place of the PIA provided facilities and the existing reimbursement system would
minimize the abuse and inflation of medical expenses. Other opportunities for cost
savings through robust internal controls and automation should be explored.
iv) As stated earlier, procurement through lengthier PPRA-prescribed procedures puts
PIA in disadvantageous position in comparison to its competitors. This is especially
true in case of narrower windows of opportunity requiring immediate decisions. In
order to acquire necessary agility to respond to market dynamics, it is imperative
that PIA, with the approval of Board, should adopt an alternate procurement
manual. However, if the same could not possible due to legal reasons, PPRA Board
may consider the case and recommend appropriate exemptions/relaxations to fulfil

392
 PIA needs. In the absence of procurement and hiring & firing flexibility, the success
chances of the instant bailout package are slim.

Decision
67. A summary containing the Restructuring Report recommendations was presented
before and approved by the ECC on 31st March, 2021.
68. The Cabinet discussed the minutes of ECC on 27th April, 2021. The Cabinet took note
of the presentation by the Adviser to Prime Minister on Institutional Reforms & Austerity and
directed the Aviation Division to move a summary for the Cabinet, after incorporating the
views of all the stakeholders for formal approval of the Restructuring Plan, as amended in light
of the observation of the Minister for Finance & Revenue.

Current Status
69. Further action is to be taken by the Aviation Division.

393
 Annexure I: Amortization Schedule as per Proposed Restructuring
Re-payment Timelines

(Amounts in Billion Rs.)

As
on
Descripti 30- Immedia 202 202 202 202 202 202 202
on 9- te 0-21 1-22 2-23 3-24 4-25 5-26 6-27
202
0

GoP
Guarantee 201.8 - 45.6 41.0 41.8 48.4 16.1 7.2 4.2
d Loans

Loans
55.6 55.6 - - - - - - -
from GoP

Loans on
PIA
52.9 0.4 12.2 22.0 16.0 6.6 - - -
Balance
Sheet

Markup 16.1 16.1 - - - - - - -

Total
Loans
326.4 72.1 57.8 62.9 57.7 55.1 16.1 7.2 4.2
and
Markup

Payable
16.4 16.4 - - - - - - -
to PSO

Payable
86.7 86.7 - - - - - - -
to CAA

Taxes
14.7 14.7 - - - - - - -
payable

Total
Payables
to GoP 117.8 117.8 - - - - - - -
Institutio
ns

VSS 12.9 12.9 - - - - - - -

Total
GoP
Equity 457.1 202.8 57.8 62.9 57.7 55.1 16.1 7.2 4.2
Conversi
on

Immediate cash flow requirement against equity conversion of Rs.457.1 billion (reflected
above) will be as under:
394
 (Amounts in Billion Rs.)

Equity Cash
Description Remarks
Conversion Outflows

GoP Guaranteed These will be repaid as per

201.8 0
Loans amortization schedule

Loans from GoP 55.6 0 This will be book entry

Loans on PIA Remaining will be repaid as

52.9 0.4
Balance Sheet per amortization schedule

Remaining markup is accrued

Markup 16.1 2.5 on GoP loans and will be book
entry

This is subject to agreeing of

Payables to GoP
117.8 0 CAA, PSO and FBR to waive-
institutions
off receivables.

VSS 12.9 0 Already approved by GoP

Total 457.1 2.9

395
 Annexure II: PIA Balance Sheet after Proposed Restructuring
(Page 1/2)

As on 30thSeptember 2020
Bad/
Good PEC Financial
Outsourc Tot
ASSETS (retain (carv restructuri
e* al
) e out) ng
(carve out)
(Amounts in Billion Rs.)
PPE 82.6 0.9 0.0 - 83.5
Intangible 0.3 - - - 0.3

82.9 0.9 0.0 - 83.8

PIAIL - - - 4.4 4.4

SRL - 0.0 - - 0.0
Others 0.2 - - - 0.2
Long Term Investment 0.2 0.0 - 4.4 4.6
Deposit & Prepayments 5.9 - - - 5.9

Total Non-Current Assets 88.9 0.9 0.0 4.4 94.3

Stores & Spares 2.4 0.4 0.1 - 2.9

Trade Debts 14.8 0.3 0.4 - 15.6
Advances 1.6 - 0.1 - 1.6
Trade Deposits & Short
2.5 0.0 - - 2.5
Term
Other receivable 8.8 0.2 0.1 - 9.0
Short-term investment 0.0 - - - 0.0
Cash & Bank Balance 8.6 - - - 8.6
VSS Cash Payment 12.9 12.9
Total Current Assets 51.6 0.9 0.7 - 53.2
147.
Total Assets 140.6 1.8 0.7 4.4
5

*This includes FSD & TGS. Further Base Maintenance of Engineering will be included in
this after finalization.

396
 Annexure II: PIA Balance Sheet after Restructuring (Page 2/2)

As At 30-September-2020

Bad/
Out Financial
Good PEC
LIABILITIES & EQUITY restructurin Total
(retain) source (carve out)
g
(carve out)

(Amounts in Billion Rs.)

Loans from financial

- - - 201.8 201.8
institution (GoP guaranteed)

Loans from GoP - - - 55.6 55.6

Loans from financial

institution, non GoP
- - - 52.9 52.9
Guaranteed (Secured via PIA
Assets)

Total Loans - - - 310.3 310.3

Markup on Loans from GoP - - - 13.6 13.6

Accrued Interest – Others 7.7 - - 2.5 10.2

Total Loans (including

7.7 - - 326.4 334.1
Markup)

Trade & others payables

CAA - - - 86.7 86.7

PSO - - - 16.4 16.4

Taxes - - - 14.0 14.0

Others 68.5 3.7 2.1 - 74.3

Total Trade & Other

68.5 3.7 2.1 117.1 191.4
Payables

Total Loans & Trade

76.2 3.7 2.1 443.5 525.5
Payables

Deferred Liabilities -
37.2 1.1 1.6 - 39.9
Employee Benefit

Deferred Liabilities - Leased

2.0 - - - 2.0
Aircraft Re-delivery

Advance from PIAIL (Incl.

- - - 8.1 8.1
markup)

397
Lease Liability & Others 21.5 - - 0.7 22.2

60.7 1.1 1.6 8.8 72.2

Total Liabilities 136.9 4.8 3.7 452.3 597.7

Issued, subscribed and paid-

52.3 - - - 52.3
up share capital

Reserves 4.4 - - - 4.4

Surplus on revaluation of
19.2 - - - 19.2
PPE-net

VSS Equity 12.9 - - - 12.9

Accumulated losses (85.2) (3.0) (3.0) (447.9) (539.0)

Total Shareholder Equity 3.7 (3.0) (3.0) (447.9) (450.2)

Total Equity & Liabilities 140.6 1.8 0.7 4.4 147.5

Net Equity (Retain) 0.7

398
 Annexure III: Implementation Timelines of immediate Initiatives
Timeline/
Sr. Initiative Responsibility Remarks
Completion Date

Financial Restructuring Plan Tentative (to be agreed with stakeholders)

• Ministry of Meeting of
Finance Committee to
1. Finalization of Plan 5-1-2021 finalize the plan is
• Aviation Division
convened on the
date
• PIA Management

Approval of Plan by PIA • Aviation Division

2. 18-1-2021
Board
• PIA Management

Initiation of summary for ECC

3. after stakeholders’ • Aviation Division 22-1-2021
consultations

Decision of ECC and 27-1-2021/ Indicative

4. • Cabinet Division
ratification by Cabinet timelines
2-2-21

• Finance Division In anticipation of

Signing of agreement between approval of
5. • Aviation Division 8-2-2021
Finance Division and PIA proposed plan by
ECC and Cabinet
• PIA Management

• Aviation Division
Formation of Special Purpose
6. 15-2-2021 - do -
Vehicle
• PIA Management

Book adjustments, immediate

7. cash payments, issuance of • Finance Division 25-2-2021 - do -
instruments etc.

• Aviation
Decision by CAA and PSO Division/CAA
8. Boards regarding waiving PIA 25-2-2021 - do -
liabilities • Petroleum
Division/PSO

Organizational Restructuring Plan

9. Voluntary Separation Scheme • PIA Management 31-12-2020

• Tendering to
complete by 31-
Outsourcing food services at 12-2020
10. • PIA Management
Islamabad and Karachi
• Outsourcing to
take effect by
31-3-2021

• Tendering to
Outsourcing of Technical
11. • PIA Management complete by 31-
Ground Support
3-2021

399
 • Outsourcing to
take effect
before 30-6-
2021

Outsourcing of Base
12. Management Engineering • PIA Management 30-6-2021
Department

Transfer of Precision • PIA Management

13. Engineering Complex to 30-6-2021
• Ministry of
Ministry of Defense
Defense

14. Closure of SpeedEx • PIA Management 31-12-2020

2021

Replacements of old aircrafts (As per lease

15. • PIA Management expiry of 8
with recent vintage ones
aircrafts during the
year)

Network expansion through

16. • PIA Management Ongoing
code sharing arrangements

Other Issues

17. Review of Aviation Policy • Aviation Division 30-6-2021

• Aviation Division
Review of Air Services
18. Agreements (ASAs) with other • Foreign Office 31-3-2021
countries
• CAA

Negotiations with EASA for

complete or provisional lifting • Aviation Division
19. 31-3-2021
of ban on PIA from European
• CAA
routes

400
 Annexure IV: Implementation Timelines of Restructuring plan
202
2020 2021
2

RESTRUCTU
S
RING Q4 Q1 Q2 Q3 Q4 Q1
r.
MEASURE

- Acceptance of
VOLUNTARY offers Another Scheme
Offer to
SEPERATION - Separation of in consultation
1 Employe
SCHEME employees after with legal
es
(VSS) receipt of funds counsel
from GoP

Closure
Layoff of 3rd
CLOSURE OF of Settlement of
2 Party
SPEEDEX operation Dues
Employees
s

OUTSOURCIN - Technical - Shortlisting the

Tenderin
G OF FOOD Bids Evaluation final Vendor
g for
SERVICES - Financial Bid - Contract
3 Outsourc
DIVISION Evaluation for Negotiation
ing is
(FSD) AT shortlisted - Award of
Done
ISLAMABAD parties Contract

- Tenders for
JV / O&M JV/O&M
- Tendering for
CONTRACT Contract - - Shortlisting
Valuation of Award
OF FOOD Technical Bids the final
PIA of
4 SERVICES Evaluation Vendor
Equipment. Contrac
DIVISION - Financial Bid - Contract
- Finalization t
(FSD) AT Evaluation for Negotiation
of Valuation
KARACHI shortlisted
parties

TRANSFER OF
- Finalization of
PRECISION Re- Finalization of Transfe
Valuation
5 ENGINEERIN Appointment of Terms of r to
- Hiring of Legal
G COMPLEX Consultant Transfer MoD
Consultant
(PEC) TO MoD

- Award of
- Financial
JV / O&M Contract for
Model by
CONTRACT valuation
Tendering for Consultant - Contract
OF -Valuation
Valuation of - PPPA Negotiation
6 TECHNICAL Finalization
PIA Approval - Award of
GROUND - Initiation of
Equipment. - Tenders for Contract
SUPPORT process for
JV / O&M
(TGS) Hiring of
Contract
Consultant

JV / O&M - Financial
CONTRACT - Award of Model by
OF Tendering for Contract for Consultant - Contract
BASE Valuation of valuation - PPPA Negotiation
7
MAINTENAN PIA -Valuation Approval - Award of
CE OF Equipment. Finalization - Tenders for Contract
ENGINEERIN - Initiation of JV / O&M
G process for Contract

401
 Hiring of
Consultant

REPLACEMEN
- Selection of - Award of
TS OF 8 Tenders
Evaluation of Fleet & Vendor Contract - Replacement
8 NARROW Publicati
Bids - Contract - Replacement of Aircraft
BODY on Done
Negotiation of Aircraft
AIRCRAFTS

NETWORK This process of exploring New Markets & Code Sharing Agreement is a
9
EXPANSION continuous process.

402
3. Pakistan Railways (PR)

403
A comprehensive roadmap of reforms, complete with timelines, was developed in consultation
with Pakistan Railways. The plan was shared with Pakistan Railways in July 2020 which, after
the requisite inter-ministerial consultations, initiated a summary in end September 2020 and
submitted the same for consideration of the Cabinet.

Background
1. Pakistan Railways (PR) is one of the largest public sector enterprises in Pakistan. It is
a behemoth that currently employs 68,750 people all over the country and for the financial year
2018-19 it had a total budgetary outlay of Rs. 87.3 billion. The organization is still governed
primarily by the Railways Act of 1890 enacted by the British government. PR currently
maintains about 11,700 KM of track and operates 480 railway stations. It has 468 locomotives
and 1214 functional passenger wagons.
2. Since independence, PR has had a checkered history. There is no doubt that PR has
great strategic value for the nation. In fact, PR played a very important role in the early
economic development of the country. However, over the last few decades the organization
has seen a major slump in performance and in recent years it has become one of the largest
loss-making entities in possession of the government of Pakistan. 2011-12 marked the lowest
point in the history of Pakistan Railways. Since that time the performance has improved
slightly. However, fundamental reforms are urgently needed to turn around the organization.
During the year 2018-19 Pakistan Railways generated a total revenue of 54.5 billion and
received a subsidy of 32.8 billion from the Federal Government to cover for its losses. The
pension liability is the single biggest problem facing the organization with Rs 31.3 billion spent
on pensions during the year 2018-19. Expenditure on salaries and pension alone constituted
67% of the total expenditure in 2018-19.
3. The international best practice in railways all over the world is to encourage the
participation of the private sector. Japan is widely agreed to have the most efficient railway
system in the world and its railways ecosystem is completely dominated by private companies.
The eventual long-term goal should also be the same in Pakistan. However, the first step in
achieving this goal is to make PR profitable and efficient. There are examples where railways
are being run efficiently in public sector. The best example is Deuthce Bahn AG in Germany
which is one of the largest transport companies in the world. There are also good examples in
our neighborhood. Indian Railways and China Railways are two public sector organizations
that have much better performance as compared to Pakistan Railways. Valuable lessons can be
learned from these organizations. This report recommends immediate reforms in five critical
areas for immediate improvement in performance of PR.

Immediate Reforms

I. Governance, Organizational Restructuring and Management

4. Appointment of the General Manager, Pakistan Railways: There is a critical need to
reform the office of the GM/CEO Pakistan Railways. This office is the single most important
office with regard to the performance of the organization. The appointments to this office
should be done meticulously. As per existing rules, all existing BPS-21 officers of PR are
eligible for this post and the appointment is done by the Prime Minister’s office. Unfortunately,
the routine has been to appoint the senior most officer of PR in BPS-21 to this post who is
usually retiring in a few months. This policy has had significant adverse effects on the
performance of the whole organization. An officer nearing retirement has no motivation or
energy to deliver. They also have no incentive to take risks, make hard decisions or promote
404
reforms. Any officer appointed as GM/CEO should at least have 2 or more years of service
remaining. The ultimate goal is to amend the law and open up the position of CEO/GM to
competent individuals with integrity, outside the Railway service.
5. Furthermore, the appointment of GM/CEO should be done through a thorough
screening and interview process in which all eligible officers compete. A high-level panel
should interview the short-listed candidates who will be required to make a presentation on the
strategy to operate the PR and make it financially viable. The selection process for the CEO
should be initiated at least 3 months prior to the retirement of the incumbent. The selection
committee should rank each candidate on the following parameters:
a) Past Service Record as reflected by PERs and Trainings records 40%
b) Past Professional Experiences 20%
c) Performance at the Interview 40%
6. Performance Management of CEO/GM: The GM should be appointed for a period of 2
years with the option of one-year extension in case of excellent performance. Upon
appointment each CEO should sign a performance contract with the Railways Board which has
been pre-approved by the Cabinet. The performance contact should have clear indicators with
concrete quantifiable quarterly targets. Revenue targets for each revenue stream will form the
integral part of this performance contract. Other indicators can include safety records, new
reforms, passenger satisfaction surveys etc. The Railways Board should evaluate the
performance of the CEO each quarter. In case the performance targets are not met, the board
should censure the CEO and give him one more quarter to improve performance. In case the
targets are again not met in the second quarterly meeting, the Board must recommend
termination of services and early retirement of the CEO to the Cabinet. There should be no
exceptions to this rule.
7. Operational Autonomy for GM: The GM PR should be given operational autonomy to
perform his/her functions. There should be no interference from the Railway Board or the
Ministry. The Railways Board and Ministry should only oversee performance of the CEO and
undertake policy formulation. The CEO/GM should not be called to the Ministry or by the
Board for any meeting more than once every quarter.
8. Reforms in Office of GM/CEO and Pakistan Railways Head Quarter: The restructuring
plan for Pakistan railways that has already approved by the PM should be fully implemented
in the timelines already communicated. The CEO should be encouraged to utilize expert
technical human resource through hiring of experts. In this regard the Ministry is in process of
hiring of 4 technical advisors in MP1 scale for the Pakistan Railways HQ. More details are
given in the Appendix A.
9. Composition and Functions of the Railway Board: Currently the Railway Board has 7 ex-
office members and 3 members from the private sector. Out of the 3 current private members,
2 are retired civil servants. There is a need to immediately reconstitute the board and replace
all the private members with eminent private sector leaders. Amendments in relevant laws to
increase the number of private sector members to at least 5 including an expert from each of
the following sectors is also recommended.
i. Delivery companies like TCS, DHL etc.
ii. Hospitality sector
iii. Airlines

405
 iv. Land passenger transport
v. Leading IT entrepreneur
10. The primary function of the board should be to monitor, guide and evaluate the
performance of the management, recommend policies and approve the annual budget and
audited financial statements.
11. Role of the Ministry and Secretary: The Ministry should only be involved in policy
formulation for PR, liaison with the ministries and the agencies, legislative and Cabinet
matters, international linkages etc. The Ministry should not be involved in the day to day
operations of the PR and it should be refrained from unnecessary interference. In fact, it should
only interact with PR through the Railway Board. In order to effectively perform policy
formulation, the Ministry should have specialists in human resource management, finance and
ICT. A seat for Technical Advisor in MP1 should be immediately created in the Ministry. The
Technical Advisor may be given one more additional support staff in MP-II scale for assistance.
The TA should perform the lead role in policy formulation under the guidance of the Minister,
Secretary and the Board. The implementation of the policy should be done through the Railway
Board.

II. Operational Efficiency

12. Separating PR into constituent companies: In order to improve operational efficiency
and management, it is necessary that Pakistan Railways should be divided into the following
separate companies i) Freight Traffic Management Company (ii) Passenger Traffic
Management Company (iii) Infrastructure Management Company (iv) Rail Traffic Regulatory
Authority and (v) an independent ML-1 authority. The Ministry is already working on a
restructuring plan and it should be completed within 4 months. More details are provided in
Appendix A. PR has become a huge monolith consequently an ungovernable enterprise. The
separation into these constituent units will make management drastically easier and yield
immediate improvements in efficiency. The proposed organogram is shown in the Appendix
B. As ML-1 is a multi-billion-dollar project under CPEC, it is not covered in this report except
that an independent body should implement the project. Similarly, Karachi Circular Railway
project is excluded from this report.
13. Safety Measure: As the present state of railway track is in a bad shape, causing a number
of accidents, PR has introduced a comprehensive new ‘Safety Audit Regime’. In addition, work
has been started for immediate repairs to the vulnerable points, convert the un-manned gates
into manned gates and do public awareness campaigns to improve safety. For the first time a
high level quarterly workshop for the top management of PR about improvements in safety and
security standards has also been started. IT based monitoring coupled with warning sirens and
lights are being introduced to prevent future accidents on crossings. Illegal crossings are being
removed. In the aftermath of the Tezgam tragedy, a comprehensive new fire safety regime has
also been initiated. Capacity building of staff for improved safety standards has also been
initiated. Railway Police also needs to be modernized and converted into a smart policing unit
to detect, enforce and impose penalties on violators. More details are provided in the Appendix
C. With the separation of the regulatory functions from the operations and with the formation
of an independent Railway Traffic Regulatory Authority (RTTA) the inspection regime would
be become effective as the regulator would have the powers to identify and enforce safety
standard and impose penalties against the officials found responsible for the negligence in duty
in ensuring safety. The key performance indicators of Divisional staff will have due weight
given to safety of operations based on defined parameters.

406
14. Digital mapping of all manned, unmanned and unauthorized crossings with GPS
coordinates and solar operated automatic public warning systems at unmanned level crossings
will also improve safety and security of train operations.
15. The Provincial governments and district administrations are being approached to build
underpasses/overhead bridges to eliminate unmanned/manned level crossings and eradicate
unauthorized crossings.
16. Outsourcing to Private Sector: In the immediate future the PR should make maximum
use of the private sector operators. Train operations for both freight and passenger traffic should
be outsourced to private companies as ample demand for this exists. Previous ventures in this
regard were profitable for both the private companies and PR. However, learning from past
experiences, legal contracts for such collaborations should be carefully drafted and effectively
enforced so as to prevent litigations. All commercially viable routes should immediately be
handed over to the private sector. PR plans to outsource 15 passenger trains to private sector in
the near future. This should be done along with freight trains. This first stage should be
completed as soon as possible and the progress be reviewed by the Cabinet. Next stage is to
develop the capacity for carrying containerized freight for which PR has to improve port
connectivity and develop terminals for containerized traffic. The Ministry is working with the
Maritime Affairs Ministry to divert this traffic towards Railway and help generate additional
revenues.
17. Track access regime should be revived to allow for third party access to railway lines. The
project underway for this purpose needs to be operationalized at the earliest. Private sector
should also be encouraged to take over workshops and track and train maintenance.
18. Electric Trains: Fuel costs are about 16 Billion per year for Pakistan Railways. The recent
low oil prices can be used to hedge future oil purchases. This can significantly reduce the
operational costs for the next few years. However, in the long term there is a need to fully
transition to HV electric lines and electric powered locomotives since they are more efficient
and very environmentally friendly. In India 61.62% of the routes are electrified with 25 kV 50
Hz AC and they plan to run 100% of trains on electricity by 2024. Due to the recent completion
of several energy projects under the CPEC, there is excess capacity in our power system. PR
can directly work with IPPs which have large amount of idle capacity available with them.
There should be a 10-year plan to transition completely to electric trains by 2030. 10%
electrification of system should be ensured each year. This initiative can become an important
project in PM’s vision for clean and green Pakistan.

III. Financial Sustainability

20. Table 1 below shows the current revenue position of PR:
TABLE I: Financial Situation of PR

Description Actual Revenue in Billions for 2018-19

Passenger Receipts 28.6

Freight 18.8

Total Sundry 4.5

Others 2.6

407
 Revenue per passenger train 0.498 million

Revenue per freight train 2.72 million

Total 54.5

20. There is a clear room for significant improvements in revenue by shifting focus from
passengers’ trains to freight trains. Passengers trains on average need 85% occupancy just to
break even on costs whereas freight trains are always profitable. Average revenue per freight
train was 2.72 million last years as compared to 500,000 per passenger train. Freight traffic
accounted for 35% of total revenues in 2018-19 even though only 11 freight trains were running
daily as compared to 114 passenger tarins. Excess demand for freight transport exists that can
easily be met by increasing the number of freight trains. The number of daily freight trains
should be increased to 20 by the end of 2020. This can be achieved by setting the minimum
number of passenger carriages on each passenger train to 18. Currently this number is 12 which
is much lower than the effective usage rate. PR should target 40 daily freight trains by end of
2021.
21. All freight transport should be managed by Railway Freight Transportation Company.
Transport of oil and coal from Karachi port is one area that has a lot of potential. Cargo
transport to the SEZs, dry ports and Afghan border can be another game changer. With the
operationalization of CPEC, the freight transport demand will increase exponentially and it can
single handedly make PR a profitable enterprise. Terminal Facilities should be improved for
this purpose. A Marketing specialist should be immediately appointed for soliciting freight
business for the PR.
22. Income through Land Utilization: Utilization of land assets of Pakistan Railways can make
a significant contribution in improving the financial health of the organization. Pakistan
Railways has prime commercial land on either side of its tracks passing through the major
cities. Table II below shows the details.

TABLE II: Land in Possession of PR

TOTAL AREA AVAILABLE ESTIMATED

CITY RAILWAY AREA (free from litigation VALUE (in
(in Acres) or encroachment) Millions)

Karachi 6384 12.41 1312

Lahore 3610 9.96 1052

Rawalpindi 2674 7.86 831

Peshawar 437 1.92 203

Total 13,105 32.15 3398

23. As detailed above more than 99% of railway land is under encroachment or litigation. This
is a very unfortunate state of affairs and needs urgent and strict action. Up to 20 feet of land
along the tracks adjacent to major roads can be easily utilized for commercial activities like

408
smart markets, advertisements, billboards etc. These activities should be fully outsourced to
private sector on PPP model or leasing. This land use policy will have the further advantage of
preventing trespassing on tracks and permanently stop encroachments. This initiative alone can
bring tens of billions of rupees in monthly rental revenue to Pakistan Railways. Computer based
land management system (PRLMIS) and a leasing system is being developed by PR and should
be fully implemented by the organization. A project management unit is being established to
ensure that a dedicated permanent unit, staffed by senior officers of PR, manages and utilizes
railway lands. This unit should eventually be converted into an independent railway land
management company staffed by PR employees. In this regard consideration may be given to
revive and revitalize the dysfunctional Railway Estate Development and Marketing Company
Limited (REDAMCO) maybe revitalized. The highly commercial lands in major cities like
Karachi, Lahore, Rawalpindi, Peshawar and Quetta which are free from encroachments should
be utilized in the first phase.
24. Railway Stations as Commercial Hubs: The PMU established for real estate management
should explore various PPP and JV partnership models with the private sector to upgrade the
major stations into commercial hubs. High quality hotels should also be established through
PPP in the vicinity of all major stations. The immediate target should be to initiate PPP/JV for
Karachi and Lahore stations. Dedicated and specialist manpower should be in charge of these
endeavors. It is very important that in all these PPPs and JVs, the legal contracts and agreements
be meticulously drafted to prevent future litigation. It is therefore essential that the PR hire and
maintain an eminent legal firm on retainer ship basis to manage all such contracts.
25. Cost Control through reduction of Pension Liabilities: On the cost side, pension
liabilities constitute 36% of total expenditures and are becoming unsustainable. There are
currently 123,673 pensioners of PR with a bill of 34.8 billion. This liability will exceed Rs 50
billion within the next few years. PR has completed the biometric verification of all pensioners.
However, there is an urgent need to review the liberalized pension rules of 01-07-2015 to
restrict benefits to widows of pensioners only. PR cannot afford to repay the existing pension
liabilities from its own resources and therefore it is recommended that the GoP takeover these
existing liabilities and pay them through the annual subsidy allocated to PR. No further subsidy
should be given to the organization. For future liabilities PR should immediately establish a
pension fund on the same model as the Pakistan Post pension fund and transition to a defined
contribution pension plan.
26. Immediate freeze on all permanent employment: It is critical that there should be an
immediate freeze on all new permanent employment in Pakistan Railways without any
exceptions. New employees should only be hired on contract basis and this contractual
employment should be given legal cover through relevant rules so that these employees cannot
be regularized in the future. All non-technical posts that have remained vacant for more than
one year should immediately be abolished.
27. Interventions for cost checking and voluntary retirement scheme: Future liabilities can
further be reduced by enforcing an effective carrot and stick policy. It is common knowledge
that absenteeism is quite rampant in PR especially at the landed facilities like the workshops.
Using latest IT and biometric techniques including CCTV absenteeism can be effectively
detected and should automatically lead to significant pay deductions. In complement to these
interventions an attractive golden handshake scheme for early retirements should be
introduced. Considering the long-term impact of pension liabilities, packages up to 5 million
may be justified to make this scheme attractive. IT systems should also be deployed to check
oil pilferages and fictitious maintenance works.

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28. Welfare and Special Initiatives department, which has many non-core activities such
hospitals, dispensaries and schools, should be wound up and these non-core activities be
outsourced to the other relevant government departments, private sector or NGOs.
29. Reorganization of Territorial Operating Divisions reorganization: The present job
description of the Divisional Superintendent should be revised and revisited so that they can
focus on efficiency of operations such as punctuality, service delivery, safety, customer
facilitation and convenience on board and off board. They should not be burdened with non-
core activities such as marketing and load management which ought to be handled by
specialists.
30. Manufacturing Facilities: The Pakistan Locomotive Factory, Risalpur, Moghalpura
workshops, concrete sleeper factories should be evaluated in terms of their manufacturing and
repair capacity, human and technical resources and financial and managerial processes to
determine if they can meet current and future requirements of Pakistan Railways. Transfer of
technology through joint ventures with foreign companies may be explored as an option.

IV. Human Resource and Capacity Building

31. The present working strength of Pakistan Railways is 68,750. It is proposed that through
retirement and outsourcing this strength should be reduced to 58,950 in next three years.
32. Specialist Human Resource: Specialists recruited by the Ministry should carry out an
audit of the human resource requirements under the proposed restructuring plan and identify
the skill gaps and redundancies. The redundant staff should be placed in a surplus pool and the
vacancies caused by their exit should be abolished. Permanent employments at all tiers should
be immediately banned throughout the organization and all future appointments in PR be made
on contractual basis.
33. The recruited human resource specialists should also develop new human resource policies
for the organization from induction and recruitment to training, performance management,
career planning, compensation and benefits, severance and retirement and make these policies
transparent.
34. Reforms in Training: The Railways Training Academy in Walton used to be one of the
world class training institute for Railways. However, the standards at the academy have
deteriorated significantly over the last few decades. The training modules are mostly outdated.
As an example, the driving courses still focus on manual locomotives even though most of the
engines now being used are electronic and use latest gadgets like EFI systems. Such courses
need to be completely redesigned. There is a need to immediately reinvigorate the institute and
reform it. The training institute should be given resources, autonomy and capable leadership.
Linkages with leading national and international universities should be developed. An external
performance audit of the training institute by a reputed national/foreign institute should be
performed within the next six months.
35. Abolishment of Railway Cadre: PR currently has three streams of officers a) Civil
Engineering b) Mechanical Engineering c) Traffic and Commercial. Direct recruitment
through FPSC is done for the Civil and Mechanical Engineering streams. Officers for the
Traffic and Commercial stream are recruited through CSS. There is no justification for this
anomaly. In fact, such differences in recruitment processes create unnecessary hurdles in
achieving organizational unity. Therefore, it is recommended that the railways cadre in CSS
exam should immediately be abolished. All recruitment of officers in PR should be done
directly through FPSC. This reform will have the further advantage of introduction of much
needed specialists in the traffic and commercial stream. Officers already in the Traffic and
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Commercial cadre would continue to serve according to the terms and conditions under which
they were recruited.

V. Automation and Digitization:

36. Automation of PR: Pakistan Railways has recently made considerable progress in
automation of business processes and utilization of ICTs. In this regard IT systems have been
developed for e-ticketing, earning and accounting, court case management, customer’s
registration etc. Work is also being done on IT based operational support systems including
toll and fuel management, safety management, freight traffic, rolling stock maintenance, e-
office, HRMIS, e-procurement and more.
37. In parallel to the above, there is an immediate need to implement a high-quality
organization wide enterprise resource planning (ERP) system in PR to better manage the
business functions and integrate all the above-mentioned operational support systems. Such an
integrated system is critical for improved human resource management, business intelligence,
financial management, inventory and customer facilitation. This project should be completed
within 6 months.
38. There is also a critical need to develop online decision dashboards for all the top executives
of the organization and the Ministry. These dashboards will provide real-time IT based
monitoring of all trains, tracks, stations, inventories, assets, cash flows etc. The dashboards
should be customized to facilitate decision making at each operational tier. These IT systems
should be operationalized within 6 months.

Conclusion and Recommendations

39. In conclusion, there is room to significantly improve performance of Pakistan Railways
in the near future. Immediate targeted interventions can yield great results. In the long term,
the privatization of railway sector should be the main goal of the government. The major
recommendations to improve performance in the short term are again reiterated as under.
Governance Reforms

Sr. Recommendations Timeline

1. The selection process for the new GM PR should be 30.09.2020

immediately initiated and completed at the earliest.

2. GM Pakistan Railways should be appointed through a Ongoing

meticulous process and given complete operational autonomy.
The selected candidate should at least have 2 years of service
left after the date of his appointment.

3. The GM should be appointed for an initial period of 2 years Ongoing

and on appointment he/she should sign a performance contract
with the Board with quarterly targets.

4. Railway Board should perform vigorous performance appraisal Ongoing

of the GM and his management team. In case performance
targets are missed for two quarters, the services of the GM
should be terminated.

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5. Railway Board and the Ministry should not interfere in day to Ongoing
day operations of Pakistan Railways.

6. Railway Board should be reconstituted by inducting private 30.01.2021

sector experts in business, logistics, finance, legal advisory etc.

7. The appointment of 4 technical experts in MP1 scale in PR HQ. 30.10.2020

8. A seat for Technical Advisor to the Minister in the ministry 30.12.2020

should be created and an expert appointed.

Operational Reforms

Sr. Recommendations Timeline

1. PR should be separated into 5 constituent companies for better 30.12.2020

management.

2. A new Safety Audit Regime has been introduced. Immediate Initiated and to
repairs to the railway tracks, converting unmanned gates to be completed by
manned facilities, digital mapping of crossings, automatic 30.03.2021
warning systems and incorporation of other safety measures
have been initiated.

3. Track access regime should be restarted. 30.12.2020

4. Fuel price hedging options may be explored considering the Ongoing

currently low oil prices.

5. Complete transition to electric trains and lines should be 30.06.2021

targeted by 2030, with a 10% electrification target each year.
and
30.06.2030

6. Private sector should be encouraged to run trains, maintain 30.9.2020

lines and operate stations. All commercially viable routes
should be immediately handed over to private sector. 15
passenger trains and 2 freight trains should be outsourced.

7. All commercially non-viable routes that are needed for socio- 30.9.2020
economic reasons be immediately identified and approved from
the Cabinet. All other financially non-viable routes should
immediately be closed. This exercise should be completed in
two months.

8. PPP and JV agreements should be drafted with assistance from Ongoing

eminent legal firms which may be hired on retainer basis.

9. Railway police needs to be reformed and converted into a smart 30.12.2021

and specialized policing unit.

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 Financial Reforms

Sr. Recommendations Timeline

1. Freight transport should be given primary importance by 30.12.2020 and

Pakistan Railways. The number of daily freight trains should be 30.12.2021
increased to 20 trains by end of 2020. This number should
further be increased to 40 by end of 2021.

2. Freight Transportation Company should be empowered to Ongoing

manage all freight traffic and it should focus on transport of oil,
coal, and cargo traffic bound for SEZs, dry ports and Afghan
border. It should also upgrade its terminal facilities.

3. A marketing specialist should be immediately appointed for 30.10.2020

soliciting freight business for the PR.

4. All encroached lands should be got vacated through assistance Ongoing

of the Supreme Court.

5. A dedicated land management unit should be established to 30.01.2021

utilize railway land assets and a computerized land
management system be made operational.

6. PPPs and JVs should be explored to utilize the railways land. 30.03.2021
Railway stations should be transformed into commercial hubs.
Work on upgradation of Karachi and Lahore stations through
PPP/JV should start by March 2021. Up to 20 feet of railway
track land adjacent to major roads in all cities should be
developed for commercial purposes including shops, billboards
etc. and work in this regard be initiated by March 2021.

7. Government of Pakistan should immediately take over the Immediate

current pension liabilities of PR and pay them through the
annual subsidy given to the organization.

8. PR should establish a pension fund on the model of Pakistan 30.08.2020

Post and transition to defined contribution pension model.

9. All non-core activities of Welfare and Special Initiative 30.06.2021

Departments should be outsourced.

10. There should be an immediate and complete freeze on all Immediate and
permanent employment in the organization. All new Ongoing
employment in Pakistan Railways should be on contract basis
only.

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 Human Resource and Capacity Building Reforms

Sr. Recommendations Timeline

1. The current working strength of PR should be reduced to 01.08.2023

58,950 in three years

2. Human resource specialists should immediately be hired by the 30.09.2021

Ministry to perform an audit of the human resource
requirements of the organization and then draft a
comprehensive human resource management policy for the PR.

3. An attractive golden handshake scheme should be introduced to 30.3.2021

reduce future pension liabilities.

4. The Railway cadre in CSS should be abolished and all direct 01.01.2021
recruitment of officers in PR should be done directly by FPSC.

5. The Railway Training Academy in Walton should be 30.12.2021

immediately be reformed and completely revitalized. External
performance audit should be conducted.

6. Job descriptions and organograms of Divisional 30.03.2021

Superintendents should be revised

7. Third party capacity audit of manufacturing facilities should be 30.03.2021

conducted

Automation Reforms

Sr. Recommendations Timeline

1. Attendance of existing staff should be ensured through latest IT 30.03.2021

and biometric techniques like CCTV. Absenteeism should be
penalized through automatic hefty pay deductions.

2. Automation and use of IT in PR should be the cornerstone of 30.01.2021

any reform process. A state-of-the-art ERP system and IT
monitoring systems with dashboards be deployed in six
months.

DECISION
The Cabinet in its meeting held on 27th October 2020 approved the Railways Restructuring
Plan with the following stipulations: -
a) The issue of transfer of pension to GoP would be further discussed by the sponsoring
Division with the Finance Division and a mutually acceptable solution would be
presented to the Cabinet for approval.

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 b) Defined timelines for implementation of each initiative, under the restructuring and
revival plan, shall identify and include the agencies responsible for each initiative.
The Cabinet further directed that the Cabinet Committee on Institutional Reforms (CCIR) shall
regularly monitor those to obviate any delays.

CURRENT STATUS
CCIR has undertaken first review of the progress made by the Railways Division in its meeting
held on 21st January 2021.

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4. Auditor General of Pakistan (AGP) Office

416
The following package of reforms in respect of Office of the Auditor General of Pakistan was
proposed by Adviser to PM on Institutional Reforms & Austerity to the Finance Minister on
3rd October 2019.

Salient Features
1. Department of Auditor General of Pakistan (DAGP) is at present an attached
department of the Ministry of Finance unlike other constitutional bodies which are autonomous
bodies. Separation of accounts and audit has further necessitated that the audit function should
be performed independently. It is proposed that the DAGP should be made an autonomous
body with administrative and financial powers delegated to the Auditor General. DAGP
operates 32 field audit offices located across the country where about 4000 officials and staff
are serving as public auditors for all the three tiers of the government. The accounting processes
have been overhauled and two modules of an ERP, the SAP/R3 have been partially adopted.
Accounting and budgeting systems have been computerized on SAP/R3 ERP.
2. Greater operational and financial autonomy would enable the shift from transactional
audit to reports on public service delivery, timely completion, cost effectiveness and integrity
of infrastructure projects, regulatory performance and to introduce new audit methodologies
for this purpose.
3. The workforce of DAGP is presently preoccupied with maximization of audit paras,
some of which are trivial and peripheral in nature. Untrained accountability officials use these
paras for instituting inquiries and investigations and the media play up the procedural lapses
pointed out in the audit paras as financial misappropriation. It is necessary therefore that in
order to execute the new audit strategy (Para 2 above) to align skills of workforce with
expertise required to attain the goals and mission of transparency, value for money and good
governance in public sector. This can be possible if the following changes are brought about in
the entire value chain of Human Resource management policies and practices.
(i) Building capacity, upgrading of skills and professionalization of technical cadre
staff recruited by observing stringent entry standards including requirement of
professional qualifications.
(ii) A new competency framework to be administered through Continuous Professional
Development (CPD) and revision in the syllabus and assessment methods.
(iii) Performance Management System to be based on agreed objectives to be achieved
during the year with quantifiable key performance indicators.
(iv) Promotions and career progression to be driven by on-the-job performance and CPD
outcomes, Integrity and observance of code of ethics.
(v) An incentive system to reward outstanding performance.
4. Sectoral and thematic specialization among the Audit staff in critical emerging areas
such as Information Systems Audit, Debt Audit, Energy Sector Audit, Forensic Audit etc.
Teams to be headed by well trained and qualified specialists.
5. Across-the-board automation of processes, digitization of records, documents, data and
introduction of Audit Management Information System (AMIS) along with Business Process
Reengineering by carrying out the following tasks

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 (i) Bridging the gaps in FABS and SAP/R3 which has been partially implemented;
Extending Functional coverage to areas such as Asset management, Procurement
Management, Integrated Debt management and including all autonomous entities
and public sector enterprises within the SAP/R3 system.
(ii) FABS currently focuses on monthly and annual reporting and is of little value in
decision support and needs to be upgraded to provide real time or end of the day
reporting. Dash boards should be made available to the Principal Accounting
officers (PAOs) containing up to date reports and data.
(iii) a dynamic interactive web portal to be set up for use by both internal and external
users and for citizens’ complaints convenience and feedback.
(iv) Adoption of E-office suite would improve the efficiency and turnaround time of the
Auditors in preparing their reports.
(v) A Human Resource Management Information System (HRMIS) would be procured
to operate the HR system.
6. Strengthening of the technical staff supporting the Public Accounts Committee (PAC)
and the Departmental Accounts Committees (DACs).
7. Reducing the backlog and bringing the audit Cycle to completion with minimum time
lag.
8. Relocation of payment function from AGPR TO THE Ministries/Division cutting down
the long delays in Government disbursements.

Proposed Activity Plan and Timelines – Automation & BPR

Sr. Activity Duration

01 Audit Management Information System

Bidding process July 19 to Sept 19

Inception Report/ Requirement gathering/ Updation of

Oct 19 to Nov 19
BPR reports

Development of Prototype Dec 19 to Feb 20

Development And Testing of Software Mar 20 to May 20

Piloting on 03 Sites June 20 to Aug 20

Establishment of AMIS Center May 20 to June 20

Replication to All FAQS Sep 20 to Sep 21

02 Citizen Participatory Audits

2.1. Policy And Guidelines July 19 to Sep 19

2.2. Invitation, Selection and Registration of CSOS Oct 19 to Nov 19

2.3. Workshops Nov 19 to Dec 19

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 2.4. Website Development Jan 20

03 IS audit

3.1. Identification of Resources For Training July 2019 to Aug 2019

3.2. Training of Resources For CISA Certification Sep 2019 to Dec 2019

3.3. CISA Certification of 20 Officers Jan 2020 to June 2020

3.4 Approval of Incentive For CISA Qualified

June 2020
Officers

04 Forensic Audit

4.1. Identification of Resources July 2019 to Aug 2019

4.2. Creation of Forensic Audit Directorate At HQs Sep 2019

4.3. Development of One/Two Week Training Course

Dec 2019
on Forensic Audit By PAAA

4.4. First Batch of Training Jan 2020

4.5. Second Batch of Training Feb 2020

4.6. Issuance of Guidelines For Planning, Execution

Mar 2020
And Reporting of Forensic Audit

4.7. Issuance of Guidelines For Planning, Execution

Apr/May 2020
And Reporting of Forensic Audit

05 General Automation

5.1 Website

5.1.1 Finalization of User Requirements July 2019 to Aug 2019

5.1.2 Bidding Process Sept 2019

5.1.3 Development And Testing Oct 2019 to Nov 2019

5.1.4 Acceptance Testing Dec 2019

5.1.5 Go-Live Jan 2020

5.2 HRMIS

5.2.1 Finalization Of User Requirements July 2019 to Aug 2019

5.2.2 Bidding Process Sep 2019

5.2.3 Development And Testing Oct 2019 to Nov 2019

5.2.4 Acceptance Testing Dec 2019

5.2.5 Go-Live Jan 2020

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 5.3 Email Management And E-Office

5.3.1 Carryout Hardware Availability Assessment July 2019 to Aug 2019

5.3.2 Procurement of Necessary Hardware Sep 2019 to Oct 2019

5.3.3 Selection of Office Automation And Email

Nov 2019 to Dec 2019
Software

5.3.4 Automation of Pilot Wing In AGP Office Jan 2020

DECISION
9. The Cabinet at its meeting held on 12th January, 2021 accorded the approval to submit
a bill for new legislation titled "the Auditor General's (Functions, Powers and Terms &
Condition of Service) Act, 2020” and repeal of “the Auditor General's (Functions, Powers and
Terms & Condition of Service) Ordinance, 2001”. The Cabinet further directed the office of
AGP to continuously submit progress report on the reform pillars to the Cabinet Committee on
Institutional Reforms (CCIR).

CURRENT STATUS
10. Accordingly, the draft Act has been vetted by the Law Division. It will be now
submitted by the Finance Division to CCLC for approval and presentation to the Parliament
11. On the other side, the six (6) Reform Pillars are under active implementation. Audit
Management Information System for automation and Business Process Reengineering has been
piloted and the roll out is in progress. Continuous Professional Development for enhancing HR
competencies has been launched. CCIR was last briefed about the progress by the office of
AGP in its meeting held on 17th June 2021.

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5. Competition Commission of Pakistan
(CCP)

421
1. The report contained in the following paragraphs was sent by the Adviser to PM on
Institutional Reforms to the Finance Secretary on 11th March 2020 for onwards
presentation to the Prime Minister and Cabinet.

Findings
A detailed review of the Commission addressed the following set of questions

Q.1. Does the existing structure or legal framework require any change or modification
to carry out its assigned responsibilities?
Ans: The Competition Act 2010 provides and adequate legal framework for prohibiting
abuse of dominant position (Section 3), price fixing (Section 4), and deceptive
marketing practices (Section10). The law equips the CCP with sufficient authority for
surveillance, inquiries, inspections, search and enforcement of its decisions against
cartels, mafias and other market malpractices. The CCP can initiate enquiries on the
basis of a complaint, a reference or suo motto action and can make raids on the basis of
information received.

Q.2. What has been track record of CCP’s performance since its inception?
Ans: CCP has imposed penalties of Rs.27 billion between 2007 and December 2019. The
three major sectors were Telecom, Fertilizer and Cement. Rs.24 billion or almost 89
percent were imposed against these three sectors:
Rs. in Billion
Telecom: 9.0
Fertilizer: 8.6
Cement: 6.4
However, the penalties have not been recovered due to court injunctions and stay orders
and therefore the expected deterrent effect of the penalties on those found guilty of anti-
competitive behavior has remained mute.
The Commission recommended measures on sugar industry in April 2018 and
automobile industry in September 2018 to the Federal and Provincial Government but
no action has so far taken these measures.
The Commission has also recommended the establishment of Real Estate Regulatory
Authority for orderly conduct for real estate business in the country.

Q. 3. Does the Commission have the requisite human resources and expertise,
administrative and financial powers to carry out its functions?
Ans. The CCP is fully equipped in its human resource base, to carry out investigations and
inquiries. The Commissioners enjoy MPI Scales, Two of the Commissioners have
recently been selected on merit through an open, competitive process, The CCP is
financially sustainable as the Federal Government has fixed 3% as the regulatory fees
that form part of the CCP Fund. They can engage best Consultant experts in specialized
fields and sectors to supplement in- house experts. The Commission’s annual
expenditure is Rs.348 million (compared to Rs.2.9 billion for SECP) and provides room
for hiring these experts. World Bank had provided a technical assistance grant of USD
422
 500,000 for the capacity building of the staff, strengthening market research, outreach
and institutional infrastructure. In addition, the EU/ITC have developed three training
modules with the help of international experts. The Commission has professional
relationships with OECD, JICA, Korea etc.

Q. 4. Does the CCP have sufficient enforcement powers under its Act to take punitive
and remedial actions against the Cartels and Collusive practices?
Ans: The Commission has adequate powers to enter and search premises, conduct inquiries,
issue remedial orders, impose and recover penalties. While conducting inquiries it can
call witnesses, requisition records, order production of evidence. In the first three years
(2007-2010) it issued decisions in 35 cases, in poultry, cement and Haj Pilgrims flight
to Mecca. The Commission has expanded its activities banks, energy, sugar, fertilizer
and telecom. For example, in 2009 the CCP found that the Sugar mills were behaving
like a buyers cartel fixing the price of refined sugar and engaging in collusive bidding.
Show cause notices were issued to the PSMA and the member mills but they obtained
stay order from Sindh High court which restrained the Commission from issuing orders.
The case is still pending in the Court.
More recently, in December 2019, the CCP raided the premises of Pakistan Flour Mills
Association and found that the association was fixing prices of wheat flour, and
allocating production quotas to each mill in violation of Section 4 of the Act. Hearings
were conducted and a final order imposing fine of Rs.75 million was passed. The
Association immediately obtained a stay against the CCP order.

Q. 5. Why has the CCP, despite the legal and enforcement powers, human resources
and financial sustainability not been effective in cubing market abuses and non-
competitive behavior?
Ans: The major impediment has been the challenge to the Constitutional Legitimacy of the
Act itself. Firms have raised a fundamental question whether the Federal Government
has the powers to impose competition law on the provinces. The Judgement in this case
was reserved by the Lahore High court on 22nd June 2017. After the elevation of the CJ
Mansoor Ali Shah, a new full bench was reconstituted on 21st June 2019. In light of this
pending challenge all the companies penalized by the Commission have obtained
injunctions against the Commission’s orders in Courts. In all, 127 court cases are
pending adjudication before the High courts since 2009. Every new action taken by the
CCP is challenged and clubbed with the existing cases.
Another tool that is available to the CCP and which has not been properly utilized by
the Government is the policy notes. For example, the policy note issued on the
revamping of food and agriculture market structure has direct bearing on stabilization
of food prices.
The Competition Appellate Tribunal is also not functional because of vacant positions
of member since January 2019. Since then another position has fallen vacant.

Recommendations
2. The Competition Commission of Pakistan has adequate legal administrative, financial and
enforcement powers to act as a bulwark against market abuses, Cartelization and Collusive
practices and promote competition. There is no need at present to carry out any
restructuring or reorganization of the Commission. The Commission has also acquired

423
 human resources and expertise to carry out its functions and financial resources to engage
best experts in the field. However, the Prime Minister has expressed his concern that despite
the Cabinet’s decision to terminate the services of Chairperson CCP on 4th October 2018,
being void ab initio, the Chairperson is continuing to perform her functions based on a stay
order granted by the Court in November 2018. It is recommended that the Prime Minister’s
above mentioned directive issued on 20th January needs to be vigorously pursued by the
Finance Division.
3. The major stumbling block in the functioning of CCP is the Constitutional Challenge to its
ability to extend the Act in the provinces after the 18th Amendment. The matter is pending
since 2010. In the light of this legal suit, the firms that have been penalized by the
Commission have obtained injunctions and stay order against the orders of the
Commission. Their behavior therefore remains unaltered. It is recommended that the
Attorney General of Pakistan may be advised to expedite the hearings and disposal of the
Constitutional petition pending for last ten years before the Lahore High Court. All other
punitive actions and penalties cannot be enforced because of the injunctions stay order
obtained by the accused firms. The High courts may be moved to remove the restraining
orders imposed upon the CCP.
4. The Law Ministry may be advised to immediately fill in the two vacant positions in the
Competition Appellate Tribunal.
5. The federal and provincial, governments should be advised to make references for prima
facie violations of Competition Act to the CCP and also act upon policy notes submitted
by the commission after stake holder consultation.
6. Unless the above actions are taken, the effectiveness, and impact of the CCP would remain
subdued adversely affecting the smooth functioning of key product and input markets. Had
the legal impairments mentioned above been removed and the CCP had a new leader the
recent wheat crisis and sugar crisis could have been inquired by the CCP as it has
professional expertise and market structure knowledge and would have come up with sound
remedial measures to avert such situations from recurring in the future.

DECISION
7. The Cabinet at its meeting held on 21st April, 2020 directed as under:
(a) The sponsoring Davison to vigorously pursue the Intra Court appeal filed against
the removal of Chairperson and Two Members.
Status: Appeal granted.
(b) That the cases involving stay orders against the penalties imposed by the CCP and
the Constitutional Petition in the Lahore High Court shall be pursued by Finance
Division in consultation with Law & Justice Division and Attorney General Office.
Status: Constitutional Petition disposed in the favour of the Government.
(c) The Law Division to fill vacant positions in the Competition Appellate
Status: Appointments are still pending.
(d) That the progress on these issues by presented in the next Cabinet Meeting.

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6. Evacuee Trust Property Board (ETPB)

425
Following is the report of the Task Force on Reforms & Restructuring of ETPB presented to
the Prime Minister by the Adviser to PM on Institutional Reforms & Austerity (the Chairman
of the Task Force).

Executive Summary
1. Evacuee Trust Property Board (ETPB) is a body corporate established under the Evacuee
Trust Property (Management & Disposal) Act # XIII, 1975. The core functions of the Board
are:
i. Management& Disposal of Evacuee Trust Properties/Lands.
ii. Maintenance of Gurdawara’s & Mandirs in Pakistan.
iii. Holding of Hindu’s / Sikh’s Festivals as per rituals in a Calendar year and management
of Hindu’s/Sikh Yatrees (Foreigners/Locals)
2. Since its inceptions in 1975, the ETPB has performed its functions as laid down in the
provisions of the ETP Act. Although more than four decades have been passed, no
amendments have so far been made in the Act even though the EPTB has been facing
serious challenges for the past several years. The outdated governance structure of the
organization has failed to cope with the dynamic challenges of the 21st century.
Consequently, the ownership of huge land holdings and a wide spread of urban properties
by EPTB, has not materialized in the desired revenue income levels. Bad governance, poor
administration, weak financial management, illegal appointments, miss-management of
assets and illegal encroachments by growing ‘Qabza Mafias’ are the biggest challenges
being faced by ETPB.
3. The Prime Minister was apprised about the prevailing state of affairs during a meeting in
the Prime Minister’s Office held on 7th Nov, 2018.The Prime Minister graciously
constituted a Task Force on ETPB and appointed the undersigned as Chairman of the Task
Force. The TOR’s of the Task Force are as follows:
i. Amendment in Evacuee Trust Properties (Management & Disposal) Act # XIII, 1975
and Schemes made there under for effective performance of the organization.
ii. Restructuring of management of ETPB.
iii. Identification of under-utilized/hidden properties &lands, and proposals for their
effective utilization.
iv. Suggest ways and means for removal of encroachments.
v. Suggest measures to be taken for promotion of Religious Tourism.
vi. Utilization of ETPB resources for social sectors (Education& Health etc.).
vii. Propose measures for maintenance/upkeep of Sikh/Hindu Shrines.
viii. The Task Force will make recommendations to the Federal Government, which will be
implemented by the ETPB.
4. In pursuance of the directions of the Prime Minister, the Task Force held several meetings
and carried out comprehensive and detailed deliberations on all the tasks assigned. The
observations of the Prime Minister Inspection Commission have also been incorporated in
this report.
5. The report and recommendations of the Task Force are submitted herewith for the kind
perusal of the Worthy Prime Minister.

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Preamble
6. Government of Pakistan Constituted Evacuee Trust Property Board under the Evacuee
Trust Property, (Management and Disposal) Act # XIII, 1975.The Board is headed by a
Chairman and comprises of such number of members appointed by the Federal Govt.
Presently Federal Govt. has appointed twenty-four (24) Members (Official Member are 5
and Non-Official Members are 19). Proper representation of Hindu and Sikh community
from all the Provinces of the Country has been made in the Board.
7. The functions of the Board have been defined and laid down in the Section 4(2) of the
ETPB, Act # XIII, 1975.The major functions of the ETPB is Management and Disposal of
the Evacuee Trust Properties and Lands in accordance with the provisions of the ETPB,
Act # XIII, 1975.All the Evacuee Trust Properties are vested with the Federal Government
in terms of the Section 6 of the Act. Although ETPB is a body corporate in terms of the
ETPB, Act # XIII, 1975 but all its functions are subject to the general control by the Federal
Government.
8. The ET Properties and Lands are spread all over the country. These are located in the
Metropolitan, Urban, Peri-Urban and Rural Areas.The ETPB mainly deals with the rents
and leasing of ETP Lands &Properties. The income of ETPB is generated from the rents
and leasing of its lands and properties. Moreover, ETPB is also providing Health and
Educational Services to the humanity through its Janki Devi Hospital, Ayesha Degree
College and Four Trust Schools besides maintaining the Gurdawara’s/Mandir’sand
providing facilities to the Yatrees on pilgrimage/festivals. Ever since its establishment in
1975, no major reforms or re-structuring of the ETP Board has been undertaken.
9. Honourable Prime Minister, Mr. Imran Khan, after taking oath of the Prime Minister of the
Country redeemed his pledge to reform the Government Institutions and very graciously
presided over a special meeting on the affairs of the ETP Board on 7th Nov, 2018 wherein
the P.M was presented a detailed briefing on all the matters of ETP Board.
10. The Prime Minister directed to constitute a Task Force on ETP Board comprising of 17
members, headed by Dr. Ishrat Husain, Adviser to the Prime Minister an eminent and
profound personality. The undersigned has the privilege to be the Ex-Officio member of
this Task Force along with other sixteen members. All the Honourable Members of the
Task Force have made a valuable contribution for the crafting of proposals for Reforms in
ETP Board. The contribution of all the members is praiseworthy. I am highly indebted to
Mr. Noor-ul-Haq Qadri, Federal Minister Religious Affairs and Mr. Muhammad Mushtaq
Ahmed, Federal Secretary MoRA. I also express my sincere thanks to Mr. Faheem Arshad
Federal Secretary Law Division.

CHAPTER NO. I: Present Situation

1. Evacuee Trust Property Board (ETPB) was established by the Government of Pakistan
under Act No. XIII of 1975 promulgated on 1st July, 1974, for the management, control
and disposal of the Evacuee Trust Properties situated all over Pakistan. The Board is headed
by a Chairman and comprises of twenty-four members—five officials and 19 non official.
Both Hindu and Sikh communities are represented on the Board. The major functions of
the Board Are Management and Disposal of the Evacuee Trust properties and lands. All its
functions are subject to the general control by the Federal Government exercised through
the Ministry of Religious Affairs and Inter Faith Harmony.

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2. Following schemes were made under this Act for the efficient and smooth Operation and
Management of the Board. Copies of the Act and the Schemes are attached in Volume II
Appendix - A:
i. Scheme for the lease of Evacuee Trust Agricultural Land, 1975.
ii. Scheme for the Management and Disposal of Urban Evacuee Trust Properties, 1977.

DETAILS OF LANDS /PROPERTIES

3. Presently ETP Board is managing 109369 acres of ET land and 15619 ET properties all
over Pakistan. The current details of the land are as follows:
(Rs. In million 2018-2019)

LEASED
PROVINCE ACRES INCOME
(ACRES)
Punjab 85331 70757 357.970
Sindh 21735 2442 5.5143
KPK 2301 1854 4.591
Baluchistan 2 2 0
Total 109369 75055 367.704
Unleased
land:34314

AREA ACRES
Banjar Land 1795
Land under occupation of J&K refugees – Illegal 4248
occupation
Marriyan/Marghat/Darya Burd Land 9396
Land under Illegal occupation 18875
Total 34314

4. The current details of the Evacuee Trust properties are as follows:

(Rs. In million 2018-2019)

PROVINCE UNITS SUB UNITS INCOME

Punjab 11139 35458 937.518
Sindh 3144 9218 166.057
KPK 1141 1736 51.108
Balochistan 195 473 6.580
Total 15619 46885 1161.261

ESTABLISHMENT
5. The ETPB at present has the following establishment. The organizational structure of the
EPTB is attached in Volume II Appendix-B.

• Chairman 1

• Vice Chairman 1
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 • Secretary 1

• Additional Secretary 2

• Deputy Secretary 5

• Zonal Administrator 7

• Total Number Posts 2,122

• Total Working Strength 1,785

• Pensioner 567

FINANCIAL SITUATION
6. The total fund size of the ETP Board has increased from 4.3 billion to Rs.4.5 billion since
June, 2019. ETP Board has invested its surplus funds of Rs.1558 million and Rs.1483
million @ 13.50% for the period of one year through a competitive bidding process,
following the rules and regulations of the Finance Division. This would raise the income
of the ETP Board’s investment by 33% to Rs.410 million as compared to Rs.234 million
earned from previous investment.
7. ETP Board has also started the process of investment of surplus funds of over Rs.300
million with other banks while following rules/polices/regulations of Federal Government.

WEAKNESSES AND SHORTCOMINGS

8. Ever since the promulgation of the Evacuee Trust Properties Management and Disposal
Act in 1975, the ETP Board has been performing its core functions as per the provisions of
this Act. However, since then, although more than four decades have passed, no
amendments have been made in the Act to reform EPTB and upgrade it to tackle the
challenges of 21st century.
9. The following major weaknesses of the current setup can be identified: -
i. There is no separation of governance and management functions and the Chairman
of the Trust enjoys too much discretionary powers without any oversight or
accountability. The Chairman is also the Chief Executive of the organization. Past
experience shows that the enormous discretionary powers exercised by the
Chairman resulted in non-transparent decisions hurting the interests of the Trust.
ii. The Trust possesses valuable properties in prime locations in major cities and also
agriculture lands. These are either under illegal possession of Qabza Mafias or have
been leased out /rented at below market prices.
iii. The capacities for the removal of encroachments (details of encroachment are given
in Appendix-C) and repossess land/properties are both weak and are also not
exercised because of the connivance of the EPTB officials.
iv. There is no proper detailed record including title deeds of lands/properties which
results in incessant and prolonged litigation, stay orders by the courts and
consequential loss of income.
v. The Trust does not possess qualified and experienced financial expertise which can
optimally utilize surplus funds. The profit earning on investments through banks is
insufficient to cope with the depreciation of currency and persistent inflation.
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 vi. Asset Management control and maintenance is poor or almost non-existent.
vii. Financial controls are weak because of the antiquated practice of manual cash
invoicing and disbursements, which is subject to tampering and manipulation.
viii. There is no defined or documented system of delegation of financial and
administrative powers.
ix. The Human resource employed by the Trust does not match the requirements of the
organization.
x. The relics, temples and gurdawaras are not properly maintained and are in bad
shape.

CHAPTER NO. II: Recommendations of the Task Force

I. GOVERNANCE AND MANAGEMENT

i. There should be a Clear separation between the Board and Management. The Board
would exercise supervisory and oversight functions, audit, approve the work plan,
annual budget, expenditures above a certain threshold level but the day to day
operations of the EPTB would be run by the Chief Executive officer assisted by a
full time professional management team
ii. The Board shall consist of 21 Members out of which 17 Members shall be non-
official Members drawn from the Sikh and Hindu Community and other eminent
persons. Minimum academic qualification of Board Member shall be intermediate.
The Chairman and the Members would be appointed by the Federal Government.
It is proposed that the 1975 Act may be amended to reflect the revised composition
of the Board as under: -

• 4 Members from the Sikh Community from each province.

• 4 Members from the Hindu Community from each province.
• 4 Experts in relevant fields from each of 4 provinces.
• 4 other eminent persons of standing.
• 1 Member from ICT
• 4 Official Members.
iii. The Management would be headed by a Chief Executive Officer (CEO) with
prescribed qualification and experience and selected through an open merit based
competitive process. The CEO would act as ex-officio Secretary of the Board.
iv. CEO would be assisted by a Chief Financial Officer (CFO), Chief Information
Technical Officer (CITO) and Chief Engineer (CE) as top management team. Legal
wing and Enforcement wing should be established.
v. A comprehensive review of the present organizational structure in the headquarters
and field offices would be undertaken to identify skills gap and redundant
manpower. Creation of new zones and appointment of Deputy / Assistant
Administrators in those zones may also be considered during this review.
vi. Capacity building via training and access to external third party shall be introduced
in ETPB. Service rules consisting of ‘Recruitment’, ‘Performance Evaluation’,
‘Promotion Policy’ and ‘three-year tenure of posting for employees at stations’,
‘Severance and termination from service’ should be formulated. Performance based
incentives system for ETPB employees should also be introduced.

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 vii. Allocation of 10% share for Hindu Community and 10% for Sikh Community in
the recruitment of ETPB employees.
viii. The ETPB should establish Enterprise Resource Program and Management
Information System to automate its business processes. Development of software
and launching of management information system in ETPB should follow the best
practices.
ix. Establishment of Complaint and Monitoring Cell in ETPB and ‘whistle blower’
concept should be introduced to encourage people to help in finding hidden
properties.
x. References under clause 8/10 of Act No. XIII of 1975 may be filed in the court of
Chairman by the Deputy Administrator after obtaining latest revenue record so that
the nature of trust/status of land and property could be finalized by the Authority
earlier.
xi. To implement the above recommendations, the proposed amendments in the EPTB
Act and the schemes are placed in Appendix E

II. ASSET MANAGEMENT

i. Documentation of all ET properties/lands should be completed at the earliest using
a computerized online system with photographs, mapping, geo-tagging etc. to allow
for better decision making.
ii. Schemes for urban properties introduced in 2001 and 2006 should be amended to
enhance rental rates and make them closer to current commercial values. The rents
for urban properties have not been reassessed since 2012. This needs immediate
attention.
iii. Policy for change of tenancy and construction/development by ETPB or through
tenants needs to be revised to increase the income of ETPB.
iv. A new policy/scheme for agricultural lands especially for lands located in Sukkur
and Larkana in Sindh may be formulated. Lease periods may be extended from three
years to ten years.
v. Cases regarding VIP plazas and other valuable ET properties are pending in the
Court of Chairman ETPB since 2002 / 2003. Some cases related to Sukkur are
pending since long. These cases may be decided at once so that the same may be
included in development projects of ETPB to increase the revenue.
vi. Maximize the developmental projects with completion time of 3 months to improve
revenue of the department.
vii. A new Investment Advisory Committee be constituted for better management and
decision making in ETPB’s investments.
viii. ETP Board should consult with Board members for reframing the current
investment policy in accordance with the Federal Government investment rules /
policies / regulations.
ix. The current mechanism of collecting donations should be improved after
consultation with PSGPC.
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 x. Immediate retrieval of Evacuee Trust Properties / Lands from ‘Qabza Mafias’
should be initiated.
xi. Protection of status of Gurdwaras and Mandirs should be ensured.
xii. Priority in the use of land, property and other assets of ETPB, except the shrines of
Hindus and Sikhs, would be given to social welfare projects that serve the Hindu,
Sikh and other minority communities.
xiii. All Evacuee Trust Properties / lands situated within the limits of Cantonment Board
should be treated as commercial and residential properties.
xiv. Services of valuators from the approved list of valuators of state Bank or Banking
Associations of Pakistan should be obtained for valuation of land, properties and
assets of EPTB. After valuation, all properties/pieces of land, which are not attached
to any religious shrines, should be sold through an auction in a transparent manner.

III. UPKEEP AND MAINTENANCE OF SHRINES

Specific recommendations in respect of each local shrine are presented in Chapter III. The
following recommendations are of a general nature.
i. Regular repair/maintenance petty works should be ensured for all Mandirs &
Gurdwaras.
ii. Appointments of Cook, Pujari, Sewadar&Garanti and Security Guards in all the
functional Mandirs & Gurdwaras should be done at the earliest.
iii. Pakistan Hindu Mandir Management Committee (PHMMC) may be constituted on
the lines of Pakistan Sikh Gurdwara Parbhandak Committee (PSGPC) for proper
management of the Mandirs.
iv. Constitution of local Mariyada committees under PSGPC is recommended in all
functional Gurdwaras which will be responsible for langar, piniparshad and kara
parshad.
v. Construction of Joraghar (shoes room) in all Functional Mandirs / Gurdwaras.
vi. Anti-state activities may not be allowed in any Mandir / Gurdwara.
vii. An online system for collection of funds / donations may be setup through
consultations with the community committees.
viii. Separate entity/protocol of Guru Granth Sahib and Gitta Sahib in all functional
Gurdwara and Mandir should be introduced.
ix. Documentary regarding past and present state of Gurdwaras and Mandirs may be
prepared and regularly updated to showcase the achievements and progress.
x. PSGPC and ETPB may take steps for the restoration of all other historical /
important Gurdwara Sahiban.

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IV. REMOVAL OF ENCROACHMENTS
i. Enforcement Wing with proper legal powers and human resources may be
established for ejection of illegal occupants and preventing unauthorized possession
of Trust properties and lands.
ii. It is suggested that in each district a committee headed by the Deputy Commissioner
and comprising of District Police Officer, Deputy Administrator, ETP Board and
Revenue Officer of the District may be constituted. The committee will hold its
meeting once in a month and take effective measures for the retrieval of ET Lands
from the ‘Qabza Mafias’.
iii. The Enforcement wing would have staff located in the Zonal Offices of ETP Board
for regular vigilance of ET properties and lands in that respective zone and carrying
out the directives and decisions of the District Committees.
iv. All pending cases in courts against illegal occupants should be vigorously pursued
by engaging eminent lawyers rather than relying on in-house legal staff.

V. PROMOTION OF RELIGIOUS TOURISM

i. All the foreign missions abroad should be issued directions to showcase the major
historical religious sites like Katas Raj, Gurdawara Janman Asthan, Nankhana
Sahib, Sadu Bela Sukkar& Samadhi Maha Raja Ranjeet Singh Lahore.
ii. ETP Board will provide free lodging facilities on the premises of historical
Gurdwaras in Pakistan for the visiting foreign Sikh/Hindu Yatrees.
iii. The hospitality sector should be encouraged to develop Five Star Hotels/Motels at
Kartarpur, Narowal, Hassanabdal and Nankana Sahib to provide five star residential
accommodations to the families/delegation of International Sikh/Hindu yatrees
visiting these historical places
iv. ETPB in collaboration with the Pakistan Tourism Development Corporation and
private tour operators will soon launch a marketing campaign to attract foreign
tourism.

VI. SOCIAL SECTOR DEVELOPMENT

The EPTB allocates some funds in form of grants-in-aid to deserving institutions
providing health/educational services to the poor and needy citizens. It is proposed that
part of the increased income from the properties attained by removing encroachments
and higher lease money should be utilized for expanding these services in the backward
areas of the country and establish orphanage houses in collaboration with the
philanthropic organizations, NGOs, concerned Federal ministry and provincial
departments .

CHAPTER NO. III: Recommendations of the Task Force for the upkeep and
maintenance of local Gurdwaras and Mandirs

SHRINES IN PUNJAB/KHYBER PAKHTUNKHWA

• Katas Raj Mandir, Chakwal. Since 2006 this mandir is under the possession of
Archaeology Department, Punjab. It may be reverted back to ETPB (being its
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 custodian) for its better management in the future. Completion of 36 room
accommodation at the site may be completed at the earliest.

• Krishna Mandir, Lahore. Construction of Gumbad/storeroom and renovation of

bathrooms is needed

• ShamshanGhat, Lahore. Construction of two shades for Hindu and Sikh visitors
respectively was recommended. Constructions of 04 rooms with attached bathrooms,
installation of water supply scheme, landscaping and postingof two Sewadars was
recommended.

• ShamshanGhat Rawalpindi. Complete tuff tiling and appointment of a Sewadar& two

security guards was recommended.

• PanjTirathMandir, Peshawar.PanjTirathMandir, Peshawar known as ChachaYounas

Family Park may be opened for Poojapat at the earliest. Complete renovation andnew
signboards are needed. A local committee may be constituted for langer / parshad etc.

• DI Khan Mandir. Completion of the construction for Pojapat was recommended.

• ShiwalaTeja Singh Mandir, Sialkot.Complete renovation of the recently opened

Mandir with marble flooring inside & outside and power supply was recommended.

• BalmeekiMandir, NilaGumbad, Lahore. Maintenance and re-paint recommended.

• ParhaladPuriMandir, Multan. Keeping in view its importance, the existing religious

issues may be resolved and Mandir may be opened after necessary repairs.

• Jain Mandir, Gujranwala. It is a valuable property of ETPB. Presently, it is under the

possession of local police. It may be taken over, renovated and opened for Darshan for
Jain followers.

• Smadhi Ganga Ram, Lahore. Renovation of Smadhi Sir Ganga Ram, Lahore.

• GurdwaraJanamAsthan, NankanaSahib.Construction of a 100 rooms

accommodation, outsourcing of cleaning services to third party, purchase of new
bedding, arrangement of quality catering/tentage, opening of one gate near Sarowar
sahib for 2 hours (day & night prayers) for the facilitation of local yatrees, was
recommended.

• Gurdwara Bhai Joga Singh, Peshawar. Immediate repair of cracks in the structure to
avoid any untoward incident in the future was recommended.

• GurdwaraBheeba Singh, Peshawar. The lease part of the Gurdwara may be canceled
to establish Langar hall.

• Gurdwara Patti Sahib. The Gurdwara is in dilapidated condition. It may be repaired

and joined with residential block through Karsewa on available land.

• GurdwaraPunja Sahib. Diversion of Sewerage (Nullah) may be expedited. The

demolished building in front of the Gurdwara Sahib may be attached with the
Gurdwara.

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 • Gurdwara Sacha Sauda, Sheikhupura.Construction of new Langar Hall with a
Langar committee, karapershad and pinipershad under the supervision of PSGPC may
be expedited.

• At Lahore accommodation arrangements for the local Hindu Yatrees may be made at
Agarwal Ashram or any other suitable place.

SHRINES IN SINDH / BALOCHISTAN

• Quetta. Immediate takeover and opening of Gurdwara in Apwa School for local Sangat
of Quetta was recommended which is currently in possession of Education Department,
GoB. Moreover, there are three urban properties on Jinnah Road and Bano Road, Quetta
which can be developed as commercial / residential plazas by the ETPB to increase the
revenue of the department.

• Karachi, Gurdwara. As promised by the Ex-Chairman ETPB,it was requested that a

plot may be allotted to Sikhcommunity in Karachi for the construction and opening of
Gurdwara. Expenditurefor the construction will be borne by the Sikh community.

• Sadhu Bella Mandir Sukkur. Barbed wiresneed to be fixed around the

boundary walls of the Mandir for the security and safety of the visitors / yatrees. There
are 12 Ghats at Sadhu Bella Shrines, Sukkur. The iron gates need tobe fixed
immediately for safety and to avoid any untoward incident in the future.

• Sukkur Dharam Shala. This facility measuring approximately 5000 Sq. Ft comprising
of 80 tenants may be developed as residential/commercial palza and place for Mandir
may be reserved in the lower portion. This will lead to significant increase in the income
of the board.

• Property No. D-1380 situated at Vari Tar Road comprising of 9 tenants may be
included in the development scheme of ETPB to increase the income of board.

• Property No.C-491 at Wals Road Sukkur comprising of 25 tenants measuring

approximately 4000 Sqft may be included in the development scheme for construction
of commercial / residential plaza.

• Property No B-7 situated in Mochi Bazar comprising of 5 tenants can be converted

into commercial/residential plaza to increase income of ETPB.

• Property No.11/110, Shikarpur comprising of 7 sub units has been sealed due to
default of rent. There is an apprehension of illegal possession by the Archeology
Department/Local Administration. To save the property of ETPB, Mr. Dewan Chand
Chawala, head of the sub – committee, has filed a writ petition in the High Court,
Larkana against the Deputy Commissioner and other officers of Local Administration,
which is still pending. The possession of the said property can be reverted back after
necessary negotiations with DC, Shikarpur.

CHAPTER NO. IV: Removal of Encroachments - Future action plan

IDENTIFICATION OF UNDERUTILIZED/HIDDENPROPERTIES & LAND

AND PLANS FOR THEIR EFFECTIVE UTILIZATION
ETP Board is managing 109369 Acres of land all over Pakistan. About 34314 Acres of land is
un-leased so far. The classified breakup is as under: -
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 i. Bangar Land 1795Acres
ii. Land under occupation of
J&K refugees – Illegal occupation. 4248Acres
iii. Marriyan/Marght/Darya Burd Land 9396Acres
iv. Land under illegal occupation 18875 Acres
2. ETP Board in collaboration with the respective District Administrations/Provincial
Governments intends to launch an anti-encroachment operation against qabza mafias to retrieve
the encroached land. So far ETP Board has retrieved ET land measuring 1261 Acres having
value of Rs.8562.59 million, whereas hectic efforts are being made to retrieve the remaining
encroached lands.
3. ETP Board has established Hidden Property Wing to trace the hidden ET Properties
and Lands all over the country. The Board of Revenue of Provincial Governments will be
requested to identify such hidden properties and lands through their Revenue
Officers/Settlement Officers in the respective Districts. The Surveyor General of Pakistan
(SGP) has also been requested for geo survey of the ET Properties / Lands all over Pakistan
and the office of the SGP will also be involved for locating/ tracing the hidden ET Properties/
Lands all over Pakistan. All the existing ET Properties/ Lands will be streamlined/ digitalized
through geo tagging/ satellite survey.
4. In order to make the effective utilization of banjar lands, a corporate strategy will be
evolved to offer such banjar lands to the large-scale industries to set up their industrial units in
these areas. The export processing zone authority and Provincial Governments will be
requested to set up Special Economic Zone/Industrial Zones on the unutilized banjar ET lands.
This commercial use of banjar ET land will generate significant revenue for the ETP
Board.Special efforts will also be made for the attraction of the Foreign Direct Investments for
the setting up of Industrial and Commercial Hubs on these banjar lands in collaboration of the
Board of Investment, Government of Pakistan.

FUTURE ACTION PLAN FOR REMOVAL OF ENCROACHMENTS

5. ETP Board has prepared district wise details of lands under encroachment of private
person’s/government departments. The government departments will be asked to regularize
their possession by making payment of price of land on market rates as these lands are being
utilized for official purpose like Schools/Hospitals and other public services.
6. The lands encroached upon by private parties will be retrieved with the help of law
enforcement agencies. A high level meeting will be arranged with the Chief Secretaries and
IGPs of the provinces to streamline the anti-encroachment operations in the respective districts.
It is suggested that in each district a committee headed by the Deputy Commissioner and
comprising of District Police Officer, Deputy Administrator, ETP Board and Revenue Officer
of the District may be constituted. The committee will hold its meeting once in a month and
take effective measures for the retrieval of ET Lands from the ‘Qabza Mafias’.
7. In order to eradicate the evil of encroachment of ET lands, a special cell will be
established in the Zonal Offices of ETP Board with a suitable security staff for regular vigilance
of ET properties and lands in that respective zone.

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CHAPTER NO. V: Promotion of Religious Tourism
Pakistan was recently ranked as the best international holiday destination, according to Conde
Nast Traveller, a luxury and lifestyle travel magazine. Considering its amazing natural beauty
and rich archaeological heritage, the country has immense potential to attract international
tourism. Several recent high profile visits by foreign dignitaries has further improved the good
will and the number of foreign tourists coming to Pakistan has increased rapidly over the last
few years. In these promising times, the Evacuee Trust Property Board can play a pivotal role
in promoting religious tourism coming into Pakistan. The ETPB is maintaining the following
gurdawars/mandirs in Pakistan. There is potential for opening new sites for tourism. The details
are given below.

Functional Mandirs
1. Krishna Mandir, Rawalpindi, Punjab
2. Katas Raj, Chakwal, Punjab
3. Krishna Mandir, Lahore, Punjab
4. BalmikMandirNilaGumband, Lahore, Punjab
5. Sadhu Bela, Sukkur, Sindh
6. Guru GurpatMandir, Hyderabad, Sindh
7. Sant Baba Bhagat Ram Darbar / Mandir, Dadu, Sindh
8. Jhollay Lal Mandir, Karachi, Sindh
9. Bhai SantThawan Das Mandir, Mehar,Dadu, Sindh
10. Tehsil Nathan Shah, Dadu, Sindh
11. Gurdas Ram Mandir, Radhan Town Tehsil Mehar, Dadu, Sindh
12. Kali Bari Mandir, Peshawar, KPK
13. Shiv Mandir, Mansehra, KPK
14. ShahwalaTeja Singh Mandir, Sialkot

Functional Gurdwaras
1. Gurdwara Janam Asthan Nankana Sahib
2. Gurdwara Patti Sahib Nankana Sahib
3. Gurdwara Tambo Sahib Nankana Sahib
4. Gurdwara Balila Sahib Nankana Sahib
5. Gurdwara Panj Chatti Patshahi Nankana Sahib
6. Gurdwara Malji Sahib Nankana Sahib
7. Gurdwara Kiara Sahib Nankana Sahib
8. Gurdwara Sacha Sauda Farooqabad
9. Gurdwara Rorri Sahib Gujranwala
10. Gurdwara Dera Sahib Lahore
11. Gurdwara Shaheed Ganj Singh Singhnian Lahore
12. Gurdwara Guru Ram Das Lahore

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 13. Gurdwara Babay Nanki Lahore
14. Gurdwara Darbar Sahib Narowal
15. Gurdwara Panja Sahib Hassanabdal
16. Gurdwara Bhai Joga Singh Peshawar
17. Gurdwara Bahi Beba Singh Peshawar
18. Gurdwara Babay Di Bairee Sialkot
19. Gurdwara Dera Sahib Lahore
20. Gurdwara Shaheed Ganj SinghSinghnian Lahore
21. Gurdwara Guru Ram Das Lahore
22. Gurdwara Bebe Nanki Lahore
23. Gurdwara Bhai Taroo Singh Lahore

Potential New Sites for Religious Tourism

1. Katas Raj Mandir, Chakwal

2. Sadhu Bella Shrines, Sukkur
3. Hinglaj Mata Mandir, Balochistan
4. Shiv Mandir, Mansehra
2. As per the protocol agreed between India & Pakistan the following number of Sikh
Yatrees can visit Pakistan on various festivals/occasions during a calendar year:-
Sr. Name of festival/Place Strength Duration/Month
01 Baisakhi Festival of Gurdwara 3000 10 days - April
Panja Sahib-Hassanabdal
02 Martydom of Guru Arjun 1000 10 days - June
Dev Jee, Lahore
03 Death Anniversary of 500 10 days - June
Maharaja Ranjeet Singh – Lahore.
04 Birthday of Guru Nanak Dev 3000 10 days – Nov.
Jee, Nankana Sahib
3. The Government of Pakistan has recently constructed the Kartarpur Corridor to provide
Religious Tourism facilities at Gurdwara Darbar Sahib, Kartpur, Narowal (GDSK). As per the
agreed bilateral protocol, 5000 Yatrees can visit daily from the Indian side to pay homage in
Gurdwara. About 300-500 Yatrees are visiting GDSK on daily basis, however, this number
increases on Sundays to about 1000-1200 yatrees. There is great potential for further increase
in the future.
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 PRESENT STATUS AND FUTURE PLANS
4. Evacuee Trust Property Board is already providing maximum facilities to the visiting
Sikh/Hindu Yatrees on the eve of their notified festivals. The Government of Pakistan has a
special visa policy for the Indian Hindu/Sikh Yatrees but there is a need to have a special visa
policy also for the Hindu/Sikh Yatrees who are the Non-Indian Residents i.e. those Hindus and
Sikhs who are citizens of Europe, USA, Africa, Canada and other Scandinavian countries. It
will be more appropriate to provide ‘Visa on Arrival’ facility in Pakistan to all such Hindu/Sikh
Yatrees who are residents of countries other than India.
5. There is also a need to engage the Pakistani Missions abroad to promote awareness
about the tourism potential of historical religious places internationally. All the foreign
missions abroad should be issued directions to showcase the major historical sites like Katas
Raj Temple, Gurdawara Janman Asthan, Nankhana Sahib, Sadu Bela Sukkar & Samadhi Maha
Raja Ranjeet Singh Lahore. ETPB in collaboration with the Pakistan Tourism Development
Corporation and private tour operators will soon launch an international marketing campaign
to attract foreign tourism.
6. ETP Board also plans to provide free lodging facilities on the premises of historical
Gurdwaras in Pakistan for the visiting foreign Sikh/Hindu Yatrees. The government should
encourage the private hospitality sector to develop Five Star Hotels/Motels at Kartarpur,
Narowal, Hassanabdal and Nankana Sahib to provide excellent residential facilities to the
families/delegations of foreign Sikh/Hindu yatrees visiting these historical places. ETPB is also
pursuing various options in this regard.

CHAPTER NO. VI: ETPB in Social Sector

ETPB in Social Sector - Present scenario

Evacuee Trust Property Board is also responsible for various social issues as per the Section
4(2)(j)of the ETP Act No. XIII, 1975, which reads as follows:
“to set up, or make grants-in-aid to orphanages, leper houses, widow houses, poor
houses and educational, vocational, technical or health institutions and hospitals
subject to the general control and directions of the Federal Government.”
2. In pursuant to this provision of the Act, ETP Board has established various institutions
in health and education sector. These health and educational institutions are managed by an
NGO named as PMEIF (Pakistan Model Education Institutions Foundation). This NGO is
headed by Chairman, ETP Board and it has been established with the approval of the Prime
Minister of Pakistan. This NGO is funded by the budget of the ETP Board through grant-in-
aid as part of Corporate Social Responsibility of the board. The details of functional institutes
providing social services are as follows:
3. Health Institutions: ETP Board has established and is maintaining the following health
institutions.
i) Janki Devi Hospital, Lahore: Janki Devi Hospital is a 50-bed hospital providing health
facilities of gynecology and pediatrics to the poor and needy women and infants in
Lahore.It is located on Abbot Road, Lahore.
ii) ETP Board Medical Centre, Agrwal Ashram, Lahore.
iii) ETP Board health Centre, Dera Sahib, Lahore.
iv) ETP Board health Centre, Nankana Sahib.
v) ETP Board health Centre, Hassanabdal.
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All these health centers are providing free of cost medical facilities around the clock to the
needy and poor residents of the areas.
4. Educational Institutions: ETP Board has established and is maintaining the following
educational institutions.
i) Hazrat Ayesha Degree College, Nicholson Road, Lahore.
ii) Trust Model Public School, Moulana Ahmed Ali Road, Lahore.
iii) Nawaz Sharif Girls High School, Nicholson Road, Lahore.
iv) Dr. Mateen Fatima School, Shahdara, Lahore.
v) MohtarmaBenzir Bhutto School, Lahore.
All these educational institutions are providing quality education at nominal fee to the poor and
lower middle class of the society.
5. Social and Humanitarian Services: ETP Board has established a state of the art
orphanage house in Sialkot. It has been built over an area of 2-kanal, 19-marla, 80-Sqft with
an estimated cost of Rs. 19,120,661/=. This orphanage house is providing free lodging and food
facilities to the homeless/shelter-less poor of Sialkot. Presently this orphanage house is being
managed by a local NGO on trial basis.

Future Plans
ETP Board has a special provision in the Section 4(2)(j) of the Act, 1975 to set up, or
make grants-in-aid to existing orphanages, leper houses, widow houses, poor houses and
educational, vocational, technical or health institutions and hospitals subject to the general
control and directions of the Federal Government. The ETP Board has a special allocation of
funds in the budget under the head ‘grant-in-aid’ in pursuance to this provision of the Act.
Besides, providing the health/educational services to the poor and needy citizens through the
existing institutions, the ETP Board intends to establish state of the art orphanage houses and
educational institutions in the backward areas of the country. So far ETP Board has spent an
amount of Rs.810 Million in grant-in-aid during last 03-years and in the current budget an
amount of Rs.330 Million has been allocated for similar welfare activities.
The ETP Board intends to establish orphanage houses in the following districts where
ET land is available with the prior approval of the Federal Government.ETP Board is preparing
a pre-feasibility report for the establishment such facilities.
i) Mianwali-Punjab
ii) Karachi-Sindh
iii) Peshawar-KPK
iv) Quetta-Balochistan
In this area, philanthropist organizations/NGOs like EDHI Foundation will be requested to
collaborate with the ETP Board. The Honourable Prime Minister of Pakistan will be soon be
requested to be the Chief Guest at the foundation laying ceremonies of these proposed
orphanage houses.

CHAPTER NO. VII: Constitutional & Legal Challenges

The Constitution (Eighteen Amendment) Act, 2010, has deleted the Concurrent Legislative
List from the forth Schedule of the Constitution of the Islamic Republic of Pakistan. The
Concurrent Legislative List was residuary in nature to legislate on matters vested solely with
the provinces. The then Govt. of Punjab in the year 2012 filed a constitutional Petition
440
No.12/2012 in the Supreme Court of Pakistan on the point of law that after omission of the
concurrent legislative list, the devolution process was to be completed by 30.06.2011 in terms
of Article 270-AA(8) and ETPB and its assets, were to be transferred from the Ministry of
Minorities Affairs (devolved) to the province of the Punjab but instead it has been transferred
to newly created Ministry of National Harmony. This petition is subjudice in the Apex court.
These and other legal issues discussed below need to be considered and given due importance.
A civil Petition No.1733-L of 2012, titled Abdul Rauf Khan Niazi& Others V/s Govt. of the
Punjab was filed in the Supreme Court of Pakistan and the same has been accepted and Leave
to Appeal was granted on 17.04.2013 by the Honorable Supreme Court. The matter is still
subjudice in the Apex Court.
The then Chief Minister of Punjab in the year 2012 also filed a reference in the Council of
Common interest Islamabad under the Article 155 the same is pending in the CCI.
On the 10-11-2008 Senator Muhammad Anwar Bhinder submitted a Bill in the Senate in which
following amendments were proposed.
i) Amendments of section 3, Act XIII of 1975.
ii) Amendments of section 3, Act XIII of 1975.
iii) Amendments of section 10, Act XIII of 1975.
iv) Amendment of section 16, Act XIII of 1975.
v) Amendment of section 22, Act XIII of 1975.
vi) Amendment of section 25, Act XIII of 1975.
This Bill was submitted in obedience to the Judgment passed by the August Supreme Court of
Pakistan in its Judgement 2000 S.C.M.R-1, titled Government of Pakistan V/s Mufti Iftikharud
din & Other.
Dr. Ramesh Kumar Vakwani, Member National Assembly has introduced a Bill in the
Assembly in the year 2018 proposing amendment of section 3 of Act XIII of 1975.

Conclusion
The Prime Minister of Pakistan constituted a Task Force on restructuring and reforms of
Evacuee Trust Property Board. The Task Force convened several meetings and then formed
sub committees to analyze the issues facing the EPTB and make recommendations on (i)
Governance and Management (ii) Asset Management, (iii) . After detailed deliberations by all
the members of the Task Force and consultation with the members of the Board, this report has
been prepared. The recommendations of the report summarized in Chapter II will help
overcome some of the weaknesses and shortcomings, streamline the functions of ETPB and
allow it perform its duties efficiently. More important the recommendations will transform the
ETPB into a revenue surplus organization for the Federal Government.
The proposed reforms will be harbinger of fostering of national harmony amongst the people
of various faiths living in this country. They will also help in the preservation and improvement
of the magnificent religious sites present all over the country which will improve the image of
Pakistan and tremendously boost foreign religious tourism.
I offer my sincere gratitude to the Honorable Prime Minister of Pakistan for entrusting the Task
Force with this responsibility. We hope this report will serve as a catalyst for long lasting and
effective reformation of ETPB.

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DECISION
4. The cabinet considered the above recommendations of the Task Force on 7th April 2020
and directed the Sponsoring Division to present the timelines along with indicating the entities
responsible for implementing the recommendations of the Task Force during the next Cabinet
meeting.

Current Status
5. Further actions are to be undertaken by the Religious Affairs and Interfaith Harmony
Division. Meanwhile, the latest implementation status of the recommendations contained in
above report, as shared by the Sponsoring Division, is as under:

IMPLEMENTED RECOMMENDATION

Sr. Recommendations Status

The current mechanism of collecting donations should

1 Complied
be improved after consultation with PSGPC.

Protection of status of Gurdwaras and Mandir should be

2 Complied.
ensured.

Constitution of local Maryada Committee under PSGPC

3 is recommended in all functional Gurdwaras which will Complied
be responsible for langar, piniparshed and Kara parshad.

Anti-state activities may not be allowed in any Mandir /

4 Complied.
Gurdwara.

An online system for collection of funds / donations

5 may be setup through consultations with the community Complied
committees.

Separate entity / protocol of Guru Granth Sahib and

6 Geeta Sahib in all functional Gurdwaras and Mandirs Complied
should be introduced.

Documentary regarding past and present state of

7 Gurdwaras and Mandirs may be prepared and regularly Complied
updated to showcase the achievements and progress.

ETPB should consult with Board members for

Complied. ETPB is
refraining the current investment policy in accordance
following Finance
8 with the Federal Government investment rules/
Division Rules.
policies/regulations.

A new policy /scheme for agricultural lands especially

for lands located in Sukkur and Larkana in Sindh may Already provided in the
9
be formulated. Lease periods may be extended from Scheme 1975.
three years to ten years.

442
 Enforcement Wing with proper legal powers and human
Powers for ejection exist
resources may be established for ejection of illegal
10 under Section 25 of ETPB
occupants and preventing unauthorized possession of
Act.
Trust properties and lands.

ETP Board will provide free lodging facilities on the

11 premises of historical Gurdwaras in Pakistan for the Complied.
visiting foreign Sikh / Hindu Yatrees.

Provided in the
Banjar land leasing for industrial and commercial
12 Agricultural Scheme Rules
purpose.
1975.

Establishment of Complaint and Monitoring Cell in Complaints, Monitoring,

ETPB and “Whistle Blower” concept should be Enforcement Wing,
13
introduced to encourage people to help in finding Inquiry Cell & Unearth of
hidden properties. ETP Cell established.

Regular repair / maintenance petty works should be Repair and renovation is

14
ensured for all Mandirs and Gurdwaras ongoing.

M/s Foreign Affairs

intimated vide Letter dated
18-11-2020 that it has
All the foreign missions aboard should be issued forwarded the books/
direction to showcase the major historical religious sites documentaries/ DVDs to
15 like Katas Raj, Gurdwara Janam Asthan, Nankana foreign missions at
Sahib, Sadu Bela Sukkar & Samadhi Maha Raja Vancouver, Toronto,
Ranjeet Singh Lahore. Washington DC, New
York (UN), Houston,
London, Birmingham,
Rome.

Complied.
Construction of Joraghar (shoes room) in all Functional Established in Gurdwara
16
Mandirs / Gurdwaras. Janam Asthan. Jora Ghar
are being improved.

Being extended to
The ETPB allocates some funds in form of grants-in-aid educational and health
and land to deserving institutions providing health / institutions. Baba Guru
educational services to the poor and needy citizens. It is Nanak Scholarship for
proposed that part of the increased income from the deserving minorities’
properties attained by removing encroachments and students have also been
17
higher lease money should be utilized for expanding started. Vocational
these services in the backward areas of the country and training courses for Sikh
establish orphanage houses in collaboration with the and Hindu Communities
philanthropic organizations, NGOs, concerned Federal youth has been started in
Ministry and provincial departments. collaboration with Punjab
Vocational Institute.

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PARTIALLY IMPLEMENTED RECOMMENDATIONS

Sr. Recommendations Status

Investment Advisory
Committee constituted by
A new Investment Advisory Committee be constituted the Federal Government is
1 for better management and decision making in ETPB’s already functional. New
investments. Committee will be made
after new Board
constitution.

Priority in the use of land, property and other assets of

On need basis the property
ETPB, except the shrines of Hindus and Sikhs, would
2 is being allocated on token
be given to social welfare projects that serve the Hindu,
rent.
Sikh and other minority communities.

Annual repair of all

functional Gurdwaras are
made as per budget
allocation.
Renovation of Shiv
Mandir Jhelum has been
approved by the Board.
The Board released grant
PSGPC and ETPB may take steps for the restoration of of Rs.2 Million for
3
all other historical / important Gurdwara Sahiban. functioning of Gurdwara
Sach Khand Shikarpur.
The Board has also
restored Teja Shawala
Mandir and Chuwa Sahib.
For Yatrees in Sadhu Bela
Mandir, the Board has
released Rs.4 Million to
purchase motor boat.

The ETP Board intends to establish orphanage houses

in the following districts where ET land is available Orphanage is already
with the prior approval of the Federal Government. ETP functional in Sialkot.
Board is preparing a pre-feasibility report for the ETPB has initiated to
establishment such facilities. utilize its properties for
Educational and Health
4 Mianwali-Punjab Purpose. Process of lease
to 4 ETPs to National
Karachi-Sindh
University of Modern
Peshawar-KPK Languages (NUML) is
underway.
Quetta-Baluchistan

444
 In this area, Philanthropist Organizations/NGOs like
EDHI Foundation will be requested to collaborate with
the ETP Board.

Development of ETPs is
ongoing process. ETPB is
Maximize the development projects with completion
5 encouraging the
time of 3 months to improve revenue of the department.
development through
developers/ tenants.

Immediate retrieval of Evacuee Trust Property from

6 Qabza Mafia should be initiated.
Drives initiated in liaison
with Police and Local
It is suggested that in each district, a district committee Administration.

7 headed by the Deputy Commissioner and comprising of Chief Secretaries have

District Police Officer, Deputy Administrator, ETP also been requested to
Board and Revenue Officer of the District may be constitute a Committee for
constituted. The committee will hold its meeting once in immediate retrieval of
a month and take effective measures for the retrieval of encroached land/
ET lands from the “Qabza Mafia”. properties.
As per record provided by
The Enforcement Wing would have staff located in the the District Formation, an
Zonal offices of ETP Board for regular vigilance of ET area of 649 Acres approx
Properties and lands in that respective zone carrying out (2020) and 775 Acres
the directives and decisions of the District Committees. (2021) was retrieved.
8

Reference under Section 8/10 of Act No. XIII of 1975 250 cases were disposed
may be filed in the Court of Chairman by the Deputy of (2019-20) Hearing of
9 Administrator after obtaining latest revenue record so the cases are being
that the nature of trust/status of land and property could scheduled on weekly
be finalized by the Authority earlier. basis.

10 Priority cases are being

fixed regularly for early
Cases regarding VIP plazas and other valuable ET disposal.
Properties are pending in the Court of Chairman ETPB
since 2002/2003. Some cases related to Sukkur are
pending since long. These cases may be decided at once
so that the same may be included in development
projects of ETPB to increase the revenue.

All pending cases in courts against illegal occupants

should be vigorously pursued by engaging eminent
lawyers rather than relying on in-house legal staff.
11 Counsels’ performance is
being monitored properly
445
 and competent counsels
are being hired on case to
case basis. Progress report
is being received on every
date of hearing. On
performance evaluation,
199 legal counsels were
disengaged.

The case was taken up

with Board of Investment
(BOI). Project
Management Unit (PMU)
stands established in
Kartarpur which will also
The hospitality sector should be encouraged to develop consider the
Five Star Hotels / Motels Kartarpur, Norawal, encouragement of
Hassanabdal and Nankana Sahib to provide five star hospitality sector.
12
residential accommodations to the families / delegation
of International Sikh / Hindu yatrees visiting these Provision of infrastructure
historical places. by Provincial Government
will also facilitate the
hospitality sector.
Construction of
Residential complex at
Katas Raj is underway.

ETPB in collaboration with the Pakistan Tourism Coordination is already in

Development Corporation and private tour operators progress at the forum of
13
will soon launch a marketing campaign to attract National Coordination
foreign tourism. Committee on Tourism.

Policy of change of tenancy and construction/ The Board has approved

development by ETPB or through tenants needs to be the amendments.
14
revised to increase income of ETPB or through tenants Ministry’s approval will
needs to be revised to increase the income of ETPB. be solicited.

The ETPB should establish Enterprise Resource • Total 46206 Sub-units

15 Program and Management Information System to 95% of urban properties
automate its business processes. Development of have been surveyed.
Software and Launching of management information
system in ETPB should follow the best practices. • 14152 Agriculture Lots
(90%) of agriculture
land have been
Documentation of all ET Properties/ Lands should be surveyed.
completed at the earliest using a computerized online
16
system with photographs, mapping, geo tagging etc. to • All surveyors have
allow for better decision making. reverted to SOP on 20th
June, 2021 after tasks.

446
 • Properties / Land of 54
districts have been
Portal.

• Geo-Portal and android

application have been
developed.

• Tender for the purchase

of equipment of data
centre was 29th June,
2021.

• Technical bid of tender

has been opened on 13th
July, 2021.

• After the completion of

phase-I, partial payment
has been made to
Survey of Pakistan.

The Board decided to get

Services of Valuators from the approved list of
valuation on case to case
valuators of State Bank or Banking Associations of
basis through M/s
Pakistan should be obtained for valuation of land,
NESPAK. Sale
17 properties and assets of ETPB. After valuation, all
proceedings cannot be
properties / pieces of land, which are not attached to any
made as per directions of
religious shrines, should be sold through an auction in a
Supreme Court of
transparent manner.
Pakistan.

The Board recommended

Appointments of Cooks, Pujari, Sewadar & Granthi and
the posts and the matter
18 Security Guards in all the functional Mandirs &
has been submitted to the
Gurdwaras should be done at the earliest.
Ministry.

Pakistan Hindu Mandir Management Committee Pakistan Hindu Mandir

(PHMMC) may be constituted on the lines of Pakistan Management Committee
19
Sikh Gurdwara Parbhandak Committee (PSGPC) for will be constituted subject
proper management of the Mandirs. to security clearance.

Matter has been taken up

All Evacuee Trust Properties / lands situated within the with Cantonment
20 limits of Cantonment Board should be treated as Authorities for treating
commercial and residential properties. ETPs as commercial and
residential.

Capacity building via training and access to external • Training Courses are
third party shall be introduced in ETPB. Service Rules being conducted which
21 consisting of “Recruitment” “Performance Evaluation” is halt due to Covid.
“Promotion Policy” and “three year tenure of posting
for employees at stations, “Severance and Termination • Performance evaluation
from service” should be formulated. Performance based policy of Federal

447
 incentives system for ETPB employees should also be Government has been
introduced. adopted.

• Direct Retirement Rules

have also been adopted.

• Draft Service Rules are

under consideration in
the Ministry.

Restructuring has already

been recommended by
Task Force. Service Rules
A comprehensive review of the present organizational
are already under process
structure in the Headquarters and field offices would be
in Ministry. Restructuring
undertaken to identify skills gap and redundant
22 in the management has
manpower. Creation of new zones and appointment of
also been finalized by the
Deputy /Assistant Administrator in those zones may
Ministry and the same has
also be considered during this review.
been sent to the Parliament
through Parliamentary
Secretary.

RECOMMENDATIONS RELATED TO THE MINISTRY

Sr. Recommendations Status

There should be clear separation between the Board and

Management. The Board would exercise supervisory
and oversight functions, audit, approve the work plan,
1 annual budget, expenditures above a certain threshold
level but the day to day operations of the ETPB would
be run by the Chief Executive Officer assisted by a full
time professional management team.

The Board shall consist of 21 Members out of which 17

Members shall be non official Members drawn from the Amendments in ETPB Act
Sikh and Hindu Community and other eminent persons. have been made by the
Minimum academic qualification of the Board Member Ministry of Religious
shall Intermediate. The Chairman and the Members Affairs and the same has
would be appointed by the Federal Government: been placed before the
Parliament through
Act may be amended to reflect the revised composition Parliamentary Secretary
of the Board as under: Ministry of Religious
2 Affairs.
4 Members from Sikh Community from each province.
4 Members from the Hindu Community from each
province.
4 Experts in relevant fields from each of 4 provinces.
4 other eminent persons of standing
1 Member from ICT

448
 4 Official Members.

Management would be headed by a Chief Executive

Officer (CEO) with prescribed qualification and
3 experience and selected through an open merit based
competitive process. The CEO would act as ex-officio
Secretary of the Board.

CEO would be assisted by a Chief Financial Officer

(CFO), Chief Information Technical Officer (CITO)
4 and Chief Engineer (CE) as top management Team.
Legal Wing and Enforcement Wing should be
established.

Allocation of 10% share for Hindu Community and

5 10% for Sikh Community in the recruitment of ETPB
employees.

RECOMMENDATIONS PENDING DUE TO LITIGATION

Sr. Recommendations Status

1 Schemes for Urban Properties introduced in 2001 and Several tenants have
2006 should be amended to enhance rental rates and challenged the rules /
make them closer to current commercial values. The policy introduced in 2006
rents of urban properties have not been reassessed since for enhancement of rent in
2012. This needs immediate attention. all over Pakistan.
Presently, the case is
subjudice before the
Supreme Court of Pakistan
regarding previous
assessment policy of 2006.
Efforts are being made for
early disposal and in the
interest of ETPB.

449
7. Capital Development Authority (CDA)

450
The Cabinet at its meeting held on 2nd July 2019 decided that the Adviser to the PM on
Institutional Reforms, in consultation with the Minister for Aviation and parliamentarians from
Islamabad, will submit the proposals to reform and restructure to the Cabinet within one month.
In pursuance of this decision, Adviser to PM on Institutional Reforms held meetings with the
Chairman and members of the Authority, SA to PM Mr. Ali Nawaz Awan, Mr. Asad Umar
MNA, Sheikh Anser, Mayor and Mr. Humayun Akhtar, Chief Officer of Metropolitan
Corporation of Islamabad (MCI) and Joint Secretary, Interior Division. The findings and
recommendations in paragraphs below are based on the careful study of CDA Ordinance and
Islamabad Local Government Act 2015. Secretary Communications and Secretary, Housing
and Works were also consulted as a significant portion of CDA’s present functions are
proposed to be transferred to them besides MCI. Chairman, CDA was also consulted in his
capacity as the Chief Commissioner.

Findings:
1. CDA was established in 1960 under an Ordinance for the following purposes: (a)
planning and development of Capital (Islamabad) (b) to perform functions of a Municipal
Committee, (c) to provide for cleanliness, health, education of inhabitants, supply of goods,
articles of food and (d) to promote interest different sections of public. CDA has made a
significant contribution in developing the residential and commercial zones, building the
physical infrastructure and providing basic public services to the citizens of Islamabad.
However, the success has also brought, in its wake, an overzealous concentration of power and
gradual expansion by taking over of a wide variety of activities over time that have impaired
the efficiency, effectiveness and efficacy of CDA. The present governance and organizational
structure, business processes and indifferent attitude and apathetic responsiveness of its
employees have failed to meet the evolving and emerging needs of the citizens and their
expectations.
2. The financial model of selling residential and commercial plots by opening up sectors
through acquired land and using the proceeds for meeting the current expenditure of the staff
(highly overstaffed) and operational expenses is highly flawed. For example, in 2018-19, CDA
receipts were Rs.18.7 billion, out of which Rs.13 billion were generated by auction of
commercial plots and by collecting arrears for sale of residential plots. Of this, the spent only
Rs.2.8 billion on development of land and sectors Rs.18.6 billion was spent on non-
development expenditure. The collection from property tax and water charges amounted to a
paltry sum of Rs.1.3 billion. The gap between non land receipts and non-development
expenditure was Rs.15.5 billion. It is not obvious as to how the organization would survive
financially once it has exhausted its land bank. Like other public sector corporations, CDA,
would also, in future, have to fall back upon government subsidies if it is not restructured and
reformed now.
3. The main functions being currently performed by the CDA can be classified in the
following eight broad categories: -
i) Land acquisition, disposal and development of sectors in Zone I.
ii) Municipal Services (although transferred to MCI, certain overlapping and residual
functions are retained by CDA and the employees of MCI have dual and blurred
reporting relationships).
iii) Town Planning, Master Plan Preparation and Execution, Building Control, Land use
and enforcement of Zoning Laws and by laws.
iv) Regulation of private sector housing societies.

451
 v) Planning and Developing Housing projects such as Park Enclave-I and Park Enclave-
II.
vi) Preparation and Execution of Development projects in Islamabad such as Roads and
Highways, Access Corridors, Flyovers and Underpasses, Markets, Sewerage, Parks,
Green belt, Playgrounds.
vii) Construction and Maintenance of the Aiwan-e-Saddar, Parliament Lodges, Secretariat
Buildings, Police Barracks, residential houses, etc.
viii) Operation of Capital Hospital, Medical Services and Model School, Public
Parks, Cultural assets etc.
4. A lot of significant developments have taken place since CDA was established which
calls for a complete review of its mandate, functions and authority. Islamabad has now grown
into a large city with 1.8 million people. Private real estate development industry has become
quite active and aggressive. In 2015, a law on local government system created a Metropolitan
Corporation of Islamabad (MCI) with an elected Mayor. The MCI’s functions as enunciated in
the Third Schedule of the Act cover the municipal functions that were performed by CDA until
recently. The Federal Government has abolished the Capital Administration and Development
Division (CADD) and entrusted the responsibilities for Education, Health, Social Welfare etc.
to the respective line ministries. The agency functions such as construction, maintenance,
repairs of Federal Government buildings, residences and quarters have not been performed to
the satisfaction of its occupants. Financial viability of CDA in its present form is open to serious
question.
5. It is, therefore, imperative to develop proposals for the future configuration of CDA so
that it can focus on its core functions and activities and divest other ancillary or agency
functions it has either acquired itself or been forced by the Government to assume from time
to time. The proposed restructuring should be based on certain organizing principles which are
enunciated in paras below.

Organizing principles for CDA Restructuring:

6. CDA’s primary responsibility should be the updating and implementation of Master
Plan, setting standards and enforcing building control, regulating private housing societies,
monitoring and enforcing zoning laws and by-laws. CDA should no longer acquire private land
for development of new sectors but continue to complete the development works on already
acquired land preferably in public-private partnership mode.
7. Development projects for infrastructure under Public Sector Development Programme
(PSDP) should be planned and executed by the relevant Federal Ministries or their agencies.
IN 2018-19, the PSDP projects to be executed by CDA were targeted at Rs.8.4 billion.
8. Maintenance, repairs and operations of all Federal offices and residential buildings in
Islamabad is an agency function performed on behalf of the Federal Government and should
be reverted to it. Federal Government provides a maintenance grant of Rs.2.1 billion annually
to CDA.
9. CDA should no longer operate any Hospitals, laboratories and schools etc., as they
neither have the capacity nor expertise for this purpose.
10. Levy and collections of taxes such as property tax, cesses fees, tolls, user charges should
no longer be assigned to CDA as the MCI is the appropriate body authorized under the 2015
Act to mobilize these revenues for providing essential services to the citizens of Islamabad.

452
Recommendations:
11. In the light of the above principles, the following recommendations are made: -

i) The highest priority should be accorded to complete automation of processes,

digitization of land records, web enabled access to the citizens for obtaining updated
information, rules, regulations, by laws, uploading and downloading of forms etc.
ii) The present governance structure of the Authority needs to be replaced by a part time
Board consisting of eminent representatives from private sector and Government
officials that would oversee and supervise the management of CDA. The Management
should be headed by a Managing Director with Directors General heading the HR&
Administration, Planning, Finance, Estate and Engineering wings. In case the above
proposal is accepted the advertisement placed recently to fill in the Members and
Chairman positions from the private sector should therefore be cancelled.
iii) The following directorates and functions have already been transferred to the
Metropolitan Corporation of Islamabad but their staff continues to remain on the
strength of CDA and their salaries and allowances are being paid out of Rs.5 billion
provided by CDA from its own resources. CDA is planning to discontinue this
disbursement to MCI after December 2019. MCI does not have any financial resources
to pay the salaries to these 11000 employees who have all been seconded by CDA. This
is a serious issue that needs to be resolved quickly until it blows into a crisis after
December. MCI does not have its own financial system or HR policies as it is without
Finance or HR directorates. It relies upon the CDA for these support functions. CDA
should bifurcate these directorates and transfer the staff dealing with the MCI matters
to the Corporation. LG Board should finalize HR and Financial rules for MCI. Once
rules are notified the administrative powers of posting and transfer will be exercised by
the LG Board. To ensure stability and continuity the staff on deputation with MCI
should be given an option to be absorbed into MCI on the same terms and conditions
as they are enjoying in CDA or revert to the CDA for placement in a surplus pool that
would extinguish itself through a process of attrition. New recruitment by MCI should
be carried out according to the HR rules.
• Sanitation Directorate.

• D.G. Civic Management.

• Bulk Water Management Directorate, Water Supply directorate,

Sewerage Treatment Directorate, Water and Sewer Development.

• Roads & Market Maintenance Directorate.

• Directorate of Parks.

• All Environment Directorates.

• DG Sports, Culture and Tourism.

• Material Quality Control Directorate.

• Municipal Administration.

• DG Health Services.

453
 i) The financial situation of MCI also needs to be streamlined. CDA is providing loan to
MCI under directions of the govt. Property Tax receipts of Rs.2 billion is to recoup the
annual loan of Rs.8 billion. MCI should prepare and get its annual budget approved and
all revenue receipts and expenditures should conform to the approved budget. The
account of MCI should be audited. Any expenditure incurred in the past need to be
regularized.
ii) The MCI has to generate its own funds and collect its revenue. CDA has in 2019-20
created a surplus of rs.3 billion.
iii) The following Directorates and functions performed currently by CDA or MCI
should be transferred to the Federal Ministries as suggested below: -
• Capital Hospital and Health Services Directorate to the Ministry of
Health. (SUGGESTION: Capital Hospital is an employee welfare
Hospital and should be transferred to the Islamabad employees and
social Security department as is the case in rest of the country).

• CDA Model School to the Federal Directorate of Education to the

Ministry of Education. (SUGGESTION; CDA School is an
Employee Welfare Hospital and should be transferred to the
Islamabad Employees and Social Security department as is the case
in rest of the country).

• Sports and Culture Directorate to the IPCC Ministry.

• Zoo & Wildlife Management Directorate to the Ministry of climate

Change.

• Road Directorate, G & Lab, MPO, Special Projects to NHA under

the Ministry of Communications.

• Project Directors for NPA, H-11, Parliament Lodges, E&M

Development, Aiwan-e-Saddar, Ministers Enclave, Federal
government Residences & Lodges to a dedicated cell under the
Ministry of Housing & Works.

Future Direction:
12. Once the new local government system and law is introduced for Islamabad, the CDA
should be transferred from the Ministry of Interior to become an integral part of the new
Metropolitan Government on the lines of Punjab where LDA and all other service and civic
agencies are placed under the Metropolitan Corporation of Lahore. This arrangement would
ensure clear responsibility and unity of command for provision of basic services to the citizens,
accountability for results, and ease in mobilization of additional revenues as they would be
visibly spent on the welfare of the citizens in that specific area.

DECISION
13. The Cabinet in its meeting held on 5th November, 2019 directed to prepare an Action
Plan based on the recommendations made in the presentation, in consultation with the Advisor
to the Prime Minister on Institutional Reforms, within a period of two weeks.

CURRENT STATUS
14. Action pending with Capital Development Authority.
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8. Civil Aviation Authority (CAA)

455
The plan regarding Civil Aviation Authority was presented before the Federal Cabinet in its
meeting held on 11th August, 2020 by the Aviation Division in the form of the following report
of the Committee constituted for the purpose.

Background
1. In Pakistan, civil aviation activities are controlled and regulated according to the Civil
Aviation Ordinance 1960. The President of Islamic Republic of Pakistan established the Civil
Aviation Authority (hereinafter referred as “CAA”) by promulgation of an Ordinance, namely
Pakistan Civil Aviation Authority Ordinance 1982, to be the national authority responsible to
control civil aviation activities within Pakistan with an objective to promote and regulate civil
aviation activities and to develop efficient, safe, adequate, economical and properly
coordinated civil air transport services in Pakistan. Prior to the establishment of CAA in 1982,
the civil aviation activities were monitored by Civil Aviation Department under administrative
control of Ministry of Defence. It is important to clarify that Civil Aviation Ordinance 1960 is
an implementing legislation with reference to Pakistan’s international obligations under the
Convention on International Civil Aviation. The three core aspects of civil aviation activities
are air transport, air navigation and airport services. Currently, CAA is acting as a licensor and
regulator of all three core aspects and simultaneously acting as a service provider for airports
and air navigation services.
2. To avoid this conflict of interest, the National Aviation Policy 2019 approved by the
Federal Cabinet in March 2019 clearly specified that “the role of PCAA as a regulator shall
be made independent of service providers with financial and administrative autonomy within
a period of two years. By setting up a Regulatory Cell within PCAA, organizational change
modalities and structure of the Regulator shall be achieved with minimal adverse collateral
disadvantage …”
3. To give effect to the National Aviation Policy decision, the Aviation Division presented
a proposal to the Federal Government for “Separation of Regulatory and Service provider
functions of CAA”. The “Federal Cabinet approved 4 in principle, the proposal for segregation
of PCAA’s Regulatory and Service Provider function ….”
4. Meanwhile, to implement the Federal Government directives in terms of the stated
policy decisions a PCAA Change Management Committee, [CMC] of senior officers was
constituted. The Change Management Committee considered various proposals for functional
separation of Pakistan Civil Aviation Authority, leading to the complete segregation by
establishing two separate authorities and forwarded the said recommendations to the competent
authority.
5. The earlier Federal Cabinet directives were further clarified by the Federal Cabinet on
19th May 20205 that , segregation of regulatory and operational functions of the CAA should
be completed, along with two draft legislations, by 30th June 2020, positively and a Cabinet
Committee was constituted comprising of following members to evaluate various options,
while keeping in view segregation of regulatory and operational functions of the Federal
Government, for outsourcing the major airports and recommend the way forward:
i) Adviser to the Prime Minister on Commerce and Investment (Convener)
ii) Minister for Aviation

4 Decision of Federal Cabinet Case no. 685/31/2019 dated 30th July, 2019
5Decision of Federal Cabinet Case No. 341/18/2020, dated 19th May 2020
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 iii) Adviser to the Prime Minister on OP & HRD
iv) Adviser to the Prime Minister on Parliamentary Affairs
v) Chairman Board of Investment
vi) Secretary, Aviation Division
6. Dr. Ishrat Hussain, the convener of Institutional Reforms Committee also participated
in the proceedings of this Committee.

Proceedings of the Committee

7. The Cabinet Committee for the assigned task has so far convened four meetings to
discuss and deliberate on separation of the Regulatory function from Service Provider and
Corporatization of Airports to invite the foreign investors to invest in Airports:

First Meeting 04th June, 2020

Second Meeting 18th June, 2020

Third Meeting 25th June, 2020

Fourth Meeting 09th July, 2020

8. Cabinet Committee was appraised at the outset that a Change Management Committee
(CMC) was constituted in July 2019 for segregation of Regulatory functions. The CMC had
proposed segregation of PCAA in two phases; initially the functions of PCAA be separated
within the Organization, and in second phase the organizational separation of authority into
two entities will take place i.e. Regulatory body and Services body will be established by
ensuring uninterrupted operations at the Airports and resolution of potential impediments that
may arise post segregation of PCAA.
9. Representative from Privatization Commission suggested that instead of making a
single company for different Airports, it may be suitable if a company is incorporated for each
Airport separately. Further, as the Committee had suggested that Financial Adviser shall be
appointed for Privatization of the Airports, it is to be noted that same needs to be processed
through Privatization Commission. Addressing the same, Secretary Aviation clarified that
Privatization is not the objective of the Committee rather it is the structural reforms of the CAA
to attract the investors for development of Services at Airport and strengthening the Regulatory
functions of the State by segregating it from the Service Providers.
10. The Committee initiated its proceedings with consideration of various models for
outsourcing of Airports. The models depicted structures adopted by different countries to
attract investment from Private sector for development of Services at Airports. The model one
and two defined provisions to invite investment through Airport Service License terms and
Concession fee, respectively, for which draft rules have already been prepared by the PCAA.
Model III A involved inclusion of provision to transfer of Assets to corporate entities
incorporated for operating Airports for which Legislative and Policy change is required;
whereas, Model III-B required incorporation of Company by PCAA who shall operate Airports
under Airport Operator License.
11. The Committee was further informed that draft for two legislative bills have been
prepared within the timeline; one bill shall replace the existing CAA Ordinance 1960 while
strengthening the scope of Regulatory body in accordance with the international commitments
as a contracting state of ICAO and the second bill will propose amendments to the CAA
Ordinance 1982 to ensure enabling provisions for: -
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 vii) Establishment of an airport company under Companies Act 2017, limited by share;
i) Enabling the Company to own the title & assets of airports ordered by Federal
Government;
ii) Federal Government shall have power to transfer shares of the company to private
sector;
iii) Transfer employees from CAA to Company on same terms and conditions or favorable
conditions.
12. It was deliberated that a single legal instrument may be prepared amalgamating the
provisions and laws defined in both the Ordinances i.e. 1960 and 1982. However, considering
that the law constituting an authority or the national point of contact with reference to the
international treaties is to be covered by a standalone law and state obligations are to be defined
in another law. One shall define the regulatory framework and the other instrument shall outline
the scope of services with provision to incorporate a corporate entity under Companies Act
2017, the Committee agreed to the two separate legal instruments.
13. While it was decided that regulatory functions shall be entrusted to an Authority under
state; the structure for Service Provider entity remained under discussion. The Airport Services
and Air Navigation Services currently being rendered by Pakistan Civil Aviation Authority
involves management of 44 airports and oversight services for all aircrafts operating within the
airspace of country.
14. Committee further decided that an Audit firm shall be engaged to devise proposals on
the Corporate Structure of Services Entity. It was agreed that RFP / EOI shall be prepared in
collaboration with Chairman Board in Investment
15. The Cabinet Committee was also informed about the Lahore High Court decision dated
06th November, 2018 on the aspects of outsourcing of Airports; the Court had limited the scope
of outsourcing of Airports to provision of airport services from car park to terminal building
only. The decision of Supreme Court of Pakistan dated 19th February, 2020 also came under
discussion whereby it was directed that “no Land around Jinnah International Airport, Karachi
will be used for any commercial exploitation, rather it shall be used as an amenity for the people
and particularly, parks and thick urban forest for betterment of the environment in and around
Jinnah International Airport, Karachi.
16. Considering the essential involvement of Defense Forces as a joint user at most of the
PCAA Airports, Ministry of Defence (MoD) was also engaged in the process. The
representatives from MoD and PAF apprised the Committee that regulatory frameworks for
civil aviation are not applicable to PAF, however, for joint airspace management, separate
infrastructure for both bodies is not advisable in the national security interest of Pakistan. The
representatives from MoD were provided the draft Legal instruments prepared by CAA against
which they submitted following observations for consideration: -
i) Only commercial operations of the airport should be outsourced; whereas, security and
flight operations should remain under the monitoring of the State
ii) A provision be defined under the legislation which shall enable the Defense forces to
take over the airports in case of War
iii) Ownership of assets should not be transferred.
iv) MoD should be consulted while making the amendments in law so that no provision in
contradiction to the existing law (war book) is included
v) Security clearance from ISI be made pre-requisite for company to which the operations
at airports shall be outsourced

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 vi) It shall be covered through law that no foreign or dual national be allowed to work on
the airport
17. While showing agreement to most of the observations raised by MoD, Dr. Ishrat
Hussain stated that one of the objectives of this whole process is to attract investors from all
over the globe for development of Airports; whereas, restricting the employment to only locals
at the airports shall be a barrier and may discourage the interest of potential investors. Also, as
per standard practice, security check of all foreign or dual nationalists is performed by the
security agencies to ensure that security concerns are not compromised.
18. The Cabinet Committee after having detailed deliberations and considering the
concerns raised by the Ministry of Defense / PAF, the employees’ grievances and keeping in
view the fact that only six out of 44 airports (26 Operational) are profitable, decided with
consensus that two authorities shall be incorporated i.e. for Regulatory and Airport Services
functions, enabling Airport Services body to have subsidiaries under it instead of being an
independent Corporate entity.

Recommendations
19. Considering sensitivity of operations and involvement of strategic asset i.e. Airspace,
the segregation of PCAA shall be performed by incorporating two authorities. The one shall be
entrusted with Regulatory functions and the other one shall develop and manage functions of
Airports, with provision to incorporate subsidiaries under the Companies Act, 2017. The
incorporation of two separate authorities shall be performed in sync to ensure smooth transition
and minimal impact on operations.

20. The Committee proposed that functional separation of Pakistan Civil Aviation
Authority shall also be carried out by implementing structural reforms in the Organization. This
shall ensure independent functioning of Regulatory body within one Organization; and shall
remain intact till the pre-requisites for segregation of the Authority are finalized. The time
schedule for both functional as well as organizational separation is given below:

a) Operational/ functional Separation

21. The functional separation of CAA shall be performed by obtaining approval from CAA
Board. Following tasks have been completed for performing the separation of functions: -

Approval
Sr. Description Status Timeline
By

Approval of proposed Organograms Draft CAA Board Last week of

A for Regulatory and Airport Services Prepared July 2020
Functions

Separate Plan of Draft CAA Board Last week of

Manpower/Establishment for Prepared July 2020
B
Regulatory and Airport Services
Functions

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 Amendments in CAA Service Draft CAA Board Last week of
C
Regulations Prepared July 2020

Separation of Budget Allocation Working CAA Board Last week of

D Proposal 2020-21 for both functions Completed July 2020

Proposal for allocation/ bifurcation Working CAA Board Last week of

E of Assets of Regulatory and Airport Completed July 2020
Services Functions

Separate Prescription of CAA Working CAA Board Last week of

F Operational National Regulations Completed July 2020
pursuant to ICAO Annexes

b) Segregation of PCAA into Pakistan Civil Aviation Regulatory Authority and Pakistan
Airports Authority
22. The Organizational Separation of PCAA shall be performed by establishing two
separate authorities by law, namely the Pakistan Civil Aviation Regulatory Authority
(PCARA) and “Pakistan Airports Authority (PAA)”. Subsequent to the establishment of the
two authorities, the Corporate Structure for the subsidiaries shall be devised in consultation
with an Audit firm hired for the purpose. The outsourcing process shall be performed in two
phases; the first phase shall be the Corporatization of the Airports as per decision of the
Government for attracting Private investors, and in second phase the transaction shall be
performed in consultation with Privatization Commission through the same or a Financial
Adviser/ Investment Banking Firm. Following tasks will be completed for performing the
Organizational Separation of PCAA: -

Sr. Description Status Approval By Timeline

Approval of proposed
legislations Last week
Drafts
A CAA Board of July
Repeal of Ordinance 1960 Prepared
2020
Amendment in Ordinance 1982

Approval of both Legal Drafts

B Parliament -
instruments Prepared

In consultation
Engagement of Audit firm for RFP / EOI is
C with Chairman 04 months
corporate structure, etc., in process
BOI

In consultation
Engagement of FA / Investment
D - with Privatization
Banking Firm for Transaction
Commission

Decision
23. The Cabinet considered the above recommendations of the Committee in its meeting
held on 11th August 2020 and approved the same. The Cabinet further approved that the
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Committee under Advisor to PM on Commerce shall keep on overseeing the implementation
of the recommendations.
24. Subsequently, Aviation Division initiated another summary for Cabinet which was
considered in the meeting held on 1st September 2020. The Cabinet approved the proposal of
Aviation Division to constitute a new Committee under the Chair of Aviation Minister for
engagement of an audit firm to work out the most efficient structure of Pakistan Airports
Authority and its corporatization.

Current Status
25. The new Committee was notified by the Aviation Division on 16th September 2020.
The Committee has so far met for 4 times and has recommended the shortlisting of seven (7)
audit firms for the purpose. Aviation Division is in the process of finalizing the RFPs for the
audit firm which will be presented before the next meeting of the Committee.

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9. Pakistan Council of Scientific &
Research (PCSIR)

462
While reviewing recommendations of the Prime Minister’s Inspection Commission in respect
of Pakistan Council of Scientific & Industrial Research (PCSIR), the Prime Minister was
pleased to direct that Ministry of Science & Technology shall develop a comprehensive Action
Plan to improve effectiveness of the organization, in consultation with the Adviser to PM on
Institutional Reforms & Austerity. In this regard, Ministry of Science & Technology developed
a Action Plan, which is at Annex 1. The Adviser to PM on Institutional Reforms, on reviewing
the document, proposed the following additional agenda of reforms to PM on 10th February
2021 in order to meaningfully restructure the organization.

Recommendations
1. At the outset, PCSIR was established in 1953 to innovate and modernize the industrial
processes and products through research, so as to substitute the imports and bring value
addition to the exported products and thus contribute to economic progress of country. In the
present times, this original mandate is but ever most significant and relevant. However, over
the period of time, focus has been shifted from solutions-oriented research to providing testing
services, trainings and diplomas etc. The situation needs a major course correction.
2. To this end, establishment of Advisory Committee (as proposed in draft plan by
Ministry of Science & Technology) is supported. However, such a Committee should be
established directly under the Ministry. The Committee should review, prioritize and spearhead
the overall process of applied research and development in the country. Such advisory body
may include eminent scientists, industrialists and policy makers and will be responsible for
directing the research towards development of processes, products and services required for
innovating industry and exports. The proposed Advisory Body will also ensure that existing
research facilities available in public sector are optimally utilized, by doing away with the
duplication/overlapping and bringing about overall coherence. Mandate for PCSIR will also be
monitored, updated and guided by this Advisory Committee.
3. The existing composition of the Council is quite large (21 members) and needs to be
curtailed to a manageable number. To make PCSIR an autonomous body implementing the
given mandate, it should have a Board of Directors comprising 8-10 members headed by a
Chairman. Chief Executive of the PCSIR will be a Director General reporting to the Board and
assisted by a Management Council and Research Council consisting of leading scientists
from within and outside the organization. The proposed governance structure and suggested
research themes is annexed. In order to achieve this, suitable amendment in PCSIR Act 1973
are required.
4. PCSIR has a sanctioned strength of 2762 employees with an annual recurring budget
of Rs.3 billion. Approximately 43% of the sanctioned strength comprises non-technical staff.
This ratio is quite high and a total freeze on recruitment of non-technical posts should be
imposed. The posts becoming vacant should be abolished forthwith. The savings thus effected
should be utilized for performance-based output of scientists and technical staff. Performance
Appraisal Boards should be established reporting directly to the Direct General. These outputs
would be, for example, commercialization of patents, research outputs and advisory services
the industry etc. The proposed Action Plan has made some suggestions for rationalization of
human resource and quality improvements, which may be substantiated with these additional
measures:
i) The organization should immediately shift from the funded pension system. Rules
should be amended so that new employees are subjected to defined contributory
pension scheme.

463
 ii) The new research proposals should be carried out in project mode. In addition to
regular staff, outside scientists should be hired from within and outside the country
on market-based remunerations but purely for the tenure of project cycle. Top
performers should be rewarded with bonuses and should be considered for retention
in next cycle of products (testing, upscaling etc.) which should again be undertaken
in project-mode. This scheme is closely linked with improving marketability of
patented products/process (described below).
iii) The ratio of non-technical staff should be gradually lowered. For this purpose, the
existing staff should be re-employed into the newly proposed projects. During our
meetings with Chairman PCSIR, possibility was discussed that a large proportion
of non-technical employees could be re-employed in laboratories as technicians
with marginal training.
5. Developing civil-military interface for better leverage of available R&D facilities
is a very appreciable step. Scope of such activities needs be broadened to include other
institutions both in civil and military setups. In fact, PCSIR should develop and maintain an
interface with other research facilities as a part of action plan. To quote the example, a number
of projects and activities proposed in the attached Action Plan relate to genetic-engineering,
upscaling the new strains, developing plant and animal products, and establishing bio facilities.
It may be noted that Pakistan Agriculture Research Council (PARC) under the Ministry of
National Food Security & Research is also undertaking similar activities. By close
collaboration and coordination, both Councils may develop synergies through better utilization
of existing knowledge-base and research facilities.
6. In order to boost the revenue streams and promote self-sufficiency, PCSIR needs to
increase the marketing and commerciality of its research outputs. The given Action Plan
envisages increased linkages with the industry in general and SMEs in particular through direct
outreach. Such continued interactions are very important to keep the core research activities
aligned to market needs. However, marketing and deployment of developed solutions needs
separate skills set and should be kept separate from the core scientific and technical activities
of the Council. Commercial interface of PCSIR with industry and SMEs should be through a
separate and specialized subsidiary (Company) for all research institutions. Ministry of Science
& Technology may also consider putting STADEC to better use for this purpose, which was
established as a separate company with similar mandate. The company can not only directly
market the patented technologies, but also develop framework for entering into joint ventures
with private sector in order to mobilize resources even at conception stage of the projects.
7. The future course of action is suggested as under:
i) Ministry of Science & Technology may enter into an agreement with PCSIR on
implementation of the proposed Action Plan along with above made
observations/suggestions, with timelines and milestones.
ii) PCSIR may develop a detailed business plan stipulating the quarter-wise activities,
targets and revenue projections in the light of finalized Action Plan, and
iii) Cabinet Committee on Institutional Reforms (CCIR) may review the progress on
implementation of finalized plan every quarter with a view to approving any roll-
on adjustments if required.

Decision
8. The above plan was shared with the Office of the Prime Minister on 10th February 2021.
The Prime Minister directed the Ministry of Science & Technology to consider and incorporate
the recommendations and suggested course of action to finalize the Action Plan. The Ministry
464
was further directed to elaborate and revise the timelines as per actual timeframe and re-submit
the case for the order of the Prime Minister.

Current Status
9. Further action is to be taken by the Ministry of Science & Technology.\

465
 Annex 1

1. Executive Summary
The Prime Minister’s Inspection Commission (PMIC) carried out the study of the impact of
the research organizations of the Federal Government including Pakistan Council of Scientific
and Industrial Research (PCSIR). During the inspection, PCSIR provide data/ information as
and when required by the PMIC from June, 2019 to January, 2020. In February, 2020, PMIC
submitted its findings/ report. As per recommendation of the report, PCSIR submitted an
Action Plan for improving the effectiveness of PCSIR in November, 2020.

The Action Plan includes interaction with S&T institutions within the country and abroad for
technology transfer/ absorption in emerging and new technologies. Priority areas where PCSIR
would like to excel in areas like leather, textile, food, herbal, automobiles/ transportation,
engineering, nano technology, housing & public works, health, etc. PCSIR has planned to
enhance R&D collaboration with military organizations and to execute demand-driven R&D
projects evaluated and recommended by a high-level Advisory Committee at Head Office.
Moreover, Establishment of Endowment Fund for Scientific and Industrial Research,
Innovation and Commercialization (EFSIRIC) is also in pipeline to fund different scientific
activities including the funding of joint venture under international cooperation.

Improvement in infrastructure and engagement of manpower for research in new fields e.g.
halal certification, industrial/ medicinal cannabis, gene editing, biosensors, etc. will also be
carried out. Furthermore, to increase the number of technical services, the scope of
accreditation will be extended with new parameters i.e. cement, halal foods, food grade
packaging materials, rapid testing of SPS organisms, calibration, etc. Efforts will also be made
to strengthen the linkages with academia and industry to facilitate the clients. In addition,
marketing cell will be strengthened for commercializing processes, products and technologies.
Establishment of an international liaison centre at Head Office is also under consideration to
enhance the international collaboration.

Inter-alia, PCSIR has prepared several project proposals in emerging scientific fields as per
government priorities. These projects will not only up-grade the existing laboratories of PCSIR
with latest techniques and state-of-the-art equipment but will also create opportunities in areas
such as halal certification, cannabis cultivation/ processing for industrial/ medicinal uses and
gene editing to enhance crops yield, etc. This investment will increase the number of industrial
services and revenue generated by PCSR manifolds.

2. Introduction of PCSIR
The Government of Pakistan established Pakistan Council of Scientific & Industrial Research
(PCSIR) in 1953 as an autonomous body to build a strong scientific and technological base for
the economic progress of the country with mandate to undertake, promote and guide scientific
and technological research related to problems connected with the establishment and
development of Pakistani industries and disseminate the results of research to various sectors
of the economic development community in the best possible manner.

2.1. MANDATE OF PCSIR

• Utilization of indigenous resources for the development and promotion of Industrial

sector leading to import substitution and export enhancement.

466
 • To carry out self-sustaining and marketable research to contribute in the
industrialization and economic growth of country and human resource development
through organized training courses.

2.2. ORGANIZATIONAL STRUCTURE OF PCSIR

The Chairman is the Chief Executive Officer (CEO) of PCSIR. The Council consists of 21
members including the Chairman. The Federal Government nominates 21 members. As per
PCSIR Act No.XXX 1973, the composition of the Council comprises of the ex-officio
members and the representatives of the public/ private sectors. The Council is the supreme
policy-making body. The executive organ of the Council is the Governing body which consists
of four members; The Chairman and the Members for Finance, Science and Technology. Under
the above set-up various laboratories and centers functions under the Directors General or
Directors.

2.3. LABS/ UNITS OF PCSIR

PCSIR is the premier public sector R&D organization of the country with a network of 17
research laboratories/ units including 06 training institutes located all over the country. PCSIR
laboratories are ISO-17025 accredited equipped with state-of-the-art laboratory equipment and
highly skilled manpower. PCSIR supports the local industries in various sectors for providing
cost-effective technology solutions as well as quality assurance services.

2.4. MAIN ACTIVITIES OF PCSIR

The broad-based activities of the PCSIR include technology development, human resource
development, quality control/ quality assurance services, consultancy/ trouble shooting and
industrial linkages/ WTO obligations. The council laboratories are providing testing &
certification services to almost entire industrial sector and most of the exportable products are
being tested/ certified by its ISO-17025 accredited labs. Current major activities also include:

• Supply of strategic chemicals to the Defense sector as per their demand.

• Supply of indelible ink vials and stamp pads to the Election Commission of Pakistan
(ECP) from time to time.

2.5. THRUST AREAS

The thrust areas of PCSIR touch almost all sector of the economy including Engineering, Food
& Allied Products, Pharmaceuticals, Leather and Leather Auxiliaries, Textile & Associated
Products, Glass & Ceramics, Biotechnology, Strategic Industry, Environment, Electronics,
Industrial Chemicals, Paper & Plastic/ Polymers, Pesticides & Herbicides, Oil & Fats and Dyes.
Technical training centers of PCSIR at Karachi, Lahore, Peshawar, Quetta and Daska are
providing 3-4 years diploma certificates in Cast Metal & Foundry Technology, Dye & Moulds
and Precision Systems Mechanics and Bachelor degree in Industrial Electronics Engineering.
More than 300 students are awarded diplomas/ degrees annually and most of them get jobs
immediately.

2.6. STRENGTHS OF PCSIR

• Qualified scientific & technical manpower (Ph.Ds., M.S./ M.Phil, M.Sc./ B.E. etc.) to
undertake R&D activities.

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 • Expertise to develop small to medium-scale processes, procedures and technologies in
diversified areas of Research & Development.

• Competence to undertake quality control and standardization of industrial products and

unit operations.

• Availability of Pilot Plants for testing of developed technologies.

• Workshops Facilities for Design & Development of equipments, plants, tools & parts.

• Expertise of trouble-shooting and repair/ maintenance of equipments.

• Expertise to extend consultancy services and undertake feasibility studies.

• Recognition of PCSIR by International & National Organizations:-

− ISO/ IEC 17025:2005 Accreditation by PNAC (Since 2005)

− ISO/IEC 17025:2005 Accreditation by Norwegian Accreditation (2007-2010)

− Saudi Arabian Standard Organization (Approved Lab.)

− Ministry of Health & Welfare Japan (Approved Lab.)

− Agency for Agriculture Quarantine, Ministry of Agriculture, Republic of Indonesia

(Approved Lab.)

• More than 550 accredited tests/ calibration services of PCSIR

3. Inspection by the PM’s Commission

The Prime Minister’s Inspection Commission (PMIC) carried out the study of the impact of
the research organizations of the Federal Government including Pakistan Council of Scientific
and Industrial Research (PCSIR). During the inspection, PCSIR provide data/ information as
and when required by the PMIC from June, 2019 to January, 2020. In February, 2020, PMIC
submitted its findings/ report. As per recommendation of the report, PCSIR submitted an
Action Plan for improving the effectiveness of PCSIR in November, 2020. (Timeline of the
plan is given at 3.1).

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3.1. ACTION PLAN
Timeline for Implementation

Estimated Time (Month)

Milestones
Dec-2020 Jan-2021 Feb-2021 Mar-2021 Apr-2021 May-2021

Conduct & Discipline Rules 6 months

Flow of Funds to Units 4 months

Council Meetings 4 months

Revised Amended Act of PCSIR 1 month

Constitution of Advisory Committee 4 month

Implementation of KPIs 2 months

Increase in Scope of Accreditation 3 months

Rationalization of Manpower 4 months

Commercialization of PCSIR Products 5 months

Industrial Services 4 months

Human Resource Development 3 months

Development of Business Plan 6 months

Enhancement in International Cooperation 4 months

Setting-Up Merit-Based Criteria 2 months

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4. Human Resources Development
4.1. PRESENT WORKING STRENGTH
At present, 2066 employees (Technical/ Non-technical) are working in PCSIR against the
sanctioned strength of 2762 out of which, 420 Nos. (BS-17 & above) are on Technical side
(Technical Sanctioned Strength: 622 Nos.) in which 114 Nos. are having Ph.D. qualification.
These scientists/ engineers/ technologists are supported by 690 Nos. (BS-1 to BS-16) of
technical staff (Technical Sanctioned strength of supporting staff: 950). There are 896 Nos. of
non-technical employees (officers/ officials) presently working in PCSIR against the
sanctioned strength of 1190 employees (non-technical side).

4.2. GENERAL GAPS IN HUMAN RESOURCE

• The organization is facing an acute shortfall of trained manpower as no induction has
been carried out since 2012. Brain-drain for lucrative jobs/ better future prospects and
gradual retirements of senior cadre staffs with the passage of time has caused adverse
implications for the overall productivity of PCSIR.

• The employees (scientists and researchers) and other supporting staff find it hard to
cover the living expenses in meager salaries which hamper their concentration and
dedication.

• Unfortunately, in Pakistan, drivers and junior staff in some departments earn higher
salaries than qualified (PhD, Officer Cadre) scientists who dedicate half of their lives
in studies, specializing in their relevant subject of interest.

• Promotion criterion is old and depends totally on seniority and does not consider skills
and performance which discourages good performing scientists/ workers.

• Incompetence and permanent job syndrome most of the time force the head of the units
to approach active scientists directly bypassing their HOC/OICs or section in-charges.

• PCSIR, Labs are mostly engaged in Commercial Quality Testing of Industrial Samples
(Analytical Testing services) than R&D. Though, the impact of these services is great
in terms of export of consumer goods, but on other side it lowers down the research
activity of the Scientists. Moreover, analytical testing services are excessively
demanding and it’s consuming the major part of human resource energy and effort.

• Nothing is allocated for trainings and capacity building of scientists/ technologists.

Even the procedures to pursue self supported trainings are too complicated. Procedures
should be made easy to facilitate scientists/ technologist. Funds should be allocated to
participate in local and foreign trainings.

4.3. FUTURE STRATEGY

• Rationalization and reshuffling of manpower will be considered. Workload analysis
will be carried out for making an appropriate decision for underutilized and low
performing employees. Moreover, the proportion of scientists to non-technical staff or
the ratio of laboratory staff to non-technical staff will be reviewed.

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 • Benchmarks will be set across the board for all Scientists/ Engineers/ Technologists
with a specific timeline and future promotions and other incentives will be awarded
strictly on merit/ meeting of benchmarks.

• The activities will be segregated at least into two categories; Analytical Commercial
Testing and R&D to get some productive results.

• Performance based incentives programme is being introduced to encourage and

motivate the hardworking R&D Staff and improve the overall productivity of the
Organization.

• Responsibilities will be given to scientists whether it is client enquiries, report

preparation, purchase, ISO management, Industrial visits and the list goes on.

• Collaboration with the Federal/ Provincial Vocational Training Authorities shall be

enhanced to meet the demand of local industry.

• HEC will be requested to coordinate with the industrial sectors and announce/ plan
topics related to Marketable Research for Ph. D and Postdoctoral studies.

• Provide training to the local community of Gilgit-Baltistan with skills/ techniques

for preservation of fruits and vegetables and value addition.

• Funds will be requested from MoST for the most advanced trainings of PCSIR
scientists/ engineers as per the demand of the market be arranged to keep the knowledge
based of the R&D staff highly sophisticated and innovative.

• Implementation of KPIs for Scientists/ Engineers: To enhance the performance of

different units of PCSIR, Key Performance Indicators (KPIs) have already been
prepared and implemented. KPIs for each scientist/ engineer with targets have also been
prepared and will be implemented in all units/ labs by January, 2021 (02 months).

5. Budget of PCSIR
The table below presents the development and non-development budgets of PCSIR from 2016-
17 to 2020-21 (last five years).

Budget Allocation (millions)

Year
Non-Development Development
2016-17 2183.841 550.817
2017-18 2312.961 186.477
2018-19 2707.582 730.309
2019-20 2716.908 336.659
2020-21 3119.237 421.541

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5.1. FINANCIAL CONSTRAINTS
• One of the reasons for Pakistan to lag behind in spending on R&D and Innovation is
the reluctance of the government to allocate sufficient financial resources. Furthermore,
amongst the allocated budget, the lion’s share goes to in the salaries and pensions and
only a meager amount is spent on actual R&D.

• Lack of financial support is the major issue along with the misallocation of facilities
and human resource. Some of the labs are well equipped, but trained manpower is not
there. On the other hand, some of the active scientists are willing to work, but they are
not provided with their required equipments and consumables.

• Lack of national funded scholarship programs for training of scientists creates huge gap
between Pakistani scientists and the rest of the world.

• No funds are provided/ allocated for scientists to participate in foreign trainings,

seminars, workshops, etc.

• No funds are provided/ allocated to execute the agreements/ MoUs with the
international organizations.

5.2. FUTURE STRATEGY

• Introduction of Incentive Award scheme for performing scientists/ engineers.

• Funds will be requested from MoST for the most advanced trainings of PCSIR
scientists/ engineers as per the demand of the market be arranged to keep the knowledge
based of the R&D staff highly sophisticated and innovative.

• Funds will be requested from MoST for the execution of international MoUs/
agreements. .

• Smooth Flow of Funds to the Labs/ Units: Governing Body of PCSIR in its meeting
held on 23-01-2020 has recommended to enhance the administrative approval for in-
house R&D projects/ activities at PCSIR Labs./ Centers up to one million per project
subject to amendments in Clause-C of Rule 6 of Financial Rules of PCSIR and approval
from Council. The Council meeting is planned in February/ March, 2020. This task is
expected to be completed in March, 2021 (04 months).

Strategy Outlook
5.3. CIVIL MILITARY R&D FRAMEWORK
I) Smart digital automation, control and indigenization of second generation
feedstock and end products
It is of prime importance to create a sustainable capacity & capability in public sector R&D
and related facilities for continuous innovation in the area of metabolic engineering, sugar
production technology and high-value bioproducts. This pilot project envisages introducing a
Sugar Production Biotechnology Infrastructure Platform on pilot scale. There are two
components to this pilot project, which are briefly described as follows:
a. 2nd Generation Sugar Production Technology Platform Development - PAEC
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 b. Fourth Generation Cellulosic based High-value Bioproducts Production - PCSIR
The production of second generation bioethanol requires saccharification of lignocellulosic
materials followed by fermentation of the released sugars to ethanol by microorganisms.
Besides bioenthanol, other high-value bioproducts that could be included are highly refined
DHA omega-3 oils, terpenoid compounds, carotenoids, etc. using strain engineering.
II) Development of Computer Controlled Fermentors and Production of
Biochemicals & Bioproducts
The project focuses on manufacturing fermentors and microbial strains, bioproducts and
biochemicals. Fermentors are extensively used for food processing, fermentation, waste
treatment, etc. Modern fermentors are usually integrated with computers for efficient process
monitoring, data acquisition, etc. PAEC’s expertise in automation and engineering coupled
with PCSIR’s understanding of industrial processes can create an opportunity to establish an
indigenous design and manufacturing footprint for reliable and scalable fermentors suitable for
production of various microbial strains and subsequent high value biochemicals,
biopharmaceuticals, biofertilizers, biopesticides, etc..
The pilot project has two components, which are briefly described as follows:
a. Computer-Controlled Fermentor (Bioreactor) Development - PAEC
b. Pilot Scale Manufacturing of Microbial Strains, Biochemicals & Bioproducts - PCSIR
III) Endowment Fund for Scientific and Industrial Research, Innovation and
Commercialization (EFSIRIC)
The proposed endowment fund is envisaged to be established and operated by PCSIR with
initial capital to be provided through PSDP. This fund would then be invested into secure
investment schemes. The return on the investment (ROI) will be then utilized for purposes such
as advanced R&D activities, pilot industrial projects, commercialization and marketing
activities, research-industrial linkages, etc. The ROI will promote the development of socio-
economic innovation in Pakistan in the areas of science and engineering (R&D) and other
enabling technological areas. Pakistan is blessed with brilliant youth which can play pivotal
role in the 4th industrial revolution by proper harnessing them through this endowment fund.
Pakistan has a youth bulge and more than 65% are less than the age of 35 years which has huge
potential for technological revolution. This talent needs direction plus financial support to bring
the change and this fund (ROI) will help also in putting stop to brain drain.
The income from invested capital will help in establishing an indigenous innovation base and
expertise in emerging technologies with commercial business potential. Thus, the endowment
fund will provide essential link for creating a complete ecosystem from scientific research to
developing industrial products and commercial level scale-up. In the current knowledge-driven
society, enriching a vibrant innovative ecosystem that will play a key role for economic
development. The ultimate result will be the economy boost in the country.
The initial/ seed capital will be put into secure investment schemes that could yield high profits
on monthly basis. The income generated through investment will then be utilized for:
a) advanced R&D activities,
b) pilot industrial projects, entrepreneurship

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 c) commercialization and marketing activities,
d) research-industrial linkages, etc
The Governing Body of PCSIR will oversee/ manage and steer the Endowment Fund. To assist
and advise the Governing Body, a Steering Committee will be constituted as follows:
a) all four members of the Governing Body of PCSIR,
b) three co-opted members:
i. DG NECOP
ii. one from industry
iii. one civil-military representative.
Chairman, PCSIR will be the chair of the Steering Committee. This committee will also be
responsible for policy recommendations for effective governance and implementation.

5.4. FOCUSING ON SMALL & MEDIUM ENTERPRISES (SMEs)

Emphasis will be given, initially, on PCSIR’s available Core Competencies, while expanding
reach or finding suitable private sector partners for the products that have been developed or
are under development. The listed below strategy will be adopted:
Leasing out of Technologies/ Products:
The present Core Competence/ Strengths are sufficient indicators for PCSIR to embark upon
various innovative technologies for commercialization. Among these are the mobilization of
venture and risk-capital by SMEs. However, given below impediments have to be considered
which are being faced by PCSIR:-

• SMEs are reluctant to invest in untested technologies.

• Venture capital is not available.

• Risk factors are too high for SMEs.

• Capital costs for development of industrial operations is prohibitive for SMEs.

• Import of technologies is easy.

The proposed mechanism of commercialization of technologies through TBICs will have the
following salient features:-
a) PCSIR will demonstrate viability of the developed technologies on pilot plants to
prospective SMEs.
b) After successful demonstration, SMEs will be encouraged to develop a partnership with
PCSIR:-

− At the technical facilities of PCSIR.

− Under the supervision of PCSIR experts.

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 − Cost of raw materials to be paid by SMEs.

− Cost of building utilization charges, utilities etc. to be paid by SMEs.

− Marketing potential to be explored by SMEs.

c) Graduating technologies to be industrialized by the SMEs within 6- 12 months.
d) PCSIR to continue providing technical support for quality control, Intellectual Property
(IP) rights etc. of the products.
e) Products to be marketed with logo/ trademarks of PCSIR/ SMEs.
Furthermore, the following measures could also boost the technology commercialization in
PCSIR:-

• Incentivize policy to introduce demand driven R&D culture with inclusion of equity
from private sector & its commercialization to identified industry.
Quality Assurance/ Quality Control Services:
One of the major strength of PCSIR is having nation-wide state-of-the-art R&D facilities in
provincial capitals as well as in federal capital to evaluate and test raw materials, finished
products and calibration services in accordance with international standards. Although several
public & private sector laboratories are available for conducting test/ analysis but PCSIR is
considered to be a reliable & reputable organization both at National & International level and
stands alone in the country having more than 550 tests/ calibrations services accredited through
Pakistan National Accreditation Council (PNAC).
Keeping in view the above-narrated strengths, efforts will be made to expand the reach of
testing (including increase in accreditation scope) as well as to declare PCSIR Laboratories as
National Quality Control Labs. as 3rd Party Evaluation for PS (Pakistan Standards) mandatory
items.
PCSIR-Science Technology & Innovation Park
Operationalization of PCSIR- Science Technology & Innovation Park, initially at Lahore, with
the onus to create entrepreneurship ecology, support new start-ups, business venture and
incubation of innovation-led, regional economic development through regional creativity as
well as support to local industry’s competitiveness. The listed below infrastructure related
facilities have been established within available resources.

• National Innovation Centre/ Go Zero

• National Centre for Transfer of Technologies

• Technology Business Incubation Centre (TBIC)

• Management & Tenant Offices for Industries, Academia & relevant stakeholders

• Access to R&D Infrastructure, Workshops & Pilot Plants

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After its successful operation activities, the same model will be replicated at PCSIR, Karachi
& Peshawar. The draft documentations i.e., Regulations, ToRs for Tenants, Brochures &
Applications have already been submitted to MoST for approval.

5.5. STRENGTHENING THE LINKAGES WITH ACADEMIA

Keeping in view the strengths & weaknesses of PCSIR, focus will also be given to listed below
activities while establishing the linkages with academia:-

• Sharing of Human & Material Resources with the Public & Private Sector recognized
Universities for utilization the services of their Business & Media Schools Young
Graduates to supplement the marketing & commercialization activities of PCSIR’s
Products/ Technologies

• Sharing of PCSIR’s Technical Infrastructure with Science Departments of the

Universities. Through this arrangement, PCSIR can overcome the absence of marketing
& media professionals, whereas, the Universities could have easy access to R&D
infrastructure of PCSIR.
It is expected that this arrangement could be mutually beneficial for both the entities such as
PCSIR can overcome its commercialization & media propagation weaknesses through utilizing
the young graduates of the Universities. On the other side, the Universities will not have to
make huge investment for creating state-of-the-art R&D facilities.

5.6. STRENGTHENING THE LINKAGES WITH INDUSTRY

In order to strengthen the linkages with Industry/ SMEs and to curtail the trust deficit with the
industry, the following activities will be undertaken on regular basis:-

• Extensive visits to Chambers of Commerce & Industries, Sector Specific Trade

Associations.

• Constitution of Technical & Marketing Teams for conducting industrial visits and
holding of Focus Group Meetings with an aim to:-

− Brief the industrialists about technical expertise/ technologies/ services available

with PCSIR.

− Identify the problems/ issues being faced by Industries/ SMEs.

− Identify research projects as per demand of the Industries/ SMEs.

• Inviting business/ industrial delegates in PCSIR Laboratories for the awareness of

PCSIR’s Technical Facilities & Capabilities and to augment the “Seeing is believing”
thought.

• Effective publicity campaigns & promotion of interactions with industries/ SMEs

through organizing Seminars, Workshops, Technology Exhibitions etc.

5.7. SKILL DEVELOPMENT TRAININGS

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 • Apart from the regular diploma and certificate courses, the collaboration with the listed
below Federal/ Provincial Vocational Training Authorities shall be enhanced to meet
the demand of local industry:-

− NAVTTC

− Punjab Skill Development Fund (PSDF), Lahore.

− TEVTAs (Punjab, Sindh, KP & Baluchistan)

− FATA Development Authority, Peshawar etc.

• Northern areas of Pakistan are rich in fruit production and nature has gifted tremendous
environment for world’s best fruits having matchless taste. Despite the fact annual fruit
losses are enormous in the area due to lack of knowledge/ skills for better production
and preservation. Therefore, series of training programs for the Value Addition of
Fruits and Vegetables shall be conducted by engaging local social groups with the listed
below objectives:-

− To train local community with skills/ techniques for preservation of fruits and
vegetables.

− To enhance income and employment opportunities for local communities.

− To increase role of women and their participation in socio-economic

development.

5.8. PARADIGM SHIFT IN R&D PROJECTS - CONSTITUTION OF

ADVISORY COMMITTEE
Presently there is no tangible R&D projects framework in place in PCSIR having clear sighted
road map in terms of its impact on the national economy and society. As such there is no
appropriate mechanism to assess the market viability and potential of any research project/
invention. It has been observed that the mechanism of R&D and technology development
operates in isolation, having little or no linkages with end-users. The Scientists/ Engineers/
Technologists of PCSIR developed processes/ technologies through in-house R&D projects
but it is reality that most of the technologies/ products are placed on the racks due to many
reasons like weak linkages between Research, Industry & Academia, trust deficit trend between
private & public sector organizations, lack of focus on developing demand driven technologies,
absence of marketing professionals and effective propagation activities etc.
Keeping in view the above, it has been decided that focus may be given to develop need-based/
demand-driven technologies which may immediately be accepted by the industrial sector. In
this regard, an Advisory Committee is being constituted at PCSIR Head Office, Islamabad to
select/ review/ recommend & approve the demand driven research projects for funding to
streamline the research & innovation eco-system. The functions of the Advisory Committee
shall be:-

• Formulate, approve & implement the strategic plans/ policies for changing in mindset
and overcome the prevailing inertia through paradigm shift towards need-based R&D
and introduction of Corporate Culture.

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 • Identify the potential areas of R&D in line with the national priorities, prevailing
opportunities as well as of industrial demands through extensive Visits/ Focus Group
Meetings with Chambers of Commerce & Industries and Sector Specific Trade
Associations etc. will be arranged along with strengthening of institutional relationships
with public sector organizations/ universities.

• Supervise and manage the R&D activities of the Council’s labs./ units.

• Lump sum allocation of funds to labs./ units for demand driven/ need-based R&D
projects out of PCSIR’s Self Generated Income (SGI).

• Evaluate, review and recommend the demand driven/ need-based R&D projects
submitted by PCSIR labs./ units in line with the identified areas and to accord its
approval for funding through SGI.

• Monitor the progress of approved demand driven/ need-based R&D projects.

• Approve the technology transfer fee or product cost for commercialization to the end
user.

• Approve the proposed Incentive Award determined/ recommended by the Sub-

Committees on the basis of approved Incentive Reward mechanism.

• Monitor the progress of the Sub-committees to be constituted at labs./ unit level on

quarterly basis.

• Devise & approve any other policy guidelines/ directions to strengthen the
commercialization activities of the Council.
Moreover, Sub-committees are also being constituted at labs./ unit level to assist the Advisory
Committee for implementing its decisions/ directions.

5.9. INCREASE IN THE SCOPE OF ACCREDITATION

The ISO/IEC 17025 accreditation is the single most important standard for calibration and
testing laboratories around the world. Through ISO 17025 accreditation laboratories can
demonstrate that they are technically proficient and able to produce precise and accurate test
and calibration data.
Several laboratories of PCSIR located at Karachi, Lahore, Peshawar & Islamabad are
accredited for ISO-17025 certification under the TRTA-I and TRTA-II Programmes sponsored
by European Union (EU). More than 550 accredited tests/ calibration services are at the credit
of PCSIR.
Keeping in view the importance of ISO 17025, PCSIR laboratories are continuously in a
process of extension in the scope of accreditation of their labs/ centers. Efforts are being made
to extend the scope of accredited parameters for cement, halal foods, food grade packaging
materials, rapid testing of SPS organisms, calibration, etc. Labs have been asked to submit their
accreditation plans which will be reviewed at the Head Office before formal application to the
PNAC. It is expected that the cases will be submitted to PNAC by February, 2021 (03 months).

5.10. COMMERCIALIZATION OF PRODUCTS/ TECHNOLOGIES

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A Marketing strategy and promotion plan has been developed as described below and expected
to be implemented by :
a) Brochure for each product has been developed and distributed from time to time.
b) Advertisement in the media from time to time for raising awareness in public and
potential customers for leasing out of PCSIR products and services.
c) MoST shall be requested to approach HEC, Ministry of Planning, Development and
Special Initiatives as well as to direct the S&T organizations to encourage the purchase
of PCSIR’s developed laboratory equipment.
d) Strengthening of Research, Academia & Industrial Linkages.

5.11. INDUSTRIAL SERVICES

ISO-17025 accredited labs of PCSIR are providing technical services to almost all the industrial
sectors of the country. Industrial support services like Consultancies, Technical Reports,
Testing/ Analytical, Calibration, Repair/ Maintenance of Equipments and Quality Control
Services.
Technical services will be increased through;.
a) Automation of ILO procedures (from sample submission to delivery of report)
b) Extension of the scope of accredited parameters for cement, halal foods, food grade
packaging materials, rapid testing of SPS organisms, calibration, etc.

5.12. DEVELOPMENT OF BUSINESS PLAN

All Labs of PCSIR have been requested to develop and adopt business plan to meet the targets/
increase the output for self-sustainability. Business Plan will evolve around the given below
areas:-

• In-house and Need-based R&D activities.

• Leasing out of technologies/ processes & products.
• Industrial support services like Consultancies, Technical Reports, Testing/ Analytical,
Calibration, Repair/ Maintenance of Equipments and Quality Control Services.
• Development of Analytical Equipment and Fabrication of Machinery/ Plants.
• Human Resources Development.
• Strengthening the linkages with Academia & Industry.
• Propagation Activities
5.13. ENHANCEMENT IN INTERNATIONAL COOPERATION
PCSIR has signed several collaboration plans i.e. agreements/ MoUs with international
organizations but none of them were properly implemented due to lack f funds to execute the
plans. PCSIR has planned to establish an international coordination centre at Head Office to
enhance international cooperation. The centre will oversee/ execute/ coordinate all
international MoUs/ agreements and work for enhancement in the international collaboration.
Task is expected to be completed by March, 2021 (4 months).

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 7. Financial Outlook
7.1. NEWLY APPROVED CONCEPT PROPOSALS
I) Cultivation & Processing of Medicinal & Industrial Cannabis on Experimental
Fields and Establishment of Testing and Product Development Facilities at PCSIR
Laboratories Complex, Lahore, Peshawar and Karachi
In pursuance of Prime Minter’s directives regarding domestication and commercialization of
medicinal and industrial cannabis. A follow-up meeting was held in the Ministry of Narcotics
Control under the Chairmanship of Federal Minister for Narcotics Control on June 4, 2020
wherein interalia PCSIR was assigned task for the establishment of analytical testing and
cannabis products development facilities in its laboratories/ research centers in the country.
PCSIR has prepared a PC-I with the cost of Rs.1800 million for the industrial exploitation of
cannabis.
The global legal cannabis market is valued at $17.7 billion in 2019, growing by about 22
percent, according to the report from Grand View Research. Spending on legal cannabis
worldwide is expected to reach $42.7 billion by 2024 at a compound annual growth rate
(CAGR) of 25% from 2019 and hit $57 billion by 2027, while cannabis market in the United
States and Canada is estimated to be about $46.5 billion and other $10.5 billion would go to
other markets. It is one of the fastest growing plants and was one of the first plants to be spun
into usable fiber 50,000 years ago. It can be refined into a variety of commercial items,
including;

• Paper

• Textiles

• Clothing
• Biodegradable plastics

• Paint, insulation
• Biofuel
• Food

• Animal feed.
ii. Pakistan needs to act swiftly to join this rapidly growing industry and earn foreign exchange
worth billions of dollars through export of non-narcotics cannabis products such as Cannabidiol
(CBD) oil, fiber and dozens of other products. There is no formal research, processing and
value-added industry of industrial cannabis in Pakistan.
After successful completion of the project local facilities will be developed for cultivation and
processing of industrial cannabis. Based on the experimental field data the same will be
replicated in other parts of the country after seeking the required permission for its utilization
on industrial scale/ export purposes. Moreover, local facilities developed in PCSIR Labs will
be utilized for the development of products, analysis and testing of exportable products. The
products so developed will be offered to industry for their commercialization (domestic/
export)

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 II) Development of indigenous raw materials for Minerals and Proteins for the
development of products to substitute relevant imports / exports.
The objective of the project is to up-grade the facilities of Minerals Processing Research Centre
(MPRC), PCSIR, Lahore related to exploit indigenous Minerals for the development of
products to substitute relevant imports / exports by installing state of the art equipments, pilot
plants and lab facilities. MPRC requires up gradation regarding methods of
evaluation/estimation/wet and instrumental analyses/quality control, mineral
identification/phase analyses and mineral processing methodology based upon differences of
specific gravities of various constituents, mesh of liberation, magnetic and surface properties
of minerals. This project proposed some additional equipment in the existing pilot plant and
mineral processing, analytical and instrumental laboratories of the Centre. The up-gradation
would be beneficial for utilization of indigenous ores, scrap and market available mineral based
material. As a whole it would lead to import substitution and may save a lot of foreign
exchange.
Leather and leather made-ups approximately contribute 4 to 5% to the country’s GDP and
fetches about USD 1.00 billion annually in exports. Thus making it a significantly important
sector in the national economy. It is well known that leather processing generates very huge
amount of solid and liquid wastes. These wastes contain about 30% of chrome tanned solid
wastes (commonly known as chrome shavings) comprising approximately 60%-80%
proteinious material. The traditional handling of these chrome tanned solid wastes is usually
careless dumping which causes health, environmental and economic issues.
III) Digital Transformation, strengthening and Automation of PCSIR
Digitalization is the new norm. Public sector organizations specially need to have an enterprise-
wide comprehensive digital infrastructure to carry out the business functions entrusted to them.
In this regard, PCSIR, a public sector scientific research organization, has significantly lagged
behind in adopting the modern digital communication and connectivity infrastructure to
perform its functions in an agile manner.
Being a premier organization, PCSIR plays a pivotal role in establishing a strong scientific/
industrial research base, contributing towards innovation in industrial sector and promoting
indigenization and commercialization. It has a 570-strong workforce of scientists & researchers
supported by about 1200+ technical and administrative staff in multiple research facilities
spread throughout the country. In spite of that, currently, PCSIR is having about 550 PCs of
obsolete technology; no organization-wide internal network; and, still lack enterprise digital
information systems and data-driven analytical decision making tools.
This project plans to digitalize and implement information systems in all facilities of PCSIR
and automate business processes to enable a holistic picture of the activities for improved
decision making by the top management. The project will include provision of latest computers,
servers, printers, scanners, allied digital hardware, complete network infrastructure, scientific
research software tools and automation of business processes for day-to-day activities as well
as management decision making.

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 IV) Developing Techno-Economic Model and Digital Control System for establishing
ISO 22000 Certified Bio-facilities.
With advancements in agriculture, establishment of high tech, controlled bio-facilities to grow
various plants and crops is increasing. The main rationale behind this phenomenon is to have
improved quality of food and industrial products using scientific methods, higher yield of
crops/ plants, and precise amount of inputs, such as pesticides, fertilizers and soil moisture.
Pakistan being an agriculture country has to move into this direction to fulfill its indigenous
demand as well as to ensure producing high quality safe food products. Establishing ISO
22000-certified intelligent bio-facilities will pave the way for having high quality, optimum
yield of crops and orchards, as well as cost effective and integrated processes in the food and
allied processing industry.
PCSIR as a premier R&D organization has multi-functional Research Laboratories at Karachi,
Lahore, Peshawar, Quetta and Hyderabad. Food Research Centre is an important facility within
PCSIR, doing research on food processing. Moreover, PCSIR Labs Karachi is working on Plant
Tissue Culture Techniques and is providing guidance to sugarcane growers to improve yield
of sugarcane crop.
In order to keep a consistent quality in production processes for food products, it is essential
to adopt ISO 22000 standards. This will result in highly safe, quality food products, as well as
reduced operational/ production cost.
By Establishing ISO 22000 Certified Automated Bio- facilities will keep a consistent quality
in production processes for food and allied industrial products. This will result in high output,
safe, quality food products, with reduced operational/ production cost, which will pave the way
for future economic growth & development and technology transfer as well.
V) Up-Gradation of PCSIR Laboratories for High Throughput Analytical Testing of
Medical, Industrial and Metrology sectors.
PCSIR Laboratories being the national independent, infrastructure needs to be up-graded for
high-tech analytical centers to meet the challenges in the field of physical, chemical and
microbiological testing.
The key areas in which up-gradation is required are;

• Textile and Chemicals

• Leather and Leather Products

• Surgical Goods/ Bio-compatibility etc

• Foods

• Minerals

• Fuel and Energy

• Pharmaceuticals/ Herbal

• Fish and Marine Products

• Metrology etc.

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The project will link high-tech analytical centers nation-wide to CPEC industrial zones,
industrial clusters, export/ import entry points and other need-oriented points for sample
collection/ inspection and online reporting of testing result system.
VI) Establishment of PCSIR Material Sciences and Resources Centre.
Engineering materials plays a significant role in the economic progress of a country and
contributes directly towards the growth of the industrial sector, particularly; ceramics, plastics,
metallurgy, aerospace, telecommunications, transportation, electronics, micro and
optoelectronics, energy, healthcare, computing, consumer goods, composites and construction.
The establishment of 09 special economic zones has been part of the C-PEC, where the setup
of Building Materials, Automobile and Mechanical Equipment, Steel-Foundries, Motor Bikes
Assembly, Ceramic industries are already being undertaken. It is necessary to provide highly
trained manpower in these fields in order to meet the present as well as future needs of the
country. Priority should be given to materials synthesis for prevailing ambient conditions of
Pakistan and characterization techniques in order to understand and define the properties of
materials. It is necessary that the latest equipment and research facilities are made available to
the researchers. The National Science, Technology and Innovation Policy 2012 under section
A106 also emphasizes on the Establishment of a National Materials Science Research Institute
with a centralized supercomputing facility for computational materials science or condensed
matter physics.
Material Sciences, Mineral and Resources Centre are established that will be beneficial for all
engineering material sectors including ceramics, plastics, metallurgy, aerospace,
telecommunications, transportation, electronics, micro and optoelectronics, energy, healthcare,
computing, consumer goods, composites and construction

7.2. NEWLY APPROVED PSDP PROJECTS

I) Up-gradation of Halal Authentication Laboratories at PCSIR Laboratories
Complex, Lahore, Karachi and Peshawar
The Halal food trade is about $350 billion globally, and the total Halal business market
(including cosmetics, pharmaceuticals etc.) is approximately $1.3-2.2 trillion. It is every
Muslim’s religious obligation to consume only Halal food and other products and avoid non-
Halal (Haram) ones. Due to increasing population, the Pakistani food industry cannot meet the
local demand for Halal food; therefore, Pakistan imports approximately $50 million worth of
processed foods, and almost the same quantity of food additives every year. However, due to
technological advancements and the diversification of global sources for food processing and
production, it has become very challenging and increasingly difficult for Muslims to ensure the
Halal status of food. Adulteration of food with forbidden ingredients is a major issue in the
food industry globally. This issue is not only a religious problem but also an economic and
societal problem. Reports of Haram food incorrectly labeled as Halal entering the food supply
in Pakistan have resulted in considerable upset and economic harm. Technology provides a
potential solution through advanced chemical analysis techniques as well as improved
education and training. Furthermore, perception of Muslims worldwide including Pakistanis
nowadays has changed in Halal consumption which consequent to seeking more trusted
certified Halal products. In some aspects adulteration of non-Halal in products provided for
Muslims conflicts to consumer protection and other related law and regulations.
Taking into account the increase of Halal product’s market and Halal authenticity, Halal
Authentication laboratory has been established at PCSIR Lahore, Karachi and Peshawar. Up-

483
gradation of Halal Authentication Labs is crucial in the wake of ever increasing demand of
Halal products. Bio-analytical techniques have been developed at PCSIR Labs Complex,
Lahore, Karachi and Peshawar for the authentication of Halal products. The baseline work has
been completed and now these facilities need the streamlining and strengthening to cover up
the broad requirements of Halal authentication. Through this project, it is envisaged that the
Halal testing on all aspects will be available in the country. The manpower will be strengthened
both in number as well as capacity. The labs will be able to procure the required resources to
undertake the challenging jobs related to Halal research as well. These labs will be accredited
through PNAC.
II) Up-gradation of Machinery Equipment & Buildings of IIEE & PSTC, Karachi
The objectives of the project are:

• To enhance the standard of teaching and training facilities and technical infrastructure
for IIEE& PSTC.

• To replace the outdated /aging equipment and trainers that will further develop
expertise of skilled Graduates.

• To add latest / advance equipment so that the training standard may be kept at pace with
modern trends in industries. These additions will invoke requirements for establishing
new labs (or/and training equipment) for conducting training on state of art machines
& equipment for Machining & manufacturing techniques and Experiments for;,
Embedded System, Power Electronics; Industrial Instrumentation & Control and
Communication.

• To repair & renovate the present infrastructure, centre’s building, workshop, labs of
IIEE & PSTC and PSTC Hostel.
III) Up-Gradation of Calibration Centre Capabilities at PCSIR Labs. Complex,
Peshawar
Amplification of Calibration centre PCSIR Labs. Complex Peshawar is designed considering
the need for regular calibration and maintenance of meteorological instruments to meet the
increasing needs for high quality meteorology and testing, the requirements of the stake holders
for standardization of instruments as per requirement of WTO, the need for international
instrument comparisons and evaluations; it is intensive need of PLC to Augment the
Calibration Centre.
After enhancement of capabilities the calibration centre will carry out more effectively the
following main functions:

• To keep a set of updated meteorological standard instruments linked with recognized

international or national standards and to log their performance and elements of
comparison.

• To assist the stake holders of the region in providing traceable calibration services for
their instruments in the vast ranges.

• To certify the instruments, conformity with the standards, with reference to ISO/IEC-
17025 recommendations.

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 • With increased ISO/IEC-17025 accredited scope can meet the present market demand,
It will create a supporting base for the local industries, as these facilities are not
available in Khyber Pakhtoonkhawa.

• The Amplification of calibration centre will also provide a favorable ground for the
execution of R&D projects in the PCSIR Peshawar.
IV) Establishment of PCSIR Laboratories, Multan Punjab
This project is related to food, textile and advance material engineering and will provide
innovative products. The project will provide a platform for the rapid promotion of scientific
knowledge in the field of foods especially citric fruits, textile and engineering materials. It will
also help in making the country self-sufficient in this field.
Analytical services, technical support and consultancy services for the food, textile and
advance material industry is also lacking in Multan area, so it was decided to establish PCSIR
Labs. at Multan.
The important factor which effects Pakistan’s fruits export accounts for post harvest losses due
to improper treatment, handling between the time of harvesting and delivery to ultimate
consumers. Inadequate facilities in post harvest handling, transportation, storage and marketing
result up to 30-40% losses in fruits (Pakistan Horticulture Development and Export Board,
2002). This is due to unawareness of the farmers about the latest fruit handling and processing
technologies. According to Valentine (2010) it is estimated that through improved handling
and harvesting practices, about half of that wastage is save-able or at least 180,000 tons per
year. It is also assumed that this is the maximum amount for processing value added products
(Pickles, Jams, Juices etc.) of which dried mangoes are only small percentages. Therefore, it is
very much important to establish PCSIR Laboratories having fruit processing facility near fresh
raw material supply to train the local farmers. This may also reduce the average production
cost by reducing the wastage of precious fruit and lessening injury for handling and
deterioration from changes during long transportation after harvesting. Moreover the
transportation charges are eliminated. The major scope of processing activities will include
post harvest handling, pre-cooling, grading, ripening, packing and logistics. Fruit processing
will also provide services to other exporters who do not have their own processing facilities
including cold transportation service up to the port of exit.
Textile is the leading industry of Pakistan and is the backbone of our economy. The Textile
industry in Pakistan is the largest manufacturing industry as well as the second largest
employment sector in Pakistan. Despite being the fourth-largest producer of cotton, Pakistan
is not even in the list of top 10 exporters. At present about 60% of our textile exports consist
of low priced products like yarn and fabric while exports of value added products are only
about 40%. This sector has engaged about 38 % of work force. Pakistan is one of the giant to
produce cotton and export the cotton and also 3rd rating in the world for the consumption of
cotton. But the demand of fine yarn is increasing with long staple fiber. Despite of this, global
market has taken the new direction. It goes to the consumption demand to 70 % of man-made
fiber consisting of 45% polyester blended fibers.

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7.3. SELF GENERATED INCOME (SGI)
Present Revenue Generation Areas

• Leasing out/ Transfer of Technologies/ Products/ Processes/ Royalty etc.

• Analytical Testing/ Calibration Services.

• Consultancies/ Collaborations/ Trainings/ HR/ Funded Projects

Plans for Increasing SGI

• Introduction of Incentive Award scheme for paradigm shift towards need-based R&D.

• Commercialization of Products/ Technologies through establishing Technology

Business Incubation Centres (TBICs).

• Automation of ILO procedures (from sample submission to delivery of report)

• Extension of the scope of accredited parameters for cement, halal foods, food grade
packaging materials, rapid testing of SPS organisms, calibration, etc.

• Development of Business Plan

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 Annexure 2

Proposed Structure of PCSIR

Board of Directors

Management
Research Council Council

Director General Performance

Appraisal Boards

Director of Laboratories
and Centres

Indicative Research Themes

1. Chemicals
2. Biological and Genetic Engineering
3. Materials for Industrial Use
4. Metallurgy and Mining
5. Pharmaceuticals and Drugs
6. Physical and Standards
7. Precision Engineering
8. Industrial Electronics and Engineering

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10. PARC Agrotech Company Private
Limited (PATCO)

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Office of the Prime Minister had directed the Pakistan Agricultural Research Council
(PARC) to prepare a plan to make its subsidiary namely PARC Agrotech Company (PATCO)
commercially vibrant by working out its revenue, costs and profitability targets for the next 3
years and present the same to the Adviser to PM on Institutional Reforms & Austerity for
review. The Adviser, after reviewing the plan, recommended an alternate Business Plan to the
Prime Minister Officer on 2nd March 2021 in respect of PATCO as contained in the following
paragraphs.

Contents of the Plan

1. First and foremost, there should be clarity at the conceptual level regarding the role and
business model of the company. PATCO was established in 2008 as a Section 32 company to
generate revenues for offsetting the huge recurring expenditure of PARC and to finance the
new research projects. In order to effectively achieve this goal, PATCO needs be declared as
the ‘exclusive commercial front-end’ of PARC. In practice, it means that all the commercial
interactions of the Council with private sector should be handled through PATCO without
exception and the present mixed model should be done away with. Technologies, solutions,
products, commodities and the services offered by PARC should be exclusively marketed, up-
scaled, commercialized, leased and franchised by the PATCO only. This will be a better
institutional arrangement. The Council will be able to focus on its core activity of research
whereas PATCO will be able be to expand and diversify with broad portfolio of products and
services and will be in a position to achieve its goals in a more effective manner.

2. Second point requiring conceptually clearance is about the manner in which products
and services are offered by PATCO. Notwithstanding the nine ‘business scenarios’
developed by the company, there are essentially only four (4) modes in which PATCO can
generate revenue:

Mode A: Direct selling of commodities and products to the consumers. (The

products developed by PARC are up-scaled and produced by PARC, alone or in
partnership with private parties, and are offered at PATCO sales points).

Mode B: Franchising of PATCO-registered products to private companies

Mode C: Leasing of patents and copyrights

Mode D: Offering direct services to the farmers and industry e.g. consultancy,
advisory, training, testing and certification services by the resources available at
PARC facilities.

As of now, PATCO is focusing mostly on activities under Mode A and majority of the MOUs
with private companies are of this nature. This model may bring about better revenues in the
short term, as is reflected in the projections given in plan. Research outcomes of the PARC i.e.
new varieties, innovative techniques and modern technologies should continue to be
commercialized with a view to promoting their dissemination and adoption among the farmers
and agriculturalists community at mass scale. Therefore, focus should also be placed on
activities in Modes B and C. The services mostly handled by the Council itself should be fully
assigned to the PATCO in the spirt of making it the exclusive commercial interface with private
sector. PARC should carry out experimentation on farms and once successful the application
of these technologies should be entrusted to PATCO. Patents and copyrights would vest in the
PARC, while leasing out and commercialization of the researchers producing intellectual

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properties would be handled by PATCO on their behalf under a fair and equitable distributions
formula.

3. Developing partnerships with private companies holds a central place in the PATCO
business model. Through such partnerships, private sector resources can be mobilized even at
conception stage of research projects which will not only lessens burden on PSDP but also
ensure that research process remains oriented to sectoral needs. Moreover, modern varieties,
techniques and technologies can be successfully marketed at mass level through territory-
specific partners under franchising and patent leasing models. For this purpose, PATCO needs
to develop a master framework for partnerships. The framework should lay down the
parameters for sector-specific joint ventures and specify the terms for sharing revenues and
risks, assets utilization, territorial distribution, leasing and franchising, minimum tenure of the
agreement, and renewals etc. The framework should provide for entertaining the unsolicited
proposals and should make room for negotiations within defined limits. Adoption of such a
master framework will lend transparency, predictability and credibility to the operations of
PATCO and will help it in attracting domestic and foreign investments. The ongoing
agreements may also be revised at the time of renewals to make them conformant to the adopted
master framework.

4. In order to successfully execute the above proposed model, PATCO needs to undergo
a number of organizational restructurings. PATCO Board is essentially a two-member board
comprising Chairman and Director General of PARC only. In order to transform into a vibrant
commercial entity, PATCO needs a dynamic Board of Directors with suitable representation
from private sector. Accordingly, Board composition needs to be revised to include prominent
agriculturalists from all provinces as well as the representation from Board of Investment and
Trade Development Authority of Pakistan.

5. Human resource is the other area requiring restructuring. The existing total sanctioned
manpower of the company is less than 20. The company needs quality human resource of
appropriate size in tandem with its expanded scope and activities. Business professionals,
marketing specialists and legal experts should be recruited to strengthen the company. In this
regard, PATCO had prepared a proposal to increase the manpower size to 72 under a revised
organogram. This proposal should be reconsidered and approved by the reconstituted Board of
Directors on need basis gradually. New seats should be definitely created, but in a phased
manner commensurate with expansion of business activities. Lastly, relatively non-technical
and semi-skilled positions should be limited in number and filled by transferring employees
from PARC and its ancillary centers and laboratories, rather than making fresh recruitments.
The projected expenditure figures given in the plan for the next three years may be revised
downwards if these measures are taken into account.

6. PATCO plan includes proposal for increasing the number of PATCO ‘display centers’
from one to seven in the coming days. It is recommended that in addition to increasing the
number of centers, the display centers should be upgraded into fully functional ‘business
centers’ under a uniform scheme. Each center should be manned by adequately-trained staff
and should be able to offer the following under one-roof:

i. A display of full range of products, seed varieties, technologies and processes

developed by PARC, through showcased samples, abundantly printed brochures and
playback of short documentaries on the loop,

490
 ii. An information and booking desk for providing detailed information about individual
products and services to the visiting customers and to those approaching through
telephonic/email queries. Appointments for services offered in Mode D may also be
booked by the same desk.

iii. Sales point for the selected PATCO-registered products offered under Modes A and B
activities. Use of PATCO space for this purpose by the private parties will be as per the
resource-sharing terms defined in master framework (proposed above).

In order to smoothly manage these business centers, PATCO should acquire an appropriate
Enterprise Resource Planning (ERP) software and gradually shift all of its activities onto
the system including procurements, HR management, sales, inventory management and
accounting etc.

7. Lastly, PATCO is essentially a marketing company in nature. It needs to adopt the

modern practices to expand its outreach. E-marketing tools are highly cost effective and
should be exploited to their maximum potential. For this purpose, the company needs to
develop dynamics, comprehensive and interactive website under dedicated domain name. The
company also needs to adopt a logo to promote and strengthen its brand image. Services of
Trade Officers in Missions abroad should be leveraged especially for attracting foreign
investments in newly conceived research projects.

8. By way of future course of action, it is suggested that Ministry of National Food

Security & Research may revise the business plan of PATCO in the light of above made
recommendations. The revised plan may be presented before the Cabinet Committee on
Institutional Reform along with milestones and timelines. Revenue figures actually realized in
the first half of the FY 2020-21 vis-à-vis the projections in proposed plan may also be presented
before the Committee for a comprehensive review. Afterwards, CCIR will monitor the progress
on quarterly basis.

Decision
The above report was shared with the Office of the Prime Minister on 2nd March 2021. The
Prime Minister approved the recommendations and directed Ministry of National Food
Security & Research to take further action for their implementation.

Current Status
Further action is to be taken by the Ministry of National Food Security & Research. The
Ministry has been reminded on 13th July 2021 to bring about the revised plan before CCIR for
review.

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11. Pakistan Council of Renewable
Energy Technologies (PCRET)

492
Office of the Prime Minister had directed the Ministry of Science & Technology to develop a
comprehensive Action Plan for improving the effectiveness of the one of its organization
namely Pakistan Council of Renewable Energy Technologies (PCRET) in consultation with
Adviser to PM on Institutional Reforms and other stakeholders. The Adviser, on reviewing the
draft plan submitted by the Ministry, proposed the following alternate Action Plan to the
Ministry of Science & Technology on 27th July 2021 so that PCRET could be reformed in a
holistic and more meaningful manner.

Recommendations

1. Role and responsibilities of the PCRET ought to be evaluated in more holistic manner
and the organization be assigned with a well-defined and exclusive mandate in the backdrop of
energy situation of the country. The revised structure of the organization should emanate from
its re-imagined role in the overall economy. In this regard, the specific recommendations are
given in the following paragraphs.

2. Sustainable and clean alternate sources of energy are the future of the world. Realizing
this, many countries have already announced their roadmap for adopting alternate sources.
Saudi Arabia, one of the single largest suppliers of crude oil and petroleum products to the
world, has the plans to generate 27 GW of alternate energy (mostly through solar means) by
2030, enough for half of its projected energy needs by then. In view of the greater risks posed
by climate change, and in order to reduce dependence on costly hydrocarbon imports, Pakistan
needs rapid transition towards renewable resources by harnessing the abundantly available
potential.

3. In addition to PCRET, two more federal entities are dealing with the subject of alternate
energy at federal level namely Private Power and Infrastructure Board (PPIB) and Alternate
Energy Development Board (AEDB), both under the Power Division. Whereas the former
deals with the development and regulation of hydel projects and the latter with the non-hydel
ones, both deal with mega-projects whose output is fed into the national grid. On the other
hand, PCRET has traditionally dealt with off-the-grid solutions including photovoltaic, solar-
thermal, biogas, wind and micro-hydel projects. Given the current situation of the electricity
transmission infrastructure which is unable to optimally handle even the existing installed
capacity, the importance of off-grid solutions becomes ever more accentuated for fulfilling the
future energy needs. PCRET, thus, gains a unique significance in this scenario.

4. In view of the foregoing and given the past experience and expertise of the organization,
it is recommended that PCRET may, by legislation, be exclusively assigned the responsibility
at federal level for research and development, acquisition, standardization, testing,
promotion and regulation of the off-the-grid alternative energy solutions for domestic
and industrial use. This needs to be done in congruence with the overall alternate energy
policy of the country. Therefore, it would be in the fitness of the things if PCRET is placed
under the Power Division which may further consider setting up a dedicated Alternate Energy
Wing comprising PCRET, PPIB and AEDB etc. A recommendation regarding transfer of
PCRET to M/o Energy is already and separately under consideration in M/o Science &
Technology. Views in this regard may be finalized at the earliest and may be made part of final
plan regarding PCRET.

5. Irrespective of the fact as to which Ministry will finally administer the PCRET in future,
it is proposed that, going forwarded, the organization should be transformed into a center of

493
excellence for the off-grid alternate energy solutions in the areas listed above. For this purpose,
existing mode of functioning as subordinate office of the Ministry is not very expedient. The
plan proposed by Ministry of Science & Technology has conflicting provisions regarding the
future administrative structure of the organization. On one hand, the document proposes to get
the recruitment rules in the existing mode approved, and, on the other side, it provides for
floating an enactment for setting up a body corporate after consulting the stakeholders. This
office is of the recommendation that PCRET, through appropriate legislative cover, may be
transformed into an autonomous body.

6. If the Ministry agrees with the above proposal, the new legislation should provide for
a Board of Directors which would steer the policy, research areas and projects of the PCRET.
The Board should include representation from Ministry of Energy (if PCRET is retained in M/o
S&T), Ministry of Industries, Board of Investment, Ministry of Commerce, provincial bodies
dealing with the subject, relevant private sector businesses and the academia among others.
The executive head of the organization (CEO/Managing Director) should be given the status
of Principal Accounting Officer with ample financial and administrative autonomy to
independently operate. He/She should enter into a performance agreement with the Ministry
concerned with clearly defined KPIs for evaluating performance and enforcing accountability.

7. The organization should carry out a systematic and solutions-oriented research for
developing localized solutions of alternate energy in various parts of the country depending
upon the feasibly available natural resource (radiation, wind, geo-thermal or hydro-kinetic
energy etc.). PCRET has local centers in all the provincial capitals which may be strengthened
and equipped for the purpose. The existing lab facilities in Islamabad center may be
modernized and replicated across the provincial centers for the purpose. Apart from conducting
research, the laboratories may also be used for testing purposes in respect of imported and
domestically manufactured equipment to ensure their conformity to the adopted standards.

8. The existing practice of sharing the research facilities with academia should be up-
scaled to the provincial centers as well though a transparent arrangement with the universities.
Whereas the universities will have access to state-of-the-art research equipment through this
arrangement, the overall quality of research will be enhanced and the country will also stand
to gain from the technical human resource raised in the field of alternate energy. The
innovations, refinements and solutions developed by PCRET will be the intellectual property
of the organization and will be patented as such.

9. Being essentially a research center, the restructured PCRET will be principally funded
by the federal government. However, the proposed autonomous organization will have great
potential for generating its own revenues through a number of activities. Commercialization
of innovation and solution-oriented applied research in the area of off-grid alternate energy
solutions would provide additional sources of revenue. More specifically, the PCRET will be
able to generate revenues through the following activities:
i) Leasing and franchising the patented technologies and solutions to the
private sector for their mass scale deployment and adoption.
ii) Testing of the imported and domestically-manufactured equipment and certification of
conformity to the enforced standards.
iii) Provision of consultancy services to the industrial units for installation of customized
alternate energy units.
iv) Imparting specialized trainings, and

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 v) Sharing of research facilities with the universities for the Masters and Doctorate
programs

In this regard, proposed legislations should make provisions for the PCRET to set up a Fund,
charge fees and adopt a framework for entering into joint ventures with private sector
companies. STEDEC Technology Commercialization Corporation under Ministry of Science
& Technology would be entrusted the task of effectively interfacing with industry and
academia for the purpose.

10. The exact requirements of human resource & infrastructure and finer details regarding
the size, structure and business processes of the restructured PCRET should be worked out as
per the outcome of the following three ongoing activities:
i) HR and infrastructure audit by the Centre for Energy Systems (CES), NUST
ii) Performance audit of the organization by the Auditor General of Pakistan
iii) Stakeholder’s consultation regarding the new body corporate structure of the PCRET.
11. Ministry of Science & Technology may consider these recommendations and suitably
amend the proposed Action Plan of PCRET in the light of these.

Current Status
The above recommendations have been shared with the Ministry of Science & Technology
under copy to the Office of the Prime Minister on 27th July 2021. The Ministry will revise the
Action Plan and submit before the Office of Prime Minister for orders.
Further action is to be taken by the Ministry of Science & Technology.
**********

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12. Report on Financial Performance of
State-Owned Enterprises (Commercial)

496
 1. There were 212 State owned enterprises (SOEs) operating under the Federal
Government in 2018-19. After a thorough review and consultation, the Adviser on Institutional
reforms created a consistency framework under which 83 subsidiaries of the enterprises were
eliminated from the list as their financials were already included in the consolidated financial
statements of their holding companies. This left 129 enterprises which were further divided
into Commercial and Non-Commercial (Trusts, Foundations, Funds etc). Under this
categorization 85 SOEs were classified as Commercial and 44 as non-commercial.
Subsequently, the SOE Triage Report agreed with the IMF and the World Bank and approved
by the Cabinet excluded NHA from the list of commercial SOEs (Box-I provides the reasons
for excluding NHA) from the list of Commercial enterprises and in future only 84 SOEs would
from the universe for analysis and reporting. The sectoral distribution is shown in Annex I.

2. The relative performance of the commercial SOEs for the period 2013/14 to 2018/19
(both including and excluding NHA) is presented in Annex II. There was a gradual
deterioration during the five years as aggregate profits of Rs. 204 billion in 2013/14 turned into
losses of 286 billion in 2017/18. The main contributory factors for these losses are listed in
Annex-III.

3. However, the survey of 85 Commercial State-Owned Enterprises for 2018- 19, the first
year of the present Government, shows the following picture:
i) Relative to 2017 – 18 the total net losses (profits minus losses) incurred in 2018-19 were
reduced by Rs.143 billion i.e. down from Rs.286 billion.
ii) If National Highway Authority (NHA) is excluded from the aggregate net losses, a
positive turnaround of Rs.176 billion during the first year of this Government can be seen.

FY 19 FY 18

Net losses
(in Rs. Billions and +31 -145
excluding NHA)

iii) In all 33 enterprises made losses of Rs.480 billion (vs Rs.548 billion in 2017-18) while 50 made
profits of Rs.336 billion compared to Rs 261 billion in 2017-18 and one broke even. One was
under liquidation. (Annex IV)
iv) Top ten loss making enterprises reported losses totaling Rs.429 billion or 89 percent of the total
losses while top ten profit making enterprises made profits amounting to Rs.295 billion or 88
percent of the total profits. The list of these enterprises is attached at Annex – V and VI
respectively.
v) Nine enterprises including six DISCOs, PIA, Pakistan Railways and Pakistan Post showed
significant reduction in losses compared to the previous year (Annex VII) while five enterprises
increased their profits (Annex VIII). Seven loss making enterprises ended up the year showing
profits (Annex IX)
vi) The highest number of losses were recorded by the Power Sector Companies while the highest
amount of profits were contributed by the Oil and Gas Sector Companies.
4. Way forward

In order to contain the losses of the top ten loss making SOES the Cabinet has already approved
the restructuring plans for PIA, Pakistan Railways and Pakistan Steel Mills while the Power

497
Division is working on a plan for management contracts for DISCOs. As mentioned in the box
the corporatization of NHA is under way. This leaves ZTBL and Finance Division is taking
measures to restructure the bank. It may be prudent to caution that the results for 2019/20 may
not look promising because of the impact of COVID 19 but the efforts for reform and
restructuring have been accelerated.

5. Current status

The report was discussed in the meeting of the Cabinet Committee on SOE’s held on August,
11, 2021 and a standalone presentation with some additional information and proposals would
be made to the Cabinet.

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 Annex – I

Sectoral Distribution Of
State Owned Enterprises 2018 – 19

(1). Power 20
(2). Financial 18
(3). Manufacturing, Mining & Engineering 14
(4) Infrastructure, Transport ICT 12
(5). Oil & Gas 08
(6). Industrial Estates 04
(7). Trading and Marketing 04
(8). Miscellaneous 05

85

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 Annexure – II

500
 ANNEX III
Major Contributory Factors for SOEs Losses

1. Poor management choices: MDs/CEOs appointments in most cases were not based on
merit but favoritism, nepotism and loyalty. The principle of the right person for the
right job was hardly observed.

2. Weak Governance and Oversight: Board membership consisted of the Government

officers not familiar with the business of the enterprises whereas the private individuals
were by and large selected on political affiliation rather than professionalism and
subject matter competence

3. Fear factor: Fear of NAB, FIA, judiciary suo motto, and the media slowed down,
paralyzed or deferred critical business and financial decisions

4. Excessive audits but little accountability: Multiple audits—Statutory, External,

forensic, ad hoc, and inspections by various agencies and frequent calls by the
Parliamentary committees and the Departmental and Public Accounts Committee
preoccupied the top management in ensuring strict procedural compliance rather than
commercial risk taking with little accountability for performance outcomes.

5. Procurement difficulties: SOEs competing in the market with the private sector were
handicapped as they had to observe the PPRA rules and the time dimensions prescribed
in the rules

6. Flawed human resource management: Political appointments were made at lower

grades liberally over and above the requirements of the enterprise to accommodate their
supporters putting huge burden on the financial health of the company. Pressures on
management for appointments, postings and transfers, promotions resulted in
mismanagement of resources and large deficits.

7. Ministry official’s interference: There was too much interference in day-to-day

operations by the officials of the administrative ministries who also benefitted from
perks such as cars, accommodation, repairs and maintenance etc. obtained from the
SOEs adding to their recurring expenses

8. Lack of automation: In most SOEs with a few exceptions, full automation of business
processes avoiding direct contact between the officials and the clients, suppliers etc.
has not been put in place enhancing the discretionary powers of the officials at the cost
of transparency

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 Annexure – IV

502
 Annexure – V

503
 Annexure – VI

504
 Annexure – VII

505
 Annexure – VIII

506
 Annexure – IX

507
13. Pakistan Halal Authority (PHA)

508
1. The Advisor to PM on Institutional Reforms & Austerity had finalized and shared the
following report in respect of Pakistan Halal Authority on 4th September 2019.

Contents of the Report

2. The ECC at its meeting held on 20th March, 2019 had directed me:-
i. To carry out a detailed review of the current role of Pakistan Halal Authority Viz.
International Halal Organizations and propose a viable plan for making it a vibrant
organization in view of the potential of international Halal market.
ii. To look into the issue of placement of Pakistan Halal Authority under the administrative
control of Commerce Division or any other most relevant ministry and submit
recommendation for consideration within one month.
3. First, I must concede that it was not possible for me to meet the deadline due to other
pressing engagements and the enormity of the task assigned to me.

Review of the Pakistan Halal Industry and plan for the future.
4. Global Halal market is projected to reach almost $ 2 trillion by 2020 as the fast growing
Muslim population all over the world is increasingly consuming and demanding only Halal
products. The international food chains have also aligned themselves with this rising trend and
30 percent of their sales are halal compliant. 80 percent of the world’s Halal trade is done by
Australia, New Zealand, India, Brazil, US, Thailand, China and Europe. Pakistan’s share is
negligible and stands at less than 0.3 percent of total global business. The reasons for this
dismal performance are:-
i) Absence of a robust regulatory framework for hygiene, sanitation, food and health
safety for halal products in meat, milk and allied industries, confectionary,
pharmaceuticals etc.
ii) Lack of acceptable international standards on identification and traceability,
validation and verification, system of certification, quality control logos and
labelling although slaughtering, processing packaging, conform to Halal practices.
iii) Shyness or reluctance on the part of industry players to expand into processing and
attain economies of scale with distinct branding that would make Pakistani Halal
production in world markets competitive.
iv) The yields from Pakistanis livestock animals are only a fraction of the leading
international producers of meat, milk etc.
v) Inadequate supply chain infrastructure that consists of contamination free cold
chains, refrigerated trucks, storages at the airports etc.
vi) The rising purchasing power is shifting the nutrition mix of the growing middle
class from cereals and grains towards proteins mainly in form of meat, poultry and
fish. Domestic supply is therefore catering to this demand without going through
the hassle of conforming to international standards, certification and packaging
which add to the costs of sales. Poultry industry for example is growing 10 to 15
percent annually. The relative profit margins from domestic market sales are quite
attractive.
vii) Until recently an overvalued exchange rate did not make exports of new items so
remunerative particularly in face of an assured and rising domestic demand.

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 viii) Skilled, trained, qualified manpower to operate and manage world class Halal
products industry are hard to find.
ix) Marketing efforts needed to introduce and penetrate their products by the
entrepreneurs have been highly sporadic.
5. The formation of Pakistan Halal Authority (PHA) is the step in the right direction. Its
law and mandate, if implemented faithfully provide adequate support to the industry to take
off. However, the law suffers from a few weaknesses that needs to be rectified. For example,
the Board of Governors is quite unwieldy and consists of seven Federal Secretaries, four Chief
Secretaries, two Director Generals, two members of the parliament, three Shariah Scholars,
one Academic, one Researcher and two Representatives from private sector. Neither, the
Federal Government nominees have the time nor the expertise to make any meaningful
contribution. The Board should be much smaller in size instead of 20 members and
reconstituted with greater representations from livestock sector, industrial processors,
marketing experts, domestic and international traders etc. The mandate of PHA to promote
exports and imports, trade and commerce with foreign countries and inter-provincial trade and
commerce in Halal articles and processes is clearly defined in the preamble to the Act No.VIII
of 2016.
6. The PHA must engage an international consulting firm of repute to prepare a strategy
and business plan for increasing Pakistan’s share in the rapidly growing international Halal
trade. It should then be possible to identify the products and markets in which Pakistan has
revealed comparative advantage. The plan should outline the steps needed to achieve the
desired target. A modest target of $ 5 billion by 2025 would still be a negligible share in the
world market but should be feasible to attain.
7. The first step for the PHA is to follow OIC guidelines for Halal food as laid down in
schedule I of the Act and make efforts to focus on the Middle Eastern countries particularly the
rich GCC where the traditional trading relations have been in existence for a long time.
Proximity to the region would result in savings in transportation costs as well as ensure timely
delivery of fresh rather than frozen products.
8. The second step is for enforcement of Halal standards on a wider scale, expanding the
universe of accredited Halal certification bodies, training of skilled manpower and increasing
the number of Halal Testing Services in the country. Pakistan should develop a Halal logo for
all its Halal products.
9. The third step is for TDAP, PHA, PSQ&CA, PNRC, PCSIR and other relevant bodies
to establish a forum of all Halal product exporters and meet with them regularly to resolve the
problems faced by them and facilitate and promote their exports.

Placement of PHA
10. A meeting was held with the representatives of the Ministry of Commerce and the
Ministry of Science and Technology. MoST had reservations about shifting the PHA from its
administrative control on the grounds that quality control, testing, standard setting and
accreditation bodies all fall under their jurisdiction. My own objective analysis of the rationale,
mandate and further work plan of PHA has convinced me that the PHA should be placed under
the MoC but work in close conjunction with MOST. The raisond’etre for forming PHA is to
participate in the rapidly growing international Halal market. While the MoST would play an
extremely useful role in terms of standards, accreditation, testing, quality assurance,
compliance etc., the major thrust of the Authority’s functions is introducing Pakistani Halal

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products internationally, nurturing of supply chain, marketing and promoting exports. The
MoC and its affiliated bodies can render this assistance to PHA in a more effective manner.
11. It is therefore recommended that the PHA may be transferred from the MoST to MOC
and a review of the composition of the Board may be undertaken to make it more effective.

Decision
12. The Cabinet in its meeting held on 1st October, 2019 considered the presentation made
by the Adviser to the PM on Institutional Reforms and Austerity, and decided to defer the
matter for consideration with the stipulation to formulate a Committee comprising of the
Minister of Science and Technology, Advisor to the Prime Minister on Commerce and Advisor
on the Institutional Reforms & Austerity.

Current Status
13. The matter remains unresolved due to differences in opinion.

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14. Pakistan Council of Research in
Water Resources (PCRWR)

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1. The Advisor to PM on Institutional Reforms & Austerity had finalized and shared the
following report on 4th September 2019 in respect of the matter of placement of administrative
control of Pakistan Council of Research in Water Resources (PCRWR).

Contents of the Report

2. The Cabinet considered a summary on 28th May, 2019 submitted by Water Resources
Division for placement of the Pakistan Council of Research in Water Resources (PCRWR)
under the administrative control of the Ministry of Water Resources (MWR). The Council at
present is under the Ministry of Science and Technology (MoST). The Cabinet decided that
the Minister for Water Resources, Minister for Science and Technology and Advisor to the
Prime Minister on Institutional Reforms & Austerity will make consultation and submit their
recommendations to the Cabinet.
3. A meeting was held in the Ministry of Science and Technology (MOST) on 29th July,
2019 to deliberate upon the matter attended among others by the Minister and Secretary, MoST
and Secretary MWR.
4. The MOST did express strong reservations about the proposed transfer and also sent
their written comments against this move. Their main argument was that the PCRWR has
regional offices, research and demonstration stations, 25 water quality testing laboratories,
telemeters in different agro ecological zones whereas the MWR is limited to only federal level.
They believe that all R&D organizations complement each other and avoid duplication of
efforts and these should continue to be placed under the MOST and their transfer to other
ministries will make MOST redundant & hurt he whole paradigm of Science, Technology and
Innovation. The argument does not stand up to the test of empirical validity. Each R&D
organization is currently working according to its own mandate in silos following a vertical
hierarchical structure. There are no synergistic or interrelated linkage or horizontal
coordination with other R&D organizations that is perceptible. The Ministry itself does make
some modest efforts to bring this about but their capacity and resources are limited, given the
enormity of the challenge.
5. I have carefully examined the law, mandate and activities of the PCRWR of the recent
past. Its law and mandate are quite broad, cover development, management, conservation,
mapping, reclamation, water shed management, desertification control and utilization of water
resources. The PCRWR has done some commendable job in the mapping and investigation of
underground aquifer. But most of its activities have been concentrated on testing of drinking
water quality.
6. Irrigation for Agriculture production accounts for almost 93-95 percent of surface water
usage and two third of underground water in Pakistan. The residual amount of 5-7 percent is
utilized for industrial and domestic drinking water purposes. The Ministry of Water Resources
has been entrusted the task of implementing National Water Policy(NWP) approved by the
Council of Common Interests and is also responsible for coordinating with the Provincial
Irrigation departments responsible for management of the entire Indus Basin systems. The
MoWR already has all water sectors organizations such as WAPDA, IRSA, Federal Flood
commissioner, Pakistan Commissioner for Indus water under its administrative control. The
PCRWR is the exception to this norm because it is housed in the Ministry of Science and
Technology (MoST). While testing the quality of ordinary water is important it does not fall in
the strict definition of Research and Development (R&D). The cost benefit ratio appears highly
negative in relation to the larger national issues at present i.e. trans boundary water sharing

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irrigation water canal system losses leakages and inefficiency; over mining of surface water;
heavily subsidized water pricing leading to waste and excessive flooding; absence of water
conservation techniques and devices such as drip irrigation. In other words, the agenda for
research on surface and ground water utilization hardly addresses any of these big issues facing
the country. Rain fed areas serve almost 12 million hectares of land and there has not been
much work done to improve low farm productivity through better harvesting, storage and
conservation of rain water.
7. The other point that was considered was the mechanism of dissemination and
application of research findings to the end-users. The MoST has no such formal linkages or
channels through which some of the useful results from these studies can be disseminated
widely for the benefit of the end users. The MWR through its own water sector organizations
networks and the Provincial departments is, in my view, in a much better position to do so. The
regional offices scattered in various parts of the country can ideally be tasked to reach out to
the farmers using the good offices of irrigation department officials.
8. The PCRWR under the MWR should be given the task of collecting data, information
at canal command level, underground aquifers in different agro-ecological zones and carry out
analysis to guide and inform the policy makers. Their research studies should be aimed at high
priority areas such as measures to increase water productivity of our agriculture corps as it is
one of the lowest in the region. The Council should also work collaboratively with the
provincial irrigation departments, the Ministry of Climate Change, the Water and Sewerage
Authorities in metropolitan areas, the Disaster Management Authority and the Ministry of
Health as most of the problems facing us can be resolved through a multi-disciplinary approach.
The re-articulation mapping of the Council’s functions with the requirements of the National
Water Policy presented by the MWR should be further refined and fine-tuned to select only
those priority actions that would have the highest impact on achieving the objectives of the
NWP. At present the proposed mapping of the policy is too ambitious and illustrative in nature.

Recommendations:
9. The above proposal was also discussed at the Secretaries Committee which in its
meeting held on 20th March deliberated the issue and recommended transfer of PCRWR to the
MWR.
10. The Cabinet had approved in principle the placement of the PCRWR at its meeting held
on August 3,2019 when it considered the summary on the Restructuring of the Federal
Government. The matter was again brought up by the Secretary MoST before the Ministerial
Implementation Committee. The Implementation Committee was also of the view that the
appropriate place for the PCRWR was the MWR.
11. In view of the arguments and considerations discussed in paras 5-7 above and the
endorsement of the Secretaries Committee and the Ministerial Committee on Implementation
of Restructuring of Federal Government it is proposed that the PCRWR be transferred from
the MoST to the MWR with the mandate to follow the priorities outlined in para 7 above.
12. The proposal, if accepted, would require an amendment in Section 7 of the Act No.1 of
2007, whereby the Chairmanship of the Board of Governors would be transferred from the
Minister of Science and Technology to the Minister of Water resources. Until such time as the
amendment is effected the Minister of Science and Technology may continue to perform the
duties as Chairman. In view of the changed priorities it is also proposed that the composition
of the Board of Governors may be revamped to bring in new stakeholders such as the Ministry

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of Climate, NDMA, Meteorology Department. The number of the Governors also needs to be
curtailed to make it more effective.
13. Approval of the Federal Government is solicited to the recommendations contained in
paras 10-11 above.

Current Status
14. The matter remains unresolved due to differences in opinion.

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