ISLAMABAD: A Senate committee was informed on Thursday that the compensation package for government employees dying during service had been increased for those dying in security-related incidents.

“This has been done after an announcement (about increase in compensation) was made by the prime minister without consulting the finance ministry,” Finance Secretary Dr Waqar Masood told the Senate’s standing committee on finance. “The ministry has maintained the package ann­ounced by the PM for those dying in security-related incidents.”

The compensation package was announced by Prime Minister Nawaz Sharif in Oct 2014 but the ministry had raised objections. The case has since been pending.

The committee was informed that the ministry had forwarded its recommendations to the prime minister for downward revision of the compensation package.

The PM had announced an increase of 600 per cent in the compensation package of 2006 for employees dying in security-related incidents and an average increase of 300 per cent for those dying of natural or other causes not related to security issues.

Currently the compensation for security-related deaths is Rs3 million for employees of Basic Pay Scale-1 to 16, Rs5m for those of BPS-17, Rs9m for those of BPS-18 and 19 and Rs10m for officials of grade 20 and above.

“The reduction has been recommended because of high financial implications of the package,” the secretary said.

Senator Mohsin Leghari expressed displeasure over the delay in resolving the issue and said: “It seems that the prime minister made an emotionally charged statement that the finance ministry is trying to undo for a year. But please do quickly whatever you want to do.”

The committee, headed by Senator Salim Mandviwala, approved an amendment to the State Bank of Pakistan Act granting permission to take away the function of formulating the monitory policy from the central bank.

It approved establishment of an independent monitory policy committee with three economists from private sector, three members of the SBP board and four officials of the bank as its members. But the government faced hurdles in getting amendments to Anti-Money Laun­dering Act approved by the committee because of opposition by members.

Published in Dawn, October 9th, 2015

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