ISLAMABAD, Oct 22: The federal government on Friday constituted a 17-member Pay and Pension Committee 2004 to recommend revision in salaries and pensions of civil and military employees.

It will also recommend an improved system of pension distribution and prevent its recommendations within six months of its constitution - by April 20, 2005. Prime Minister Shaukat Aziz had announced in his June 2004 budget speech that salaries and pensions would be revised by December 2004.

The committee led by former finance secretary-general and now chairman of the Union Bank Limited Moeen Afzal also includes the finance secretaries of the provinces and other federal government agencies.

Under its terms of reference, the committee will evaluate the salary structure and compensatory allowances and assess the need for their revision keeping in view the market conditions and affordability.

It would assess the adequacy of existing pay scales in terms of their span to provide financial advancement and recommend any other system, if required, keeping in view the market wages and wages in other countries of the region.

The committee will also analyse job content under the public sector in comparison with the private sector and to suggest a degree of comparability of their salary structures. It will make recommendations on the possibility of monetizing perks and facilities etc and rationalise the existing pension system and to remove discriminations, if any.

The committee may, if so required by the government, make interim recommendations in respect of such matters, which in its opinion, can be disposed of pending the submission of final report. While formulating its proposals and recommendations, the committee has been tasked to take into consideration the financial resources of the country.

The scope of the work of the committee will include federal and provincial civil servants as well as civilians paid from defence estimates, all armed forces, civil armed forces personnel and holders of the posts in management scales and employees of such public sector corporation, autonomous and semi-autonomous bodies, other than banks and DFIs which have adopted the scheme of basic pay scales in toto.

The employees of the public sector corporations, autonomous and semi-autonomous bodies who are regulated under the pay scales prescribed by these organisations and the employees governed under the Industrial Relations Ordinance, 1969 and whose financial terms of service are settled through collective bargaining agents are excluded from the scope of work of the pay and pension committee.

The committee comprises federal secretaries of finance, establishment and defence divisions, finance secretaries of four provinces, Special Secretary Military Finance Bilal Ahmed, Member CBR Zafar Aziz Osmani, a BS-21 officer each of Auditor-General of Pakistan and Controller General of Accounts, Military Accountant-General, senior joint secretary regulations of finance division, Chairman of the PTCL Board of Directors Zafar A. Khan and President Of Habib Bank Limited Syed Zakir Mehmood. Secretary Finance of Azad Kashmir will also be part of the committee as an observer.