Cabinet Sanctions New Financial Measures
In a special budget meeting presided over by Prime Minister Shehbaz Sharif, the Federal Cabinet approved the creation of the 'All Pakistan Services Provincial Governments' Cadre Posts' Parity Allowance.' Details released by the Cabinet Division confirm that an allocation of Rs 1.8 billion has been sanctioned for this financial incentive, which comes into effect on July 1, 2026.
Mitigating Compensation Disparities
The parity allowance is designed to address remuneration gaps between federal assignments and postings in provincial governments, the judiciary, and specialized bodies such as the National Accountability Bureau (NAB) and the Federal Board of Revenue (FBR). By balancing these pay differentials, the government aims to encourage experienced officers to take up federal roles.
Updated Executive Allowance Calculation
In addition to the parity allowance, the cabinet revised the framework for the existing 150% Executive Allowance. The allowance will no longer be tied to 2017 pay scales; instead, it will be recalculated using running basic pay as of June 30, 2026. This modification offers an increased financial benefit to Grade 17 through Grade 22 federal secretariat personnel.
Scope and Next Administrative Steps
The revised measures apply to All-Pakistan Services (APS) officers: specifically members of the Pakistan Administrative Service (PAS) and the Police Service of Pakistan (PSP) in BPS 17 to BPS 22: who are posted within the federal government and Islamabad. The cabinet has instructed the Establishment Division, working alongside the Finance Division and Cabinet Division, to prepare proposed rate structures, eligibility criteria, and operational rules for final approval by Prime Minister Shehbaz Sharif. Affected civil servants and departments should monitor upcoming official notifications from these divisions for full operational details.