Finance Division expands rules for civil servants taking special-pay posts

Finance Division brings contractual positions within the framework for federal civil servants appointed to Special Pay Scales and other senior roles in public-sector organisations.

ISLAMABAD: The Finance Division has revised the mechanism governing the appointment of civil servants to positions carrying Special Pay Scales and contractual terms in government-owned entities and other public-sector organisations.

The revision has been introduced through a partial modification of the Finance Division’s Office Memorandum (O.M.) No. 4(9)R-14/2024 dated July 1, 2025.

Under the revised policy, contractual positions have been brought within the scope of the mechanism, alongside the existing Management Position Pay Scales (MPS), Project Pay Scales (PPS) and Special Professional Pay Scales (SPPS).

The Finance Division has also substituted paragraphs 3(i) and 3(iii) of the earlier Office Memorandum to clarify the appointment mechanism and applicability of the policy.

Civil servants to join special-pay posts on deputation

Under the revised appointment mechanism, a civil servant selected through an open competitive process for any of the specified positions in government-owned corporations, state-owned enterprises (SOEs), autonomous bodies and similar organisations will be permitted to join the position.

The civil servant will be considered to be on deputation, with the terms and conditions applicable under the Deputation Policy issued by the Establishment Division through O.M. No. 1/13/87-R-I dated December 3, 1990, as amended from time to time.

The Finance Division has, however, clarified that the revised provisions will apply subject to any specific conditions prescribed under the amended policy.

Definition of government-owned entities expanded

The policy also clarifies the meaning of “government-owned” for the purpose of appointments covered by the framework.

A government-owned entity will include a government organisation in which the government holds a majority stake along with management rights.

The term “government” will cover both the federal and provincial governments.

Federal civil servants covered by revised policy

The revised terms and conditions will specifically apply to civil servants of the Federal Government of Pakistan who proceed to take up positions carrying Special Pay Scales or contractual positions.

The scope covers such appointments within both the Federal Government and provincial governments.

The revised mechanism is intended to provide greater clarity on the status and terms of service of federal civil servants selected for specialised, project-based, management and contractual positions in public-sector entities.

By formally including contractual positions in the existing framework, the Finance Division has broadened the policy governing the movement of federal civil servants into senior and specialised roles outside the conventional civil service structure.