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Pakistan introduces new bonus and promotion system for employees

MM News Staff by MM News Staff
January 25, 2025
file Image

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In a move to enhance the performance of government employees, the federal government has launched a new bonus and promotion system aimed at rewarding high-performing officers. Under this system, employees’ annual performance evaluations will be directly linked to financial incentives, such as bonuses and promotions.

Officers who demonstrate exceptional performance will be selected for rewards based on merit, with transparency at the core of the process. The slogan driving the initiative is simple: show high performance, earn bonuses and promotions.

The new system is part of the broader effort to improve the functioning of the federal government and its secretariat. A special committee, led by Deputy Prime Minister Ishaq Dar, has been formed to recommend and implement the reward system. The initiative is expected to motivate officers to strive for excellence, ultimately leading to better governance and more efficient public service.

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One of the key components of this reform is the introduction of a Rating and Reward System within the Federal Board of Revenue (FBR) as part of its ongoing transformation plan. This system will categorize officers from A to E, based on their performance, with senior officers receiving rewards such as new vehicles, salary increments, and additional allowances. FBR officials have been instructed to update their contact details, and preparations are underway for the trial implementation of this system. During this phase, officers in grades 17 and above will be temporarily relieved of their duties.

In line with the government’s push for a more accountable and effective bureaucracy, this initiative is part of a larger reform agenda under the National Transformation Plan. The FBR’s renewed focus includes cracking down on tax defaulters and short-filers, aiming to collect an additional 3.5 trillion in sales tax and ramp up revenue collection to 6 trillion annually. The government is also introducing measures to combat tax evasion through improved technology, with new vehicles featuring the FBR logo to track enforcement efforts.

As part of the drive for modernization, the FBR has also developed a comprehensive strategy to bring more manufacturers under the sales tax regime. Of the 260,000 manufacturers in the country, only 42,000 are currently registered, and efforts are being made to hold both tax defaulters and corrupt FBR officials accountable. The goal is to reach a target of over 13 trillion in tax collection this fiscal year.

Prime Minister Shehbaz Sharif has emphasized the importance of technology in improving revenue collection and ensuring greater transparency. As part of this, video analytics are being deployed to monitor the sugar industry and curb hoarding and price manipulation. The Prime Minister has also directed the FBR to digitize its processes and expand its monitoring capabilities to sectors like cement and tobacco to increase efficiency and revenue generation.

This new bonus and promotion system, coupled with the ambitious reforms in the FBR, is designed to incentivize high performance, improve governance, and significantly enhance revenue collection to support Pakistan’s economic growth.

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