Unmasking the Lifetime Cost of Public Servants in Pakistan

This study, conducted by Dr. Nadeem-ul-Haq, M. Ajmal Khan Kakar, Dr. Nadeem Ahmed Khan and M. Jehangir Khan estimates the discounted lifetime cost and length of service of public sector employees in Pakistan, while using the revised BPS pay scales of 2022 for three different scenarios. The lifetime cost is a sum of lifetime salaries, commuted pensions, and monthly pensions that ought to be paid to an employee. Their findings reveal that, in the first scenario, the average lifetime cost of a class-4 (BPS 1-4) employee is around 36.9 million rupees if he/she retires in his/her 60s. whereas, the discounted lifetime cost of supporting staff (BPS 5-16) is 59.1 million rupees. In addition, the average lifetime cost of a BPS-17 and above employee amounts to 140.7 million rupees. Furthermore, the average length of service of a class-4 employee is 39 years whereas the government bears his/her financial liability, on average, for 53 years. In the case of supporting staff, the average length of service is 32 years whereas the government bears his/her financial liability for 47 years. Finally, for a BPS-17 and above officer, the average length of service is 29 years, whereas the government bears his/her financial liability for 44 years.

About the Panelists:

• Ajmal Kakar is performing his job as Research Associate in Pakistan Institute of Development Economics (PIDE), Islamabad and was former Joint secretory Pakistan Society of Development Economics (PSDE) in 36th Annual General Meeting (2022). He graduated from Balochistan University of Information Technology, Engineering and Management Sciences (BUITEMS), Quetta. Soon afterwards, he completed his M. Phil degree in Development Studies from the School of Public Policy, Pakistan Institute of Development Economics (PIDE), Islamabad. Ajmal Kakar is policy analyst and development professional with over two years of experience in policy strategy and development. He is working on Education, Manpower, Costonomics, Migration, and Afghan Refugee. In his current research, he focuses on the lifetime cost of public servants in Pakistan. He also writes regularly on social issues for print and electronic media.

• Shahid Mehmood is a Research Fellow at Pakistan Institute of Development Economics (PIDE), Islamabad. He has been writing on economics in leading newspapers since 2013. Worked with both Public and Private sector with research in various areas of economy.