Islamabad, July 17, 2025 — The Finance Division has raised concerns over delays by several federal ministries and divisions in submitting detailed records of autonomous and semi-autonomous bodies under their control, especially regarding their pay structures and approvals for ad hoc allowances.
According to an official document released by the Finance Division, many administrative units have yet to provide the required lists of affiliated corporations and bodies, despite repeated reminders. These lists were expected to include confirmation of whether these entities had sought formal concurrence from the Finance Division for granting Ad hoc Relief Allowance and other financial benefits to their staff.
In a recent notification, the division formally announced the Ad hoc Relief Allowance 2025 at 10% of the running basic pay for executive and supervisory staff of autonomous and semi-autonomous organizations that have fully adopted the Federal Government Basic Pay Scale (BPS) system. This relief allowance is effective from July 1, 2025, and follows the earlier notification for civil servants under OM No. F.1(1)Imp/2025 dated 04-07-2025.
However, this allowance will not automatically apply to organizations that operate under separate pay scales or benefit structures. In such cases, approval must be formally sought through the Standing Committee of the Finance Division, based on recommendations from the respective Boards of Directors or Governors. Additionally, the financial health of the organization will be a determining factor in the committee’s final decision.
The Finance Division clarified that the executive/supervisory staff cases must first be approved by the organization’s board before being forwarded to the Finance Division. Once this approval is secured, a similar benefit can be extended to non-executive staff, subject again to board approval and financial viability.
The directive references Rule 12(1)(h) of the Rules of Business, 1973, which mandates that no division may alter the terms and conditions of service of government employees—especially if such changes involve financial implications—without prior consultation with the Finance Division.
The Finance Division also cited a 2016 Supreme Court judgment, which reinforced that non-compliance with the Rules of Business renders any such orders legally invalid.
The Finance Division reminded all ministries that they were previously instructed to submit details about the pay structures and status of approvals by the end of the last fiscal year. Despite these instructions, many divisions have failed to comply.
To rectify this, ministries have been given a final deadline of July 30, 2025, to submit updated reports and initiate fresh approval cases, if pending. They are also directed to communicate these requirements to all subordinate autonomous and semi-autonomous bodies to ensure proper action is taken within the 2025–26 fiscal year.
Failure to comply may result in financial decisions being declared invalid and withheld until proper procedure is followed. The Finance Division emphasized the legal and procedural obligation of every ministry to align pay and benefits policy with established financial rules and oversight mechanisms.
