October 18, 2023
2 mins read

‘Pak National Budget Struggles with Burden of New Recruits’

The study revealed that the net present value of a Grade-1 employee hired in July 2023 would amount to Pakistani rupee (PKR) 8, 17, 27 million….reports Asian Lite News

A recent study conducted by the Pakistan Institute of Development Economics (PIDE) has brought to light the significant financial burden placed on the national budget by newly recruited individuals ranging from Grade 1 to Grade 22, Pakistan based The Express Tribune newspaper reported.

The study, titled “Lifetime Cost of Public Servants,” also uncovered that politicians often make promises of public employment without taking into account the government’s role in creating new opportunities rather than solely offering jobs.

It suggested that by providing employment opportunities, particularly within their own political party or patronage network, politicians can build a base of supporters who are more likely to vote for them in elections.

The study revealed that the net present value of a Grade-1 employee hired in July 2023 would amount to Pakistani rupee (PKR) 8, 17, 27 million. This includes various components such as salary, pension, perks, benefits, and operating costs. In a similar vein, it was calculated that the state of Pakistan would need to allocate Rs49 million for a Grade-17 officer over a thirty-year period.

These figures raise questions about whether the country possesses sufficient revenue streams to support this compensation for the next 30 years. The statement underlines the importance of pausing and reflecting on the implications of adding a new worker to the system. It is crucial to remember that the state of Pakistan and the government will be responsible for covering the cost through taxation, as per The Express Tribune.

The statement emphasizes the necessity for long-term planning to help Pakistan break free from its debt spiral. It suggests that the institute carefully considers the cost-effectiveness of retaining an employee before making a decision.

“PIDE has proposed a prudent and cost-effective approach before making decisions about retaining employees. This way, the institute can assess how it can afford to sustain the person’s employment throughout their working life.”

The statement underscores the need for governments to assess the long-term financial consequences of immediate job creation and find a balance between short-term benefits and sustainable fiscal policies. While immediate job creation can have positive effects, it is equally important to recognize that rapid job creation can have negative repercussions, the press release stated. (ANI)

ALSO READ: CPEC@10: ‘Pakistan failed to realise even a fifth of CPEC potential’

Previous Story

Xi lays out pitch for new world order

Next Story

Imran, Qureshi Indictment in Cypher Case Postponed

Latest from -Top News

‘Kill and Dump’ Haunts Balochistan Again

The latest killings have reignited accusations of extrajudicial executions and the use of counterterrorism laws to cover up custodial deaths in Balochistan….reports Asian Lite News Concerns have deepened across Balochistan following the

‘ASEAN Expands, But Keeps Its Soul’

Malaysian Foreign Minister Mohamad Hasan urged ASEAN to uphold its unity and strategic resolve amid intensifying geopolitical tensions and mounting external pressures…reports Asian Lite News Consensus and inclusivity will remain the cornerstones

Bangladesh bends to beat Trump’s blow

Dhaka seeks compromise as Trump’s 35% tariff looms large over key exports; Washington urges worker protections, factory relocation to US…reports Asian Lite News Bangladesh has opened the second round of critical trade

China seethes as US lands F-35s in PH

As US F-35 jets land in the Philippines for the first time, Manila cements its frontline role in Washington’s power play against rising China….reports Asian Lite News The Philippines is rapidly cementing
Go toTop

Don't Miss

Pakistan faces monumental crisis as economy collapses

With a massive circular debt surrounding the energy sector, a

Int’l flights reduced to 20% in Pakistan

Inbound air traffic will operate at 20 per cent of