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PROJECT ALLOWANCE FOR OFFICERS / OFFICIALS OF PROJECTS AND PROGRAMMES

Minutes of Meeting of Standing Committee of Cabinet on Finance & Development.


  • Secretary Finance briefed the Standing Committee of Cabinet on Finance & Development that policy for payment of Project Allowance was introduced in the Punjab in year 2006. Later in 2011, under Austerity Policy, all such allowances were withdrawn by the Government. However, the Project Allowance was again revived in year 2014. It was yet again discontinued vide FD's notification dated 27.07.2018 according to which all types of Programmes / Project Allowances / Pay Packages / Market Base Salaries and any other Special Dispensation as a part of regular pay in different Public Sector Companies / Boards / Authorities / Projects Programmes / Policy Units / Autonomous Bodies / Funds / Cells / Commissions / Foundations etc. were withdrawn w.e.f. 01.07.2018. 
  • The committee was further apprised that a summary for Chief Minister was initiated by the Planning & Development Board for grant of Project Allowance for projects / programmes, policy units/ policy cells etc., wherein it was proposed to introduce New Public Management Allowance for in-service regular Government servants to attract the best brains. The following amendments in rates of project / New Public Management Allowance were proposed: 
  • BS-22 Rs.300,000-350,000 
  • BS-21 Rs.250,000-300,000 
  • BS-20 Rs.200,000-250,000 
  • BS-19 Rs.1,50,000-200,000 
  • BS-18 Rs.100,000-1,50,000 
  • BS-17 Rs.75,000-1,00,000 
  • BS-16 Rs.50,000-75,000 
  • BS-11-15 Rs.40,000 
  • BS-05-10 Rs.30,000 
  • BS-01-04 Rs.20,000
  • He further stated that Finance Department has endorsed the proposal mentioned above with the following modifications: 
  • New Public Management (NPM) allowance may be allowed for all Projects, Programmes, Policy Units, Policy Cells, Authorities and Companies in addition to those proposed by P&D Board. 
  • NPM Allowance may be reviewed annually by the "Selection Board" constituted by Order dated 8.5.2019. 
  • Appointments against the posts of Project Directors, Directors General, Chief Executive Officers, Managing Directors and Head of an entity, whatever the designation may be, to the extent of Government servants should be made by the respective competent authority on the recommendations of the "Selection Board". 
  • The MP framework will be used suitably for grant of New Public Management Allowance. 
  • For private sector employees, appointment against the post of Head of an entity, whatever the designation may be, or other subordinate posts should be made by the relevant prescribed channels of recruitment under their relevant law, rules, regulations etc. 
  • 32.4 It was presented that Regulations Wing, S&GAD endorsed the views of Finance Department. While L&PA Department opined that Government of the Punjab is empowered to modify its policy, however, in the backdrop of judgement of the Hon'ble Supreme Court of Pakistan in suo-moto case, the matter may be placed before Standing Committee of Cabinet on Finance & Development for appropriate orders about the proposal submitted by the P&D Board. The Chief Minister has approved the placement of matter before the Standing Committee of Cabinet on Finance & Development for consideration.
  • Accordingly, the Standing Committee of Cabinet on Finance & Development was requested to consider and approve the proposal of P&D Board mentioned at para 32.2 alongwith amendments / observations of Finance Department mentioned at para 32.3 above. 
  • It was discussed that the "Selection Board" may be empowered to decide upon the terms and conditions of the Government Servants posted in projects for grant of New Public Management Allowance. Finance Secretary apprised the Standing Committee that the TOR's for the Selection Board have been amended to enable it to decide the cases of Government Servants for New Public Management Allowance.






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