ISLAMABAD-Federal Minister for Finance and Revenue Shaukat Fayyaz Ahmed Tarin on Friday directed to chalk out short, medium and long term plans for reformation of pay and pension system in the public sector over a period of time. 
He made these remarks in a meeting with Pay and Pension Commission (PPC) Chairperson Nargis Sethi. Special Assistant to the Prime Minister on Finance and Revenue Dr Waqar Masood Khan and Secretary Finance Division were also present during the meeting. The chairperson pay and commission briefed the finance minister about the working of PPC on streamlining the existing pay and pension structure as per the mandate of the commission. She outlined the working of sub-groups under the commission which have been assigned different tasks to identify distortions in the existing system of disbursement of pay and pensions of the government officers in federal, provincial and other allied departments and organisations. The chairperson also apprised the finance minister about challenges in the way of harmonisation of pay and pension system across the country which includes disparity in allowances, perks and other benefits as well as burgeoning expenditure of the pensions on national exchequer which is not sustainable in the long run, she added. 
In his remarks, the finance minister appreciated the efforts being made by the pay and pension commission for streamlining the prevailing system of emoluments based on principles of equity, fairness and transparency. He directed to chalk out short, medium and long term plans for reformation of pay and pension system in the public sector over a period of time. There is no short term solution to this problem, he stressed. The end goal is to make the government employer of choice for the talented youth. There is an increased need to work out ranges for linking compensation with performance. This will ensure meritocracy in recruitment and result in improved service delivery in the public sector. 
In his concluding remarks, the finance minister stated that there is a pressing need to rationalise the existing workforce and adhere to a performance-driven compensation system for smooth transition to e-governance. He affirmed full support and facilitation to the commission on the occasion. Meanwhile, Federal Minister for Finance and Revenue held a meeting with the Adviser to the Prime Minister on Establishment Muhammad Shahzad Arbab at the Finance Division. SAPM on Finance and Revenue Dr Waqar Masood, Secretary Finance Division and Deputy Chairman Planning were also present during the meeting. 
Members of the prime minister’s reforms team made a detailed presentation on “Concept of Performance Agreement” regarding working of federal ministries and divisions. The performance agreement underlines the key objectives, goals and benchmarks to be achieved by a concerned ministry / division during the financial year. The performance agreements for the FY / 2020-21 have been introduced to enable ministries to set key targets and measure performance against them effectively.  Adviser to the prime minister on establishment stated that the government must be given due credit for introducing the concept of performance evaluation. The said system promotes sense of ownership among the ministers and secretaries to ensure smooth service delivery in their respective ministries / division / departments / organisations. 
The finance minister commended the efforts of the adviser to the prime minister and his team and urged to apply the concept of performance agreements to all the ministries across the board. He also stressed the importance of conducting quarterly reviews and requisite follow-ups to gauge performance on regular basis. This will help a ministry / division to evaluate its performance for meeting annual goals / benchmarks effectively.