Govt Plans to End Basic Pay Scale and Shift to Contract-Based Hiring

The federal government is evaluating major reforms in the public sector and is eyeing a phased removal of Basic Pay Scales (BPS) for non-gazetted employees and shifting to contract-based hiring. As part of these changes, federal medical facilities may be converted into semi-commercial entities under public-private partnerships (PPP) to support medical tourism, reported Dawn. The proposed model could transform hospitals such as the Pakistan Institute of Medical Sciences (PIMS) and Polyclinic into revenue-generating centers. Officials estimate that Islamabad’s health facilities alone could generate Rs. 80-100 billion within five years through PPP-led medical tourism. The Ministry of Finance has already moved to contributory pensions for new civil and military hires to lessen the pension bill, which exceeded Rs. 1 trillion in the current budget. The government estimates that implementing contract-based hiring across federal bodies could yield annual savings of Rs. 35-40 billion.