This is Pakistan - highest grade is 22, but some retired officials getting pension of ‘grade-23’. Dawn, December 22nd, 2015

This is Pakistan - highest grade is 22, but some retired officials getting pension of ‘grade-23’. Dawn, December 22nd, 2015

The Senate Standing Committee on Finance took up the issue of ‘ghost pensioners’ on Monday and was surprised to learn that a large number of retired officials were receiving pension as ‘grade-23 employees’.

“The more we discuss the issue of pensioners the more complicated it is becoming,” regretted Senator Salim Mandviwala, chairman of the committee.

Members of the committee expressed concern over the delay in holding inquiry into the matter.

Officials of the Accountant General Pakistan Revenue (AGPR) and finance ministry briefed the committee on the issue.

“A meeting is scheduled for Jan 4 with the National Bank to sort out the matter and scrutinise all pensioners,” the finance ministry’s officials said.

The senators regretted that the inquiry had been delayed for months which showed incompetence of the whole system.

“Let’s get to everything one by one; tell me which is the highest grade in Pakistan,” Mr Mandviwala asked.

The reply was ‘22’.

“Then why do we have pensioners at grade-23 in Punjab,” he asked the ministry’s officials who referred the matter to the AGPR.

The committee was informed that grade-23 pensioners were not fake cases, but a flaw in the IT system.

“There are 60 retired judges of high courts who do not have any specific grade as these grades do not apply on the judges. Besides, their pensions are quite high,” an official of the AGPR said, adding: “Therefore the computerised system did not work and eventually it was decided to place them in grade-23.”

Some members of the committee quipped that the computer too knew “where not to hang up”.

The committee took up the matter following complaints that pensions of several people are still being received despite their death and that many were getting higher pension amount.

The committee was informed that the AGPR had decided to carry out scrutiny of all pensioners in the country. “There are plans to start physical scrutiny of all pensioners who are above the age of 80 years, followed by those over 70 years and 60 years,” AGPR Director General Mohammad Yahya said.

The committee was surprised when informed that the process would take about two years after its launch whose date was yet to be finalised. It was told that there were about 2.5 million pensioners in the country and 1.2m of them belonged to the armed forces. There are only 67,000 retired employees of grade-17 and above and their pensions will be credited to their accounts after March 31, 2016.

INCOME TAX BILL: The committee also reviewed an amendment to the Income Tax Bill 2015 and officials of the Federal Board of Revenue came under severe criticism over it.

The amendment seeks a reduction in income tax on some service sectors from eight per cent to two.

The committee asked the FBR officials why key sectors like telecommunication and advertising were not included in the list.

“The reply given to us is that FBR has agreed to grant reduced rates to those who have applied for reduction,” Senator Mandviwala said, adding: “This is not a reasonable answer; the authorities should be mature enough to think in the long-term.”

It was decided that the committee members would visit the FBR on Tuesday (today) to get a detailed briefing on the matter.

The committee was also briefed on the working and affairs of HBFC and First Women Bank.

Published in Dawn, December 22nd, 2015

The Senate Standing Committee on Finance took up the issue of ‘ghost pensioners’ on Monday and was surprised to learn that a large number of retired officials were receiving pension as ‘grade-23 employees’.

“The more we discuss the issue of pensioners the more complicated it is becoming,” regretted Senator Salim Mandviwala, chairman of the committee.

Members of the committee expressed concern over the delay in holding inquiry into the matter.

Officials of the Accountant General Pakistan Revenue (AGPR) and finance ministry briefed the committee on the issue.

“A meeting is scheduled for Jan 4 with the National Bank to sort out the matter and scrutinise all pensioners,” the finance ministry’s officials said.

The senators regretted that the inquiry had been delayed for months which showed incompetence of the whole system.

“Let’s get to everything one by one; tell me which is the highest grade in Pakistan,” Mr Mandviwala asked.

The reply was ‘22’.

“Then why do we have pensioners at grade-23 in Punjab,” he asked the ministry’s officials who referred the matter to the AGPR.

The committee was informed that grade-23 pensioners were not fake cases, but a flaw in the IT system.

“There are 60 retired judges of high courts who do not have any specific grade as these grades do not apply on the judges. Besides, their pensions are quite high,” an official of the AGPR said, adding: “Therefore the computerised system did not work and eventually it was decided to place them in grade-23.”

Some members of the committee quipped that the computer too knew “where not to hang up”.

The committee took up the matter following complaints that pensions of several people are still being received despite their death and that many were getting higher pension amount.

The committee was informed that the AGPR had decided to carry out scrutiny of all pensioners in the country. “There are plans to start physical scrutiny of all pensioners who are above the age of 80 years, followed by those over 70 years and 60 years,” AGPR Director General Mohammad Yahya said.

The committee was surprised when informed that the process would take about two years after its launch whose date was yet to be finalised. It was told that there were about 2.5 million pensioners in the country and 1.2m of them belonged to the armed forces. There are only 67,000 retired employees of grade-17 and above and their pensions will be credited to their accounts after March 31, 2016.

INCOME TAX BILL: The committee also reviewed an amendment to the Income Tax Bill 2015 and officials of the Federal Board of Revenue came under severe criticism over it.

The amendment seeks a reduction in income tax on some service sectors from eight per cent to two.

The committee asked the FBR officials why key sectors like telecommunication and advertising were not included in the list.

“The reply given to us is that FBR has agreed to grant reduced rates to those who have applied for reduction,” Senator Mandviwala said, adding: “This is not a reasonable answer; the authorities should be mature enough to think in the long-term.”

It was decided that the committee members would visit the FBR on Tuesday (today) to get a detailed briefing on the matter.

The committee was also briefed on the working and affairs of HBFC and First Women Bank.

Published in Dawn, December 22nd, 2015