The  The Lifetime Cost and Services Length of Public Sector Employees in Pakistan

Muhammad Ajmal Khan; Muhammad Jehangir  Khan; Nadeem Ahmad  Khan

doi:10.32350/42.03

Muhammad Ajmal Khan Pakistan Institute of Development Economics (PIDE), Islamabad
Jehangir Khan Pakistan Institute of Development Economics (PIDE), Islamabad
Nadeem Ahmad Khan Pakistan Institute of Development Economics (PIDE), Islamabad

DOI: https://doi.org/10.32350/42.03

Keywords: length of service,, lifetime cost,, public servants,, salary,, pensions

Abstract

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This study estimates the discounted lifetime costs and lengths of service of public sector employees in Pakistan. The revised BPS pay scales of 2022 were used to assess three different scenarios. The lifetime cost is composed of lifetime salaries, commuted pensions, and monthly pensions. The findings indicate that, under the third scenario, the average lifetime cost for a BS 1-4 who retires in their 60s amounts to approximately 36.9 million rupees. For supporting staff (BPS 5-16), the discounted lifetime cost is 59.1 million rupees. Moreover, the average lifetime cost for employees in BPS 17-19 is 140.7 million rupees. Furthermore, the study also analyzed the average length of service for different employee categories. For BS 1-4 employees, the average length of service is 39 years, and the government bears their financial liability, on average, for 53 years. In the case of supporting staff, the average length of service is 32 years, and the government bears their financial liability for 47 years. Finally, for BPS-17-19 officers, the average length of service is 29 years, and the government bears their financial liability for 44 years. These findings can contribute to a better understanding of the financial implications associated with different employee categories and help inform policy decisions in the public sector.

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Author Biographies

Jehangir Khan, Pakistan Institute of Development Economics (PIDE), Islamabad

Dr. Muhammad Jehangir Khan holds a PhD in Economics from Cardiff Business School, UK, and an MS from the University of Bristol. His research spans development economics, labor markets, and education, with specialized expertise in data analytics, impact evaluation, and evidence-based policy analysis. His work contributes to national and international development agendas by generating actionable insights aimed at improving educational outcomes and labor market efficiency.
As an educator, Dr. Khan integrates empirical research into his teaching, equipping students with critical thinking skills and analytical tools to address complex socio-economic challenges. His commitment to policy-relevant pedagogy and rigorous research has played a pivotal role in shaping future development practitioners capable of driving inclusive and evidence-informed policy solutions.

Nadeem Ahmad Khan , Pakistan Institute of Development Economics (PIDE), Islamabad

Dr. Nadeem Ahmed Khan is a dynamic professional with over 30 years of cross-sector experience spanning academia, corporate leadership, and development consulting. He holds a Ph.D. in Human Resource Development.
Currently Director of EDC at PIDE. His industry experience includes senior roles at Allied Bank and Halliburton, where he led training, IT, quality control, and safety initiatives.
He is a Certified ROI Methodology Trainer, HR Analytics Expert, and Certified Recruitment Analyst. Dr. Khan has authored publications on governance and workforce costs with numerous Newspaper articles

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