Report on the Problems Faced by Government Employees in Pakistan

The International Labour Network of Solidarity and Struggles is distributing this report by the All Pakistan Federation of United Trade Unions (APFUTU), which focuses in particular on the situation of public sector workers.

1. Introduction

Government employees in Pakistan form the backbone of the nation’s administrative and service delivery systems. From federal ministries to local governments, and from technical institutes to health and education departments, public servants are responsible for implementing policies and delivering essential services. However, despite their importance, government employees face persistent structural, financial, and institutional challenges that undermine their morale, efficiency, and job security. This report outlines key issues affecting government employees in Pakistan and proposes policy measures for improvement.

2. Key Problems and Policy Gaps

a. Delayed Disbursement of Salaries and Pensions

Timely payment of salaries and pensions remains a major concern, especially at the local government level where funding is inconsistent. Delays of several weeks or months can cause severe financial stress to employees and retirees. Federal and provincial governments must prioritise the consistent and prompt disbursement of these payments to maintain trust and stability in the public workforce.

b. Lack of Transparent and Fair Pension Reforms

While fiscal sustainability requires pension reforms, recent policy changes have often been poorly communicated and perceived as unfair. This creates uncertainty for both current employees and pensioners. Any pension reform should be transparent, inclusive, and designed to protect the rights of long-serving employees, ensuring that adjustments are communicated clearly and implemented gradually.

c. Unplanned Rightsizing and Workforce Reduction

Efforts to reduce government expenditure through rightsizing are frequently executed without clear criteria or due process. Sudden layoffs or the abolition of posts erode confidence and morale. Rightsizing should be based on transparent documentation, fairness, and adequate compensation (such as golden handshakes), coupled with redeployment or retraining opportunities rather than abrupt termination.

d. Salary Erosion Due to Inflation

Government pay scales have not kept pace with rising inflation, causing a steady decline in the real value of wages. This not only demoralizes employees but also increases the risk of corruption and inefficiency. Regular salary reviews linked to inflation and market realities are essential to maintain morale and living standards. Allowances should also be rationalized and structured consistently across departments.

e. Job Insecurity Among Contract Employees

Many government departments rely heavily on contractual staff, including professionals performing critical functions. These employees often lack access to benefits, promotions, and job security. Governments should establish clear pathways to regularization or permanent status for long-serving and high-performing contract employees to reduce turnover and enhance service quality.

f. Staffing Shortages in Critical Sectors

Blanket hiring freezes and delayed recruitment have caused severe shortages in essential sectors such as health, education, and local governance. This strains existing staff and negatively affects service delivery. Governments should instead conduct needs-based staffing assessments and fill key positions to maintain operational efficiency and public welfare.

g. Weak Communication and Social Dialogue

Government-employee relations often lack structured communication and social dialogue mechanisms. In the absence of regular engagement, issues escalate into strikes and protests, disrupting public services. Establishing formal dialogue platforms with unions and associations can help resolve grievances through negotiation rather than confrontation.

h. Inadequate Monitoring of Workforce Reforms

Workforce reforms are rarely evaluated for their impact on service delivery. Without proper monitoring, cost-cutting initiatives can reduce efficiency and compromise essential functions. Oversight bodies should regularly assess the outcomes of reforms to ensure that financial savings do not come at the cost of reduced public service quality.

3. Sector-Specific Concerns: TEVTA and Semi-Autonomous Bodies

a. Review and Reinstatement of Bonus/Profit-Sharing Mechanisms

In government-linked agencies and semi-autonomous organizations such as the Technical Education and Vocational Training Authority (TEVTA), bonus or profit-sharing mechanisms have been discontinued or inconsistently applied. These benefits are particularly significant for technical trainers and skilled staff who contribute directly to institutional performance. Governments and boards should review and reinstate these mechanisms, or provide compensatory measures where benefits have been unilaterally withdrawn.

b. Protection of Trade Union Rights and Collective Bargaining

Trade union representation and collective bargaining rights within TEVTA and similar bodies must be protected to allow staff to voice concerns regarding allowances, bonus shares, and promotions. Effective dialogue mechanisms reduce the likelihood of strikes and protests and promote a culture of partnership between management and employees.

c. Inclusion in Salary and Allowance Reviews

TEVTA and vocational training staff often face disparities compared to employees in other government departments. They are frequently excluded from regular pay and allowance revisions, leading to feelings of neglect and inequality. Ensuring their inclusion in all government-wide salary and allowance reviews—and maintaining parity with other public-sector departments—is essential to uphold fairness and morale among skilled technical staff.

4. Conclusion and Recommendations

To build an efficient, motivated, and fair public workforce, the government must adopt a balanced and inclusive approach to reform. The following recommendations are proposed:

1. Ensure timely payment of salaries and pensions across all government tiers.

2. Implement transparent and fair pension reforms that protect long-serving employees.

3. Adopt fair rightsizing measures with compensation and redeployment options.

4. Revise pay scales regularly in line with inflation and economic realities.

5. Provide job security and clear regularization pathways for contractual employees.

6. Address staffing shortages in key service sectors like health, education, and local governance.

7. Institutionalize social dialogue with employee unions to prevent industrial unrest.

8. Monitor the impact of reforms on service delivery and employee welfare.

9. Reinstate or compensate for bonus/profit-sharing systems in semi-autonomous bodies such as TEVTA.

10. Protect trade union rights and ensure staff representation in decision-making.

11. Include TEVTA and similar bodies in all pay and allowance revisions to maintain parity and fairness

 

5. Closing Note

A motivated and secure public workforce is essential for the stability, credibility, and efficiency of Pakistan’s governance system. Addressing the concerns of government employees—through fairness, dialogue, and transparent reforms—will strengthen not only administrative performance but also public trust in state institutions.

employed in private establishments: "Our Hands Build the Nation – But Who Protects Our Hands?"

Honourable guests, respected delegates, trade union leaders, brothers and sisters,

I come before you today with a heavy heart and a clear purpose—to speak about the injustice, neglect, and exploitation faced by millions of workers across Pakistan, especially those toiling in construction materials, forestry, wood, textile, leather, garment, foot wear -based industries.

These workers are the unseen foundation of our society. Their hands build our homes, carve our furniture, and provide the raw materials that fuel our economy. But in return, they receive no safety, no dignity, and no future.

A Legacy of Struggle: APFUTU’s Role

Since 1979, our federation—All Pakistan Federation of United Trade Unions (APFUTU)—has stood side by side with workers in the most vulnerable sectors. We have organized, protested, and sacrificed to bring the voices of workers from kilns, forests, and workshops to the halls of Parliament.

In 1992, after years of relentless struggle, our efforts bore fruit when the Bonded Labour System (Abolition) Act was passed by the National Assembly. This was a historic step, and we thought it would bring an end to modern-day slavery.

But our fight was far from over.

In 2016 and 2018, we succeeded once again. The Government of Punjab accepted our key demands and passed laws to curb bonded and child labour. Yet, these laws remain mostly on paper—unimplemented and ignored by the very institutions meant to enforce them.

What does this say about justice in our country?

The Ground Reality: Workers Still in Chains

Despite these legal victories, the real situation in Pakistan is worse than ever:

 Over 90 million private sector workers still live without basic rights or protections.

 In construction, brick kilns, forestry, and furniture workshops, workers breathe toxic air, carry unbearable loads, and risk death every day—often for less than minimum wage.

 Many are still trapped in bonded labour, passed down from generation to generation, like a curse.

 Workers migrating from Punjab to other provinces like Balochistan are treated like outsiders and exploited without mercy.

 Trade unions are banned or silenced. Fake "pocket unions" are created by employers to crush real worker movements.

 

How can we call this a democratic society when workers are denied the freedom to organize, to speak, and to live in dignity?

A Broken System, A Dying Hope

The Labour Code 2024, instead of empowering workers, was drafted without any consultation with genuine labour representatives. It was done behind closed doors, ignoring ground realities and democratic principles. How can you make laws for workers without the workers?

At the same time, big industries are receiving tax cuts and state protection, while workers are denied even the basic right to register for social security or the old age benefit system.

Essential items are taxed. Interest rates are high. Unemployment is rising. But wage laws are ignored, and there is no concept of a living wage in our national policies.

The Human Cost

 21% Unemployment

 27% Poverty Rate

 Over 1 million people forced to migrate in the last 5 years due to climate disasters, floods, and economic collapse.

 Child labour and forced labour are increasing—not decreasing.

And in this atmosphere, freedom of expression is under attack. The government is behaving more like a police state than a democracy.

 

Our Demands: Not Charity, but Justice

We stand united today with clear, non-negotiable demands:

1. Review and revise Labour Code 2024 in full consultation with real trade unions from every region and sector.

2. End the ban on trade unions. Promote freedom of association and stop fake "pocket unions".

3. Immediate implementation of minimum wage laws—especially in brick kilns, ceramics, furniture, garments, and other vulnerable industries.

4. Mandatory registration of all workers under Social Security and Old Age Benefit Institutions.

5. Launch a national campaign for labour education, especially in rural and informal sectors.

6. Abolish bonded labour and child labour in all its forms—especially in brick kilns and wood workshops.

7. Enforce all existing labour, human rights, and trade union laws, and promote social justice.

8. Respect freedom of expression and the Right to Information. Workers have the right to speak, protest, and organize.

 

A Call to Action: National and International Solidarity

We call upon:

 The Government of Pakistan – to stop serving only the elite and start serving the people.

 The International Labour Organization (ILO) and European Union – to hold Pakistan accountable for violating the conventions it has signed under GSP+ and ILO core standards.

 Civil society, journalists, and human rights defenders – to stand with us and speak for those who are being silenced.

 Trade unions around the world – to amplify our message and demand justice for the workers of Pakistan.

 

Conclusion: Hope in Struggle

Brothers and sisters,

We are not asking for favors. We are demanding our rights—rights that are written in your laws, in your constitution, and in international commitments.

Our hands build your homes. Our sweat grows your economy. But our lives are being destroyed.

It is time to end this injustice. It is time to honour the labour that builds this nation. It is time to stand together—for freedom, for dignity, and for the workers of Pakistan.