The demand by certain employees of the Pakistan Standards and Quality Control Authority (PSQCA) for the continuation of the incentive share requires clarification in light of the applicable financial, legal, and audit framework. The incentive share was previously disbursed by PSQCA as a fixed share equivalent to 10% of the Authority’s gross revenue. However, this mechanism was not supported by any formally notified financial rules or an approved regulatory framework governing its implementation. Moreover, the incentive share was distributed uniformly among employees, irrespective of individual performance, Key Performance Indicators (KPIs), or any objective performance evaluation. Consequently, it did not fulfill the fundamental purpose of a genuine performance-based incentive scheme. The Office of the Auditor General of Pakistan, through its statutory audit process, raised serious observations regarding this practice and recorded audit para highlighting the absence of a duly approved legal and financial framework authorizing such payments by PSQCA. Recognizing the need to establish a transparent, lawful, and performance-based incentive mechanism, the Ministry of Science and Technology, in consultation with PSQCA, has prepared draft financial rules for an incentive scheme. These draft rules have been forwarded to the Finance Division for consideration and approval, and the matter is currently under process. PSQCA remains committed to ensuring that any future incentive scheme is implemented strictly in accordance with the approval of the competent authorities, applicable financial rules, and the principles of transparency, accountability, and merit. Until the requisite approvals are obtained, the continuation of a scheme that lacked an approved legal and regulatory framework cannot be justified.
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