Daily Times

The controversy over a planned imposition of a 35 per cent tax on foreign allowance for Pakistani diplomats posted abroad has gained much momentum in recent days. While concerns were raised with both political and administrative leadership, the Foreign Service of Pakistan (FSP) cadre is reeling with anguish and uncertainty, given how it was not only sidelined from the 150 per cent of the basic salary executive allowance but also because of the ongoing economic crisis which has pushed the coveted service towards a financial meltdown as the rupee-based budgeted allocations of the embassies abroad have suffered a 20-25 per cent loss because of the currency’s unprecedented depreciation.

This double jeopardy could cripple the service by itself, but the withdrawal of exemption of taxes on foreign allowances meant to be a cost of living support has proven to be the proverbial last straw on the camel’s back and brought the situation to an open confrontation between the FSP cadre and other ministries. This would be a recipe for disaster in terms of Pakistan’s foreign policy objectives as it would erode the capacity of the service by a massive degree.

Sources in the Foreign Office informed that an enhancement in foreign allowance is long overdue with the last revision having been made during the PPP government’s tenure over a decade ago. Of course, costs of living, relocation and travelling have also increased manifold across the world since the COVID-19 pandemic began. All this financial burden and the prospects of an unthinkable drop in financial resources have created a crisis in the Foreign Office.

An enhancement in foreign allowance is long overdue with the last revision having been made during the PPP government’s tenure over a decade ago.

While it’s true that civil servants should focus on public service rather than indulge in luxuries, diplomatic cadres around the globe are given the tools and incentives to help them perform in the best possible manner. By severely undermining its capacity through an unprecedented financial squeeze, the Ministry of Finance and FBR are deliberately wreaking havoc to damage the very fabric of a vital state institution, which is gradually becoming a shadow of its former self. To many in the Foreign Office, it appears to be a clear attempt to hit where it hurts the most; especially after excluding it from the executive allowance.

The majority of Pakistani diplomatic missions abroad just have an ambassador and a junior diplomat attached to assist the Head of Mission. The burden is such that relatively junior diplomats are forced to be all-rounders by acting as head of chancery, political officers, public diplomacy coordinators, staff counsellors and protocol officers, amongst other day-to-day assignments, in one go. They aren’t paid well enough despite all the external perceptions of glitz and glamour. Instead of improving the situation, some segments of the bureaucracy are endeavouring to make the conditions so difficult for Pakistani diplomats that they would not be able to focus on their important job which includes looking after almost ten million strong diasporas abroad.

FSP cadre is already lacking the required motivation to work at an optimal level and some diplomats have declined to accept postings abroad, given the overall financial crunch. The imposition of these new taxes would render foreign postings a nightmare which are likely to be declined by all officers if these new measures are not withdrawn.

While Foreign Minister Bilawal Bhutto Zardari has reportedly taken several steps to ameliorate this situation, including addressing a letter to Prime Minister Shehbaz Sharif, there is a need for an effective follow-up to ensure that the new measures are withdrawn and the Foreign Office is included in those ministries receiving the executive allowance besides revision of foreign allowance to mitigate the impact of inflation.

On another note, the revival of the Foreign Service Officers Association in these challenging circumstances, which seems to be happening as per sources in the Foreign Office, is a step in the right direction. The service association could act as a bridge between the administration and the officers. The latter’s welfare is of utmost importance to the service and the association can work around many problems besetting the officers, including issues such as accommodation, cadre’s enhancement, curtailing political appointments that become problematic sometimes, and supremacy of merit and suitability.

The FSP cadre has historically been a docile institution, but if the association gets fully revived in the current circumstances, it is likely to work ardently to protect the rights of the officers and may mobilise the younger echelons to fight for their rights rather than just rely upon the goodwill of the administration.

While some officers have been treated unjustly in the past for taking a stand on upholding merit, using the platform of the association would prevent that possibility and help ensure merit and transparency.

It is hoped that the political leadership would rise to the occasion and not allow the situation to deteriorate, given the importance of the diplomatic cadre at a critical time in the country’s history.

The writer is Associate Editor (Diplomatic Affairs), Daily Times. He tweets @mhassankhan06