No. SO(Acad:)1-29/G.F.Uni/2025/Edn:/383-91
22-May-2025
Colleges, Higher & Technical Education Department, Government Of Balochistan
Major Restructuring in Allowances for Public Sector Universities in Balochistan:
The Government of Balochistan has issued a fresh notification introducing a new “PSU Allowance” system for employees working in Public Sector Universities (PSUs) across the province. Dated 22nd May 2025, the notification—approved by the Chief Minister—abolishes several previous allowances such as Utility, House Requisition, Hardship, Orderly, and Special Allowances (like BUITEMS Allowance), which will now be replaced by a single consolidated PSU Allowance.
Effective from 1st June 2025, this allowance will be calculated at 25% of the initial basic pay (Pay Scale 2022) for universities in Quetta, and 35% for universities outside Quetta. However, this benefit will be available only to regular staff, excluding contractual, ad-hoc, and TTS employees.
The notification also outlines a shift in funding policy: moving forward, PSUs will need to cover operational expenses through their own revenue, while government grants must be strictly used for salaries, allowances, and pensions. Read the full official notification below;
GOVERNMENT OF BALOCHISTAN
Colleges, Higher & Technical Education
DEPARTMENT
Dated Quetta the 22nd May 2025
Notification
No. SO(Acad:)1-29/G.F.Uni/2025/Edn:/383-91 With the prior approval of the Competent Authority (i.e. the Chief Minister of Balochistan), conveyed vide U.O. No. PS/FS/1754 dated 19.12.2024, the Government of Balochistan, Colleges, Higher & Technical Education Department, hereby notifies the abolition of the following allowances and replacement of the same with the “PSU Allowance” in the pay structure of all Public Sector Universities of Balochistan;
(a) Utility Allowance;
(b) House Requisition,
(c) Orderly Allowance;
(d) Hardship allowance or by whatever name,
(e) Technical Subject Allowance,
(f) Special Allowance (e.g. BUITEMS Allowance)
2. Consequent upon abolishment of the above allowances, the “PSU Allowance” will take effect from 1st June 2025 with the following terms and conditions;
i. The allowance will be calculated at 25% of the initial basic pay of the Pay Scale 2022 for universities situated in Quetta.
ii. The allowance will to be calculated at 35% of the initial basic pay of the Pay Scale 2022 for universities situated outside Quetta.
iii. The allowance will be fixed at the initial basic pay of the Pay Scale 2022. Any future changes to PUSS allowances will require approval from the Provincial Cabinet.
iv. Contractual, Ad-hoc & TTS Staff will not be entitled for the PSUs Allowance.
v. The allowance will be subject to income tax.
vi. The allowance will not be admissible during study leave or extra ordinary Leave.
vii. The allowances will not be considered part of emoluments for the purpose of calculating pension or gratuity, if any.
3. Furthermore, the Government of Balochistan, Finance Department, has conveyed the decision of the Competent Authority that the Grant-in-Aid allocated by the Higher Education Commission (HEC) and the Government of Balochistan shall be utilized exclusively for the payment of salaries, allowances, and pensions. Operating expenses shall be met from the internal revenue sources of the Public Sector Universities (PSUs). Moving forward, PSUs will be required to strengthen their financial sustainability by generating adequate funds through their own sources, thereby reducing reliance on Grant-in-Aid from the Government.
Secretary
Colleges, Higher & Technical Education
Section Officer (Academics)
PSU Allowance Brings Big Changes for University Employees in Balochistan:
This bold restructuring move by the Balochistan government aims to standardize financial incentives across public universities while ensuring more sustainable university operations. By consolidating scattered allowances into a single PSU Allowance, the government not only reduces complexity but also promotes greater fiscal discipline.
While the PSU Allowance provides regular faculty and administrative staff with a clearer compensation model, it’s important to note that contractual, ad-hoc, and TTS employees will not benefit from this change. Additionally, the financial autonomy expected from universities will push them to innovate in revenue generation through consultancy, research, and fee-based services.
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