The Pakistani government is set to unveil Budget 2024-25 on June 12 in the National Assembly, with public attention focused on updates regarding salary adjustments, pension increments, and potential new taxes.
According to reports in local media, the Ministry of Finance has introduced initial proposals to raise salaries for government employees. It is anticipated that federal employees may see a salary increase ranging between 15 to 20 percent, pending a final decision by the Prime Minister and cabinet members.
Read more: Budget 2024-25 Significant salary increases anticipated
With the International Monetary Fund (IMF) emphasizing the need for cost reductions and pension reforms, the Pakistani government is approaching tax reforms and salary updates cautiously. The IMF has cautioned against substantial increases in salaries and pensions, suggesting they may not be feasible.
Balancing fiscal responsibility with the imperative to support its employees presents a challenging situation for the government, given the pressure from both lenders and the general public.
One of the proposed measures involves revising the monetization policy for bureaucrats. The proposed increase would see salaries rise from Rs 65,000 to Rs 105,000 for officers up to grade 20, from Rs 75,000 to Rs 120,000 for grade 21 officers, and from Rs 95,000 to Rs 155,000 for grade 22 officers.
Additionally, there are proposals for increasing medical and conveyance allowances for employees in grades 1 to 16.
