ISLAMABAD – Pakistan’s federal government is working to offer salary increments of up to 25pc and additional allowances for its employees from the next fiscal year.
A report shared by an English publication said Sharif-led government is working to offer a salary increase of up to 25pc and additional allowances to federal employees. This decision comes despite the shortfall in revenue growth, with the government’s revenue collection rising by just 23%pcin the first five months of the current FY.
It further said government officials mulled a mini-budget as part of its agreement with the IMF. Despite a drop in inflation to 4.9%, federal government employees remain dissatisfied, pushing for higher compensation, particularly following recent salary hikes for judges.
To address these concerns, the premier formed a special committee to propose new allowances for government employees, with recommendations to be presented during the annual budget process.
As the government started working on new plan, a recent report shows over Rs8 trillion allocated annually for the salaries, pensions, and benefits of 1.92 million employees, with little transparency on its impact.
The study also points out that the judiciary receives the highest benefits, while Administrative Services workers benefit excessively, hindering progress in other sectors. The total cost of public servants is around Rs3 trillion, including Rs1.5 trillion for pensions, Rs2.5 trillion for project workers and government company employees, and Rs1 trillion for military salaries.
