ISLAMABAD – The PML-N-led federal government has decided against raising salaries of government employees this year.
The cash-strapped country has been hit hard by a crippling debt and dwindling foreign exchange reserves.
Reports in the local media suggest the Ministry of Finance has sent a summary in which no increase in salaries of government employees has been proposed. However, a final decision in this regard has yet to be made.
Last month, the newly installed government took a U-turn on increasing salaries despite Prime Minister Shehbaz Sharif’s announcement.
Finance Minister Miftah Ismail announced the government was not raising salaries because salaries were raised a couple of months ago. Miftah had said at that time the government would consider increasing salaries in the upcoming budget.
Sharif, in his maiden address to the nation as prime minister, announced an increase in salaries, pensions and the minimum wage for labourers.
The federal government will present the 2022-2023 budget for Pakistan on June 10. The government has already increased fuel prices and power tariff manifold in line with IMF’s terms and conditions for the next installment of a loan programme. The trade deficit had reached almost $40 billion and the balance of payments deficit has narrowed amid inflow of remittances.
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