The federal government on Friday announced a 15% increase in the salary of the government employees, as well as a 5% increase in the pensions for retired government employees.
The coalition government’s “election-oriented” budget gave some relief to government employees when the federal cabinet decided to give them a 15% raise in the budget just hours before it is due to be presented in the National Assembly.
“The prime minister has rejected the Finance Ministry’s proposal of a 10% increase and has approved an increase in government employees’ salaries of 15% with the consent of the cabinet,” Federal Information Minister Marriyum Aurangzeb announced after the meeting.
The Prime Minister has rejected the Finance Ministry’s proposal of a 10% increase and has approved an increase in government employees’ salaries of 15% with the consent of the cabinet. Alsomerging of adhoc allowances into the basic pay is approved #Budget_for_economic_stability— Marriyum Aurangzeb (@Marriyum_A) June 10, 2022
“The merging of adhoc allowances into the basic pay is approved,” she added.
Following the federal cabinet’s decision, Finance Minister Miftah Ismail would be expected to reiterate the decisions in his budget speech.
Earlier, the federal government approved a 5% economic growth rate and 11.5% inflation targets for the next fiscal year.
According to experts, the government has introduced austerity measures in an effort to overcome economic and energy crises that largely appear to be aimed at influencing the upcoming elections.
Hours before the budget was presented, government employees protested and blocked the road outside the Parliament, despite heavy contingents of police, and demanded a bump in their salaries, pensions, and medical allowance.
The government acceded to their demands and subsequently announced the raise.
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