Sigh of ‘relief’: Salaries increased by 15pc, pensions by 5pc

As inflation continues to burden the public, who look towards the coalition parties to deliver on their promises, the federal government on Friday announced a 15 per cent increase in the salaries of public sector employees while also increasing the pension of retired employees by 5 per cent.

This increase is a part of the coalition government’s election-oriented budget and was approved by the cabinet hours before the bill for the next fiscal year’s finances was presented in the National Assembly.

Announcing the development following the cabinet meeting, Information Minister Marriyum Aurangzeb said that Prime Minister Shehbaz Sharif rejected the Finance Ministry’s proposal for a 10 per cent increase and approved a 15 per cent increase with the cabinet’s consent.

Read more: Govt unveils Rs9.5 trillion federal budget for 2022-23

She also said that the premier approved the merging of ad hoc allowances into the basic pay.

Prior to the presentation of the budget, the federal government decided to pursue a 5 per cent economic growth rate and an 11.5 per cent inflation target over the next financial year.

Experts say that the government’s recently-introduced austerity measures to overcome the economic and energy crisis largely appear to be aimed at influencing the upcoming elections, which, if held on time, are not too far either.

On Friday, hours before the budget was presented, government employees staged a protest outside the Parliament House, blocking the road, and voicing their demand for an increment. The protesters faced a heavy contingent of police which was deployed for the security of lawmakers.

Subsequently, the government acceded to their demand and announced a 15 per cent raise.

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It is worth mentioning here that soon after the incumbent government assumed power in April, it approved a 10 per cent raise in pensions of retired public sector employees, while also raising the salaries of serving employees. Though it overturned the decision on salary increase later on, the 10 per cent increase in pension was retained, and with Friday’s decision, pensioners are going to see a 15 per cent increase in a matter of few months.

During its meeting on Friday, the cabinet also approved the Finance Bill, 2022, allowing it to be presented to the lower house.

The Rs800 billion bill, which remains a proposal until it is sanctioned by parliament, proposes funds for 1,150 development schemes. Rs105 billion have been allocated for Balochistan, Rs68 billion for Sindh, Rs50 billion for Punjab and Rs48 billion for Khyber Pakhtunkhwa (K-P).