PM intervenes to raise pay, pensions

ISLAMABAD:

Prime Minister Shehbaz Sharif intervened on Tuesday to alter the budgetary proposal to increase the salaries of government employees by 10% during a cabinet meeting he chaired for the approval of the federal budget on Tuesday, sources said.

The cabinet held a detailed discussion on various budgetary proposals, including pay and pensions. During the meeting, Shehbaz rejected a proposed 6% salary increase, insisting instead on a 10% hike. The cabinet later approved a 10% raise in salaries and a 7% boost in pensions.

Previously, the Pakistan Peoples Party (PPP), a key coalition partner, had demanded a substantial increase in salaries. However, Finance Minister Aurangzeb maintained that the government was already extending the maximum possible relief to the common man through the budget.

Addressing the cabinet — live on national television — Shehbaz said that all economic indicators were now stable and satisfactory due to the government's efforts, the sacrifices of the people, and contributions from key stakeholders supporting the national economy.

"The common man and the salaried class have made sacrifices," the prime minister said, adding that salaried individuals were rightly asking: they contributed around Rs400 billion to the national exchequer in taxes — how much have the wealthy paid?

He noted that over the past five quarters, the county had faced tough conditions and multiple challenges, stressing that steering the nation through them was no small feat. "Pakistan has now reached the point of take-off, as all key stability indicators are satisfactory," he said.