Finance Minister Muhammad Aurangzeb has dismissed any potential increase in the salaries and pensions of government employees in the forthcoming federal budget, asserting that no such proposal is presently under review.
In a written response provided during the Question Hour in the National Assembly, Aurangzeb stated that the administration is not contemplating any revisions to the pay scale, allowances, or pensions of federal employees for the upcoming fiscal year.
The finance minister remarked, “The matter of raising hiring and ceiling limits for government employees is under deliberation; however, no proposal for a salary or pension increase is being contemplated.”
CONCERNING: Pakistan-IMF negotiations conclude without a staff-level accord
The announcement represents a setback for federal employees who have traditionally earned an annual salary and pension increase of 10 to 15 percent.
The Ministry of Finance has announced that there are no discussions regarding an increase in pensions for retired government employees. Officials have stated that the government is considering the adjustment of the hiring cap for private houses of employees.
Mr. Aurangzeb conveyed his approval of Pakistan’s discussions with the International Monetary Fund (IMF), stating that “productive consultations” will persist next week.
The finance minister asserted that the execution of the IMF program has been robust, and the government has achieved considerable advancement in its negotiations with the international lender.
“We have conveyed Pakistan’s economic performance to the IMF mission, and the discussions have been favorable,” he stated.
The finance ministry informed the IMF team about essential economic statistics, tax collection, and fiscal changes implemented within the loan program.
The administration assured the IMF of its dedication to structural reforms, encompassing the expansion of the revenue base and the reduction of budget imbalances.
Although a staff-level agreement has not been finalized, officials are optimistic that ongoing negotiations will facilitate the acquisition of the subsequent tranche of financial aid.
