The Government of Pakistan has announced a significant increase in salaries for government employees as part of its fiscal year 2024-25 budget. The move, aimed at boosting the purchasing power of its workforce, comes amidst challenges posed by heightened inflation.
Minister for Finance and Revenue, Senator Mohammad Aurangzeb, presented the budget proposals, highlighting a substantial boost in salaries by up to 25 percent for government employees, effective from July 1, 2024. The budget also includes a 15 percent hike in pensions for Federal Government employees.
Recognizing the impact of inflation, the government proposed a 20-25 percent increase in salaries on an ad-hoc basis. According to Aurangzeb, employees from Grade 1 to 16 will receive a 25 percent ad-hoc relief, while those in Grade 17 to 22 will see a 20 percent increase. Additionally, the minimum wage is set to rise from Rs 32,000 to Rs 37,000 per month.
The decision aims to inject liquidity into the economy, stimulate consumer spending, and boost demand for goods and services. The announcement has garnered positive reception, with labor unions and employees appreciating the government’s responsiveness to their financial needs.
However, critics have raised concerns about the sustainability of these measures amidst fiscal constraints. They emphasize the importance of accompanying policies for revenue generation and expenditure rationalization to ensure long-term fiscal stability.
As the budget proposals undergo deliberation, the government remains committed to fostering economic resilience and safeguarding the interests of its citizens in the face of evolving economic challenges.
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