The government is planning to raise the salaries of its employees by 5 to 15 percent in the upcoming Budget of 2022-23 that is likely to be present in National Assembly by 9th or 10th June.
The Finance Ministry has proposed a salary increase that will be presented for approval in the cabinet meeting, where it will be finalized by the Prime Minister.
The sources with in Finance Ministry said that the government would be holding key meetings in order to finalize budget especially on the matter of increase in the salaries.
The meeting of the National Economic Council (NEC) — under the chair of Prime Minister Shehbaz Sharif — regarding the federal budget will be held in the first week of June.
Finance Ministry sources said that, the budget efforts will be made to meet the conditions set by the International lender (IMF).
It is to be pertinent that, If the proposal for increase in salaries would approved than this will be the second increase in the salaries of government employees in four months.
The Pakistan Tehreek-e-Insaf (PTI) government had granted a 15 percent disparity reduction allowance for grade 1 to 19 officers in March. Subsequently, the new government led by Prime Minister Shehbaz Sharif has announced another 10 percent increment in pensions and has increased the minimum monthly salary to Rs. 25,000.
In this regard, credible sources from the Ministry of Finance said that the government is working on three different options to increase salaries by 15 percent.
As per reports, the salaries of officers (grades 1 to 19) may be incremented with another 5-10 percent ad hoc allowance in the upcoming budget whereas the salaries of grades 20 to 22 employees may be increased by 10 to 15 percent.
The government would also increase pensions by 5 to 10 percent in the wake of rising inflation.
Budget has been under discussion since last few days since and opposition (PTI) raised concern regarding what kind of budget will be presented by the Pakistan Democratic Movement if the National Assembly is not dissolved early.
Earlier, PTI leader Hammad Azhar in a tweet said: “The budget for next fiscal year must be devised sensibly and in consultation with the multilaterals.”
He wrote: “It is imperative that Finance Minister Ishaq Dar stops playing games with the economy. He has already inflicted massive damage. The budget for next fiscal year must be devised sensibly and in consultation with the multilaterals.”
The tweet showed that the PTI, which is expecting to form its government after the next general elections, wants the next budget to be strictly in line with the recommendations of IMF.
Remember that Pakistan has less than a month’s worth of foreign exchange reserves and is awaiting a bailout package of $1.1 billion from the IMF that has been delayed since November over issues related to fiscal policy adjustments.
The IMF has demanded Pakistani government get a written guarantee from the friendly countries for the deposit. After which Pakistan contacted Saudi and UAE govt in order to gave a guarantee.
Earlier Finance Minister Ishaq Dar claims that, UAE and Saudi Government agreed for a bilateral aid of one billion dollars to the IMF for Pakistan.
He said that the State Bank of Pakistan is now preparing the necessary documents for the said deposit from the Emirati authorities.
These commitments by friendly countries were one of the IMF’s last requirements before approving a staff-level pact to release a tranche of $1.1 billion, delayed for months, that is crucial for Pakistan to resolve an acute balance of payments crisis.
“Such tough conditions were set which weren’t easy for Pakistan to fulfil,” the premier said, adding that in the last one-and-a-half-month, the coalition government has made a lot of efforts.