Pakistan’s federal government is planning salary increments of up to 25% and additional allowances for employees in the next fiscal year, despite revenue challenges. According to an English publication, the Sharif-led administration’s revenue collection has grown by only 23% in the first five months of the current fiscal year.
The government is also considering a mini-budget as part of its IMF agreement. Although inflation has dropped to 4.9%, federal employees remain dissatisfied, particularly after judges received recent salary increases. In response, the prime minister has formed a special committee to propose new allowances, with recommendations to be included in the annual budget.
Read more: Punjab Approves Salary Hike for MPAs and Speaker
A recent report highlights the annual allocation of over Rs8 trillion for salaries, pensions, and benefits for 1.92 million employees, with minimal transparency on its impact. It also notes that the judiciary receives the highest benefits, while excessive perks for Administrative Services hinder progress in other sectors. Public servant costs total around Rs3 trillion, including Rs1.5 trillion for pensions, Rs2.5 trillion for project workers and government company employees, and Rs1 trillion for military salaries.
