The Government of Pakistan is reviewing several proposals to raise salaries and pensions for public sector employees and retirees in the upcoming federal budget, with final decisions expected after consultations with the federal cabinet and the International Monetary Fund.
According to sources, authorities are considering a salary increase of around 10 percent for government employees in the next fiscal year. Another proposal suggests incorporating one of the ad-hoc allowances granted between 2022 and 2025 into the basic pay structure.
The government is also examining possible relief measures for salaried individuals earning between Rs100,000 and Rs200,000 per month.
Sources said proposals are under discussion to raise conveyance allowances for officers in grades 20 to 22 by 50 to 75 percent, while a disparity allowance for employees in grades 1 to 16 is also being considered.
For pensioners, officials are reviewing a proposal to increase pensions by up to 80 percent in line with the average inflation rate recorded over the past two years.
In addition, income tax reductions may be introduced for salaried individuals with annual earnings ranging from Rs 1.2 million to Rs 2.2 million.
Discussions with the IMF regarding salary adjustments and tax relief measures are reportedly continuing. Sources further stated that the government is also evaluating a proposal to bring the armed forces under a contributory pension scheme from the next financial year.
All proposals concerning salaries and pensions are expected to be presented before Prime Minister Shehbaz Sharif and the federal cabinet for final approval.
Meanwhile, amid increasing fuel prices, authorities are also considering a proposal to double conveyance allowances for employees from grades 1 to 19.
