According to sources, the federal cabinet approved a 15% rise in federal government employee salaries and a 5% increase in pensions on Friday.
The announcement comes less than an hour before the administration of Prime Minister Shahbaz Sharif is expected to submit its first budget for 2022-23.
“The Prime Minister has rejected the Finance Ministry’s proposal of a 10% increase and has approved an increase in government employees’ salaries of 15% with the consent of the cabinet,” stated Federal Information Minister Marriyum Aurangzeb on Twitter.
The Adhoc allowances have also been incorporated into the base wage, she noted.
According to sources close to the situation, the recent increase in government employee salaries will put a strain on the national exchequer of Rs. 71.59 billion.
On Friday, the federal cabinet convened to discuss the budget ideas. Finance Minister Miftah Ismail will propose the budget to the National Assembly (NA) today, following cabinet agreement.
Miftah Ismail had declared a day before that Pakistan and the IMF had agreed to raise staff salaries.
However, he stated that government employee salaries will be enhanced in accordance with the country’s economic position.
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