Last Updated on: 7th July 2023, 08:24 pm
What Salary Increase Can Pakistani Govt Employees Expect This Year?
With the rupee down more than 20% of its value since the start of the year, Pakistanis are faced with skyrocketing prices and are desperate for a sigh of relief from the government in these trying times.
A report by a leading publication states that government employees can expect a pay rise of up to 50% in the next budget.
A report by the Daily Jang claimed that in its final pre-election budget, the Sharif-led government decided to increase public sector salaries by up to 50% and raise pensions for retired civil servants by 30%.
He pointed out that no final decision has been taken at this time, as the finance minister will decide on a strategy in future meetings. The federal government is also considering raising the monthly minimum wage for workers to Rs 40,000 as people struggle to pay for their basic needs.
Earlier, the government decided to help people who use gasoline, but the International Monetary Fund banned Pakistan from giving subsidies without approval.
The global lender, while making life difficult for a cash-strapped country, issued an Economic and Fiscal Policy Memorandum (MEFP) in which it clarified that the government of Pakistan would not provide additional subsidies without its prior approval.
In addition, the IMF wants Islamabad to raise interest rates further. Higher interest rates are key to fighting inflation and reducing the country’s current account deficit.
Most recently, monthly consumer price index (CPI) inflation rose to a record 36.4% per year in April 2023, from 35.4% in the previous month and 13.4% in April 2022. This is the highest rate of inflation in South Asia.
Also Read: Top 10 Highest Paid Govt Employee in Pakistan