Finance Minister Muhammad Aurangzeb has confirmed that the government has no plans to increase salaries or revise the pay scales of federal employees in the upcoming budget. Similarly, there is no proposal under consideration for raising pensions for retired government employees.
In a written response submitted during the National Assembly’s Question Hour, Aurangzeb stated that the government is not reviewing any salary, allowance, or pension adjustments for the next fiscal year.
“The issue of increasing hiring limits and ceiling allowances for government employees is under discussion, but there is no proposal for a salary or pension hike,” he clarified.
This decision comes as a disappointment for federal employees who have traditionally received an annual salary and pension increase of 10 to 15 percent.
Meanwhile, the Ministry of Finance has reiterated that no pension increase for retired employees is under deliberation. However, officials noted that discussions are ongoing regarding adjustments to the hiring ceiling for private residences of government employees.
Progress in IMF Talks
Finance Minister Aurangzeb also expressed optimism regarding Pakistan’s ongoing negotiations with the International Monetary Fund (IMF). He described recent discussions as “fruitful” and stated that consultations would continue in the coming week.
“The implementation of the IMF program has been strong, and we have made significant progress in our discussions,” he said.
According to sources, the finance ministry briefed the IMF delegation on key economic indicators, revenue collection efforts, and fiscal reforms aligned with the loan program. The government reaffirmed its commitment to structural reforms, including tax base expansion and fiscal deficit reduction.
While a staff-level agreement has not yet been reached, officials remain hopeful that continued engagement will help secure the next tranche of financial assistance.
