Government rejected a Proposal to increase Salaries by 50%

Due to the coronavirus and the economic situation in the country, it is not possible to increase salaries by more than 10% in the next federal budget: Finance Ministry

Government rejected a Proposal to increase Salaries by 50%

Islamabad: A proposal for a 10% increase in salaries of government employees has been sent to the Prime Minister. The Ministry of Finance has proposed to the Prime Minister a 10% increase in salaries of federal employees in the budget for the next financial year. The Finance Ministry has rejected a proposal to increase salaries by 50% to 100%

In a reply to the Prime Minister, the Finance Ministry said that due to the Coronavirus and the country's economic situation, the salaries of government employees will be more than 10 percent in the next federal budget. The addition not possible.

The proposal calls for revising the basic pay scale by merging the last two ad hoc allowances into the basic pay and increasing the salaries by 5 to 10 percent.
Otherwise, an ad-hoc allowance of 10% should be given on the basic salary. He termed the proposal of a 50% increase in salaries of employees as unworkable.


Earlier, it was reported that the IMF was pressuring the government not to increase the salaries of government employees. Instead, the salaries of government employees should be reduced. The IMF has demanded a 20 percent cut in the salaries of government employees. There is also a demand for freezing the salaries of Grade 18 to 22 employees.
It should be noted that an important meeting will be held in the Prime Minister's House again today on the preparation of Federal Budget 2020-2021 with the finance division. In which Prime Minister Imran Khan will be briefed on budget proposals. The meeting will discuss health budget, increase in salaries of government employees, relief package, government expenditure, budget revenues, increase in foreign exchange, reduction of import duty, and food tax.

On the other hand, sources said that it is difficult to increase tax revenue during the next financial year 2020-2021... As a result, only a modest increase in the salaries and pensions of government employees is possible in the next budget with no revision in the basic pay scale. 

Similarly, government spending will be kept to a minimum during the next financial year. Similarly, we have had three budget meetings, one of which proposes a 10 percent increase in the salaries of government employees, considering one in five percent. Economic hardships caused by CoVID-19

The IMF maintains that government salaries have been reduced by 20% in 20 countries since the Coronavirus crisis. In Pakistan, due to cheaper petrol and lockdown, transportation costs have come down. In Pakistan too, people's expenses have come down after Corona, so the government should save its expenses by not increasing the salaries of government employees.

Government rejected a Proposal to increase Salaries by 50%



The government has flatly refused to accept the IMF's demand. The government's position is that the situation in Europe and Pakistan is different. Inflation in G20 countries is only 2%. Government employees will have to be protected from inflation, pensioners will have to be protected from inflation.




                          #Budget2020-21 #SalaryIncrease



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