Budget 2024-25: Govt Likely To Introduce Raise In Salaries         

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Budget 2024-25: Govt likely to introduce raise in salaries         

The proposed salary increases entail a suggested 15% to 20% raise for government servants in BPS-1 to BPS-16, alongside a proposal advocating for a 10% increase across all categories, from BPS-1 to BPS-22.

ISLAMABAD: (UrduPoint/Pakistan Point News-June 12nd, 2024) Amidst the persistent challenge of inflation, the Federal government is expected to introduce raise in the salaries from 10% to 15% in the FY 2024-25 budget.

This adjustment is projected to elevate the government's pay bill by Rs80 billion in the fiscal year 2024-25.

The proposed salary increases entail a suggested 15% to 20% raise for government servants in BPS-1 to BPS-16, alongside a proposal advocating for a 10% increase across all categories, from BPS-1 to BPS-22.

This adjustment is projected to elevate the government's pay bill by Rs80 billion in the fiscal year 2024-25.

Scheduled for presentation today (Wednesday), the budget's unveiling was postponed from June 8 due to Prime Minister Shehbaz Sharif's visit to China.

The delay places the budget announcement after the central bank's Monetary Policy Committee slashed interest rates by 1.5% to 20.5% from a record high of 22%.

Despite the anticipated salary raise, the prevailing depreciation of the rupee may temper any widespread celebration.

Besides it, there is speculation that the minimum taxable amount may increase to Rs900,000 per annum from the current Rs600,000 threshold, aiming to alleviate the burden on low-income groups.

The ongoing discussions regarding pay raises for civil servants reflect the government's acknowledgment of the financial strain amid current economic challenges. The initiative is deemed essential to counteract the adverse effects of inflation, which have significantly eroded people's purchasing power.

Furthermore, the discussions within the finance ministry concerning the revision of the monetization policy, particularly regarding the payment of benefits to public servants, underscore ongoing efforts to address economic concerns comprehensively.

While Pakistan has witnessed a decline in annual inflation since January, with the consumer price index (CPI) reaching a 30-month low of 11.8%, the proposed measures, if enacted, may evoke mixed reactions from the populace, with some potentially deeming them insufficient.

Abdullah Hussain

Abdullah Hussain is a staff member who writes on politics, human rights, social issues and climate change.