The government is working on different proposals for salary increases in the range of 10 to 15% for public sector employees in the upcoming budget for 2024-25.
Amid the wish of the government to strike a deal with the International Monetary Fund (IMF) under Extended Fund Facility (EFF) at a range of $6 billion, the government will have to demonstrate its political will to place stringent fiscal measures including raising revenues of both Federal Board of Revenue (FBR) tax revenues and non-tax revenues as well as restricting the expenditures side.
The government is mulling over the options to fix the FBR tax revenue target of over Rs12.5 trillion in the coming budget. On the salaries front, the Ministry of Finance wants to raise the salary by just 10%. Still, there might be some pressures so there might be a fiscal adjustment to jack it up to 2.5% or a maximum of 5% to increase the salary increase in the range of 12.5 or 15% in the next budget.
There is another proposal under consideration to jack up monetisation of cars for higher grade officers of grades 20, 21, and 22 in the range of 20 to 25%.
