25% increase in salaries of govt employees approved

ISLAMABAD: The federal cabinet approved a 25% pay raise for federal employees in Grades 1 through 16 on Wednesday.

According Geo News, a 20% pay raise has also been authorized for personnel in Grades 17 through 22.

Moreover, the cabinet approved a 15% increase in pensions for retired staff.

Earlier in the day, the federal cabinet adopted the financial recommendations for the upcoming fiscal year 2024–25. Chaired by Prime Minister Shehbaz Sharif, the special cabinet committee reviewed and approved the Finance Bill 2024.

The cabinet meeting also approved the budgetary proposals to be presented before the National Assembly for further consideration.

The federal government is scheduled to present the highly-anticipated Rs18.5 trillion budget for the fiscal year 2024–25 today, with the goal of obtaining a fresh bailout from the International Monetary Fund (IMF), according to a report by The News. The ministry has finished its preparations, and Finance Minister Muhammad Aurangzeb will propose the budget to the National Assembly.

This budget announcement follows the government’s statement that economic growth, expected to be 2.4% this year, will fall short of the 3.5% target, although revenues have increased by 30% compared to last year, and the fiscal and current account deficits are under control.