ISLAMABAD – Pakistani government is cutting expenses in an austerity drive to mend the broken $350 billion economy that faces massive balance of payments crisis.
A news shared by a private news channel said the federal government is mulling to axe subsidies for government employees from grade 17 to 22. Quoting sources familiar within the government, it said the approval has been given to end subsidies provided to customs officials.
The house rent allowance and medical allowance given to custom officials will be discontinued as they were being provided benefits from the common pool fund.
The apex tax collection agency Federal Board of Revenue (FBR) ordered to end of subsidies and benefits from the common pool fund.
The negotiations will be held with the International Monetary Fund (IMF) next month. Discussions will be held on unnecessary subsidies for government employees and pension reforms.
Expected Salary Increase in Budget 2024-25
As all eyes are on Federal Budget 2024-25, there are reports suggesting salary increase for government employees.
It claimed that there will be around 15 percent salary increase and a 10 percent pension hike. However, these reports remain unverified, with no official statement from the government regarding the salary increase in the 2024-25 budget.
Expected increase in salary of government employees in June 2024
