Pakistani government focuses on Budget 2024-25 proposals

The Pakistani government is gearing up to present the Budget 2024-25 in the National Assembly on June 12, with a primary emphasis on salary and pension adjustments, along with potential new taxes. The Ministry of Finance has put forth initial proposals suggesting a potential salary increase of 15 to 20 percent for federal employees, subject to final approval from the Prime Minister and cabinet members.

Considering recommendations from the International Monetary Fund (IMF) stressing the importance of cost reductions and pension reforms, the government is proceeding cautiously with tax reforms and salary updates. The IMF's emphasis on fiscal responsibility presents a challenge, potentially limiting significant raises in salaries and pensions.

To tackle this challenge, the government is contemplating a revision to the monetization policy for bureaucrats. The proposed increase in monetization varies from Rs 65,000 to Rs 105,000 for officers up to grade 20, Rs 75,000 to Rs 120,000 for grade 21 officers, and Rs 95,000 to Rs 155,000 for grade 22 officers.

Furthermore, there are discussions about enhancing medical and conveyance allowances for employees in grades 1 to 16, showcasing the government's endeavor to strike a balance between fulfilling employee needs and upholding fiscal stability.

As the Pakistani government gears up to unveil the Budget 2024-25, the focus on salary adjustments, tax reforms, and pension revisions highlights the delicate balance between meeting employee expectations and adhering to fiscal prudence. The proposed measures aim to address the recommendations from the IMF while ensuring that the welfare of government employees is also taken into consideration.