Islamabad, March 17, 2025: Federal Finance Minister Muhammad Aurangzeb has ruled out any increase in salaries and pensions for government employees in the upcoming federal budget, stating that no such proposal is under consideration.
In a written response during the Question Hour in the National Assembly, Aurangzeb clarified that the government is not reviewing any plans to revise pay scales, allowances, or pensions for federal employees in the next fiscal year.
“The issue of increasing hiring limits and housing ceilings for government employees is under discussion; however, there is no proposal for a salary or pension hike,” the finance minister stated.
The announcement comes as a disappointment to federal employees, who have traditionally received annual salary and pension increments of 10 to 15 percent.
Meanwhile, the Ministry of Finance has confirmed that no pension increase for retired government employees is currently being considered. However, officials indicated that the government is exploring the possibility of revising the hiring ceiling for private residences of employees.
Earlier, speaking to a news channel, Aurangzeb expressed optimism about Pakistan’s ongoing negotiations with the International Monetary Fund (IMF), stating that “fruitful consultations” will continue next week.
He emphasized that the implementation of the IMF program has remained strong, with significant progress in discussions with the global lender.
“We have presented Pakistan’s economic performance to the IMF mission, and the talks have been positive,” he said.
Sources indicate that the finance ministry briefed the IMF delegation on key economic indicators, revenue collection, and fiscal reforms undertaken as part of the loan program. The government also reaffirmed its commitment to structural reforms, including broadening the tax base and reducing fiscal deficits.
While a staff-level agreement has not yet been reached, officials remain hopeful that continued discussions will help secure the next tranche of financial assistance.
