The federal government is currently considering salary increases for government employees in the range of 10 percent to 15 percent in the upcoming budget for 2024-2025, Geo News reported.

The government intends to increase revenue generation to strike a successful deal with the International Monetary Fund (IMF) under Extended Fund Facility (EFF) at a range of $6 billion.

The Ministry of Finance wants to raise the salary by just 10 percent and there is another consideration to increase the monetization of cars by 20 percent to 25 percent for higher grade officers like grades 20, 21, and 22.


The monetary policy was introduced in 2012 for the basic purpose of reducing the burden on government expenditure, which was “in line with the observance of austerity measures and to eliminate misuse of official vehicles.”

The government is also considering pension reforms in the next budget including putting tax on pensioners who withdraw over Rs 100,000 per month.