• PM forms body, led by finance minister, to examine fresh grants for govt servants
• Govt employees seeking more compensation following increase in judges’ pay
ISLAMABAD: Despite a shortfall in revenue collection, the government has started working on offering lucrative allowances to its employees, in addition to a salary increase of up to 25 per cent, effective from July 1, 2024.
The federal government’s revenue collection increased by only 23pc in the first five months of the current fiscal year, falling short of the targeted 40pc growth to achieve Rs12.97 trillion by June 30, 2025. In response to the revenue shortfall, the government is committed to introducing contingency taxation measures — a new term for a mini-budget — as part of its agreement with the International Monetary Fund (IMF).
Informed sources said the government’s narrative of lower inflation is not gaining much traction, even among government servants in both the civil and armed forces, despite the consumer price index (CPI) falling to a 78-month low of 4.9pc in November, due to the higher base effect from last year’s peak of 29pc.
They added that the PM Office and the Ministry of Finance have been receiving regular representations from various stakeholders and employee groups, seeking additional compensation, particularly following the recent significant increases in salaries and allowances for judges.
As result, Prime Minister Shehbaz Sharif has constituted an eight-member ‘special committee’ for “revision of existing or grant of new allowances to government servants” during the current financial year. Led by Finance Minister Muhammad Aurangzeb, the committee includes an overwhelming representation from the intended beneficiaries. It comprises the secretaries for finance, cabinet, establishment division, defence, and interior, as well as the minister for economic affairs, who was a batch mate to many grade 21 officers, and the minister of state for finance and revenue.
