Sources indicate that the government is exploring various proposals to increase salaries for public sector employees by 10 to 15% in the upcoming FY 2024-25 budget.
However, the Ministry of Finance reportedly prefers a 10% salary increase. Another proposal under consideration involves increasing the monetization for higher-grade officers in grades 20, 21, and 22 by 20 to 25%.
Currently, grade 20 officers receive car monetization of Rs67,000 per month, grade 21 officers receive Rs77,000 per month, and grade 22 officers receive Rs87,000 per month. Due to inflationary pressures, these amounts may be increased.
The budget for 2024-25, originally scheduled for presentation on June 10, is now likely to be presented on June 12. The Pakistan Economic Survey 2023-24 will be presented on June 11, following a council meeting on June 10.
The federal budget for 2024-25 is expected to receive Senate approval by June 26. Additionally, to meet IMF requirements, the Pakistani government is likely to phase out tax exemptions on sales and income tax in the FY 2024-25 budget.
There is also consideration of imposing sales tax on tractors and pesticides, which could lead to higher prices for these agricultural essentials.
