ISLAMABAD: Pakistan’s Finance Minister, Muhammad Aurangzeb, on Monday ruled out any plans to increase salaries or pensions for government employees in the forthcoming federal budget.
In a written report to the National Assembly, he said that there is no such proposal under consideration in the upcoming fiscal year 2025-26 budget.
“The issue of increasing the hiring and ceiling limits for government employees is under discussion; however, no proposal regarding a salary or pension hike is being considered,” the finance minister stated in his reply.
The finance minister made it clear that the government’s current focus is on controlling expenditures and stabilising the economy.
Earlier, speaking exclusively to a local news channel Aurangzeb expressed satisfaction over Pakistan’s negotiations with the International Monetary Fund (IMF), saying that “fruitful consultations” will continue next week.
The finance minister stated that the implementation of the IMF programme has remained strong, and the government has made significant progress in its discussions with the global lender.
“We have presented Pakistan’s economic performance to the IMF mission, and the talks have been positive,” he said.
Last year, the Ministry of Finance issued notifications introducing three important changes to the pension rules.
According to the notification, family pensions will now be limited to a period of 10 years. Additionally, if a pensioner passes away, only their legal heirs will be eligible to receive the pension transfer.
The notification also clarified that the spouse of a deceased pensioner will continue to receive the pension for 10 years following their death. Moreover, if the child of a deceased pensioner is disabled, they will be entitled to receive the pension for life.
In an effort to discourage early retirement, the ministry has announced a 3% reduction in pension benefits for those who retire early. This deduction will apply for the remaining service period up until the age of 60.
