In the forthcoming budget for 2024–2025, the government is developing many suggestions for compensation increases for public sector personnel, with an approximate range of 10% to 15%.
In order to implement strict fiscal measures, such as increasing Federal Board of Revenue (FBR) tax and non-tax revenues and limiting spending, the government must show political will in the midst of its desire to reach an agreement with the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) at a range of $6 billion.
In the next budget, the government is considering its alternatives for fixing the FBR tax revenue target of more than Rs12.5 trillion. Regarding compensation, the Ministry of Finance seeks a mere 10% increase. However, given the potential pressure, there may be a budgetary adjustment to raise it to 2.5% or a maximum of 5% in order to boost the pay rise to between 12.5% and 15% in the upcoming budget.
An additional suggestion to increase automobile payments for higher-grade officers in grades 20, 21, and 22 by 20 to 25 percent is being considered.
Cars worth between Rs. 67,000 and Rs. 77,000 are monetized for grade 20 officials, Rs. 87,000 for grade 21 officers, and Rs. 67,000 for grade 22 officers each month. It is now being thought that it could be increased in light of inflationary pressures. The policemen who benefit from the automobiles and the amount of money they get said that since the policy’s introduction in 2012, it has never increased.
