Islamabad – Pakistani government is reducing spending as part of a drive for austerity to repair the $350 billion economy, which is severely damaged and facing a balance of payments disaster.
According to information supplied by a private news outlet, the federal government is considering eliminating subsidies for employees in grades 17 through 22. It quoted well-placed government sources to report that the decision to stop subsidizing customs officers has been approved.
The medical and housing rent allowances that customs officials received would be terminated since they were receiving benefits from the common pool budget.
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Subsidies and benefits from the common pool fund are to cease, under an order from the Federal Board of Revenue (FBR), the highest tax collection agency.
Next month there will be negotiations with the International Monetary Fund (IMF). Reforms to pensions and needless subsidies for public servants will be discussed.
Anticipated Pay Rise in Budget 2024–2025:
According to some reports, government employee pay may rise as attention turns to the Federal Budget for 2024–2025.
It said that salaries will rise by 15% and pension benefits would rise by 10%. These reports are unverified because the government has not yet made an official statement on the wage increase that is part of the 2024–2025 budget.