Government of Pakistan has decided to increase only 35% to 40% in the Pay of Government / Public Sector employees – Postpones pay and pension commission report 2010. Report will not be implemented in this budget 2010.
The government has decided to provide interim relief to employees of the federal government by increasing their salaries by 35 to 40 percent, sources told Daily Times on Thursday. The decision was taken following a meeting with officials from the World Bank and the Asian Development Bank.
The pay raise, the sources added, would set back the federal budget by around Rs 40 billion. The sources said that considering the critical financial position of the country, the government has decided not to implement the recommendations of the Pay and Pension Commission from the fiscal year 2010-11, and only interim relief would be offered to the government employees.
Donor agencies have asked the Ministry of Finance to first streamline the state of the economy prior to starting any other hectic venture, since implementation of the recommendations of the Pay and Pension Commission – headed by former central bank governor Dr Ishrat Hussain – would be an additional burden to the national economy. The government had also decided to set aside suggestions related to increases in perks and privileges.