ISLAMABAD: Minister for Finance and Revenue, Senator Mohammad Ishaq Dar, announced on Friday a proposal for a substantial increase in salaries and pensions to address the financial hardships faced by Federal Government employees due to rising inflation.
During the presentation of the Federal Budget for the fiscal year 2023-24, Minister Dar unveiled plans to introduce ad-hoc relief measures. The proposal entails a 35 percent ad-hoc increase in salaries for employees from Grade 1 to Grade 16, while employees from Grade 17 to Grade 22 would receive a 30 percent raise. This move aims to empower employees by boosting their purchasing power and improving their standard of living.
Furthermore, Minister Dar emphasized the government’s commitment to enhancing pension benefits. As part of this commitment, the minimum pension will be increased to Rs 12,000, ensuring retirees have a more secure financial future. Additionally, the minimum monthly wage within the Islamabad Capital Territory (ICT) will be raised from Rs 25,000 to Rs 32,000, benefiting workers in the region.
To support retired employees, the government proposed increasing the pension of the Employees’ Old-Age Benefits Institution (EOBI) from Rs 8,500 to Rs 10,000. This adjustment acknowledges the contribution of retired individuals and aims to improve their quality of life.
In a notable move, Minister Dar unveiled a new scheme aimed at assisting widows of government employees. Under this initiative, the government will assume responsibility for repaying loans of up to Rs 1 million owed by widows to the Housing Building Finance Corporation (HBFC). This gesture seeks to alleviate financial burdens and provide support to those who have lost their spouses.
Moreover, the government intends to facilitate savings and investments for citizens. As part of this effort, the deposit limit for CDNS (Central Directorate of National Savings) Shuhada Account and Behbood Saving Certificates will be increased from Rs 5 million to Rs 7.5 million. This adjustment will encourage individuals to secure their financial futures and promote a culture of savings.
Minister Ishaq Dar’s proposals demonstrate the government’s commitment to improving the financial well-being of employees and retirees, as well as promoting a favorable economic environment for the citizens of Pakistan. These measures aim to address the challenges posed by inflation and provide relief to those affected, ultimately fostering economic stability and prosperity.