Govt may hike salaries by 10pc

ISLAMABAD: The federal government is considering increasing the salaries of government employees up to 10 percent as against the earlier announcement of 7.5 percent raise. The announcement is expected during finance minister Ishaq Dar’s winding up speech in the National Assembly. The Senate standing committee on finance and revenues headed by Senator Saleem Mandviwalla has recommended 12.5 percent hike salaries and pension.
“We will submit our report to the Senate on Wednesday (today) with total 92 budget-related recommendations which will be forwarded to the National Assembly after approval by the Upper House,” Saleem Mandviwalla told The News here on Tuesday.
However, finance minister Ishaq Dar has argued that the merger of two ad hoc allowances of 35 percent, hiking the medical allowance by 25 percent and 7.5 percent pay raise would increase the ‘take home’ salary by 11 to 14 percent with total estimated cost of Rs46 billion.
Meanwhile, Ishaq Dar chaired a meeting of senior officials of the ministry of finance and Federal Board of Revenue here Tuesday to review various budgetary proposals in the light of the feedback from various stakeholders including the businessmen and traders community.
The minister shared with the senior officials various amendments proposed by the parliamentarians regarding the budget 2015-16 and discussed their impact. He declared that suitable proposals from various quarters, regardless of political affiliations, would be duly accommodated. “We want to present a budget that is based on consensus. Our aim is to promote business activity, generate employment in the country and promote tax culture”, the minister remarked.
He asked the finance ministry and FBR officials to finalise suitable proposals as early as possible so that they could be reflected in his winding up speech on the budget 2015-16.
In another meeting with a 4-member delegation of the Poultry Association of Pakistan, the minister urged the association that in view of the sanctity of the month of Ramadan and in order to facilitate the people at large it should closely monitor the prices of poultry products. The delegation informed the minister that the increase in the prices of poultry products was due to supply gap, which occurred due to low prices in the last five to six months. It also discussed with the minister the currently imposed taxes on the poultry sector.
The minister said the government has to enhance revenue and improve the tax-to-GDP ratio. It has a number of obligations to meet in the coming fiscal year. Expenses on rehabilitation of TDPs as well as the ongoing anti-terror operation would need a large chunk of revenue, he said. Similarly there were a number of other areas to attend to. The minister said the businessmen and traders community had a responsibility to contribute to the national exchequer in this hour of need.
He however assured the poultry association that their recommendations regarding taxes on the poultry sector would be given due consideration despite economic constraints faced by the government. A decision in this regard, he said, would be announced in his winging up speech on the budget.