Pension bill to exceed salary bill this fiscal

ISLAMABAD: The government has decided to provide another ad hoc relief allowance of 10 to 15 percent in salaries and pensions of public sector servants.

The pay and pension bills have become almost equivalent in Pakistan as these two heads are consuming Rs431 billion and Rs421 billion respectively in outgoing fiscal year 2019-20. “The government will take final decision about pay and pension raise in next budget but so far it is decided that the government will provide anther ad hoc relief allowance ranging from 10 to 15 percent in the upcoming budget,” top official sources told The News here on Tuesday.

The terms of reference (ToRs) of high-powered Pay and Pension Commission envisaged that the Commission may, if so desired by the government, make interim recommendations to provide interim relief, pending the submission of its final report. However, the sources said that the government has not yet sought interim report from Pay and Pension Commission so the Commission did not provide any recommendations for upcoming budget for 2020-21. “It seems that the government is going to provide ad hoc relief allowance of 10 to 15 percent and same ratio of increase will be granted to retired employees,” said the sources. The government has given mandate of six months period to Commission for submission of its report so in accordance with ToRs the Pay and Commission will submit its report to the government in coming October 2020.