No raise in salaries, pension

ISLAMABAD: Budget 2020-2021 was the first budget in decades in which the government employees and pensioners did not get any raise.

Apparently, the decision of not raising salaries and pensions was taken on the demand of the IMF, which had originally asked for reduction in the salaries and pension of government employees.

The pay and pensions also become almost equivalent as the proposed budget for fiscal year 2020-2021 has been estimated at Rs475 billion while the expenditure of pension is proposed at Rs470 billion. Even no minimum wage has been fixed in the budget for the next fiscal year and will remain frozen at the current level.

In the budget for the outgoing fiscal year, Rs431.2 billion was allocated for running the civil government but it was revised to Rs445.86 billion for the current outgoing fiscal year and for the new fiscal year 2020-2021 an amount of Rs475.73 billion was allocated.

Likewise, for the new fiscal year an amount of Rs470 billion has been allocated for pension that includes Rs369 billion for the military pension and Rs111 billion for the civilian pension.