ISLAMABAD: In a big blow for public servants, Finance Minister Muhammad Aurangzeb on Monday revealed that there was no proposal under consideration to increase the salaries and pensions of federal government employees in the upcoming fiscal year.
In a written response submitted to the National Assembly, the finance minister said: “There is also no plan to revise employees’ allowances or pay scales.”
However, he noted that the government is reviewing the ceiling and limits for hiring and housing allowances.
Aurangzeb made the remarks while responding to a question by the MNA Malik Mohammad Aamir Dogar.
Moreover, the Ministry of Commerce presented details of the trade deficit over the past five years in the National Assembly. According to official documents, Pakistan recorded a trade deficit of $154 billion between 2019 and 2024.
During this period, the country’s exports stood at $136 billion, while imports amounted to $291 billion. The document attributed the rise in imports primarily to economic growth.
Yearly trade deficit figures show that Pakistan’s deficit stood at $23.16 billion in the fiscal year 2020, increasing to $31.08 billion in 2021 and peaking at $48.35 billion in 2022.
The deficit then declined to $27.47 billion in 2023 and further to $24.11 billion in 2024.
Additionally, the fiscal year 2025 witnessed a 60% surge in imports of solar panels, transformers, and power transmission equipment. The total imports of power transmission equipment reached $319 million.
Meanwhile, industrial machinery imports increased by 20%, textile machinery by 40%, and auto parts by 58%.
The development came a month after a large number of government employees form across the country staged a protest demonstration outside the Parliament House demanding increase in salaries, pension protection and an end to the privatisation of government institutions.
The protesters, under the banner of the All Government Employees Grand Alliance (AGEGA), urged the government to take immediate steps to address their financial hardships amid sky rocketing inflation.
Last year, the government announced up to 25% increase in the salaries of government employees in the budget for fiscal year 2024-25.
He had also announced to increase the minimum wages from existing Rs32,000 to Rs 36,000 per month.