ISLAMABAD: In the next budget for 2024–2025, the government is developing a number of suggestions for compensation increases for public sector personnel, ranging from 10% to 15%.
In order to implement strict fiscal measures, such as increasing Federal Board of Revenue (FBR) tax and non-tax revenues and limiting spending, the government must show political will in the midst of its desire to reach an agreement with the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) at a range of $6 billion.
In the upcoming budget, the government is considering its alternatives for fixing the FBR tax revenue target of more than Rs12.5 trillion. Regarding pay, the Ministry of Finance hopes to increase thesalary by just 10%. Still, there might be some pressures so there might be a fiscal adjustment to jack it up to 2.5% or a maximum of 5% to increase the salary increase in the range of 12.5 or 15% in the next budget.
