Despite the decline in revenue collection, the government has started working on increasing the salaries of its employees by up to 25 percent, in addition to giving substantial allowances, which will be implemented from July 1, 2024.
During the first 5 months of the current fiscal year, the federal government’s revenue collection has grown by only 23 percent, short of the target of Rs12.97 trillion by June 30, 2025.
To meet the revenue shortfall, the government is committed to introducing emergency tax measures to implement its agreement with the International Monetary Fund (IMF), which is a new term for mini-budget.
Informed sources have said that despite the Consumer Price Index (CPI) falling to a 78-month low of 4.9 percent in November, the government’s narrative of reducing inflation is not finding much acceptance even among government employees (civil and armed forces).
The sources added that the Prime Minister’s Office and the Ministry of Finance are regularly receiving requests from various stakeholders and employee groups, especially after the recent significant increase in judges’ salaries and allowances, demanding additional compensation.
