ISLAMABAD, June 5: The federal government on Monday announced several measures in the national budget to lessen impacts of rising prices, including 15 per cent dearness allowance for government employees and 10 to 20 per cent increase in pensions of retired people.
State Minister for Finance Omar Ayub Khan, presenting a national budget 2006-07 in the national assembly expressed hopes that the private sector would also follow the government’s steps and increase salaries of their employees.
He said that a decision had also been taken to increase minimum wages from Rs3000 to Rs4000 so that low-income people in the private sector could improve their conditions.
Those retired before first July 1977 would get 20 per cent and those retiring after that date would get 15 percent increase in their pension. “We hope this will provide relief to the senior citizens”, he said adding that no government could solve all problems of the people instantly. “We can only try,” he said, adding that under the Employees Old Age Benefit Act 1976, the amount of relief had been increased from Rs1000 to Rs3000.
Similarly, he said that the low grade government employees would have 50 percent increase in their transport allowance. He said currently workers were getting Rs30,000 for marriage of a daughter. This amount had been increased to Rs50,000. “Don’t you think this Rs20,000 more is a big relief”, he would get Rs1,50,000 instead of Rs1,000,000. The purpose, he said, was to offer some relief to the deceased family of a worker.
The amount of scholarship for children of workers has been increased from Rs800 to Rs1000. Likewise, the amount of share in profit for industrial workers has been doubled.
The state minister said that in the modern world knowledge-based economy had a preference that was why the government had decided to offer Rs500, Rs700, Rs1000 increase in the salaries of teachers according to their educational qualification.
The state minister said that employees of Pakistan Railways would be given a special relief package, the details of which were being finalised. For example, he said, in case of a death, Rs200,000 to Rs1 million would be given to railway employees according to their grades. After their deaths, their families could retain official residence for five years.
“One of the children of the deceased Railway worker would get a contract job for two years in Grade 15”, he said. And the widow of the worker will get medical treatment for life time. Also, there will be a two per cent quota of jobs for the children of deceased railway employees. A decision had also been taken to offer 2 percent quota of plots in various schemes to those workers who die during their service. The employees of law enforcement agencies were also being given special package.
There would be no tax for a senior citizen earning Rs400,000 annually and this would also be applicable on a persons having 60 year of age. Earlier, it was applicable on 65 year old people.
The state minister said that the government had decided to offer Rs2.5 billion subsidy for reducing prices of pulses.
“From Tuesday all the Utility Stores will sell dal chana at Rs30 per kg, masoor at Rs 31 per kg, moong at Rs53 per kg and mash at Rs58 per kg”, Omar Ayub said.
He said that a decision had also been taken to provide subsidy to private sector importers of pulses to avoid their scarcity in the market. He was of the view that this would help stabilise prices of pluses in the country.
However, Omar Ayub claimed that prices of pluses in Pakistan were still lower than many those in other countries of the region.
