ISLAMABAD, June 6: The government has announced new relief measures in the budget for financial year 2005-6, including increase in salaries and pension of government employees, which will come into effect from July 1, 2005.

Minister of State for Finance Omar Ayub said in his budget speech that the pay raise had been given in the light of the Pay and Pension Committee recommendations and keeping in view financial limits of the government.

The relief package consists of a 15 per cent increase in pay-scales and 10 per cent in pensions. The increase would cost the government Rs25.50 billion.

The government has also increased the minimum wages from Rs2,500 to Rs3,000.

The minimum pension limit has been increased from Rs700 to Rs1,000. A special scheme is being launched for widows and orphans who had borrowed up to Rs100,000 from to liquidate their loans. In addition, the HBFC is bringing in a new package to ease financial burden of its long-standing defaulters.

The government, the minister said, had been constantly trying to provide relief to its employees. In 2001, pay-scales and certain allowances were revised. Again in 2003 and 2004, a 15 per cent provisional relief was provided.

At the time of the previous budget, the constitution of a pay and pension committee was announced. Under the Khushal Pakistan Programme, young people would get local jobs.

The federal government is initiating a basic health programme for women in all the provinces. The services of lady health workers will be provided in each district. An institution named NTEVTA will be set up to provide professional and technical training to 300,000 people every year.

For this purpose, the institutes will operate at districts and tehsils level and the trainees will receive stipend. An amount of Rs.2.3 billion will be spent on the NTEVTA and its training programme each year.

Prime minister’s programme of one-village-one-product will also be initiated to give a boost nationally and internationally to village products with a view to creating job opportunities.