The finance ministry on Monday clarified in a statement that no proposals to raise government salaries were under consideration after media reports claimed that government salaries and pensions would remain unchanged in the upcoming fiscal year.

According to the statement, Finance Minister Muhammad Aurangzeb submitted a written reply to a question asked by PTI MNA and Chief Whip Malik Amir Dogar during today’s session of the National Assembly, about the possibility of increased salaries, allowances and pensions in the next fiscal year.

“The finance minister did not make any such announcement or statements while addressing the floor of the National Assembly,” the statement read. “The news broadcast attributed to him in this regard is not based on reality.”

The statement added that in his written response, Aurangzeb did not mention any revisions to pay scales for government employees.

The ministry added that it has informed the NA about the situation and that at present, “the proposal to revise the pay scales of federal government employees for the next financial year and to significantly increase their salaries and allowances is not under consideration”.

However, Aurangzeb confirmed that “after receiving the revised market survey from the ministry of housing and works, the issue of increasing the rent limit for availing the services of privately owned residential houses is under consideration”.

In the 2024-25 budget, the government announced a 20-25 per cent increase in salaries and a 15pc increase in pensions for government servants.

This was notified in July last year, with the government allowing Ad hoc Relief Allowance-2024 (ARA) at the rate of 25pc of running basic pay for basic pay scale (BPS) 1 to 16 and 20pc for BPS 17 to 22.

This applied to all federal government employees including armed forces personnel, civil armed forces and civil employees, as well as the civilians paid from Defence Estimates.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Unquiet Lebanon
Updated 21 Jun, 2026

Unquiet Lebanon

Either Israel must silence its guns and withdraw from all of Lebanon, or face isolation and boycott from the international community.
Mothers at risk
21 Jun, 2026

Mothers at risk

FOR years, efforts to reduce maternal deaths have focused heavily on postpartum haemorrhage — the severe bleeding...
Political budget
21 Jun, 2026

Political budget

THE KP budget does not read like a document of a province getting its fiscal house in order. Revenue is projected at...
Pakistan’s moment
Updated 20 Jun, 2026

Pakistan’s moment

Pakistan’s diplomats are second to none, and if these states seek to engage this country constructively, a new modus vivendi for the subcontinent can be reached.
Menacing water plans
20 Jun, 2026

Menacing water plans

IN April last year, India suspended the decades-old Indus Waters Treaty, which contains no provision allowing it to...
World Refugee Day
20 Jun, 2026

World Refugee Day

WORLD Refugee Day, observed today around the globe, marks 75 years since the adoption of the 1951 convention ...