The anticipation mounts as the federal government gears up to unveil its inaugural budget for the fiscal year 2024-25 this June, amidst a backdrop of diverse economic hurdles.
Government Measures to Tackle Inflation
Government employees at both federal and provincial levels keenly await the annual budget announcement, knowing that their salaries will be adjusted to counter various factors, particularly inflation.
The government’s concerted efforts to mitigate inflation aim to bring it within the targeted range of 5 – 7 percent by September 2025.
Declining Inflation Trends
In March, headline inflation showed a decline to 20.7 percent year-on-year from the preceding month’s 23.1 percent. Simultaneously, core inflation experienced a notable decrease from 18.1 percent to 15.7 percent.
Central Bank’s Projections
The State Bank of Pakistan’s Monetary Policy Committee holds the view that inflation will continue its downward trajectory, reflecting the effectiveness of ongoing monetary measures.
Salary Increment Expectations
Annual Salary Adjustments
Traditionally, both federal and provincial governments incorporate salary increments for their employees within the budget framework.
Anticipated Salary Raise in 2024
As we look forward to the forthcoming budget for the fiscal year 2024-25, expectations are rife regarding a projected 10 percent hike in government employees’ salaries. However, the final decision rests with the governments, pending a thorough review of recommendations by the finance ministry.
Effective Implementation Date
Should the proposed increment gain approval, it will be implemented from July 2024 onwards, providing a tangible relief to government employees nationwide.
