Islamabad – Finance Minister Muhammad Aurangzeb on Monday categorically stated that the federal government has no plans to increase salaries and pensions of government employees in the upcoming fiscal year.
His remarks came in response to a written query submitted in the National Assembly, according to a report of The News.
Aurangzeb emphasized that there is currently no proposal under consideration to revise employees’ pay scales or allowances. However, he noted that the government is actively reviewing ceilings and limits for hiring and housing allowances. The statement was made while responding to a question raised by MNA Malik Mohammad Aamir Dogar.
Aurangzeb’s remarks come at a time when government employees have been vocally demanding an increase in their salaries and pensions due to rising inflation and economic hardships. The refusal to accommodate these demands is expected to fuel further discontent among public sector workers.
Meanwhile, the Ministry of Commerce presented an analysis of Pakistan’s trade deficit over the past five years in the National Assembly. According to official figures, the country recorded a staggering trade deficit of $154 billion between 2019 and 2024. During this period, Pakistan’s exports totaled $136 billion, while imports surged to $291 billion. The report attributed the rise in imports mainly to economic growth and increased industrial activity.
Yearly breakdowns reveal that Pakistan’s trade deficit was $23.16 billion in the fiscal year 2020, escalating to $31.08 billion in 2021, and peaking at $48.35 billion in 2022. However, the deficit gradually declined to $27.47 billion in 2023 and further to $24.11 billion in 2024.
In fiscal year 2025, imports of solar panels, transformers, and power transmission equipment surged by 60%, amounting to $319 million. Industrial machinery imports increased by 20%, textile machinery by 40%, and auto parts by 58%, highlighting a shift towards infrastructure and manufacturing investments.
The announcement by Aurangzeb follows massive demonstrations staged by government employees outside the Parliament House last month. Under the banner of the All Government Employees Grand Alliance (AGEGA), the protestors demanded salary increments, pension protection, and a halt to the privatization of state institutions.
Despite the mounting pressure, Aurangzeb has stood firm on the government’s fiscal stance, citing economic constraints as the primary reason behind the decision. This contrasts with last year’s budget, where the government had approved up to a 25% increase in salaries and raised the minimum wage from Rs 32,000 to Rs 36,000 per month.
Aurangzeb’s latest statement signals the government’s commitment to stringent financial discipline amid economic challenges. Whether this decision holds or changes under public and political pressure remains to be seen.