Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Tuesday said that along with the reduction in taxes for the salaried class, the government has proposed a ten percent increased in the salary of all federal government employees of grade 1-22.

During the budget speech at the National Assembly, the minister said that the government has decided to take relief measures for government employees despite its financial difficulties.

He said that it is proposed to increase the pension of retired employees, while the special conveyance allowance for handicapped employees will be increased from Rs 4,000 to Rs 6,000 per month. The finance minister said that the existing disparity in salaries is being eliminated by implementing the provisions of the Constitution of Pakistan regarding equal rights. It is also proposed to provide a disparity reduction allowance at the rate of 30 per cent to eligible employees, he said.

Muhammad Aurangzeb said that the country is facing a security situation and the armed forces have rendered commendable services to protect the borders. In recognition of these services, special allowances for officers, soldiers and JCOs of the armed forces are being proposed. These expenses will be met from the defence budget for fiscal year 2025-26, he said.