The Finance Division of the Government of Pakistan has issued Notification No. F.1(1)/SO(Budget-I)/BCC 2024-25 in February 2024 regarding the announcement of the Budget 2024-25 in Pakistan. According to this notification, the Government of Pakistan will present the budget in the National Assembly during the 1st week of June 2024.
Tentative Date of Budget Announcement
The Finance Division, Government of Pakistan, is set to announce the fiscal budget 2024-2025 in the National Assembly of Pakistan during the 1st week of June 2024. While Friday is the likely day for the announcement, it is important to note that this date is tentative. As of 28th February 2024, the new government has not assumed office, and the caretaker government is currently in charge. The exact date of the budget announcement for 2024-2025 will be decided by the incoming government.
Impact on Government Employees, Pensioners, and Workers
The upcoming budget is of significant importance to certain segments of the population, especially government employees, pensioners, and private workers or laborers on fixed pay, who are most affected by the cost of living in the country. These groups face challenges due to fixed salaries that are adjusted annually, making them particularly vulnerable to inflation. They must await the budget for any potential salary increases.
Financial Challenges Faced by Government Employees
Currently, government employees are encountering various financial challenges, particularly concerning their pay and allowances. Some of the key issues include:
House Rent Allowance (HRA): Employees receive HRA based on the 2008 basic pay scale, with the last increase occurring in the 2017 budget. Given the current rates, it is extremely difficult for employees to find affordable housing. There is a call for the government to increase HRA to a minimum of 45% of the initial Revised Basic Pay for 2022.
Medical Allowance: The amount provided for medical expenses is insufficient, considering the rising costs of medicines, tests, and checkups. It is suggested that the government increase the medical allowance to a minimum of Rs. 5000/- per month or provide free medical facilities in both private and government hospitals. Additionally, health card facilities should be extended to all employees.
Conveyance Allowance (CA): The current CA provided to employees is insufficient to cover their commuting expenses. There is a proposal to increase the minimum CA to Rs. 15,000/- per month, with a starting range of Rs. 10,000/- per month.
Pension for Pensioners: Pensioners are also facing challenges due to the low pension amounts. There is a need for the government to enhance the pension in line with the cost of living.
Wage Rates for Laborers / Workers: For laborers and workers on fixed pay, there is a demand to increase the minimum wage to Rs. 50,000/- per month, as this category of employees is also experiencing financial difficulties.
The upcoming budget announcement will be crucial for addressing these issues and providing relief to these segments of the population.
