ISLAMABAD: The Senate Standing Committee on Finance has recommended raising the minimum monthly wage for workers to Rs40,000.
During the meeting, Senators Saleem Mandviwalla, Farooq H. Naek, and others supported the proposal. They said increasing the minimum wage is important to help workers cope with rising inflation.
While discussing the Finance Bill, Committee Chairman Saleem Mandviwalla expressed concern that giving more powers to FBR officers could lead to more money laundering cases and harm businesses.
Senator Farooq Naek suggested that any money laundering notice should only be issued with approval from the FBR chairman.
FBR Chairman Malik Amjed Zubair Tiwana admitted during the meeting that 95% of the country’s population cannot afford to pay taxes. He said only 5% of people have enough wealth, and they owe Rs1,700 billion in taxes. However, they only pay around Rs499 billion. He also revealed that the elite class is involved in tax evasion worth Rs1,233 billion.
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In another key development, Khyber Pakhtunkhwa (KP) has become the first province to propose a minimum monthly wage of Rs40,000. In its budget for the next financial year (2025–26), the KP government suggested raising the wage from Rs36,000 to Rs40,000.
The KP government presented its Rs2,119 billion budget two days ago. It includes Rs547 billion for the Annual Development Programme (ADP), a 10% increase in salaries of government employees, and a 7% increase in pensions. The budget also proposes a 15% to 20% rise in disparity allowance for employees who do not receive executive allowance.
KP Finance Minister Aftab Alam presented the budget in the provincial assembly on Friday.
