ISLAMABAD: Finance Minister Senator Muhammad Aurangzeb said there is no proposal under consideration to increase salaries and pensions of government employees in the upcoming budget 2025-26.
Speaking at a National Assembly session, he clarified that no plans are being reviewed to raise salaries, allowances, or pensions for federal government employees at this time. However, the government is looking into increasing hiring and ceiling limits for employees.
In a written response submitted to the National Assembly, the Finance Minister stated that Pakistan’s total foreign debt and liabilities were $126,141 million as of June 2023, which is 43.03% of the country’s GDP. He added that Pakistan repaid $11,475 million in foreign loans during the 2024 financial year.
The Ministry of Commerce shared details of Pakistan’s trade deficit over the past five years. The documents showed that Pakistan faced a trade deficit of $154 billion during this period. Exports were $136 billion, while imports reached $291 billion. The increase in imports was linked to economic growth.
The Finance Minister briefed the assembly on efforts to boost remittances and curb illegal transactions. He said the government has taken strong action against hawala hundi and illegal money exchanges.
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This crackdown began under the caretaker government in 2023 and has continued with support from the State Bank. Exchange companies are now regulated, and their capital requirements have been increased to ensure only legitimate businesses operate.
Ten banks have also been instructed to set up exchange counters. As a result, illegal hawala hundi activities have decreased, and remittances are now mostly coming through formal channels.
According to the Finance Minister, remittances from overseas Pakistanis were $30.02 billion in the 2023-24 financial year. In the first nine months of the current financial year, this figure has risen to between $35 billion and $36 billion. He credited this increase to government policies.
Commerce Minister Jam Kamal shared details about sugar imports during the government’s first year. He said Pakistan imported 50,000 tons of sugar from India.
Between March 2024 and January 2025, 3,140 metric tons of sugar were imported, costing over $3 million. Sugar was also imported from Thailand, UAE, the US, UK, Denmark, France, Switzerland, and South Korea.
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During the session, a resolution to use the National Assembly hall as a chamber for a National Security Committee briefing was approved. The resolution was presented by Tariq Fazal Chaudhry.
The Finance Ministry clarified that reports about the Finance Minister announcing no salary increases were incorrect. It confirmed that no such proposal is under review at this time. The Finance Minister reiterated that the upcoming budget does not include plans to raise salaries or pensions, though hiring and ceiling limits for employees are being considered.
The government is working to maintain financial discipline, repay foreign loans, increase remittances, and reduce the trade deficit. However, the lack of salary increases for government employees might lead to disappointment among them.
