In a significant setback for public servants, Finance Minister Muhammad Aurangzeb announced on Monday that the government is not considering any proposals to raise the salaries or pensions of federal employees in the upcoming fiscal year. This revelation came in a written response submitted to the National Assembly, where Aurangzeb stated, “There is also no plan to revise employees’ allowances or pay scales.”
However, the finance minister mentioned that the government is currently reviewing the limits and ceilings for hiring and housing allowances. Aurangzeb’s remarks were made in response to a question posed by MNA Malik Mohammad Aamir Dogar during the assembly session.
In addition to this, the Ministry of Commerce presented a detailed report on Pakistan’s trade deficit over the past five years. According to official documents, the country’s trade deficit from 2019 to 2024 totaled $154 billion. During this period, exports amounted to $136 billion, while imports reached $291 billion. The report attributed the surge in imports largely to economic growth.
Yearly trade deficit figures revealed that Pakistan’s deficit was $23.16 billion in fiscal year 2020, rising to $31.08 billion in 2021 and peaking at $48.35 billion in 2022. It then decreased to $27.47 billion in 2023 and further dropped to $24.11 billion in 2024.
The report also highlighted a significant increase in imports of solar panels, transformers, and power transmission equipment, which surged by 60% in fiscal year 2025, totaling $319 million. Additionally, imports of industrial machinery rose by 20%, textile machinery by 40%, and auto parts by 58%.
This development follows a protest last month by a large number of government employees from across the country, who gathered outside the Parliament House to demand salary increases, pension protection, and an end to the privatization of government institutions. The protesters, organized under the banner of the All Government Employees Grand Alliance (AGEGA), called on the government to address their financial struggles amid soaring inflation.
Last year, the government had announced a salary increase of up to 25% for public sector employees in the 2024-25 budget. It also raised the minimum wage from Rs32,000 to Rs36,000 per month. However, the latest announcement indicates no further relief for government employees in the near future.
