Federal Minister for Finance and Revenue Muhammad Aurangzeb has confirmed that government employees should not expect any salary or pension increases in the upcoming fiscal year, delivering a significant setback to public sector workers facing rising living costs.

In a written response to questions in the National Assembly, Aurangzeb stated categorically: “There is no proposal under consideration to increase the salaries of government employees in the next fiscal year.”

The finance minister further clarified that the government has no plans to revise existing pay scales or allowances for federal employees. He also ruled out any adjustments to the pension structure for retired government servants.

The only potential relief mentioned was that authorities are currently “reviewing the limits for hiring and ceiling allowances” for employees, though no specific details were provided about what changes might be implemented.

This announcement has been met with disappointment among government employees who had hoped for financial relief amid Pakistan’s challenging economic environment. With inflation remaining a persistent concern and utility prices continuing to rise, many public sector workers had anticipated some form of compensation adjustment in the upcoming budget.

Economic analysts suggest this decision likely reflects the government’s commitment to fiscal discipline as part of ongoing efforts to meet targets set under Pakistan’s arrangement with the International Monetary Fund. The government has been implementing various austerity measures to control expenditures and reduce the fiscal deficit.