ISLAMABAD – The federal government is expected to announce its first budget for fiscal year 2024-25 in June amid multiple economic challenges.
All federal and provincial government employees eagerly wait for the announcement of the budget every year as their salaries are increased by the government keeping in view various factors, including inflation.
As the government is taking steps to decrease the inflation, it aims at bringing it down to the target range of 5 – 7 percent by September 2025.
Headline inflation in March declined to 20.7 percent y/y from 23.1 percent in February. In the same period, core inflation fell significantly to 15.7 percent from 18.1 percent in February.
The State Bank of Pakistan’s Monetary Policy Committee views inflation to continue to remain on downward trajectory.
Both federal and provincial governments used to announce increment in salaries of their employees in budget.
In the upcoming budget 2024-25, the governments are expected to announce 10 percent increase in salaries of the employees. However, the final decision will be taken by the governments after reviewing the recommendations by the finance ministry.
The increment, if approved, will come into effect from July 2024.
