Ministry of Finance Clarifies Reports on Salaries and Pensions of Govt Employees

The Ministry of Finance issued a formal clarification on Monday regarding media reports that claimed Finance Minister Muhammad Aurangzeb had ruled out salary and pension increases for government employees in the upcoming fiscal year 2025-26 budget. “The finance minister did not make any such announcement or statement,” the Finance Division stated. “News reports attributing this statement to him are not based on facts.” The controversy emerged after several media reported that Aurangzeb had indicated in a written response to the National Assembly that public sector workers should not expect compensation adjustments in the next budget cycle. The ministry further clarified that the finance minister’s speech in the National Assembly did not mention revising pay scales or increasing salaries and allowances for government employees. According to the Finance Ministry, a written response was provided to a question raised by a member of the National Assembly. “The Ministry of Finance informed the House of the current situation, stating that, at present, there is no proposal under consideration to revise pay scales or increase salaries and allowances for federal government employees in the next fiscal year,” the statement read. The clarification suggests the government has not yet finalized its position on public sector compensation for the upcoming budget, despite what was reported.