ISLAMABAD - The federal government has proposed an increase of 10 per cent in salaries and pensions of the government employees in budget 2018-19.

Federal Finance Minister Miftah Ismail presented the sixth budget of the incumbent PML-N government with a total outlay of Rs5.932 trillion on Friday (today). “Our government has consistently provided increase in pay and pensions of government employees over the last five years. Despite fiscal constraints a further relief is being provided to government servants and pensioners although the inflation this year currently stands at 3.8 per cent,” Miftah said.

The minimum pension is raised from Rs6,00 to Rs10,000. Moreover, Rs15,000 has been fixed for pensioners over 75 years of age. Similarly, family pensions have also been increased from 4,500 to Rs7,500.

Earlier in 2017, the incumbent government had announced 10 per cent increase in the salaries of federal government employees under the budget 2017-18. Finance Minister Miftah Ismail highlighted the efforts made by the government to revive the economy, which, according to him was in shambles after Pakistan Muslim League Nawaz assumed office.

Minister for Finance, Miftah Ismail on Friday proposed a 10 percent ad-hoc relief allowance to civil and armed forces employees with effect from 1 July 2018.

He said housing was a serious problem for the government employees in major cities and hence house rent ceiling was being increased by 50 per cent. “Similarly, house rent allowance is also being increased by 50 percent,” he added.