ISLAMABAD - The Finance Ministry has categorically denied that Finance Minister Ishaq Dar had made any statement in the National Assembly regarding no increase in the pay and pension of the government employees. 

In a written reply to a question by a member of National Assembly, the Minister of Finance had stated: "Presently no such proposal was under consideration."

The Ministry of Finance clarification issued here on Thursday was referring to a news item, published in a section of the     Press, quoting Finance Minister that there is no proposal to consider increase in the pay and pension of the government employees.

The clarification said that the Finance Minister had stated that the budget preparation for the fiscal year 2014-15 had just started and the decision regarding pay and pension was made at the time of budget finalisation by the Cabinet, which in generally holds its meeting  around end of May or beginning of June.

However, he said that increase in pay and pension was always decided keeping in view inflation, resource envelop and other factors.

He said that in line with the past practice, the government would also take the decision about the increase in pay and pension, before the announcement of budget for 2014-15, in early June, the Finance Ministry clarified.