Finance Minister Muhammad Aurangzeb has ruled out any increase in the salaries and pensions of government employees in the upcoming federal budget, stating that no such proposal is currently under consideration.

In a written response submitted during the Question Hour in the National Assembly, Aurangzeb clarified that the government is not reviewing any plans to revise the pay scale, allowances, or pensions of federal employees in the next fiscal year.

“The issue of increasing the hiring and ceiling limits for government employees is under discussion; however, no proposal regarding a salary or pension hike is being considered,” the finance minister stated in his reply.

The announcement comes as a setback for federal employees who have historically received an annual increment of 10 to 15 percent in their salaries and pensions.

Meanwhile, the Ministry of Finance has also confirmed that no increase in pensions for retired government employees is under deliberation. However, officials indicated that the government is examining the possibility of adjusting the hiring ceiling for private residences of employees.

Pakistan makes ‘significant progress’ in IMF talks

Earlier, speaking exclusively to SAMAA TV, Mr Aurangzeb expressed satisfaction over Pakistan’s negotiations with the International Monetary Fund (IMF), saying that “fruitful consultations” will continue next week.

The finance minister stated that the implementation of the IMF program has remained strong, and the government has made significant progress in its discussions with the global lender.

“We have presented Pakistan’s economic performance to the IMF mission, and the talks have been positive,” he said.

According to sources, the finance ministry briefed the IMF delegation on key economic indicators, revenue collection, and fiscal reforms undertaken as part of the loan program.

The government also assured the IMF of its commitment to structural reforms, including broadening the tax base and reducing fiscal deficits.

While a staff-level agreement has not yet been reached, officials remain hopeful that continued discussions will pave the way for securing the next tranche of financial assistance.