ISLAMABAD: The government of Pakistan decided to discontinue house rent and medical allowance for employees amid austerity measures on Thursday.
According to media reports, the federal government is mulling over ending subsidies for employees from 17th to 22nd grade.
According to sources familiar with development, the government has approved ending subsidies provided to customs officials.
The house rent allowance and medical allowance given to customs officials will be discontinued as they were being provided benefits from the common pool fund.
The Federal Board of Revenue (FBR) ordered the end of subsidies and benefits from the common pool fund.
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The negotiations will be held with the International Monetary Fund (IMF) next month. Discussions will be held on unnecessary subsidies for government employees and pension reforms.
Expected increase in salaries & pensions of govt employees
As all eyes are on the Federal Budget 2024-25, there are reports that a hike in the salaries of government employees has been suggested.
It claimed that salaries would increase by about 15 percent and pensions by 10 percent. However, these reports are unconfirmed, with no official statement from the government regarding the salary hike in the 2024-25 budget.
