ISLAMABAD, (SANA): Federal Minister for Finance, Revenues and Privatization Senator Muhammad Ishaq Darhas announced to raise salaries of government employees by 10 percent following recommendations of the committee.
Talking to media outside the Parliament house and while addressing in the National Assembly here on Saturday, Finance Minister Ishaq Dar said that pension of the senior pensioners has been increased from Rs 3000 to Rs 5000, adding that this increase is not 10 percent increase, but is the 70 percent increase in the pension.
The Finance Minister said that he had constituted a committee to review the possibility of an increase in the salaries of government servants and announced during the press briefing held at D-block that the salaries of the government employees would increase by the July 1, 2013 and waiting for report of the committee as to how much increased would be made.
Ishaq Dar further said that he received the report of the committee on Saturday morning and the committee proposed 7.5 percent raise in the salaries, however, he said the government has increased it by 10 percent.
He said that the committee‚ while keeping in view inflation and economic situation of the country‚ had recommended 7.5 percent hike in the salary of civil servants. However‚ keeping in view 10 percent rise in the pension‚ the government has decided to increase salary of the civil servants by 10 percent.
The Finance Minister said that increase in salary of government employees would be effective from July 01.
According to reports, the decision was made on the directives of Prime Minister Mian Muhammad Nawaz Sharif.
Ishaq Dar said that there would be extra burden of Rs 20 billion on the government with the 10 percent increase in the salaries of the government employees.
It is worth mentioning here that the decision to announce 10 percent increase in the salaries of the government employees was taken during the meeting of the committee of the finance ministry.
The meeting of the committee of Finance ministry headed by additional secretary of finance ministry was held here and the recommendations over the increase in the salaries of the government employees were finalized.
The federal government had summoned report from the committee in six days and the committee was to submit its report to Finance Minister up to June 20 and it seems that in view of the protest demonstrations across the country, the committee worked on the emergent bases and presented its recommendations before the scheduled time.
In an interview with a private TV channel, Ishaq Dar said that if the government had not presented the budget before June 30, the budget would have frozen according to the constitution and economic emergency would have to be imposed.
He said that the implementation of the sales tax is applicable on the very next day after the increase is announced in the sales tax and the same procedure is being adopted in India.
Ishaq Dar said that the officials of the government appeared in the court and informed the court of their standpoint and the court has given the date June 18.
He said that Chief Justice took suo moto notice in the public interest. He said that there was misunderstanding pertaining to announcement of increase in the salaries of the government employees. He said that he mentioned that committee has been constituted which would recommend for increase in the salaries for the next year, adding that the matter is being more politicized.
Ishaq Dar said that the previous government only inaugurated the Pak-Iran gas pipeline and nothing was allocated for this in the PSDP, adding that this was merely electioneering gimmick by the Pakistan People’s Party (PPP) and the incumbent government would look into it.
He said that prime minister of the previous government of the PPP had Rs 22 billions discretionary funds while he spent Rs 42 billions, adding that he should have allocate Rs 10 billions for this project.
He said that feasibility of the project would have been done if there had been any project to be implemented.
He said that the PML-N government has allocated Rs 540 billions for the developmental projects to be implemented in the year, adding that the cabinet and the government would take decision over the Pak-Iran gas pipeline.