On March 18, 2025, the Ministry of Finance rejected claims that Finance Minister Muhammad Aurangzeb ruled out increases in government employees’ salaries and pensions.  Ministry of Finance in its statement said the minister’s comments have been taken out of context and no such decision has been taken.

No Official Decision on Salary and Pension Revisions

Reports from numerous media houses claimed that the government has decided not to raise salaries and pensions next fiscal year. The Finance Division said no official proposal regarding pay scale and pension increase has been under discussion.  Officials affirmed any decision on pay or pension increase will be taken with stakeholders keeping in view the country’s situation. At the moment, there are no plans to raise salaries or modify pension structures. Still, the Finance Ministry said it is examining some allowances related to particular housing and rent ceilings.

Talks are proceeding to increase the rent ceiling for government employees to ease financial difficulties, especially for those residing in major cities. In the 2024-25 budget, a 20-25% increase was given in salaries along with a 15% increase in pensions of government employees. The Ministry of Finance affirmed the government’s dedication to providing competitive salaries to public servants without risking fiscal weakening.

The ministry encouraged the public to trust the government sources and not to get misled by false information. Any news regarding salaries and pensions will be shared via proper channels. As the economic situation continues to be troublesome, the government will assess the state of its finances before making any more commitments with respect to public sector salaries and pensions.

According to the Finance Ministry, government employees and the public should not rely on media reports but rather on official sources for information. Officials said that rumors causing panic and confusion will be investigated. Any further updates about salary and pension will be made through proper channels only.