The Ministry of Finance has proposed 10 to 15 per cent increase in salary and pensions of all civil and uniformed government employees and six special honoraria for its officials in the next federal budget.
Sources told the media yesterday that the ministry had presented two options for the increase.
In the first option, the ministry has proposed the increase in salary and pensions, with a total financial impact of Rs30 billion on the budget.
In the second option, it has proposed a 15pc increase in salary and pensions as an ad hoc relief involving an additional fiscal impact of about Rs45bn.
A decision on the proposals has to be taken at a meeting of the federal cabinet.