The federal government has approved an outline to cut in benefits for government employees ranging from grade 17 to 22.
According to informed sources, the subsidies that were previously available to customs employees, including house rent and medical allowances, have been entirely rescinded.
Similarly, benefits were traditionally sourced from the Common Pool Fund, but the Federal Board of Revenue (FBR) has now mandated the cessation of these subsidies and benefits drawn from this fund.
Conversely, there is a positive development for government employees in the forthcoming budget, where an increase in salaries between 10 to 12 percent is projected. Furthermore, for retired government employees from grades 1 to 15, including those who receive EOBI pensions, an anticipated increase of 15 percent in their pensions is on the horizon.
While the reduction in benefits affects employees from grade 16 to 22, the proposed minor salary increase is seen as a compensatory measure.
The federal government is diligently working to finalize the budget targets before mid-month, in preparation for the upcoming visit by the IMF mission.
