ISLAMABAD: It is expected that the federal government is going to give an increment of ten percent in salaries and fifteen percent in pensions in upcoming budget of 2017-18, sources said.
According to the sources, the initial working for the increment in the salaries has been started as directed by the Finance Minister Ishaq Dar. The increment of the salaries would be implemented after the next annual budget.
It was also recommended that the Adhoc allowance should also be merged into the basic salary with an amount of fifty percent, along with the ten percent increase in salary. A 15 percent increase in the pensions is also expected.
The other recommendations included the increment in the housing allowance, medical allowance and other utility allowances. The decisions would be finalized by the Ministry of Finance when the summary of recommendations will be received.
Sources informed that government is considering an increase in the withholding tax on bank transactions, purchase and sale of assets in the upcoming budget. Government is also planning to detect and formulating a strategy to deal with the tax defaulters.