The federal cabinet on Friday approved a 15% increase in the salaries of the federal government employees and a 5% increase in pensions, sources said.
The decision comes less than an hour before the Prime Minister Shehbaz Sharif-led government is set to present its first budget.
The federal cabinet on Friday met to review the budget proposals. Following the approval of the cabinet, the budget will be presented in the National Assembly by Finance Minister Miftah Ismail today.
A day earlier, Ismail announced that Pakistan and IMF agreed to increase the salaries of employees. He, however, said that the salaries of government employees will be increased as per the economic situation of the country.
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Is Cabinet going to pay this increases from their own assets? The government treasury is empty.