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Hafiz Pasha Criticizes Budget’s Salary, Pension Increases


Former Minister of Finance Hafiz Pasha has expressed his worry about the impositions brought upon by the federal and provincial budgets. He stated that salaries have increased 22—to 25 percent. And pensions have increased by 15%. At the same time, the total number of employees in the federal and provincial governments is 3.2 million.

Suppose we maintain current pensions for another five years. In that case, their volume will double, harming the national economy. Warned Hafiz Pasha during a “Dunya Kamran Khan Kay Sath” episode on Dunya News. This year’s projected budget deficit should not surprise anyone either. Salaries, pensions, subsidies, grants-in-aid, defense expenditures, and various projects are funding loans.

Hafiz Pasha criticized pensions as burdensome. And asked how they could bring about economic improvement instead of increasing them at such high rates. He said an enhanced amount ranging between eight and ten percent would have served better, with six percent for the highest paid (BPS-22) and twelve percent for the lowest paid workers, but this did not happen.

Hafiz Pasha predicted that these government measures. Such as substantial enhancements in wages and benefits. Are alarming signs against stability and sustainable growth in the country’s financial situation? Without immediate action, he warned that the heightened salary tax and limited opportunities for pay raises in the private sector could result in collapse.

He underscored that the current administration made all these moves. Mainly, massive salary hikes and increases in pension payments are disturbing factors toward economic stability and inappropriate ones, too, since they only enhance the financial burden on the state without corresponding revenue generation; hence, they cannot work. According to Pasha, the approach needs rethinking; otherwise, there may be more troubles ahead.

In summary, Hafiz Pasha argues that salaries should be raised. Pensions are not advisable for any government because they overburden the economy. He emphasizes the need for a balanced approach where salary increments align with the country’s financial abilities, which will stabilize the public and private sectors financially.

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