The federal cabinet has approved a summary to increase the salaries of federal ministers, ministers of state, and advisers.
Following the approval, the monthly salary for federal ministers, ministers of state, and advisers will be Rs519,000. According to sources, the pay hike reflects an increase of up to 188% for these officeholders.
This development comes two months after the Finance Committee of the National Assembly approved a proposal to bring the salaries and perks of Members of Parliament (MPs) and Senators in line with those of federal secretaries.
The decision was taken unanimously by the committee under the chairmanship of Speaker Raja Pervaiz Ashraf.
Separately, Finance Minister Muhammad Aurangzeb has expressed optimism about the ongoing negotiations with the International Monetary Fund (IMF), stating that talks are in their final stages and there are no significant obstacles remaining.
Speaking to the media on Friday, the minister confirmed that Pakistan is on track to meet the IMF’s economic targets and reassured that the discussions will soon conclude positively.
Aurangzeb emphasised Pakistan’s commitment to fiscal discipline, highlighting the government’s adherence to the financial framework agreed upon with the IMF.
The talks are focused on securing the next tranche of funding, which is crucial for Pakistan’s economic recovery.
The IMF Mission Chief to Pakistan, Nathan Porter, also confirmed last week that significant progress had been made toward reaching a Staff-Level Agreement (SLA) regarding the first review of Pakistan’s $7 billion loan programme.
The success of these talks will pave the way for Pakistan to receive about $1 billion as part of the second instalment of the loan.
Additionally, Aurangzeb addressed climate change challenges, stressing the urgent need for structured climate financing to combat environmental risks.
He acknowledged the increasing threats posed by climate change, including the rapid melting of glaciers and economic disruptions caused by environmental changes, particularly in Lahore.
The finance minister also highlighted international pledges for flood rehabilitation, although the country has struggled to fully utilise these resources due to implementation challenges.
Earlier on Thursday, the central bank governor, Jameel Ahmad, said that there was no hurdle from the State Bank of Pakistan (SBP)’s side in reaching a staff-level agreement with the International Monetary Fund (IMF), and any outstanding issues might be related to the federal government.
While talking to the media after a meeting of the Public Accounts Committee (PAC), the governor hoped that the staff-level agreement would be reached very soon with the IMF. However, he did not provide a firm date for the deal, which has been overdue since March 14.
The PAC meeting also revealed that the federal government was about to give “emperor-like powers” to Federal Finance Minister Muhammad Aurangzeb to approve up to five special honoraria for employees and officers of various government departments.
“There is no issue pending with us, and any outstanding issue might be on the part of the federal government,” said Jameel Ahmad while responding to a question about the timing of the staff-level agreement with the IMF. The governor did not specify any particular issue but stated that finalising matters with ministries and divisions takes time.
Moreover, Aurangzeb held a meeting with Natalie Baker, Charge d’Affaires and acting US Ambassador to Pakistan, who called on him on Friday.
The meeting focused on matters of mutual interest, including avenues for enhancing economic cooperation and increasing US investment in Pakistan’s priority sectors, according to a press release issued by the finance ministry.
During the discussion, the finance minister briefed Baker on the government’s macroeconomic reform agenda, in line with Prime Minister Shehbaz Sharif’s vision for structural reforms and export-led economic growth.
He highlighted key initiatives being undertaken to improve economic efficiency and ensure sustainable and inclusive growth, including privatisation, tax reforms, energy sector restructuring, and rightsizing of the federal government.
Baker commended Pakistan’s economic progress and its commitment to implementing necessary but challenging structural reforms.
She acknowledged the country’s resilience and the measures taken to strengthen the foundation for long-term economic stability. She reiterated the US administration’s commitment to fostering a strong bilateral relationship with Pakistan, with a particular emphasis on deepening economic cooperation and expanding investment opportunities.
Both sides reaffirmed their commitment to further strengthening economic ties and exploring new areas of collaboration to advance shared economic goals.