Government Salaries

Reacting to media reports circulating widely, the finance ministry issued a statement on Monday clarifying that no proposals to raise government salaries were under consideration. While Finance Minister Muhammad Aurangzeb reiterated this position in a written reply to Parliament, the issue of government salaries is far more complex than a simple yes-or-no decision. Pakistan’s civil service salaries have failed to keep pace with soaring inflation, which has driven up the cost of rent, groceries, fuel, and other essentials—making it increasingly difficult for public sector employees to maintain a decent standard of living.

Fresh CSS graduates now earn 20 to 30 percent less than their counterparts in the private sector, a gap that only widens over time. Low base salaries and inadequate pensions force many government employees to seek additional sources of income, often at the expense of their official duties. In many cases, this financial pressure pushes officials toward corruption and misuse of power as they look for ways to supplement their earnings. To attract and retain the best talent in public service, government salaries must not only increase but also remain competitive with inflation and private sector compensation. Ensuring that civil servants are financially secure reduces the incentive for unethical practices and strengthens institutional integrity.

Although the finance ministry has ruled out an increase in base pay, it has indicated that it may consider raising rent allowances for government employees after a revised market survey. This acknowledgement suggests that the government is aware of inflation’s impact on salaries and pensions. However, salary adjustments alone are not enough. The recent case of NEPRA, where top officials were found receiving exorbitant salaries far beyond even private sector benchmarks, highlights the glaring disparities within the system. While some departments operate with inflated pay scales for their upper ranks, most government employees in the standard grading system struggle with inadequate compensation.

The government must strike a balance—raising salaries, pensions, and allowances where necessary while also curbing excessive pay packages that have been secured through abuse of power. A fair and rationalised salary structure is not just about compensation; it is about ensuring efficiency, transparency, and the long-term viability of Pakistan’s civil service.