Govt under fire for salary hike for top parliamentarians while minimum wage remains static
The federal government's decision to significantly raise the salaries and financial perks of top parliamentary officeholders has drawn criticism, even from within its ranks. Defence Minister and senior PML-N leader Khawaja Asif called the move a 'financial obscenity' on the social media platform X on Wednesday.
'The huge increase in the salaries and financial incentives for the speaker, deputy speaker, chairman Senate, and deputy chairman Senate falls under the category of financial obscenity.
'Keep in mind the life of the common man, all our honour and dignity are due to him,' said Asif.
Meanwhile, during the post-budget press conference on Wednesday, Finance Minister Muhammad Auranzgeb defended the sharp increase in the monthly salary of lawmakers.
'If we talk about raising salaries of government employees, then ministers' salaries should also be reviewed.'
He pointed out that the salaries of the Senate chairman, deputy chairman, National Assembly speaker, and deputy speaker were recently increased.
When questioned about whether their salaries had been raised from Rs250,000 to Rs2.15 million per month, the minister remarked that the focus should be on when ministers, ministers of state, and parliamentarians last received a salary adjustment.
'The cabinet ministers' salaries were last increased in 2016. If a salary raise had been made annually, the recent hike would not seem so high,' he explained.
The government in its budget presentation also announced a 10% increase in salaries for federal government employees (Grade-1 to Grade-22) and a 7% increase in pensions for retired government servants.
However, it decided to keep the minimum wage unchanged in the budget for the financial year 2025-26, saying it would remain at Rs37,000 per month.
The decision to keep the minimum wage unchanged comes despite calls from some public and political quarters.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
Alex Padilla arrested? US Senator speaks out after being handcuffed, forced out of Kristi Noem's DHS press conference
US Senator Alex Padilla was forcibly removed from a press conference in Los Angeles by federal authorities, sparking strong reactions from both political sides. The Democratic Senator from California was attempting to ask questions regarding immigration enforcement when Homeland Security Secretary Kristi Noem addressed the media. The incident unfolded when Padilla, who had arrived for a separate meeting in the federal building, interrupted Noem's briefing. He began shouting questions, specifically regarding the ongoing immigration protests in LA, which have been a point of contention in the city for nearly a week. Federal agents then confronted the senator and escorted him out of the room, handcuffing him in the process. Noem, continuing with the briefing, made no immediate comment on the disruption. The Department of Homeland Security accused Padilla of engaging in "disrespectful political theatre," stating that he had not identified himself as a senator. They explained that officers, unable to see his Senate pin, thought he was a potential threat. Padilla's office confirmed that he was "forced to the ground and handcuffed" but was not detained after the incident. Disturbing scene of Senator Alex Padilla being handcuffed — Acyn (@Acyn) June 12, 2025 Padilla later spoke out, condemning the actions of the DHS, and questioning what the department might be doing to undocumented workers in California. "If this is how they treat a US senator, imagine how they treat farm workers and day labourers," he said. The incident has stirred political outrage. Let's talk about what happened today. — Senator Alex Padilla (@SenAlexPadilla) June 13, 2025 LA Mayor Karen Bass condemned the move as "absolutely abhorrent and outrageous," calling for an end to what she described as "violent attacks" by the Trump administration. California Governor Gavin Newsom also weighed in, urging Republican leaders to denounce the actions, warning that such treatment could happen to anyone. However, the White House dismissed Padilla's actions, accusing him of seeking attention rather than answers. White House spokesperson Abigail Jackson stated, "Padilla embarrassed himself with this immature stunt." Vice President Kamala Harris also criticized the move, supporting Padilla's efforts to secure answers for his constituents about the administration's immigration policies. She labelled the episode as "a shameful and stunning abuse of power." United States Senator Alex Padilla was representing the millions of Californians who are demanding answers to this Administration's actions in Southern California. This is a shameful and stunning abuse of — Kamala Harris (@KamalaHarris) June 12, 2025 The incident has become a flashpoint in the ongoing debate about immigration policy and the treatment of political figures by federal authorities.
Business Recorder
5 hours ago
- Business Recorder
Budget 2025-2026: Pakistan govt has no vision beyond fiscal survival
The federal budget for financial year 2025-26 presented on June 10, 2025, in the National Assembly, has laid bare both the ambitions and contradictions of Pakistan's fiscal strategy. The total revenue receipts, estimated at Rs 19,278,090 million, are up from Rs 16,802,123 million in the revised estimates of 2024-25, reflecting a significant increase of over Rs 2.47 trillion. Tax revenue target has been set at Rs 14,131,000 million, with direct taxes amounting to Rs 6,902,000 million and indirect taxes Rs 7,229,000 million. The share of indirect taxation remains worryingly high, pointing to the regressive nature of revenue mobilization framework. The total non-tax revenue stands at Rs 5,147,090 million, supported primarily by petroleum levy (Rs 1,468,395 million), State Bank's surplus profits (Rs 2,400,000 million), and dividends (Rs 206,134 million). Dominance of petroleum levy in non-tax receipts suggests fiscal reliance on consumer end fuel prices, with inflationary consequences for the common man. The markup receipts from provinces and public sector enterprises are estimated at Rs 283,810 million and Rs 188,000 million respectively, showing a recovery from the preceding year's underperformance. Capital receipts, including recovery of loans and domestic debt receipts, are estimated at Rs 17,274,113 million. Domestic debt receipts alone are Rs 16,671,113 million, reflecting continued borrowing to meet budgetary shortfalls. Repayment of domestic debt is projected at Rs 14,007,189 million, yielding net domestic debt receipts of Rs 2,663,924 million. Reliance on treasury bills, accounting for Rs 8,430,000 million of the floating debt, reflects the government's short-term borrowing preference with implications for interest rate volatility. The external receipts have been estimated at Rs 5,777,554 million, marginally down from the revised Rs 5,833,308 million in 2024-25. Project loans from federal and autonomous bodies total Rs 215,719 million, with programme loans and other loans amounting to Rs 4,413,510 million. The sustainability of external borrowing remains under strain given the increasing repayment obligations, as evidenced by Rs 5,472,222 million allocated to foreign loan repayments. Gross federal resources have been computed at Rs 28,532,694 million, with a deduction of Rs 8,205,723 million for the provincial share in federal taxes, resulting in net federal resources of Rs 20,326,971 million. Cash surplus expected from provinces is Rs 1,464,000 million, while privatization proceeds have been ambitiously pitched at Rs 86,550 million, a more than tenfold increase from Rs 8,000 million in the previous year. Total estimated resources thus stand at Rs 23,848,112 million, which equals the total proposed expenditure. The current expenditure on revenue has been set at Rs 16,286,045 million, which includes Rs 12,210,851 million under public services, Rs 2,557,950 million for defence services, and Rs 734,187 million for social protection. The defence budget sees an increment of Rs 368 billion, raising critical questions about prioritization amidst economic distress. The allocation for education stands at Rs 112,683 million and for health at Rs 31,975 million, barely increasing from revised estimates and falling short of international benchmarks. The current expenditure on capital accounts is estimated at Rs 5,787,114 million, a dramatic surge from Rs 3,398,098 million last year, due to ballooning foreign loan repayments. The total current expenditure sums up to Rs 22,073,159 million. The development expenditure has been reduced to Rs 1,774,953 million, with Rs. 590,774 million allocated for revenue account and Rs 1,184,179 million for capital account, suggesting fiscal consolidation at the cost of long-term growth. Total expenditure stands at Rs 23,848,112 million, with Rs 16,876,819 million on revenue account and Rs 6,971,293 million on capital account. Debt servicing constitutes domestic Rs 8,207,250 million and Rs 1,009,322 million for foreign debt, totaling Rs 9,216,572 million, representing 38.6 percent of total current expenditure. The burden of debt repayment limits fiscal flexibility and crowds out essential public services. The policy measures embedded in the Finance Bill 2025-26 under the Customs Act of 1969, Sales Tax Act of 1990, and Income Tax Ordinance of 2001 introduce a wide range of changes. Tariff rationalization initiative eliminates outdated slabs and introduces new 5 percent, 10 percent, and 15 percent slabs, reducing additional customs duty (ACD) rates and regulatory duties across thousands of PCT codes. Digitization pushing through centralized assessment units, cargo tracking systems, and customs modernization aligns with global best practices, yet its effectiveness hinges on implementation. The Sales Tax Act amendments propose taxing e-commerce through e-Bilty and cargo tracking definitions and shifting collection responsibility to banks and couriers. Expansion of the Third Schedule to include imported coffee, cereal bars, and chocolates underlines the government's attempt to formalize retail tax collection. Withdrawal of exemptions on solar panels and industrial units in the erstwhile FATA/PATA marks a move toward harmonized taxation but may generate backlash from impacted sectors. The income tax measures include a new digital transaction proceeds levy, increase in tax on dividends to 25 percent, and enhancement of tax on debt income from 15 percent to 20 percent. Tax burden on non-filers and pensioners earning above Rs 10 million has also increased. Relief measures offer marginal reduction in salaried class tax rates and extend exemptions to the erstwhile FATA/PATA. The procedural tightening on cash transactions and property valuations aims to expand the formal economy. The fiscal framework for 2025-26 reveals a strategy focused on aggressive revenue mobilization, enhanced digitization, and expenditure rationalization. The projected revenue receipts of Rs 19.28 trillion against an expenditure of Rs 23.84 trillion still leave a fiscal deficit, to be bridged by Rs 5.78 trillion in external receipts and Rs 2.66 trillion in net domestic borrowing. The macroeconomic implications of such debt-driven budgeting include inflationary pressures, exchange rate vulnerabilities, and heightened interest obligations. The common citizen faces a dual burden. Increase in petroleum levy, withholding taxes, and indirect taxes will translate into higher prices of essentials. The limited allocation for health, education, and social welfare undermines human development prospects. The disparity between current and development spending, with the former constituting over 92% of total expenditure, reveals a short-term orientation at the cost of long-term growth. The government must revisit its budgetary priorities. The tax policy should shift from indirect to direct taxation to promote equity. The expenditure side must see rationalization of defence and administrative costs, while enhancing allocations to education, health, and job creation. The privatization target of Rs. 86.5 billion must be accompanied by transparency and accountability. The success of digital enforcement, customs reform, and tax policy overhaul will depend on institutional capacity, governance, and political will. The federal budget 2025-26 represents both a fiscal necessity and a political choice. The numbers reflect economic urgency, but the distribution reflects entrenched priorities. The path forward demands more than arithmetic; it requires structural reform, inclusive planning, and a vision beyond fiscal survival. Copyright Business Recorder, 2025
Express Tribune
5 hours ago
- Express Tribune
Pakistan extends condolences to India
Top Pakistani leader on Thursday sent condolences to India over plane trajedy. President Asif Ali Zardari expressed sorrow over the tragic loss of life in the plane crash that occurred in Ahmedabad, India on Thursday. "Our heartfelt sympathies and condolences are with the families of the victims who have lost their loved ones in the air crash," the President said. Prime Minister Shehbaz Sharif expressed profound grief over the tragic crash of an Air India flight near Ahmedabad, which claimed the lives of more than 200 people, including passengers and crew members. The premier conveyed his condolences through a post on X, stating: "Saddened by the tragic crash of Air India flight near Ahmedabad today. We extend our condolences to the families of the victims grieving this immense loss. Our thoughts and prayers are with all those affected by this heartbreaking tragedy." Defence Minister Khawaja Asif also expressed sorrow on the social media platform, writing: "We are deeply saddened by the tragic crash of Air India Flight AI171 near Ahmedabad today. Our heartfelt condolences go out to the families and loved ones of all aboard. Our thoughts and prayers are with all those affected." PML-N supremo Nawaz Sharif offered his sympathies, remarking: "My heartfelt condolences to the families of the precious lives lost in the tragic Air India plane crash in Ahmedabad. This devastating loss transcends borders and reminds us of our shared humanity. My deepest sympathies to Prime Minister Modi and the people of India." Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari also posted a message of condolence on X: "Saddened to hear a tragic incident occurred earlier today. Where an Air India flight with approximately 240 passengers crashed shortly after takeoff near Ahmedabad, India. I express my profound condolences to the people of India."
