Govt employees, pensioners reject budget as 'cruel joke'

Express Tribune

10-06-2025

Sources told The Express Tribune that PM Sharif formed the committee after the planning ministry thrice rejected a proposal from the finance ministry to assume responsibility for provincial nature schemes. PHOTO: FILE
Various employee and pensioner associations, including the All Pakistan Clerks Association (APCA), All Government Employees Grand Alliance (AGEGA), Railway Workers Union, Punjab Teachers Union, Educators Association, and Railway Pensioners Association, have outright rejected the new federal budget, labelling it a "traditional charade of words." They warn that the budget will lead to a stormy increase in inflation, pushing 50% of families below the poverty line.
Leaders condemned the mere 10% increase in salaries as "insignificant and shameful," predicting a rise in suicides and starvation. They asserted that pension reforms have effectively "buried alive" pensioner families.
Shehzad Manzoor Kiyani, Central Vice President of APCA, and Divisional President Chaudhry Mubashir stated that the budget is a "severe joke" on government employees. They highlighted the stark contrast with the significant salary increases for Members of Assemblies and ministers, while employees are being "buried alive." The elimination of ministries, divisions, institutions, and 40,000 posts will devastate the lower-income segments.
Muhammad Shafiq Bhalwalia, Central Secretary General of the Education Pensioners Association, called the minimal salary increase for teachers, employees, and pensioners amidst soaring inflation "ridiculous." He pointed out that ministers, assembly members, senators, advisors, the Senate Chairman, and Speakers of Assemblies have seen a gradual 650% increase in their salaries before the budget. He argued that a comparison between the 2024-2025 budget records and the unchecked increase in privileges and salaries for the ruling class proves that this budget is pro-rulers but certainly not pro-employees or pensioners. He added that pension reforms are destroying the future of employees, pushing them into the abyss of poverty.
Mubarak Hussain, Central Secretary General of the Railway Workers Union, stated that the budget was designed to benefit the government's cronies, with the business and trading class reaping all the advantages from tax reductions. He accused the government of favouring its political and business fraternity, calling the 10% salary increase a "scrap allowance" and the 7% pension increase a "mockery," akin to giving poison to pensioners.
He claimed that the government extracts Rs600 billion in taxes from employees without providing any benefit, while those paying Rs8 billion in taxes enjoy benefits throughout the year. He demanded an abolition of salary tax for employees earning Rs600,000 to Rs1.2 million, and that the tax collection from those in grades 17 to 22 should be only 10%. He noted that no tax has been imposed on the salaries of Members of Parliament, Senators, and National Assembly members, suggesting a 25% tax should be levied on them.
Rana Liaquat and Basharat Iqbal Raja, leaders of the Punjab Teachers Union and Educators Association, asserted that the government has treated state institutions like a "widow" and employees as "widowers," leading to a complete loss of trust in the current administration.