logo
Austerity for minimum wagers

Austerity for minimum wagers

Business Recorder20 hours ago

Nine years. That's how long the nation's hardworking, self-sacrificing, people-loving parliamentarians have bravely endured the cruel injustice of frozen salaries and allowances. Imagine the horror: no special allowance top-ups, no cost-of-living adjustments for their relentlessly rising grocery bills, no relief in sight while they burned the midnight oil passing important legislation. Truly, our elected elite were left out in the fiscal cold.
Thankfully, salvation is here.
In a move sure to warm their hearts—and their wallets—the government has proposed to increase the salaries and allowances of cabinet members and parliamentarians. The Finance Minister, with a straight face and perhaps a tear in his eye, explained that even lawmakers face 'hardships.' And it's only fair they get a raise, seeing how their wages haven't been revised in nine whole years.
Except, that's not exactly true.
The combined employment-related expenditure of the National Assembly and Senate has gone from Rs3 billion in FY17 to a proposed Rs15 billion in FY26. That's a 5x jump. Even more astonishing, the number has nearly tripled in the past four years alone. While some of this includes the pay of officers and staff, the bulk goes to the honourable members themselves. Exponential, you say? No wonder their 'hardships' needed such generous budgetary intervention.
Now contrast this with the wages of actual workers—say, the kind Pakistan Bureau of Statistics tracks weekly for the construction sector. Those have merely doubled over the same nine years. And the federal minimum wage? Stuck at Rs37,000, with no increase proposed in the new budget. Because apparently, raising it might upset our fragile exporters and make our bedsheets less competitive.
But let's not get distracted by technicalities like inequality.
It's important to remember that the federal minimum wage, though non-binding, often acts as a cue for provinces to set their own. So when it's left unchanged, it sends a clear message: tough luck, workers. And let's not even get into enforcement. Provincial wage data by industry shows widespread violations. Most manufacturing sectors are happy to quote the minimum wage at job interviews—before paying well below it in practice.
Meanwhile, as the Finance Minister tiptoes around industry lobbies and export competitiveness when asked about worker pay, he has no such reservations when it comes to ministerial kitchen budgets. After all, parliamentary pantries don't stock themselves.
One wonders—if minimum wage hikes hurt competitiveness, do parliamentary allowance hikes make Pakistan more productive? If construction workers earned less, would parliamentarians legislate better?
Perhaps it's time we face a hard truth: austerity is not for everyone. In Pakistan, it's a privilege reserved for the powerless. The rest can rest easy—preferably on freshly redone parliamentary benches.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Gender gap crisis
Gender gap crisis

Express Tribune

timean hour ago

  • Express Tribune

Gender gap crisis

Listen to article Pakistan's rock-bottom ranking in the World Economic Forum's Global Gender Gap Report 2025 is a damning indictment of the government's claims regarding women's empowerment. Pakistan fared even lower than Iran, which has several social restrictions on women, and war-torn Sudan, where a large share of the women are internally displaced and unable to access proper healthcare or work, while enduring high rates of sexual violence. Among the most telling gaps in the report is that women still account for only 22.8% of the labour force, almost all of which is in agriculture or 'women's work', such as maids and other domestic work for those with less education, or teaching, and occasionally medicine, for educated women. Even here, it is worth noting that women who study medicine are often referred to as "lady doctors", rather than just doctors, in a manner that often comes across as pejorative. Women are also chronically underpaid, with many employers intentionally underpaying white-collar workers because they probably are not their families' breadwinners. As for political participation, the only reason we have any significant political representation for women is because of reserved seats. Currently, only 12 women members of the National Assembly are directly elected, and almost all of them are from political families. While many women in politics have proven themselves to be competent, the fact that they are only allowed into the field if a male relative opens the door is emblematic of problems across society and in all walks of life. Meanwhile, even data for education — which on the face suggests slight improvements in women's enrolment — is skewed by the fact that male enrolment declined, artificially inflating the improvement for girls. Experts believe that improving women's workforce participation alone could increase GDP by 60%. Female participation in politics and society could also improve professional, educational and health outcomes for women. Bridging the gender gap is, thus, not just a women's issue, but of everyone.

Pakistan issues travel advisory for Iran, Iraq amid regional tensions
Pakistan issues travel advisory for Iran, Iraq amid regional tensions

Business Recorder

time6 hours ago

  • Business Recorder

Pakistan issues travel advisory for Iran, Iraq amid regional tensions

Pakistan on Friday advised its citizens to avoid non-essential travel to Iran and Iraq amid escalating regional tensions following reported Israeli airstrikes on Iranian territory. 'In view of the evolving security situation in the region, pilgrims from Pakistan are advised to reconsider their travel plans to Iran and Iraq,' the Ministry of Foreign Affairs said in a statement. Senate, NA adopt resolutions condemning Israel's attack on Iran Foreign Office spokesperson Shafqat Ali Khan said Pakistan is closely monitoring the situation through its embassies in Tehran and Baghdad, and remains in contact with local authorities to ensure the safety of Pakistani nationals. Prime Minister Shehbaz Sharif has instructed relevant government departments to extend full support to Pakistani pilgrims currently in Iran. He called for coordinated efforts to ensure their protection and safe return. In response to the developments, the Foreign Office has established a crisis management cell to provide emergency assistance to citizens abroad. Pakistani missions in Iran and Iraq have been placed on high alert and directed to keep the government updated on any security concerns or urgent needs of nationals. The advisory follows Israeli airstrikes early Friday that reportedly targeted military and nuclear facilities in Iran, resulting in the deaths of several senior Iranian military commanders and scientists. The incident has heightened fears of a wider regional conflict.

Budget FY2025-26: Sindh announces to expand sales tax to all major services
Budget FY2025-26: Sindh announces to expand sales tax to all major services

Business Recorder

time6 hours ago

  • Business Recorder

Budget FY2025-26: Sindh announces to expand sales tax to all major services

The Sindh government has announced to tax 'all services' excluding essential and social services, aiming to 'expand the sales tax base and also reduce possible tariff disputes and litigations', according to budget documents released on Friday. The provincial government announced its budget for the financial year 2025-26 on Friday, with Chief Minister Murad Ali Shah unveiling proposals for Rs3.45 trillion total outlay, with a deficit of Rs38.46 billion. According to Sindh Revenue Board (SRB) website, the general rate of Sindh Sales Tax on services is 15% with the exception of telecommunication services, which are liable to be taxed at 19.5%. Tax is levied at reduced or concessionary rates in certain cases. Sindh budget documents suggest the province is targeting to collect Rs388 billion in provincial sales tax on services and taxes from agriculture in FY26. The province is projected to collect Rs300 billion in Sindh Sales Tax on services in FY25, 35% higher compared to FY24. 'The Sindh Sales tax on services has been the mainstay of provincial revenues,' CM Murad Ali Shah said during his budget speech at the provincial assembly. 'Under the existing law, all major services are taxable and a smaller segment of services is not taxable. This situation creates disputes regarding taxability of services, which leads to unnecessary litigation and also problems for the taxpayers. 'Therefore, the decision is being made to transform to negative list regime by taxing all services but at the same time taking care that essential and social services are kept exempt that a significant part of new services is subjected to reduced rate,' he said. On the other hand, the Sindh government has proposed to completely remove five levies including professional tax, cotton fee, entertainment duty, local cess and drainage cess, according to budget documents. The tax relief measures would 'reduce the financial burden on both individuals and businesses,' Murad Ali Shah speech text read. Sindh govt presents Rs1.02trn Annual Development Programme for FY2025-26 'The professional tax affects salaried people and small businesses. The cotton fee adds cost to the agriculture and textile sectors.' Besides, the yearly tax under the Motor Vehicle Ordinance for commercial vehicle is being reduced to Rs1,000, 'giving relief to transport and goods carriers'. 'There is also a proposal to end the requirement for third party insurance for motorcycle. 'The mutation fee and sales certificate fees are being reduced to Rs500 from Rs1,000,' the chief minister said. According to Sindh Revenue Board (SRB) website, the general rate of Sindh sales tax on services is 15% with the exception of telecommunication services, which are liable to be taxed at 19.5%. Tax is levied at reduced or concessionary rates in certain cases.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store