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Federal govt notifies grant of compensatory allowance
Federal govt notifies grant of compensatory allowance

Business Recorder

time19-07-2025

  • Business
  • Business Recorder

Federal govt notifies grant of compensatory allowance

ISLAMABAD: The government on Friday notified grant of compensatory allowance for federal government employees. Finance Division issued an office memorandum which stated that federal government has granted Disparity Reduction Allowance (DRA-2025) at the rate of 30 percent of the running basic pay as on 30-06-2022 to those offices which are already in receipt of that allowance. DRA is accounted for the calculations of compensatory allowance to federal government employees who are serving on deputation basis as per terms and conditions prescribed in Finance Division's OMNoF.3(14)R-3/2009-477, dated 29-11-2023, i.e. the amount of DRA will be reduced from the amount of Compensatory Allowance. It is requested that offices which are in receipt of DRA and they have officers who are drawing Compensatory Allowance on 1st July, 2025, the amount of Compensatory Allowance of those officers may be reduced by the amount of DRA-2025 at the rate of 30 per cent w.e.f. 1st July, 2025. Ministries/Divisions are requested to circulate these instructions to departments/autonomous/semi-autonomous/corporate bodies etc under their administrative control, for compliance. The copy of this OM is being endorsed to Controller General of Accounts and AGPR for implementation of this decision,' the memorandum noted. Copyright Business Recorder, 2025

Bureaucracy: govt notifies increase in salaries
Bureaucracy: govt notifies increase in salaries

Express Tribune

time05-07-2025

  • Business
  • Express Tribune

Bureaucracy: govt notifies increase in salaries

The government on Friday issued notifications for a 10 per cent increase in the salaries of federal government employees, as well as granting Disparity Reduction Allowance (DRA) worth 30pc of basic pay. According to one of the notifications issued by the finance ministry, dated July 4, basic pay to armed forces personnel, civil armed forces, and civil employees of the federal government are subject to the pay raise. A separate notification, also dated July 4, read that federal government employees from Grades 1-22 could draw on DRA at 30pc of basic pay.

Govt employees protest for salary hikes
Govt employees protest for salary hikes

Express Tribune

time30-06-2025

  • Politics
  • Express Tribune

Govt employees protest for salary hikes

A protest by the Sindh Employees Grand Alliance turned violent as negotiations over salary increases failed. A large number of employees gathered outside the Karachi Press Club to stage a protest, demanding payment of pensioners' dues, increase in salaries and pensions by 70 per cent, and increase in the Disparity Reduction Allowance (DRA), and House Rent Allowance by 50 per cent. A government delegation, including the provincial energy minister and city commissioner, tried negotiating with the protesters, however, talks failed, prompting the protesters to march towards the CM House. Police tried to block them by placing barricades on the roads around the press club, however, protesters crossed the obstacles and entered the Red Zone, reaching Polo Ground. They were pushed back towards the press club, with the chaos continuing at Fawara Chowk near Saddar. Police resorted to tear gas shelling, resulting in a clash with the protesters, which turned Fawara Chowk and the surrounding areas into a battleground, causing severe traffic congestion, and resulting in some people, including a female cop, falling ill due to tear gas exposure. Over 20 protesters were also arrested.

Govt employees threaten strike over budget
Govt employees threaten strike over budget

Express Tribune

time19-06-2025

  • Politics
  • Express Tribune

Govt employees threaten strike over budget

Like other parts of the province, government employees in Abbottabad Thursday also held a protest rally and a press conference, warning the government of an indefinite sit-in in Peshawar if their three-point demand agenda is not fulfilled. The All Government Employees Grand Alliance (AGEGA) demanded that the provincial budget include Disparity Reduction Allowance (DRA), pension reforms and salary increases equal to those granted by the federal government. AGEGA President Zulfiqar Abbasi and others said that government employees are stakeholders of the state.

PUASA holds meeting to address critical funding & policy challenges
PUASA holds meeting to address critical funding & policy challenges

Business Recorder

time18-06-2025

  • Business
  • Business Recorder

PUASA holds meeting to address critical funding & policy challenges

LAHORE: The Punjab University Academic Staff Association (PUASA) held an emergency meeting of its Executive Council on Tuesday at the University Club Committee Room to address critical funding and policy challenges facing higher education in Pakistan. Chaired by PUASA President Prof Dr Amjad Abbas Khan Magsi, the council expressed grave concerns over the inadequate financial support for public universities and the potential withdrawal of tax benefits for educators. The meeting unanimously passed a resolution urging the Punjab government to immediately revise its allocation of recurring grants for public sector universities, citing severe under funding that threatens academic and research activities. The council highlighted that despite soaring inflation and expanding institutional needs, the federal government has frozen the higher education recurring grant at Rs 65 billion since 2018. According to IMF data, the Wholesale Price Index (WPI) has surged by 98 percent between the years 2017–18 and 2024–25, meaning the real value of the grant has effectively halved. Adjusted for inflation, the sector should have received at least Rs 130 billion this year to maintain its operational capacity. A stark disparity was also noted in provincial allocations. While Sindh has earmarked Rs 42 billion in recurring grants for its 32 public universities, Punjab has allocated only Rs 18 billion for its 51 institutions. This gap becomes even more pronounced when comparing flagship universities: Punjab University, with over 54,000 students, has been granted a mere Rs 780 million, whereas the University of Karachi, with around 45,000 students, received Rs 3.5 billion. Such inequities, PUASA argued, hinder Punjab's ability to sustain quality education and research. Dr Magsi emphasized that recurring grants are vital for covering essential operational and research expenses, separate from development funding. The current allocations, he warned, jeopardize the functioning of universities and their global competitiveness. Punjab University, ranked among the top 5.2 percent of universities worldwide by the Centre for World University Rankings (CWUR), risks losing its standing without sustained investment in faculty, infrastructure, and student support systems. The association also condemned the federal government's proposal to revoke the 25 percent income tax exemption for teachers and researchers, cautioning that this would stifle innovation and knowledge production—key drivers of national progress. Furthermore, PUASA criticized the Punjab government for failing to provide the Disparity Reduction Allowance (DRA) to university and government employees, mirroring federal neglect and exacerbating financial strain on educators amid rising living costs. 'University teachers are among the nation's most educated and skilled assets,' Dr Magsi stated. 'Their economic marginalization not only weakens the academic environment but also erodes Pakistan's intellectual and cultural growth.' PUASA called on both federal and provincial authorities to urgently revise higher education budgets, retain tax incentives for educators, implement the DRA in Punjab, and adopt a forward-looking approach to align with global advancements, particularly in artificial intelligence and technology-driven education. The association warned that without immediate corrective measures, Pakistan's higher education sector faces irreversible decline, undermining the country's future development. Copyright Business Recorder, 2025

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