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A welcome relief, but…

Pakistan Observer · Jun 15, 2026, 12:53 AM · Also reported by 1 other source

Why this matters: local context for readers following news across Pakistan and the region.

Public sector employees would have heaved a sigh of relief after Federal Secretary for Finance Imdadullah Bosal clarified important aspects of government’s salary package at the post-budget news conference. The clarification removed much of the uncertainty that had emerged following federal budget announcement and provided a clearer picture of the benefits being extended to government employees in the next fiscal year. According to finance secretary, federal employees will receive a 7 per cent adhoc relief on their basic pay along with a 15 per cent Disparity Reduction Allowance (DRA) aimed at addressing long-standing pay imbalances among various categories of employees. More importantly, he stated that adhoc relief allowances granted in 2022 and 2025 would be merged into the basic pay. While talking separately to APP, the finance secretary also announced a 50 per cent increase in conveyance allowance. This is indeed a welcome measure. The conveyance allowance had remained unchanged for nearly over a decade despite persistent inflation and the sharp increase in petroleum prices. In our view, the package offers meaningful relief to salaried class, which has been struggling under rising living costs. It is encouraging that government has not only provided salary-related benefits but has also reduced tax burden on salaried individuals to some extent. Together, these measures should help ease financial pressures faced by employees. However, one cannot help wondering why these important details were missing from finance minister’s budget speech. Such significant measures should have been clearly communicated at the time of budget presentation. Anyway, while government deserves credit for extending relief to its employees, it must also ensure that benefits reach all employees without exception. There are employees in certain attached departments who have yet to receive the increase granted during outgoing financial year. Despite the passage of an entire year, they continu

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