Civil servant salaries are expected to increase by 10 to 12 percent in the future federal budget.

According to media reports, if the Finance Ministry's proposals are accepted, the salary increase will come into effect by July 2024; however, it is the government that will make the final decision.

It is noteworthy that on May 1, Prime Minister Shehbaz Sharif hosted a luncheon at his home in Lahore in honor of the workers. Prime Minister Shehbaz Sharif said he would achieve a considerable reduction in unnecessary spending. Despite the difficulties, he would try to increase salaries in the budget.

However, the federal government has decided to achieve the fiscal targets by the middle of this month, before the arrival of the IMF mission. It is for this reason that the economic team was also tasked with carrying out the budgetary work of the Prime Minister's Office.

According to sources, work on the budget strategy has already started and achieving the six main objectives is essential. Sources also report that a mechanism to achieve these goals has been agreed with IMF representatives.

First of all, any external debt must be repaid on time. Money collected from bonds, banks, friendly countries and institutions will finance spending cuts to reduce the deficit and prohibit additional borrowing.