ISLAMABAD – The federal government is expected to announce its first budget for fiscal year 2024-25 in June amid multiple economic challenges.

Every year, all employees of the federal and provincial governments eagerly await the release of the budget, as their pay is raised by the government taking inflation into account among other considerations.

The government is working to reduce inflation, with the goal of reaching the target range of 5–7% by September 2025.

From 23.1 percent in February to 20.7 percent in March, headline inflation decreased year over year. Core inflation dropped sharply from 18.1 percent in February to 15.7 percent during the same period. 

The Monetary Policy Committee of the State Bank of Pakistan believes that inflation would keep declining.

The budget used to be used by both the federal and provincial governments to announce staff salary increases.

Salary Increase Anticipated for Government Employees Beginning in July 2024.

The governments are anticipated to declare a ten percent raise in employee compensation in the upcoming budget year 2024–2025. The governments will, however, make the final decision after considering the ministry of finance's suggestions.

If granted, the increase will take effect in July 2024.