ISLAMABAD: The federal government has approved a more than 140% increase in the salaries of federal ministers and ministers of state, raising their monthly pay from Rs218,000 to Rs519,000.
The increase, effective from January 1, 2025, brings their salaries in line with those of Members of Parliament.
President Asif Ali Zardari signed an ordinance amending the Salary, Allowances, and Privileges Act of 1975 to enact this change.
This move comes despite a March 2024 decision by Prime Minister Shehbaz Sharif and his cabinet to voluntarily forgo their salaries and perks in the name of austerity. However, on March 22, 2025, the federal cabinet approved the salary increase summary through circulation.
Media reports showed the stark contrast between this pay raise and the shutdown of 1,700 loss-making utility store branches across the country. The contractual and daily wage employees at these stores are being laid off.
“The average salary of ministers, ministers of state, and advisers will now reach Rs500,000, compared to their previous range of Rs175,000 to Rs200,000,” aid a report, calling the development a clear example of financial polarization.
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