Islamabad, June 3 (IANS) Leaders of the All Government Employees Grand Alliance (AGEGA) Punjab have said that the soaring inflation in Pakistan has reduced the purchasing power of government employees, making it difficult for them to manage household expenses from their limited incomes, according to local media reports on Wednesday.
In a joint statement, AGEGA leadership stated that provincial government employees, especially those in Punjab and other provinces, have not yet received the 30 per cent disparity allowance announced in the Federal Budget 2025-26, Pakistan’s daily The Express Tribune reported. They stated that Punjab government’s recent amendments to leave encashment rules have deprived employees of substantial leave encashment benefits which they receive after retirement.
The alliance alleged that retired and serving employees of Punjab are facing reductions in pension, gratuity and leave encashment benefits. They urged Pakistan’s Prime Minister Shehbaz Sharif to announce measures for government employees in the Federal Budget 2026-27.
They have called for extension of the 30 per cent disparity allowance announced in the Federal Budget 2025-26 to employees of all provinces, an additional 15 per cent increase, and the withdrawal of pension reforms, The Express Tribune reported.
In addition, they have demanded merger of all ad hoc relief allowances into the basic pay scale and a comprehensive revision of pay structures, a rise of at least 50 per cent in salaries and pensions as per the current inflation and a minimum fivefold hike in house rent, medical and conveyance allowances.
Earlier in May, the Human Rights Council (HRC) of Pakistan strongly condemned the recent increase in petroleum product prices in the country, calling it a “direct assault” on the public.
The remarks came after the Pakistani government again increased the petrol prices by Pakistani Rs14.92 per litre and those of high-speed diesel (HSD) by Pakistani Rupees (PKR) 15 per litre.
According to the Petroleum Division’s press release, the revised rates – PKR 414.78 per litre for petrol and PKR 414.58 for HSD – came into effect on Saturday.
“This increase is not merely a change in numbers but a direct assault on the daily lives of millions of poor, working-class, and middle-class families. For the people already crushed under the burdens of inflation, unemployment, and low income, this decision is intolerable. When fuel becomes expensive, it’s not just vehicles that come to a halt; the prices of flour, lentils, vegetables, milk, medicines, and other essentials also start touching the skies,” the HRC of Pakistan stated.
“This decision is proving to be particularly devastating for rickshaw drivers, daily wage labourers, transport workers, students, and the white-collar class. The poor man is now not only under economic pressure but also grappling with severe mental stress, helplessness, and fear of the future,” it added.
The rights body called on the Pakistani authorities to immediately reverse the increase in the petroleum product prices and provide urgent relief to the public by reducing the unnecessary privileges enjoyed by the elite class.
–IANS
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