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Pakistan's worsening inflationary crisis has intensified financial hardships for government employees, prompting renewed demands for substantial relief measures ahead of the Federal Budget 2026-27. Leaders of the All Government Employees Grand Alliance (AGEGA) Punjab have expressed serious concerns over the declining purchasing power of public-sector workers amid rising living costs, as reported by The Express Tribune.
According to The Express Tribune, in a joint statement, AGEGA Punjab Chairman Khalid Sanghera and other alliance representatives said soaring prices of essential commodities have made it increasingly difficult for employees to manage household expenses. They argued that salaries have failed to keep pace with inflation, leaving many families struggling to maintain basic living standards. The alliance also highlighted what it described as unequal treatment of provincial employees. AGEGA leaders pointed out that workers employed by provincial governments, particularly in Punjab and other provinces, have yet to benefit from the 30 per cent disparity allowance announced under the Federal Budget 2025-26. They called for the immediate extension of this allowance to all provincial government employees. Further criticism was directed at changes introduced by the Punjab government regarding retirement benefits. The alliance alleged that amendments made to leave encashment regulations in 2023 significantly reduced financial benefits available to employees upon retirement. AGEGA representatives also objected to pension reforms implemented on December 2, 2024, claiming that these measures have adversely affected both serving and retired workers. Employee representatives argued that reductions in pension, gratuity and leave encashment benefits have increased economic pressures on thousands of families, while also contributing to growing mental stress among workers. To address these concerns, AGEGA has urged the federal government to introduce comprehensive relief measures in the upcoming budget, as cited by The Express Tribune. Their demands include a 50 per cent increase in salaries and pensions, the restoration of employee benefits, the withdrawal of pension reforms, and an additional 15 per cent increase in the disparity allowance. The alliance has also called for the integration of ad hoc relief allowances into basic pay scales and substantial increases in house rent, medical and conveyance allowances, which they say have remained stagnant despite years of rising inflation, as reported by The Express Tribune. (ANI)
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