
Pakistan's armed forces are looking foran increase of 20 per cent in salaries of all cadres, after merger of four adhoc allowances into 2017 basic pay, in the upcoming budget.
The memorandum, submitted to the Finance Division by the Defense Ministry, says that the Joint Staff Headquarters, in consultation with services headquarters, claims security personnel are feeling a salary crunch due to devaluation of the rupee and inflation in consumer goods and utility prices.
It stated the increase in salaries during fiscal 2020-21 is needed because of various factors that have ''affected the fiscal space and livelihood of armed forces personnel,'' claiming thatit would cost Rs. 63.67 billion to cover all three services—the Air Force, the Army, and the Navy.
It noted that in the current financial year, 2019-20, the salary of officers up to the rank of brigadier (BPS 17-20) had increased by 5 percent.
''10 percent ad hoc relief was awarded to JCOs/soldiers''of basic pay scale 1-16,it added.
Last year, Pakistan’s military “voluntarily agreed” to cut expenses due to the “critical financial situation” facing the country, and skipped a routine increase in the defence budget. This did not include pensions for retired soldiers, which is covered by the federal government to the tune of Rs 260 billion.
In June last year, the government announced a defence budget of Rs 1.15 trillion ($7.6 billion) for fiscal 2019-20, an increase of 1.3per centover the revised military expenditure for 2018-19. The defence budget amounted to almost 16per centof total government expenditure for the year and about 3 per centof GDP.
The official communication between ministry of defence and finance division revealed that high officials of joint staff headquarters and services hq discussed revision of salaries of armed forces personnel, before sending the request.
The meeting was informed that the government employees including armed forced personnel are being affected due to ever increasing inflation owing to devaluation of rupee, impact on consumer price index (CPI) and increase in utility bills etc.
The ministry of defence said only five percent increase was granted to officers up to the ranked brigadier (paying scale 17-20) and 10 percent adhoc relief was awarded to junior commissioned officers (jcos) and soldiers (paying scale 1-16).
However, no increase was given to general officers (paying scale 21-22) in the budget of ongoing fiscal year 2019-20.
Ministry believes that the adhoc relief granted in salaries of officers has also been marginalized when income tax slabs were enhanced. this resulted into payment of additional income tax from the amount of current salaries, consequently the salaries of armed forces personnel have already been decreased.
After thorough consultations, joint staff headquarters forwarded the case to ministry of defence to put it before the federal ministry of finance for increase in salaries of armed forces personnel duly approved by the Joint Chiefs of Staff Committee (JCSC).
Ministry of Defense requested the finance division to revise the salaries of officers and personnel merging of adhoc relief allowances (for years 2016, 2017, 2018 and 2019) in basic pay 2017.