ISLAMABAD : Minister for Finance, Syed Naveed Qamar on Wednesday proposed 20 percent increase in basic pay of all the federal government employees as well as the armed forces in the budget 2008-09.

In his budget speech in the Parliament House, he said that 20 percent raise has also been proposed in the pension of all civilian and military pensioners.

The Minister pointed out that minimum pension has been enhanced from Rs.300 to Rs.2,000.

There is a proposal of 100 percent increase in the conveyance allowance of government servants of Grade-1 to 19, he added.

He said the medical allowance has been enhanced from Rs.425 to Rs.500 for government servants of Grade-1 to 16.

Naveed Qamar said the minimum salary has been increased from Rs.4,600 to Rs.6,000.

In a bid to minimize difference in the profits of saving schemes and market, two percent profit has been proposed on all saving schemes and profit rate would be reviewed after every three months instead of every six months a year, he added.

The government servants who become disabled as a result of illness, accident, earthquake or terrorist attack will get full pension and in this regard, the condition of 10 years has been waived.

The Minister said there is a proposal to regularize contract employees of Grade-1 to 15.

He said a Pay and Pension Commission will be constituted to review the salaries and pension of government servants.

The vacancies of the judges of Supreme Court of Pakistan are being enhanced from existing 16 to 29, he added. APP (Associated Press of Pakistan), 2008

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