Islamabad: Federal Cabinet approving the federal budget 2011-12 has
decided to increase pay and allowances of the government servants by 15
percent whereas the pay of defence paid employees would be increased by
17 percent.
The federal cabinet met on Friday under the
chairmanship of Prime Minister Yousaf Raza Gillani at Parliament House
. The Federal Minister for Finance Dr Abdul Hafeez Shiekh took the
cabinet into confidence by giving briefing about the layout of the next
budget. The Cabinet took review of the loss occurred to the economy due
to war against terrorism and last year devastating flood.
Prime
Minister Yousaf Raza Gillani said while speaking to the cabinet that
budget will be public friendly. He said that the economy was in
constant pressure due to law and order situation of the country .
He
said that the top priority of the government is to take the country out
of energy crises . He said that Pakistan had to face the loss of Rs 800
billion due to budget whereas the load shedding hit the economic growth
badly.
He informed the cabinet members that the foreign
reserves of the country has reached to highest level of $ 17 billion,
exports of the country has touched the figure of $ 24 billion. It is
expected that remittances might reach to $ 12 billion.
He said
that the production of rice has increase to 30 percent whereas the
cotton yield has increased by 10 percent. The country has bumper
production of wheat. He said that the target for next financial year
would be to bring reforms in the energy sector and good governance and
to enhance tax to GDP ratio. The cabinet approved the budget after long
consultation. Online
