HRCP slams Pakistan's 2025-26 budget for freezing minimum wage and short-changing social sectors amid soaring inflation

Islamabad [Pakistan], June 19 : The Human Rights Commission of Pakistan (HRCP) has expressed significant concern regarding the 2025-26 federal budget's impact on the economic and social rights of the nation's most vulnerable populations. HRCP highlighted that the budget provides minimal support for low-income groups who are already coping with the ongoing inflation crisis that began in 2022 and extended through 2024.

While the government has made a slight reduction in income tax rates for salaried workers, this relief is insufficient to replenish the diminished purchasing power of working-class families. More concerning is the choice not to increase the federal minimum wage, which remains fixed at PKR 37,000 per month, a sum that does not cover the basic living expenses for a household of six.

Even in provinces such as Punjab and Khyber Pakhtunkhwa, where the minimum wage has been raised to PKR 40,000, this adjustment fails to make up for the losses in real income due to inflation. Furthermore, compliance remains critically low, with reports indicating that 80 per cent of industries in Sindh are not adhering to minimum wage regulations, as noted in the HRCP post.

Funding for vital social sectorshealthcare (0.96 per cent of GDP), education (1.06 per cent), and social protection (1.1 per cent)is significantly below international standards and regional comparisons. In comparison, countries like India, Sri Lanka, and Bangladesh allocate a much higher percentage of their GDP towards these crucial services, as highlighted by the HRCP post.

During a press briefing held by HRCP earlier today, economist Fahd Ali emphasized that with 45 percent of Pakistan's population living below the poverty line and 88 percent earning under PKR 75,000 a month the amount HRCP recommends as a living wage this budget reflects a concerning lack of commitment to social justice and human dignity, according to the HRCP post.

https://x.com/HRCP87/status/1935340023093588299

HRCP secretary-general Harris Khalique expressed his profound disappointment regarding the finance minister's choice not to increase the minimum wage, despite announcing a 'significant and disproportionate raise' in parliamentarians' salaries, as noted in the post.

HRCP called on both federal and provincial governments to reassess their budgetary priorities and ensure that 'economic recovery strategies focus on the rights and needs of Pakistan's most marginalised groups.' Without sufficient investment in public health, education, and a robust social safety net, the promise of equal citizenship remains unfulfilled for millions. The right to live with dignity cannot be compromised for the sake of fiscal restraint; it must be a central focus.

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