ISLAMABAD: Finance Minister Ishaq Dar on Friday while unveiling the Federal Budget 2017-18 announced a 10% increase in the salaries of government employees.

Dar further announced 10% increase in the pension of retired employees, adding that ad-hoc allowance will also be given on basic salary of government employees.

The finance minister said the budget recommends an increase in allowances for Pakistan Navy while it also recommended to add fixed allowance of Rs8000 for FC personnel.

Dar said that first part of the allowance had already been disbursed in March, while the second part would be given on July 1, 2017 and the third part would be paid on July 1, 2018

The finance minister added that minimum wage for unskilled workers has been raised from Rs14,000 to Rs15,000.

He said that Rs125 billion would be spent for the aforementioned initiatives while last year additional Rs67 billion were spent on allowances and salaries.

According to budget documents received by Geo News, the government aims to achieve an investment to GDP ratio of 17 percent, and an inflation rate of less than six percent.

It is also hoping to keep the fiscal deficit at under 4.1% of GDP, according to the budget documents.

The minister said that Rs121 billion will be allocated for the Benazir Income Support Programme, which is three times its allocation in the 2013 budget.

The minister said an investment of Rs97 billion is being undertaken in the Pakistan Stock Exchange.