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Charter of the economy : agenda for economic reforms in Pakistan
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Charter of the Economy employee is derived at 38,000 Rs per month. It has been growing annually in real terms by 3 to 4 percent. Constraints to Growth The budgetary position of the Federal and Provincial Governments since 2018-19 has substantially worsened when the consolidated budget deficit approached the peak level of 9 percent of the GDP. Consequently, there were no salary awards in the budget of 2018­19 and 2019-20. However, given the cumulative inflation of 26 percent from July 2018 to January 2021, Federal employees recently launched an agitation for increase in salaries. The Federal Government was compelled to announce an additional ad-hoc allowance of 25 percent. The Federal and Provincial Budgets of 2021-22 included increase in salaries and pensions, generally of 10 percent. This will imply higher growth of the General Government Services sector in 2021-22. 24.6. Private Services The last services sector is private services. Characteristics of Sector The private services sector includes the services listed in Table 24.9. The largest share is of business-related services, including IT services. This is followed by private sector involvement in provision of health and education services. Smaller services include recreation and sports activities. Table 24.9: Share of Different Private Services Business Related Activities Private Education Private Health NGOs Recreation, Culture and Sport Other Services Domestic Staff TOTAL Source: PBS % of Sectoral Value Added 63.3 4.7 9.0 2.8 7.6 11.4 1.2 100.0 240