Chief Adviser Muhammad Yunus has expressed hope that teachers and employees under the Monthly Pay Order (MPO) scheme will return to their classrooms with fresh motivation, following the government’s recent decision to raise their house rent allowance.
CA said today, “The interim government considers the demands of teachers and employees of private educational institutions under the MPO scheme to be reasonable,” according to a statement from his Press Wing.
Earlier in the day, the interim government announced a 7.5% increase in house rent allowance for MPO-listed teachers and employees, effective from 1 November this year. Another 7.5% hike will follow in July 2026.
CA noted that while the government acknowledges the just demands of the teaching community, the current state of the economy- burdened by years of corruption and mismanagement- limits the ability to provide the full 20% increase sought by teachers.
He explained, “Due to the fragile economic condition, a result of 15 years of massive corruption and looting, the economy, though gradually improving under the interim government, has not yet reached the capacity to afford a 20 percent house rent allowance increase.
“Therefore, the government had to take this decision based on realities.”
The decision came after several rounds of discussions held over the past few days between the CA and his key cabinet members. Among those present were Education Adviser Dr CR Abrar, Finance Adviser Dr Salehuddin Ahmed, and Planning Adviser Dr Wahiduddin Mahmud.
CA also extended his gratitude to Education Adviser and others involved in the negotiation process for their dedicated efforts in resolving the issue, adding that he looks forward to teachers’ cooperation in nurturing the country’s next generation.
