Government mulls salary and pension hike in budget proposal

Federal government considers salary and pension increase for employees budget

ISLAMABAD: (Web Desk) – The federal government is reportedly evaluating a proposal to raise salaries and pensions of public sector employees in the upcoming fiscal year 2026–27 budget.

According to media reports, government employees may receive around a 7% increase in salaries, while pensions could be raised by nearly 5%. However, the Ministry of Finance has not issued any final confirmation, and deliberations on the proposal are still underway.

Officials familiar with the discussions said that additional relief measures for salaried individuals are also under consideration. These steps are aimed at easing the financial pressure caused by rising living costs and ongoing inflation.

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Economic experts believe that if the proposal is approved, it would provide significant relief to thousands of government workers and pensioners across the country. However, they also noted that the final decision will depend on available fiscal space and the broader economic strategy of the government.

Pakistan has been facing sustained inflationary challenges, forcing policymakers to carefully balance public relief with fiscal discipline and economic stability.

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