Budget 2025-26: 10% Salary Increment approved for Govt Staff

In a key decision aimed at providing relief to government employees, the federal cabinet on Tuesday approved the budget for fiscal year 2025-26, including a 10% increase in salaries for civil servants and a 7% rise in pensions.

The move comes after high-level discussions led by Prime Minister Shehbaz Sharif, marking a shift from earlier proposals. During the cabinet session, PM Sharif underscored his government’s commitment to economic stability and fiscal discipline, citing positive indicators such as growth in exports (especially IT) and increased remittances as signs of a strengthening economy.

Key Budget Decisions

• “10% salary increase for government employees”
• “7% pension hike for retired personnel”
• Adjustments made after review of initial proposals

PM Sharif’s Remarks on Economic Challenges

Addressing the financial strain on the salaried class, the Prime Minister acknowledged “the tax pressures impacting government employees” and stated that the salary hike was designed to “provide relief and support to civil servants amid economic pressures.”

He also expressed satisfaction with the budget’s public welfare focus, commending the finance ministry for its efforts in finalizing the fiscal plan.

Regional and Economic Priorities

Beyond domestic economic measures, PM Sharif reaffirmed Pakistan’s stance on regional conflicts, stating that the country had “prevailed over India in conventional warfare” and stressing the need for national unity to drive economic progress. He also highlighted Pakistan’s position on water sovereignty and reiterated support for Kashmir and Palestine on the global stage.

Budget 2025-26: Balancing Relief and Stability

The salary and pension increases reflect the government’s effort to support its workforce while navigating complex economic challenges. The approved budget aims to alleviate financial pressures on employees and pensioners without compromising fiscal stability.

The announcement has been welcomed by government employees, who have long advocated for salary adjustments in line with inflation and rising living costs. Authorities have assured that the revised pay scales will be implemented starting July 2025.

For further updates on Budget 2025-26, beneficiaries are advised to follow official notifications from the Finance Division.

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