Government proposes increase in salaries in upcoming budget

The federal government has suggested a 6.5 percent increase in government employee salaries in the this year budget, while pensions are expected to rise by 7.5 to 10%, according to sources.

The economic team will brief the Prime Minister on employee salary increases during a high-level meeting led by the PM. According to the sources, the possibility of increasing pay by 10% is limited.

The Prime Minister will undertake final talks with the Cabinet on the ideas. The federal cabinet meeting is scheduled for 4 p.m. PST at Parliament House.

The federal cabinet will provide final approval for the pay increase.

Earlier, the federal cabinet approved the budget proposals for the fiscal year 2025-26 on Tuesday.

During a recent meeting led by Prime Minister Shehbaz Sharif, the economic team reached a consensus on a 6% salary hike for government employees.

This proposed increase, which emerged from initial discussions considering a 6% to 10% raise, now heads to the cabinet for its ultimate approval. It’s also anticipated that the government might consult with the Pakistan Peoples Party (PPP) regarding these budget proposals.

The National Assembly is set to convene today at 5 PM under the chairmanship of Speaker Sardar Ayaz Sadiq, where Finance Minister Muhammad Aurangzeb will present the federal budget of Rs 17,600 billion for the fiscal year 2025–26.