ISLAMABAD – The federal government has proposed a 7% increase in salaries for public sector employees under the FY2026‑27 budget, according to official budget documents. The proposal also includes a 7% raise in pensions for retired government employees.
The measures aim to provide relief amid rising inflation and help maintain the purchasing power of government staff. Finance Minister Muhammad Aurangzeb presented the budget, emphasizing the government’s commitment to economic stability, revenue generation, and supporting public welfare.
The budget focuses on key sectors including agriculture, IT development, exports, and job creation. It also aims to ensure fiscal discipline by reducing non-development expenditures while balancing social and economic priorities.
Economic analysts suggest the salary and pension adjustments will offer partial relief for millions of employees and retirees facing the impact of ongoing price increases.
