Islamabad: The federal government is considering a proposal to increase salaries of public sector employees by 10 to 15 percent in the 2026-27 budget. The proposal was reviewed during an informal budget consultation meeting chaired by Prime Minister Shehbaz Sharif, where officials discussed the upcoming budget, PSDP allocations, tax measures, and possible increases in salaries and pensions. Finance officials briefed the prime minister on the country’s fiscal position and budget framework. Given the impact of inflation on household incomes, the government is exploring options to provide maximum relief while staying within available financial resources. Could the final budget include a larger relief package for government employees and pensioners?
