Islamabad – The federal budget for FY2026-27 includes a proposed 7% increase in salaries for public sector employees. This measure is aimed at providing relief amid ongoing inflation and supporting household income stability for millions of government workers. The adjustment also covers pensions for retired staff, ensuring uniformity in benefits. Analysts predict that this increase will improve spending power and boost domestic consumption, while the government seeks to balance fiscal responsibility with social welfare. Final approval will depend on parliamentary review and implementation plans.
