ISLAMABAD – Federal cabinet on Tuesday approved budget for fiscal year 2025-26 that includes 10percent increase in salaries for government employees, alongside a 7pc rise in pensions.
The decision marks changes from earlier proposals and was finalized following high-level discussions led by Prime Minister Shehbaz Sharif.
During a recent federal cabinet session where the budget was officially approved, Prime Minister Sharif emphasized his administration’s commitment to economic stability and fiscal discipline. He highlighted positive economic indicators, such as growth in exports—particularly in the IT sector—and increased remittances, as signs of a resilient economy.
Salary Increase for Govt Employees
Prime Minister also acknowledged the challenges faced by the salaried class, noting the tax pressures impacting government employees. The 10% salary hike aims to provide relief and support to civil servants amid these economic pressures.
In addition to the salary increases, the government approved a 7% rise in pensions, benefiting retired personnel. Prime Minister Sharif expressed satisfaction over the budget’s focus on public welfare and praised the finance ministry for their efforts in its preparation.
PM Sharif reaffirmed Pakistan’s stance in regional conflicts, asserting that the country had prevailed over India in conventional warfare and emphasizing the importance of unity for economic progress. He also underscored Pakistan’s stance on water resource sovereignty and international support for the Kashmir and Palestine causes.
Budget 2025-26 emphasis on increasing salaries reflects the government’s focus on supporting its workforce while maintaining economic stability in an increasingly complex regional and global environment.
