Shafaqna Pakistan: The federal cabinet has approved salary and pension increases for government employees as part of the budget proposals for the 2026–27 fiscal year.
The decision was made during a special cabinet meeting chaired by Prime Minister Shehbaz Sharif in Islamabad, where members formally endorsed the draft budget for the upcoming financial year.
During the session, the cabinet reviewed a range of relief measures for public-sector employees and pensioners. Following detailed discussions, it approved a 7 percent increase in the salaries of federal government employees and a 7 percent raise in pensions.
The cabinet also approved the integration of the 15 percent ad hoc relief allowance introduced in 2022 and the 10 percent ad hoc relief allowance granted in 2025 into the basic pay structure.
Following the cabinet’s approval, Federal Minister for Finance Muhammad Aurangzeb is set to present the federal budget for fiscal year 2026-27 before the National Assembly.
Addressing the meeting, Prime Minister Shehbaz Sharif thanked coalition partners for their support in the preparation of the budget and also expressed gratitude to the International Monetary Fund (IMF) for its cooperation.
The cabinet meeting concluded with federal ministers and ministers of state expressing support for the prime minister’s economic agenda through desk-thumping.
Source: Dunya News
