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The Federal Cabinet of Pakistan has given its approval for a 10% increase in the salaries of government employees and a 7% increase in pensions for retired public servants.
This decision was made during the presentation and approval of the federal budget for fiscal year 2025-26. Initially, a 6% raise was suggested, but Prime Minister Shehbaz Sharif reportedly pushed for the higher 10% increase, which was ultimately endorsed by the cabinet. This move comes amidst ongoing discussions about fiscal responsibility and the demand from various segments, including the Pakistan Peoples Party (PPP).
While the government aims to provide relief to the common man, the Finance Minister Muhammad Aurangzeb noted that the government was already offering the maximum possible relief within the budget’s constraints. The approved salary and pension hikes are part of the broader budget proposals that were presented to the National Assembly.
