Special Relief Package Confirmed for Armed Forces in the Budget

ISLAMABAD: A special relief allowance for armed forces personnel was announced as part of the federal budget proposals for fiscal year 2025-26, Secretary of Finance Imdadullah Bosal told the National Assembly’s Standing Committee on Finance and Revenue on Thursday.

Officers will receive 50% of their basic salary under this special relief allowance for armed forces, while junior commissioned officers (JCOs) and soldiers are set to receive 20%, according to a news report. However, the finance ministry has not disclosed the financial implications or rationale behind offering a higher allowance to officers.

Bosal said the allowances were approved as part of the government’s broader relief package. Finance Minister Muhammad Aurangzeb committed to providing a detailed explanation later, after opposition members, notably Opposition Leader Omar Ayub, questioned the decision’s fiscal impact.

The allowance is among several major proposals in the FY26 budget, including a revised Public Sector Development Program (PSDP) allocation, which now stands at Rs967 billion, down from Rs1.1 trillion. So far, only Rs662 billion has been utilized, raising doubts about achieving the target before June 30 and sparking concerns over the impact on projected economic growth.