ISLAMABAD: The federal government is considering a proposal to increase salaries of government employees by 10% in the upcoming budget for fiscal year 2026–27, according to official sources.
The budget is expected to be presented on June 5, while the economic survey for the current fiscal year is likely to be released a day earlier on June 4, sources said.
Officials indicated that a 5% to 7.5% increase in pensions is also under consideration as part of broader relief measures for public sector employees.
Sources in the Ministry of Finance said efforts are underway to ensure the budget is passed before the start of Muharram. However, they added that the schedule could still be adjusted due to regional diplomatic developments, including ongoing discussions related to a possible US-Iran agreement.
The update came during a meeting of the National Assembly Standing Committee on Finance, chaired by Syed Naveed Qamar, where economic experts briefed lawmakers on the country’s fiscal outlook.
During the briefing, economist Ali Salman stated that Pakistan’s economy had shown signs of stabilization, noting that foreign exchange reserves had crossed $22 billion, while State Bank reserves stood at around $17 billion.
He added that the current account deficit had narrowed to $324 million, though inflation had again returned to double digits. He also highlighted that Federal Board of Revenue (FBR) tax collection had fallen short of its target by Rs611 billion.
Officials further noted that remittances during the first ten months of the current fiscal year had reached $33 billion.
Lawmakers questioned borrowing trends and fiscal pressures, while experts acknowledged some reduction in new government borrowing, attributing fiscal space improvements to lower interest rates and reduced debt servicing costs.
The budget proposals are still under discussion and may be revised before final approval.
