ISLAMABAD: The federal government has proposed a salary increase of 10 to 15 percent for government employees in the budget for the upcoming fiscal year 2026-27. Prime Minister Shehbaz Sharif will make the final decision on this important matter after consulting with coalition parties.
This proposal for a salary increase was discussed during an informal meeting held at the Prime Minister’s House, chaired by Prime Minister Shehbaz Sharif. The meeting focused on various aspects of the federal budget for the upcoming fiscal year, including important issues such as the Public Sector Development Program (PSDP), new taxes, salary increases for government employees, and pensions.
During the meeting, the Federal Finance Minister provided a detailed briefing to the Prime Minister on the key points of the budget. According to sources, the briefing included a preliminary proposal to raise salaries for government employees by 10 to 15 percent, taking into account the current inflation rate in the country.
Prime Minister Shehbaz Sharif has instructed the Finance Minister to further develop this proposal based on the country’s anticipated resources and revenue, to determine how much relief can be offered to government employees, given the current economic conditions. Once this work is completed, the Prime Minister will consult with the coalition parties before making a final announcement regarding the salary increase.
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