The federal government has proposed a 10 to 15 percent increase in salaries in the budget for the fiscal year 2026-27. Prime Minister Shehbaz Sharif held consultations on the upcoming budget, which were conducted during a meeting held on Friday at the Prime Minister’s House. The meeting was informal and was not covered by the media. During the meeting, discussions were held on key aspects of the new budget, particularly the PSDP, taxes, and issues related to salary and pension increases. The Federal Finance Minister briefed Prime Minister Shehbaz Sharif on the main features of the budget. According to sources, a proposal has been made to increase the salaries of government employees by 10 to 15 percent in line with inflation. However, the Prime Minister has directed that a working plan be prepared based on expected available resources to determine how much relief can be provided to employees. According to sources, the final decision regarding the salary increase for government employees will be made by Prime Minister Shehbaz Sharif after consultations with coalition partners.
Govt proposes 10-15% salary hike in budget 2026-27
Published on: June 7, 2026 4:08 AM