Pakistan Government Proposes 10–15% Salary Increase in Budget 2026-27
ISLAMABAD: The federal government has proposed a salary increase of 10 to 15 percent for government employees in the budget for the fiscal year 2026-27.
Prime Minister Shehbaz Sharif held consultations on the upcoming federal budget during an informal meeting at the Prime Minister’s House on Friday. The meeting was not officially covered by the media.
Discussions focused on key budget matters, including the Public Sector Development Programme (PSDP), taxation measures, and proposed increases in salaries and pensions.
The Federal Finance Minister briefed the prime minister on the major aspects of the budget. According to sources, a proposal is under consideration to raise the salaries of government employees by between 10 and 15 percent, in line with the inflation rate.
However, Prime Minister Shehbaz Sharif directed officials to assess available financial resources and determine the maximum possible relief that can be provided to employees.
Sources further stated that the final decision regarding salary increases for government employees will be made by the prime minister after consultations with coalition partners.
