Proposal to increase salaries by 10–15%; PM to make final decision after consultations with coalition partners

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Islamabad, Pakistan – Web Desk: The federal government of Pakistan has proposed a 10 to 15 percent increase in salaries for government employees in the upcoming fiscal year 2026–27 budget, according to official sources.

Prime Minister Shehbaz Sharif chaired an informal meeting at the Prime Minister’s House to review key budget proposals, including the Public Sector Development Programme (PSDP), taxation measures, and potential increases in salaries and pensions.

During the meeting, the finance ministry briefed the prime minister on major budgetary priorities. Officials indicated that the proposed salary increase is being considered in line with inflation trends, ranging between 10 and 15 percent.

However, the prime minister directed officials to assess available fiscal space and determine how much relief can realistically be provided to public sector employees without putting pressure on the national budget.

Sources said that the final decision on salary adjustments will be taken after consultation with coalition partners as part of the broader budget approval process.

The proposed measures are part of ongoing discussions aimed at balancing fiscal discipline with public relief amid economic pressures.

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