Pensions to Rise by 7% in Federal Budget 2025–26
The federal cabinet has approved a 10% salary increase for government employees and a 7% hike in pensions for retired public servants as part of the upcoming fiscal year 2025–26 budget.
Although the cabinet gave preliminary approval to the federal budget during its meeting on Tuesday, discussions continued over employee compensation and related matters.
The Pakistan Peoples Party (PPP), a major coalition partner in the PML-N-led government, had pushed for a more substantial salary raise. However, Finance Minister Muhammad Aurangzeb maintained that the government was already offering the maximum feasible relief to the general public in the current economic climate.
Ultimately, the cabinet settled on a 10% salary hike proposal, which Prime Minister Shehbaz Sharif endorsed, rejecting a lower suggestion of 6%. The decision was unanimously approved by the cabinet.
Sources say the meeting also included a tribute to the martyrs of the Marka-e-Haq, acknowledging their sacrifices in the defence of the nation.
In addition, the cabinet strongly condemned India’s unilateral suspension of the Indus Waters Treaty. Prime Minister Sharif reaffirmed Pakistan’s readiness to safeguard national security and defend its sovereignty.
