The federal government has entered the final phase of discussions regarding a possible increase in salaries for public sector employees as preparations for the fiscal year 2026–27 budget continue.
According to sources, the government is considering a salary raise of between 10 and 15 percent for its employees. The proposed increase is aimed at providing relief to workers affected by rising inflation and increasing living costs across the country.
The final decision will be made after Prime Minister Shehbaz Sharif completes consultations with coalition partners and reviews recommendations submitted by relevant ministries and financial authorities.
An important informal meeting was recently held at the Prime Minister’s House to examine key elements of the upcoming federal budget. During the session, officials discussed several important financial matters, including the Public Sector Development Programme (PSDP), taxation measures, pension reforms, and possible adjustments in government employees’ salaries.
Federal Finance Minister Muhammad Aurangzeb briefed the prime minister on the overall budget strategy and the economic challenges facing the country. The meeting also reviewed available fiscal resources and the government’s capacity to provide financial relief while maintaining budgetary discipline.
Sources said authorities are exploring different options to support government employees despite limited fiscal space. Officials are working on various proposals to strike a balance between employee welfare and the country’s financial commitments.
Prime Minister Shehbaz Sharif has directed concerned departments to prepare a detailed plan based on available resources. The objective is to determine the most practical and sustainable level of relief that can be extended to public sector workers in the next budget.
Government employees are closely monitoring the developments as expectations grow ahead of the budget announcement. However, officials emphasized that no final decision has been taken so far.
The proposed salary increase is expected to be finalized after further consultations within the ruling coalition. Until then, uncertainty remains regarding the exact percentage of the raise, although hopes are high among public servants that meaningful relief will be included in the 2026–27 federal budget.
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