Pakistan Budget 2026–27: Salary Increase Proposal Under Consideration for Employees

The federal government is reportedly considering a 10% increase in salaries for government employees in the upcoming Budget 2026–27, according to sources in the Ministry of Finance.

The adjustment would be part of a larger package of relief measures being considered to help lighten the financial burden on public sector employees in the face of persistent inflationary pressures in the country.

Pension Hike Also Being Considered

In addition to salary adjustments, authorities are also looking at a proposal to raise pensions by 5% to 7.5%. If granted, the move will add to the financial assistance that retired government workers receive as well as those who have been impacted by high living costs.

Both plans are under discussion and not yet finalized, officials say

Inflation Pressure Driving Relief Measures

With inflation rates again in double digits, the potential salary and pension hikes come at a time when the budgets of households are under pressure in all parts of Pakistan.

The rising prices, especially in the food and energy sectors, have had a tangible effect on real incomes, which has led the government to look at targeted measures for relief in the next fiscal plan.

Budget 2026–27 Expected in June

The federal budget is likely to be released on June 5 and the Economic Survey could be issued a day early on June 4.

Final decisions on salary and pension increases are to be made in the budget speech in the National Assembly.

If approved, the proposed salary and pension hikes would provide partial relief to public sector employees, though analysts suggest the overall impact will depend on inflation trends and broader economic stability in the coming months.