The government has proposed a 10 percent increase in the salaries of public employees from BPS-1 to BPS-22 and a 7 percent hike in pensions of retired public servants in the federal budget for the fiscal year 2025-26.  Although the cabinet, which convened on Tuesday, had in principle approved the federal budget for fiscal 2025-26, deliberation on the salaries of government employees and other matters continued. 

The PPP, a key coalition partner of the PML-N government, demanded a further increase in salaries, but the Federal Finance Minister Muhammad Aurangzeb said that the government was already providing the maximum possible relief to the common man in the budget. 

The cabinet proposed a 10% increase in the salaries of government employees.  Prime Minister Shehbaz Sharif acquiesced to the proposal and rejected the suggestion of a 6% raise, stating that salaries should be hiked by 10%. In the end, the prime minister and his cabinet members approved the decision.

Credit: Independent News Pakistan (INP)