ISLAMABAD – The federal government started final discussions for increase in salaries of government employees for the upcoming fiscal budget 2026–27.
Prime Minister Shehbaz Sharif will givr nod after consultations with coalition partners. Ahead of budget, an initial proposal suggests salary increase ranging between 10 to 15 percent for government employees, aimed at aligning wages with the current inflation rate.
A key informal meeting held at PM House reviewed key aspects of upcoming budget. The discussion included sensitive financial matters such as the Public Sector Development Programme (PSDP), tax reforms, pensions, and potential salary adjustments.
Federal Finance Minister briefed PM Sharif on the overall budget framework and fiscal challenges. Sources indicate that despite limited fiscal space, various options are being explored to provide relief to government employees.
However, the Prime Minister has directed officials to prepare a comprehensive working plan based on available resources to determine the extent of possible relief that can realistically be provided.
Sources further reveal that the final announcement regarding salary increases is expected after consultations within the coalition government, creating a mix of anticipation and uncertainty among public sector employees.
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