PESHAWAR – The Khyber Pakhtunkhwa government is expected to announce a 10% increase in salaries and a 7% increase in pensions for government employees in upcoming budget for fiscal year 2025-26.
The provincial government will present the budget for next fiscal year with total outlay of Rs2,070 billion.
Out of this, Rs1,352 billion may be allocated for current expenditures, Rs 680 billion for salaries, and Rs 200 billion for pensions.
The KP government is expected to receive Rs1,148 billion from Centre under the head of the the National Finance Commission (NFC) award.
Meanwhile, the Punjab government is also expected to announce same increase in the salaries of the provincial employees in the upcoming budget, which is scheduled for June 16.
Reports said the Punjab government would not impose new taxes in the budget. Additionally, Rs90 billion more may be allocated for healthcare, and there are also proposals to provide extra funds to farmers for wheat and rice seeds as well as fertilizers.
Earlier, Federal Finance Minister Muhammad Aurangzeb announced 10% increase in salaries of government employees and 7% in pensions.
The pay raise will be applicable to employees in grades 1 to 22 from July 2025 if the proposals are approved by the parliament.
