ISLAMABAD – Paksitan is gearing up for upcoming federal budget for fiscal year 2026–27 on June 5, with reports indicating at potential major relief for the salaried class.
The upcoming budget may bring “double dose of relief” for salaried individuals, with multiple proposals currently under consideration.
One of the key proposals includes a possible 10% increase in salaries for government employees to provide relief amid choking inflation. In addition, the government is reportedly working on wider relief measures for both salaried individuals and pensioners. Among the proposals is the merging of one of the four ad-hoc allowances into the basic salary, a step that would increase long-term income benefits.
Tax relief is also on the table, particularly for middle-income earners. Individuals earning between rs100,000 and 200,000 per month may see targeted relief measures, while those with annual incomes between PKR 1.2 million and 2.2 million could also benefit from a possible reduction in income tax rates.
Sessions of both National Assembly and the Senate have been officially summoned. President Asif Ali Zardari has also approved the formal convening of both houses. Ahead of the budget, the Economic Survey of Pakistan will be released on June 4, while the federal cabinet is also scheduled to meet on June 5, the same day the budget will be presented.
With key decisions still under discussion, expectations are building that the upcoming budget may offer meaningful financial relief for Pakistan’s salaried and pensioned population.
Pakistan mulls proposals to increase salaries, pensions ahead of Budget 2026-27
