LAHORE – Good news for Punjab government employees and pensioners as an increase in salaries and pensions is expected in line with those of federal employees in the upcoming Budget 2026–27.
The proposed budget is likely to bring financial relief and improved pay scales, offering support to public sector workers amid soaring inflation.
Maryam Nawaz-led government is planning a ‘people-friendly budget’ with no new taxes, providing relief to citizens and businesses amid ongoing economic challenges. Government employees and pensioners are also expected to benefit, as salaries and pensions are likely to be increased in line with the federal government’s announced rates.
A major portion of the budget. around Rs1.6 trillion, is expected to be allocated for development projects amid major push for infrastructure growth and public services across the province. Education, healthcare, roads, sanitation, agriculture, and law and order have been identified as top priorities.
Officials said Punjab is expected to receive more than Rs. 4.5 trillion under National Finance Commission (NFC) Award, strengthening the province’s ability to fund ambitious development and welfare initiatives.
The proposed budget is also expected to include measures aimed at expanding the tax base and revising service-sector tax rates, while continuing subsidy programs for farmers, students, and workers.
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