ISLAMABAD: The federal government on Friday proposed a 7% salary increase for public sector employees in its budget for the 2026-27 fiscal year, according to budget documents.
A 7% hike in pensions for retired government workers was also included, along with a 10% increase in the national minimum wage.
Finance Minister Muhammad Aurangzeb unveiled the measures during his budget speech to the National Assembly, a session chaired by Speaker Ayaz Sadiq.
“This budget is being presented at a time when Pakistan has achieved the status in the eyes of its people and the world as a country whose voice is listened to, and whose friendship is desired,” Aurangzeb said on the assembly floor.
The session turned turbulent, with opposition lawmakers raising slogans as treasury members thumped desks to welcome Prime Minister Shehbaz Sharif. The PML-N-led coalition government’s spending plan now heads to parliamentary debate.