In a key move ahead of the new fiscal year, the federal government has approved a 10% salary increase for government employees under the 2025-26 Federal Budget. Prime Minister Shehbaz Sharif chaired the cabinet meeting that finalized the decision, along with a 7% pension hike for retirees.
Budget Relief Amid Inflation Pressure
The cabinet also passed the Finance Bill 2025-26, which includes various relief measures for the salaried class. Officials considered multiple proposals—6%, 10%, or 15%—before settling on a 10% increase. The government cited fiscal limitations as a reason for the modest hike.
However, employee unions had urged the administration to adjust salaries in line with high inflation, demanding at least a 50% raise. They warned that unmet demands could trigger large-scale protests.
PM Shehbaz Stresses Unity and Economic Resilience
During the meeting, Prime Minister Shehbaz Sharif extended Eid-ul-Adha and Hajj greetings to the nation and the global Muslim Ummah. He also condemned ongoing violence in Palestine and Kashmir, urging world powers to push for a ceasefire.
“No condemnation can capture the scale of suffering in Palestine and Kashmir,” he said. “Pakistan stands firmly with the oppressed and will continue to support their struggle for freedom.”
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Economic Progress and National Challenges
Shehbaz Sharif acknowledged the sacrifices made by the public, particularly salaried workers, over the last 18 months. He pointed to a Rs400 billion contribution to the national treasury as a sign of economic recovery. He also highlighted improving inflation trends and expressed optimism about Pakistan’s economic turnaround.
“Our collective effort is steering Pakistan toward stability,” the premier noted. “We’ve faced immense challenges, yet we continue to progress.”
Water Security and National Defense
The prime minister firmly rejected any attempt to use water as a geopolitical weapon, stating, “We will protect our water rights without compromise.” He praised the Deputy PM and experts for their work on water-related issues.
He concluded by calling on the nation to act together. “Now is the time to rise, united, and shape Pakistan’s future,” he declared.
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