LAHORE – The Punjab government has announced a 10% increase in salaries and a 5% rise in pensions for government employees under the 2025–26 provincial budget, which officials describe as “people-friendly” and focused on development.
Punjab Finance Minister Mujtaba Shuja ur Rehman shared the details during his budget speech at the Punjab Assembly on Monday. He confirmed that the salary raise applies to employees from Grade 1 to 22, while pensions will also see a modest hike.
Earlier in the day, the provincial government presented a Rs5,335 billion “zero-tax” budget. According to the finance minister, the budget aligns with Chief Minister Maryam Nawaz Sharif’s vision and prioritizes public welfare and development without imposing new taxes.
Senior Minister Marriyum Aurangzeb highlighted a 47% increase in the Annual Development Programme (ADP), from Rs842 billion to Rs1,240 billion, despite limited financial space. She added that operational costs only increased by 3%, even after the salary and pension adjustments.
Aurangzeb also described the budget as a bold shift away from outdated financial traditions. She emphasized that the budget reflects a historic realignment of priorities and includes the highest-ever development allocation in Punjab’s history.
Importantly, the finance team confirmed that the 2025–26 budget includes no new taxes or hikes in existing tax rates. Instead, the government aims to expand the provincial tax net to improve revenue generation without increasing the financial burden on citizens.