The federal cabinet is currently meeting in Islamabad to review and approve the budget for the upcoming fiscal year, with proposals regarding salary and pension increase for government employees among the key items under discussion.
The meeting, chaired by Prime Minister Shehbaz Sharif at Parliament House, is being attended by senior cabinet members and government officials. During the session, Finance Minister Muhammad Aurangzeb is expected to brief the cabinet on the main features and priorities of the federal budget before its presentation in Parliament.
The cabinet is scheduled to grant final approval to the budget proposals for the fiscal year 2026-27. One of the most closely watched issues is the expected revision of salaries and pensions for federal government employees, which has been the subject of extensive consultations in recent weeks.
According to official sources, the government is considering a phased salary increase aimed at providing greater relief to lower and middle-income public sector workers. Under the proposal being discussed, employees in Grades 1 to 16 are expected to receive a comparatively larger increase than those in higher grades.
The move is intended to help offset the impact of inflation and rising living costs while maintaining fiscal discipline in line with broader economic objectives. However, officials stressed that no final decision has yet been announced, and the details will be confirmed only after cabinet approval.
The budget is expected to outline the government’s economic priorities for the next fiscal year, including revenue generation measures, development spending, tax reforms and social welfare initiatives.
Following cabinet approval, the federal budget will be presented before Parliament by Finance Minister Muhammad Aurangzeb, who is expected to outline the government’s strategy for economic management and growth.
Government employees and pensioners across the country are closely monitoring the outcome of the meeting, as the final decision on pay and pension adjustments is likely to have a significant impact on millions of households dependent on public sector incomes.