ISLAMABAD: Governments at the federal and provincial levels have unveiled salary and pension relief measures in their Budget 2026-27 proposals, offering some support to employees and retirees amid rising living costs.
Federal Government
The federal government has proposed a 7% increase in salaries for government employees and a 7% increase in pensions for retired civil servants in the Budget 2026-27. The budget also includes tax relief measures for the salaried class.
Punjab Budget 2026-27
The Punjab government has announced a 7% salary increase for government employees. Retired government employees will receive a 3.5% increase in pensions, according to the provincial budget proposals presented in the Punjab Assembly.
Sindh Budget 2026-27
The Chief Minister announced a 7% increase in the salaries and pensions of Sindh government employees and the merger of ad hoc relief allowances for 2022 and 2025, while the minimum monthly wage in the province was increased from Rs 40,000 to Rs 43,000.
Syed Murad Ali Shah announced the establishment of the ‘Sindh International Financial Center’ in Karachi and said that the financial center will be a platform for infrastructure finance, Islamic finance and climate finance.
