ISLAMABAD: The government has announced a modest increase for current and retired government employees in the upcoming fiscal year’s budget, with a 7% raise in both salaries and pensions.
During the budget speech in the National Assembly, Finance Minister Muhammad Aurangzeb revealed that government employees will see a 7% boost in their salaries, and pensioners will receive a similar percentage increase on their retirement benefits.
Additionally, the government has proposed a 10% rise in the minimum wage for workers, raising it by Rs 3,000 to reach Rs 40,000 per month. (Note: The previous minimum wage was Rs 37,000, so this reflects a roughly 10% increase).
The finance minister began his address by commending the Pakistan Armed Forces for their victory over a larger adversary in May 2025, highlighting the efforts of both civil and military leadership that enhanced Pakistan’s standing in international diplomacy. He noted Pakistan’s role as a mediator during the ongoing Iran-US tensions, which garnered global trust.
Aurangzeb also pointed out that the temporary closure of the Strait of Hormuz and the resulting rise in oil prices impacted Pakistan’s economy, similar to other nations. However, he emphasized that the government chose not to pass this burden directly onto the public. He assured that fuel prices will decrease once international oil prices stabilize.
