Budget Consultations Intensify; Up to 15% Salary Hike Proposed for Government Employees
06 June 2026
(Digital Itla) Prime Minister Shehbaz Sharif has held consultations on various aspects of the federal budget for the upcoming fiscal year. According to sources, these consultations took place during an informal meeting on Friday at the Prime Minister House, which did not receive media coverage.
During the meeting, detailed deliberations were held on key financial matters, including the next fiscal year's budget, the Public Sector Development Programme (PSDP), tax proposals, and potential increases in government employees' salaries and pensions. Sources stated that the Finance Minister briefed the Prime Minister on the key lineaments of the budget and the fiscal strategy. Various proposals were reviewed in the context of government revenue, expenditures, and available financial resources. According to sources, keeping the current inflation rate in view, a proposal to increase government employees' salaries by 10 to 15 percent is under consideration. However, Prime Minister Shehbaz Sharif directed further working based on available resources and fiscal space to ensure maximum possible relief for the employees. The meeting also discussed different options to provide relief to pensioners, alongside evaluating priorities and the availability of funds for development projects. According to government sources, the final budget proposals will be ironed out in the coming days before being presented to the federal cabinet and the parliament.