The federal government has prepared several proposals for the 2026-27 budget, focusing on relief measures for government employees and pensioners. These proposals include increases in salaries and pensions, merging certain ad hoc allowances into basic salaries, and raising the minimum wage.
President Asif Ali Zardari has summoned the National Assembly and Senate budget sessions on June 5, where the federal budget for the next fiscal year is expected to be presented and debated.
According to sources, the sessions were initially proposed for June 1, but the schedule was revised because a large number of parliamentarians are currently in Saudi Arabia for Hajj. More than 60 members of parliament are expected to return during the first week of June.
Sources said that three separate proposals have been prepared to provide relief to government employees and pensioners, which will be presented before the federal cabinet prior to the budget announcement.
The government is considering increasing salaries and pensions by 5 percent to 10 percent.
There is also a proposal to merge some of the last four ad hoc allowances into the basic salary structure. At present, government employees are receiving four separate ad hoc allowances that have not yet been incorporated into basic pay.
Another proposal under consideration includes a disparity allowance for employees from Grade 1 to Grade 16 to provide relief to lower and middle-level government workers from rising inflation.
The government is also reviewing the possibility of increasing the minimum wage, although the final rate has not yet been decided.
For pension increases, a proposal has been presented to use the average inflation rate of the past two years as the basis for determining the raise, aiming to protect retired employees from the impact of inflation.
Sources further stated that the government has requested the IMF to reduce the tax burden on salaried individuals by 5 percent to 10 percent.
These proposals are expected to be presented before the federal cabinet in the coming days before being tabled in the National Assembly and Senate.
