President Asif Ali Zardari has advocated for increased salaries and pensions in the forthcoming federal budget for the fiscal year 2025-26. This initiative aims to alleviate the financial burdens on government employees and retirees amidst rising inflation and living costs.

Context and Background

In the previous fiscal year (2024-25), the government implemented salary and pension hikes to support public sector workers and pensioners. Specifically, a 35% increase was granted to government employees in grades 1-16, while those in grades 17-22 received a 30% raise. Additionally, the minimum pension was elevated to Rs. 12,000.

Anticipated Budgetary Measures

Building upon last year’s adjustments, President Zardari’s current proposal underscores the administration’s dedication to further enhancing the financial well-being of public servants and pensioners. The specific percentages and scope of the proposed increases are under deliberation and will be detailed in the upcoming budget announcement.

Economic Considerations

While these proposed increments aim to provide relief to government employees and retirees, they also present challenges concerning fiscal sustainability. Balancing the augmentation of salaries and pensions with the need to manage the national budget prudently remains a critical consideration for policymakers.