ISLAMABAD – Budget 2025-26 is set two weeks away and all eyes are on salary and pension increments, as the government vowed relief for salaried individuals. Ahead of budget announcement, Finance Minister Muhammad Aurangzeb said the upcoming Budget will focus on providing relief to salaried class and pensioners, while no final decision has yet been made regarding civil and military salary surge.
Sharing his views in federal capital, finance czar said the government is actively working on cutting tax burden on salaried individuals and aims to simplify the tax filing process for them. Aurangbze acknowledged that salaried workers often face deductions as soon as their salaries are deposited into their accounts, creating additional financial stress.
He emphasized that government is making efforts to offer relief to this segment of society in new budget and is also seriously considering pension reforms. He noted that reforms are essential to make the pension system more sustainable and efficient.
Regarding civil and military salaries, he clarified that no decision has been made yet, and assured that government will extend full support to the armed forces, emphasizing that it is not just an institutional need but a national requirement.
He further praised growing international recognition of Pakistan’s economic recovery, saying investor confidence is returning. The digitization process at the Federal Board of Revenue (FBR) is underway, which will help increase transparency and reduce human intervention in tax collection, he added.
Aurangzeb also reiterated government’s commitment to offering meaningful relief to both the working class and pensioners in the upcoming budget, aiming to promote economic justice and long-term financial stability.
Last year, the government announced a 25percnet increase in relief for government employees in grades 1–16, a 20pc increase for grades 17–22, and a 15pc pension hike for federal retirees as part of Budget 2024.
| Category | Increase |
|---|---|
| Government Employees (Grade 1–16) | 25% |
| Government Officers (Grade 17–22) | 20% |
| Federal Pensioners | 15% Pension Increase |
Pension Update: Pakistan’s cabinet approves 15pc increment for retired employees
