ISLAMABAD – The federal government is working on a relief package to be announced for government employees in upcoming Budget 2025-26.
Reports said that a 30% disparity allowance has been proposed for employees from Grade 1 to 16. In addition, a 15% salary increase has been proposed for employees from Grade 17 to 22.
The reports further said a 10% increase in salaries and pensions is proposed in the upcoming budget.
Another proposal to merge the 2022 ad-hoc allowance into the basic salary is also under consideration.
The federal government is likely to present Rs17.68 trillion budget 2025-26 on June 10.
Reports said a significant decline in the policy rate is expected to cut expenditure on loans and interest payments by approximately Rs1,300 billion.
The upcoming budget 2025-26 is expected put emphasis on austerity measures in Pakistan in order to cut expenditures.
The government is likely to impose a ban on purchase of new vehicles for all federal ministries and departments. Additionally, ministries would also be instructed to limit their electricity and gas expenses.
Meanwhile, petrol and diesel prices are expected to climb higher after Budget 2025, as government announced a new carbon levy of Rs2.5 per litre on fuel products.
The fuel prices are said to jump in second half of June 2025 after federal budget is finalized. The current prices of petrol and diesel hovers at Rs253.63 and Rs. 254.64 per litre, but with the carbon tax added, prices could rise to approximately Rs. 256.13 for petrol and Rs. 257.14 for diesel.
