ISLAMABAD: The federal cabinet has approved a 7 percent increase in salaries for government employees as part of the upcoming fiscal year’s budget.
The decision was taken during a federal cabinet meeting chaired by Prime Minister Shehbaz Sharif at Parliament House. During the meeting, the cabinet approved the budget documents and the draft Finance Bill for the next financial year.
The cabinet also gave formal approval to a 7 percent salary raise for government employees. According to sources, the salary increase will be implemented in two phases, with employees in Grades 1 to 16 expected to receive a relatively higher increase.
Addressing the cabinet meeting, Prime Minister Shehbaz Sharif said the government was set to present its third budget and expressed hope that it would help accelerate economic growth.
He stated that despite significant economic challenges, the government had made every effort to present a balanced budget. The prime minister thanked the public for their patience and resilience in facing inflation over the past years.
Shehbaz Sharif noted that inflation had fallen from 38 percent to single digits, although recent developments in the Gulf region had caused a slight increase. He said the country’s economy was showing signs of improvement despite ongoing challenges.
The prime minister acknowledged the difficulties faced by ordinary citizens and emphasized that preparing the budget had been a challenging task.
He also highlighted the need to focus on renewable energy sources, including solar, wind, and battery storage technologies, while stressing the importance of constructing water reservoirs and dams to address future energy and water needs.
