ISLAMABAD: The Federal Cabinet, chaired by Prime Minister Shehbaz Sharif, has officially approved a 7% salary increase for government employees in the upcoming fiscal year’s budget.
The approval was granted during a cabinet meeting held at the Parliament House, where members also greenlit the draft of the Finance Bill and upcoming budget documents.
According to sources, the salary increment will be implemented in two phases, with employees in Grades 1 to 16 receiving a higher percentage increase.
Addressing the cabinet, Prime Minister Shehbaz Sharif highlighted that this marks his government’s third budget, expressing confidence that it will accelerate economic growth.
He acknowledged the public’s resilience through tough economic times, noting that inflation has successfully dropped from a staggering 38% down to single digits, despite a slight recent uptick due to regional conflicts in the Gulf.
The Prime Minister admitted that drafting this budget was highly challenging given the financial struggles of the common man.
Moving forward, he emphasized the critical need for Pakistan to focus on dams, water reservoirs, and renewable energy sources like solar, wind, and battery storage.
