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Budget 2026: PPP demands huge salary and pension hike

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Web Desk: The Pakistan Peoples Party (PPP) has demanded a 50 percent increase in salaries and pensions for government employees in the upcoming federal budget, while also proposing that the minimum monthly wage be raised to Rs60,000, party sources said on Monday.

The demands surfaced days before the government is set to present the federal budget for the next fiscal year, setting the stage for potential political friction within the ruling coalition.

According to PPP sources, the party has formally presented its budget proposals to the government, urging immediate relief for low-income and salaried segments amid persistent inflation and economic strain.

The party argues that a 50 percent raise in salaries and pensions has become unavoidable given the current rate of inflation. PPP leaders maintain that government employees and retirees have seen their purchasing power erode significantly over the past year.

They say the proposed increase is necessary to help households cope with rising costs of food, utilities and other essential goods.

In addition, the PPP has proposed increasing the minimum monthly wage for workers to Rs60,000. The party says the move would provide critical support to the country’s labor force, particularly low-income earners struggling to meet basic expenses.

Party officials contend that strengthening wages would not only ease financial hardship but also stimulate domestic consumption and economic activity.

Meanwhile, the PPP has voiced strong opposition to any new taxes or increases in the petroleum levy in the forthcoming budget.

The party believes the government is already collecting excessive taxes and levies from the public. Imposing additional financial burdens, it argues, would further strain citizens already grappling with high inflation.

Instead, the PPP has advised the government to explore alternative and non-traditional avenues to boost national revenue rather than introducing new taxes targeting lower- and middle-income groups.

However, sources said the government has so far shown reluctance to accept the PPP’s demands regarding salary and pension increases.

As a result, political and economic uncertainty has begun to mount ahead of the budget announcement, with observers closely watching whether negotiations within the coalition will yield a compromise or deepen tensions at a critical economic juncture.

Read more: Solar panel plate prices increase before the budget

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