Web Desk: The government is considering a series of relief measures for salaried workers and pensioners in the federal budget for fiscal year 2026-27, including a potential salary increase for public sector employees and reductions in income tax for middle-income earners, according to sources familiar with the budget proposals.
The federal budget is scheduled to be presented in parliament on June 5, while the Economic Survey of Pakistan will be released a day earlier, providing an overview of the country’s economic performance during the outgoing fiscal year.
President Asif Ali Zardari has approved the summoning of both houses of parliament for the budget session. Meanwhile, the federal cabinet is expected to meet on June 5 to finalise key budgetary measures before the finance bill is tabled.
The budget comes at a time when the government faces mounting pressure to provide relief to households grappling with inflation and rising living costs.
According to sources, policymakers are reviewing a proposal to raise the salaries of government employees by approximately 10%.
In addition, officials are considering integrating one of four existing ad hoc allowances into employees’ basic pay. Such a move could increase long-term benefits for public servants because pensions and future salary adjustments are often calculated based on basic pay.
The government is also evaluating measures aimed at reducing the tax burden on salaried individuals.
Sources said authorities are considering relief for employees earning between Rs100,000 and Rs200,000 per month. Furthermore, income tax reductions are under review for individuals with annual salaries ranging from Rs1.2 million to Rs2.2 million.
If approved, the measures would provide some financial relief to middle-income earners who have faced higher taxation and persistent inflationary pressures in recent years.
Alongside relief for salaried workers, the government is examining proposals to support pensioners as part of broader efforts to ease financial strain on fixed-income households.
While officials have yet to announce final decisions, the proposed measures indicate that the government is prioritising income support and tax relief in the upcoming fiscal plan.
Final budget allocations and taxation measures will be confirmed when Finance Minister presents the federal budget before parliament on June 5.
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