Federal budget unveiled with salary, pension increase

Finance Minister Muhammad Aurangzeb presented the federal budget for the fiscal year 2026–27 in the National Assembly.

Finance Minister Muhammad Aurangzeb presented the federal budget for the fiscal year 2026–27 in the National Assembly, with a total outlay of Rs. 18.77 trillion. The budget outlines key measures related to government spending, development priorities, tax reforms, and public relief.

During his speech, the finance minister proposed a 7% increase in salaries for government employees, along with a 7% rise in pensions for retirees. The government stated that these measures are aimed at easing the financial burden caused by inflation and providing support to salaried individuals.

The budget also includes proposed tax relief for the salaried class to reduce pressure on middle-income earners. In addition, reductions in withholding tax on property transactions and the removal of super tax for certain high-income categories have been suggested.

To support small businesses, the government has proposed the introduction of a fixed tax regime for shopkeepers, aiming to simplify taxation and encourage economic activity. The budget also includes measures to expand the tax base and enhance revenue collection across various sectors.

According to the government, the primary focus of the budget is to ensure economic stability, maintain fiscal discipline, and achieve sustainable development goals. However, opposition parties have criticized the budget, calling it insufficient, while government members have defended it as a step toward economic recovery.

The budget proposals will be debated in parliament before final approval.