Federal cabinet approves next fiscal year budget, salary hike under review

The official sources say cabinet meeting held in Islamabad reviewed and endorsed the federal budget proposals, paving the way for their presentation in the National Assembly for further legislative approval

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-June 12nd, 2026) The Federal cabinet on Friday formally approved the budget for the upcoming financial year, along with the key budget documents and the draft Finance Bill, during a meeting chaired by Prime Minister Shehbaz Sharif.

The official sources said that the cabinet meeting held in Islamabad reviewed and endorsed the federal budget proposals, paving the way for their presentation in the National Assembly for further legislative approval.

The approval of the budget comes after extensive consultations within the government, as economic challenges, inflationary pressures and fiscal constraints continue to shape policy decisions for the next financial year.

Sources said that detailed discussions were also held during the meeting on proposals related to an increase in salaries and pensions of government employees. However, no final announcement was made regarding the scale or timing of the relief measures, as deliberations are still ongoing.

According to insiders, the government is considering a phased increase in salaries, which may be implemented in two stages.

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Under the proposed plan, employees in Grade 1 to 16 are expected to receive a comparatively higher percentage increase than those in higher grades.

Officials familiar with the matter said that the objective of the proposed salary adjustment is to provide relief to lower and middle-income government employees amid rising inflation and increased cost of living.

Sources further indicated that discussions are continuing within relevant ministries and departments to finalize the structure of salary and pension increases before the budget is presented for parliamentary approval.

The cabinet meeting also reviewed broader fiscal priorities, including revenue generation, expenditure management, and development allocations for the coming financial year.

Once finalized, the budget will be tabled in the National Assembly, where it will undergo debate and possible amendments before formal approval by parliament.