The federal cabinet has given the nod of approval for a 10% hike in the salaries of government employees and a 7% increase in pensions of retired public servants.
Although the cabinet, which convened on Tuesday, had in principle approved the federal budget for fiscal 2025-26, deliberation on the salaries of government employees and other matters continued.
The PPP, a key coalition partner of the PML-N government, demanded a further increase in salaries, but the Federal Finance Minister Muhammad Aurangzeb said that the government was already providing the maximum possible relief to the common man in the budget.
The cabinet proposed a 10% increase in the salaries of government employees.
Prime Minister Shehbaz Sharif acquiesced to the proposal and rejected the suggestion of a 6% raise, stating that salaries should be hiked by 10%. In the end, the prime minister and his cabinet member approved the decision.
According to sources, the cabinet meeting also made special mention of the Marka-e-Haq. Tributes were paid to those who sacrificed their lives for the defence of the country.
The cabinet denounced India’s unilateral suspension of the Indus Waters Treaty. The prime minister said that the country is always ready for national security and defence.
