CM Punjab sanctions salary increase

After the federal government’s relief announcement, Punjab Chief Minister Maryam Nawaz Sharif has approved a 10 percent salary increase for government employees in the provincial budget for the fiscal year 2025-26.

The Punjab government has prepared its budget for the financial year 2025-26, focusing on development without introducing new taxes. The Chief Minister has approved a 7 percent increase in pensions for retired provincial employees, aligning with the federal government’s policy. Earlier, the federal government had proposed a 10 percent salary increase for federal employees from Grade-1 to Grade-22 and a 7 percent pension raise for retired government workers. The same pension increase will now apply to retired staff in Punjab.

The provincial Finance Department will present the final proposals to the Punjab Cabinet for approval during an upcoming meeting. The Chief Minister has rejected any recommendations to impose fresh taxes, aiming to provide relief during economic challenges. Sources reveal that the government plans to allocate over Rs1,100 billion for development projects. Out of this, Rs1076 billion will be sourced locally and used across 2750 development schemes. An additional Rs124.30 billion will be secured through foreign funding to support key infrastructure and public service projects.

There is also a proposal to set aside Rs100 billion specifically for the Chief Minister’s Local Road Programme Block. This initiative is expected to improve road networks and connectivity across the province, particularly in underdeveloped areas. By combining salary and pension increases with large-scale development spending and no new taxes, the Punjab government aims to support both public servants and the wider population while keeping the economy stable. This budget reflects the government’s focus on infrastructure, welfare, and economic balance without putting extra financial pressure on the public.