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Budget relief package under consideration to reduce inflationary pressure and the possibility of increase in salaries and pensions

Muhammad Ali (Web Desk Reporter) by Muhammad Ali (Web Desk Reporter)
May 3, 2026
in Latest, Pakistan
Reading Time: 1 min read
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Islamabad: The Ministry of Finance of Pakistan is preparing to give public relief a central position in the budget for the next fiscal year, under which proposals for a possible increase in salaries and pensions are under consideration.

According to sources, on the one hand, the government is facing public pressure due to rising inflation, while on the other hand, controlling the fiscal deficit is also a major challenge. That is why special attention is being paid to maintaining balance in budget preparation.

Economic experts say that the increase in salaries and pensions can apparently bring relief to the public, but at the same time, it will also be necessary to increase government expenditure and maintain fiscal discipline.

Sources said that the upcoming budget is being structured in such a way that a balance can be maintained between public relief, economic stability and government expenditure.

The final decision will be announced at the time of approval of the budget documents, after which it will be clear to what extent relief will be provided to government employees and pensioners.

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Muhammad Ali is a Web Desk Reporter at The Pakistan Observer, contributing to the publication’s digital news coverage with a focus on timely, accurate and reader-friendly reporting.

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