Yesterday, the federal government has proposed a 10 percent salary hike for employees in Grades 1 to 22, along with a 7 percent pension increase for retired government workers, as part of the upcoming fiscal year’s budget. In alignment with this move, the Punjab chief minister has also approved a similar 10 percent salary hike for existing employees and 7 percent pension raise for retired provincial employees.
The provincial Finance Department will present this proposal for formal approval during the cabinet meeting scheduled for June 13 at 11:00 AM. Meanwhile, the Punjab government has finalized its budget draft for the fiscal year 2025–26. Notably, the chief minister has turned down any suggestions to introduce new taxes.
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According to sources, the provincial budget includes a substantial allocation exceeding Rs1,100 billion for development projects. Of this, Rs1,076 billion will be raised through local funding to support around 2,750 development schemes, while Rs124.30 billion is expected from foreign assistance.
Additionally, there is a proposal to allocate Rs100 billion specifically for the chief minister’s local road program block, aiming to enhance infrastructure and connectivity across the province.
