Summary Punjab's Rs5.9 trillion tax-free budget for 2026-27 proposes a 7% salary increase and 3.5% pension hike, with Rs650bn allocated for salaries and Rs505bn for pensions.
LAHORE (Dunya News) – The Punjab government has proposed a seven percent increase in salaries of its employees in budget for next fiscal year 2026-27.
Finance Minister Mujtaba Shujaur Rehman unveiled what the government described it as “tax-free” budget with total outlay of Rs5,903 billion in a session of the Punjab Assembly.
The minister has also proposed a 3.5 percent hike in pensions of retired employees.
Around Rs650 billion has been earmarked for salaries and Rs505 billion for pension payments.
Earlier, the Punjab Cabinet, chaired by Chief Minister Maryam Nawaz, approved the provincial budget.
The meeting was attended by the Chief Secretary, the Chairman of the Planning and Development Board, the Finance Secretary and other senior government officials, who reviewed and endorsed the budgetary proposals ahead of their presentation in the Punjab Assembly.
