In a major development, the federal government has approved an 85% salary increase for government employees across various grades, according to official sources. The decision was finalized after extensive consultations between the Finance Division and the Establishment Division, following months of demands from employee unions.
Finance Ministry officials confirmed that the pay hike will be implemented in phases, starting with the upcoming fiscal quarter. The increase reportedly covers both basic salaries and certain allowances, aiming to offset the impact of inflation and rising living costs.
Union representatives have welcomed the move, calling it a long-overdue measure that acknowledges the economic struggles of public-sector workers. Meanwhile, economic analysts note that while the decision brings immediate relief, it could place additional strain on Pakistan’s fiscal balance unless accompanied by broader reforms.
