FY26: Punjab govt hikes salaries by 10pc, pensions up 5pc

Lahore: The Punjab government has approved 10 per cent increase in salaries of government employees and five percent increase in pension of retired employees in new fiscal year 2025-26.

The government has also approved 47.2pc increase in development budget by allocating Rs1,240b. The government has also allocated Rs171.7b for foreign-funded projects, approved 5.9pc increase in the volume of ongoing expenditure, the volume of ongoing expenditure was kept at Rs2,026.7b.

As many as 5.8pc decrease in service delivery expenditure has been observed by allocating Rs679.8b.

The provincial government has increased allocation in education sector by allocating Rs811.8b, showing increase in the provincial budget by 21.2pc.