Lahore, Punjab: The Punjab government has proposed a 10% raise in the salaries of its employees and a 5% increase in pensions, as Provincial Finance Minister Mujtaba Shuja ur Rehman unveiled a “people-friendly” budget for the new fiscal year 2025-26. The Rs5,335 billion budget, presented on Monday at the Punjab Assembly, notably imposes no new taxes and aims to significantly boost development spending.
Punjab Budget 2025 26 Salary and Pensions Increase
Addressing the Punjab Assembly during his budget speech, Finance Minister Mujtaba Shuja ur Rehman confirmed the 10% salary increase for all government employees from Grade 1 to 22. This move is complemented by a 5% raise for pensioners, offering relief to both active and retired government personnel.
Earlier in the day, the minister had presented the province’s ‘zero-tax’ budget, emphasizing its commitment to avoiding additional financial burdens on citizens. He had previously stated that the budget would align with Chief Minister Maryam Nawaz Sharif’s development vision, underscoring its “people-friendly” nature.
Prior to the assembly session, Chief Minister Maryam Nawaz herself approved the provincial budget, signaling the government’s unified approach.
Punjab Senior Minister Marriyum Aurangzeb highlighted key aspects of the budget in a series of X (formerly Twitter) posts. She noted that despite a “comparatively compressed budget,” the Annual Development Programme (ADP) has seen a substantial 47% increase, rising from Rs842 billion to Rs1,240 billion. In contrast, government operational expenses only increased by 3%, even after factoring in the salary and pension raises.
Aurangzeb further stated that “Under Chief Minister Punjab’s fearless and reformist leadership, Budget 2025-26 breaks free from outdated traditions.” She emphasized the budget’s “historic and strategic realignment of priorities,” with the highest-ever development allocation of Rs1,240 billion within the total outlay of Rs5,335 billion.
Reiterating the “zero-tax” approach, the minister confirmed that “NO NEW TAX has been been imposed nor has any tax rate been enhanced,” while outlining a roadmap to expand the Punjab Tax net.
