KARACHI – Sindh government reortedly proposed a 7% increase in salaries for government employees and 5% rise in pensions in its 2026-27 budget. The move comes amid financial constraints, with officials citing limited fiscal space despite demands for greater relief in the face of rising inflation.
PPP led provincial government follows Punjab and centre with 7% increase in salaries and a 5% rise in pensions in upcoming 2026-27 provincial budget, despite soaring inflation and growing cost-of-living pressures.
Sources familiar with budget deliberations revealed that provincial authorities cited severe financial constraints as the primary reason for limiting the increase. Officials reportedly informed the cabinet that although the government had hoped to offer a double-digit salary raise, worsening fiscal challenges left little room for a more generous package.
The proposal triggered concerns within cabinet, where several members argued that lower-grade employees are struggling the most under the weight of inflation and should receive greater relief. They stressed that a uniform increase may not adequately address the hardships faced by low-income government workers.
The budget was approved during high-level cabinet meeting chaired by Chief Minister Murad Ali Shah. Presenting the government’s position, the chief minister reiterated his administration’s commitment to public welfare and development, stating that the new budget has been crafted to support various segments of society.
With inflation continuing to erode purchasing power, the proposed salary and pension increases are expected to come under close scrutiny from employees, pensioners, and labor representatives who have been demanding stronger relief measures.
All eyes are now on the Sindh Assembly, where the chief minister is set to formally unveil the budget, a document that could ignite fresh debate over whether the government’s relief measures are enough to meet the economic realities facing ordinary citizens.
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