Cabinet approves budget 2025-26 under PM Chair

June 10, 2025 (MLN): The Federal Cabinet has approved the budgetary proposals for the fiscal year 2025-26 in a meeting chaired by Prime Minister Shehbaz Sharif in Islamabad.

Federal government has set GDP growth target at 4.2 per cent in the budget 2025-26.

A major decision taken in the session was the approval of a salary increase for government employees, aimed at providing financial relief to the public sector.

The raise includes a 6% increment, with the ad hoc relief allowance being merged into the basic pay structure to support long-term stability.

The Rs17.6 trillion federal budget will be presented today in the National Assembly at 5 PM, with Speaker Ayaz Sadiq presiding over the session.

Finance Minister Muhammad Aurangzeb will present the budget proposals, the Finance Bill 2025, and accompanying documents.

During the cabinet briefing, Aurangzeb was asked about the government’s ability to maintain fiscal discipline post-budget. He replied confidently with, "InshaAllah."

The 2025-26 budget is expected to emphasize economic reforms, employee benefits, and financial sustainability, forming a key part of the country's fiscal direction.

The Cabinet Division is expected to receive Rs50.34 billion under the Public Sector Development Programme (PSDP) 2025-26, reflecting a 95.3% increase from the previous year.

The Defence Division will be allocated Rs15.83bn, marking a 42.1% rise, while the Maritime Affairs Division is set to receive Rs19.14bn, up by 29.4%, according to budget documents.

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