A proposal has been made to increase the minimum monthly wage by 10 per cent in the Budget 2026-27.
Rising inflation has added to the difficulties faced by salaried employees. A 7 per cent increase is being proposed for the salaries of government employees.
A proposal has also been made to increase pensions by up to 7 per cent. The auto sector is regarded as one of the key sectors of the national economy.
The government is increasing duties on imported vehicles.
It is pertinent to note that the total outlay of Pakistan's federal budget 2026-27 is estimated at around Rs18.771 billion, with a focus on fiscal consolidation, IMF compliance, and modest relief measures.
Key figures include an ambitious FBR tax target of around Rs15.264 trillion, non-tax revenue of Rs2.77 trillion, and Petroleum Development Levy of Rs1.73 trillion.
Major expenditures are dominated by debt servicing (Rs8.54 trillion), defence (Rs3 trillion), and a constrained federal PSDP of Rs1 trillion (national development outlay Rs 3.2–3.7 trillion).
According to the Ministry of Finance, Rs1,169 billion has been allocated for pensions and Rs1,71 billion for civil government affairs.
The budget follows an Economic Survey showing around 3.7% GDP growth in the outgoing year and includes expected 10% salary/pension increases alongside tax base broadening efforts.
