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As part of its budget proposals for the next fiscal year (FY26-27), the government has announced a range of measures to provide some measure of relief to the public, ranging from an expanded income support programme for the most vulnerable segment of the population, to lower taxes for individuals earning more than Rs183,000 a month.
As part of its relief, subsidy and social safety plans, the government has announced a seven per cent increase in salaries for serving federal employees, a 7pc increase in pensions for retired employees, and a 10pc increase in the federal minimum wage. However, with inflation expected to average 8.2pc over the next fiscal year, the gains in real terms are expected to be minimal.
The budget for the Benazir Income Support Programme has also been increased by 17pc to Rs838 billion, while the Kafalat programme has been expanded to Rs12 million families, and 9.2m children are to be provided educational scholarships under the government’s proposals.
The PM Apna Ghar scheme, which has gained quite a lot interest in recent months, is getting another Rs71bn for the next year for subsidised, low-interest mortgage loans at a fixed mark-up of 5pc.
