The Pakistan Peoples Party (PPP) has presented two major demands ahead of Pakistan’s Federal Budget 2026-27, calling for a sharp increase in government salaries and pensions, along with a significant revision of the national minimum wage.
According to sources familiar with the budget discussions, the PPP has proposed a 50 percent increase in the salaries and pensions of government employees, citing persistent inflation and a steep rise in the cost of living across the country.
Inflation Cited as Key Factor
Sources told ProPakistani that PPP leaders argue inflation has severely reduced the purchasing power of salaried individuals and retirees, making a substantial adjustment unavoidable. The party has reportedly stressed that public sector pay and pension structures should be more closely linked to inflation trends to provide consistent relief.
However, discussions on the proposal are still ongoing. Sources said the federal government remains hesitant to accept the scale of the salary and pension increase suggested by the PPP due to fiscal constraints.
Proposal to Raise Minimum Wage to Rs60,000
In addition to salary and pension relief, the PPP has recommended raising the national minimum wage to Rs60,000 per month. Party leaders believe the current minimum wage no longer reflects ground realities and fails to meet basic household expenses for low-income workers.
According to sources, the party has urged the government to revise the minimum wage framework to better align it with rising food, fuel, housing, and utility costs.
Opposition to New Taxes
The PPP has also taken a firm position against the imposition of additional taxes and levies in the upcoming budget. Sources said the party maintains that the government is already collecting substantial revenues through existing taxation and petroleum-related charges.
Instead of introducing new taxes, the PPP has proposed that authorities focus on broadening the tax base, improving compliance, and stimulating economic activity to increase revenue without placing further pressure on businesses and consumers.
Budget Talks Continue
Sources indicated that negotiations between coalition partners are continuing as the budget process moves forward. Final decisions on salaries, pensions, minimum wage, and taxation measures are expected closer to the budget presentation.
The Federal Budget 2026-27 is expected to be unveiled later this month, with inflation control, fiscal discipline, and public relief emerging as key pressure points in ongoing policy discussions.
