Salaried Class Likely to Get Inflation-Adjusted Increments in FY26 Budget

The upcoming federal budget for 2025-26 is expected to include inflation-adjusted increments for the salaried class, sources told ProPakistani. The government is also considering adjusting salaries and allowances of public sector employees due to growing pressure from civil servants demanding huge raises. Government employees have also urged the authorities to raise the minimum monthly salary to Rs. 50,000. In the event that their demands are not addressed, a sit-in has been announced in front of Parliament on June 10. Meanwhile, the Federal Board of Revenue (FBR) is finalizing key proposals to discourage cash transactions as part of the Finance Bill 2025. FBR sources told ProPakistani that the government is looking to tighten tax enforcement and reduce tax evasion. Among the proposed steps, an additional charge of up to Rs. 3 may be levied on the purchase of fuel via cash at petrol pumps. Sources said manufacturers and importers may be allowed to collect an extra 2 percent tax on cash transactions. A similar measure is under consideration for Tier-1 retailers engaging in cash-based transactions. To promote digital payments, petrol pumps will be equipped with QR code facilities, debit and credit card machines, and mobile payment services. However, consumers opting to pay in cash will still be permitted to do so but will be charged more. Meanwhile, no proposal is currently under consideration to bring unit managers, jewelers, marriage halls, doctors, or lawyers into the tax net in the upcoming budget, sources added.