The federal government has proposed a 10 per cent increase in the minimum monthly wage as part of the Budget 2026-27.
Amid rising inflation and growing pressure on household incomes, a 7 per cent increase has also been proposed for the salaries of government employees.
The budget further includes a proposal to raise pensions by up to 7 per cent.
In the automotive sector, the government has proposed higher duties on imported vehicles, describing the industry as one of the key contributors to the national economy.
The federal budget for 2026-27 has a total proposed outlay of approximately Rs18.771 trillion, with a focus on fiscal consolidation, compliance with the International Monetary Fund programme and targeted relief measures.
Key budgetary targets include an Federal Board of Revenue revenue goal of around Rs15.264 trillion, non-tax revenues of Rs2.77 trillion and a Petroleum Development Levy target of Rs1.73 trillion.