ISLAMABAD: Tensions between the federal government and public sector employees have intensified ahead of the announcement of the federal budget for fiscal year 2026-27, as employee unions warned of nationwide protests if their demands are not addressed.
While the government has hinted at providing relief to salaried employees and pensioners in line with the inflation rate in the upcoming budget, government workers have rejected the proposal as insufficient and are demanding a substantial increase in salaries and pensions.
The All Government Employees Grand Alliance (AGEGA), a representative body of government workers, has announced plans to stage demonstrations in Islamabad during the budget week. According to the alliance, employees will hold a sit-in outside the Ministry of Finance one day before the budget presentation, followed by another protest outside Parliament House on the day the federal budget is tabled.
A spokesperson for the alliance said employees across various departments are prepared to launch a full-scale protest movement if the government fails to accept their Charter of Demands. The alliance has urged authorities to implement the agreement reached with employee representatives on March 10, 2025.
Among the key demands put forward by AGEGA are a 100 percent increase in salaries and pensions, the fixation of a minimum wage of Rs50,000 for workers, and a minimum pension of Rs50,000 for retired employees. The organization has also called for a 30 percent disparity reduction allowance to bridge salary gaps among employees in different departments and pay scales.
Union leaders argue that rising inflation, increasing utility costs, and the growing burden of daily expenses have severely affected the purchasing power of government employees and pensioners. They say existing salaries are no longer sufficient to meet basic household needs.
The development comes at a crucial time as the federal government finalizes budget proposals amid economic challenges and pressure to maintain fiscal discipline under ongoing financial reforms.
According to official sources, the National Economic Survey 2025-26 will be released on June 4, outlining the country’s economic performance during the outgoing fiscal year. The federal budget for 2026-27 is scheduled to be presented in the National Assembly on June 5, while a special meeting of the federal cabinet will also be held the same day to approve budgetary measures before the formal presentation in Parliament.
