ISLAMABAD – The federal government has announced an increase in the minimum wage for unskilled workers in the Budget 2026-27. The monthly minimum wage has been raised from Rs37,000 to Rs40,700. The move is aimed at supporting low-income workers facing higher living expenses.
Finance Minister Muhammad Aurangzeb presented the federal budget in the National Assembly. The total budget outlay for the upcoming fiscal year stands at around Rs17.5 trillion. The government said the increase in the minimum wage is part of broader efforts to provide financial relief to workers and strengthen household incomes.
According to budget documents, the government has set a tax revenue target of Rs15.267 trillion for the fiscal year 2026-27. Officials believe stronger revenue collection will help support public spending and economic development plans.
A large share of the budget has been allocated for debt servicing. The government has earmarked approximately Rs7.824 trillion for this purpose. Meanwhile, defence spending has been allocated around Rs3 trillion in the new budget.
The budget also includes several relief measures for government employees. Salaries and pensions are set to increase, providing additional support amid inflation and rising costs. The government hopes these measures will improve the financial situation of public sector workers and retirees.
In addition, the government plans to collect Rs1.727 trillion through the petroleum levy during the next fiscal year. This revenue is expected to contribute significantly to the national budget and help fund government expenditures.
The economic framework for 2026-27 also includes trade targets. The government has set an export target of $32.8 billion while aiming for imports of $70 billion. Officials say these targets are designed to support economic growth and improve Pakistan’s trade performance.
The increase in the minimum wage is expected to benefit thousands of workers across the country. By raising the wage floor, the government aims to improve purchasing power and help families manage everyday expenses. The decision comes at a time when many households continue to face pressure from inflation and higher living costs.
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The Budget 2026-27 reflects the government’s focus on balancing economic growth, revenue generation, and social relief measures. The revised minimum wage is one of the key announcements that directly affects the working population.
