ISLAMABAD, June 10 -- The federal cabinet, under the chairmanship of Prime Minister Shehbaz Sharif, has approved the Rs18 trillion federal budget for the fiscal year 2025-26. The approval came during a key cabinet meeting held in Islamabad.

According to official sources, the cabinet also approved a 6% increase in salaries for government employees and a 7% hike in pensions for retired workers. The finalized budget documents were delivered to Parliament House under tight police security ahead of their presentation in the National Assembly today.

The budget includes Rs2 trillion in new taxes, aimed at increasing revenue. Total non-development expenditures are expected to reach Rs16.28 trillion, while the projected budget deficit is 5% of G...