Pakistan, Aug. 7 -- The Finance Division has officially announced a 7% increase in pensions for federal government pensioners, effective from July 1, 2025. This move comes as part of the government's continued efforts to support retired employees facing rising living costs. The raise applies to all federal pensioners and is expected to offer some relief amid ongoing economic challenges.

In a recent notification, the Finance Division also provided clarification regarding how this increase will be calculated. Pensioners retiring on or after July 1, 2025, will have their pensions calculated based on the net pension, which is the gross amount minus the commuted portion. This formula will be used along with previous pension increases that hav...