Pakistan, June 11 -- The federal cabinet has given the nod of approval for a 10% hike in the salaries of government employees and a 7% increase in pensions of retired public servants.

Although the cabinet, which convened on Tuesday, had in principle approved the federal budget for fiscal 2025-26, deliberation on the salaries of government employees and other matters continued.

The PPP, a key coalition partner of the PML-N government, demanded a further increase in salaries, but the Federal Finance Minister Muhammad Aurangzeb said that the government was already providing the maximum possible relief to the common man in the budget.

The cabinet proposed a 10% increase in the salaries of government employees. Prime Minister Shehbaz Sharif...