Pakistan, July 7 -- ISLAMABAD - The federal government has approved a 7% increase in pensions for retired civil and armed forces personnel, effective July 1, 2025, as per a notification issued by the Finance Division on Monday. The decision aims to support pensioners amid rising inflation and cost of living.

This raise will benefit all civil pensioners, including defence-paid civilians, retired armed forces personnel, and civil armed forces pensioners. Importantly, it will also apply to those who retire on or after July 1, 2025, ensuring immediate coverage for new retirees.

The President's approval was cited in the official Office Memorandum (OM), which explained that the increase will be calculated on the "net pension"-meaning the pens...