Islamabad: Federal cabinet has approved budget for the financial year 2025-26.

According to sources federal cabinet met under Prime Minister (PM) Shehbaz Sharif and accorded approval to federal budget Tuesday.

Cabinet has given approval to 10 percent increase in pay of government employees and 7 percent increase in pension of retired government employees.

As per sources final approval to budget proposals was given in federal cabinet meeting.

Earlier it was proposed to increase 10 percent salary and pension of government employees besides granting 30 percent disparity allowance to employees from grade 1 to 16.