The cabinet meeting, chaired by Prime Minister Shehbaz Sharif, also approved a 15% increase in pensions, according to official sources.

A 25% raise has been approved for government employees in grades 1 to 16 while those in grades 17 to 22 will receive a 20% increase.

Additionally, the cabinet has also approved financial packages for farmers, youth, and industries as part of the upcoming budget.

The federal cabinet has approved a budget of over 18 trillion rupees for the next fiscal year.

PML-N leader Rana Sanaullah confirmed that Prime Minister Shehbaz Sharif will announce the increases in salaries and pensions in his address to the National Assembly.

This move is seen as a significant step by the government to address the concerns of its employees and pensioners, particularly in the wake of the rising cost of living in the country.