Pakistan Federal Government Raises Civil and Military Pensions by 7% Effective July 2026

The Pakistani federal government announced a 7 % increase in the baseline (basic) pension for all civil pensioners, beneficiaries of defence estimates, retired armed‑forces personnel and civil armed‑force pensioners. The increase, detailed in an Office Memorandum issued by the Ministry of Finance, will take effect on 1 July 2026 and will apply to pensioners whose baseline amounts were set according to Treasury instructions dated 1 January 2025, 7 July 2025 and 5 August 2025. Earlier pension hikes – a 15 % rise in July 2022 and a 7 % rise in July 2025 – will remain in force for those retiring on or after 1 July 2026. The raise also covers family pensions, the 1954 pension scheme, the 1977 liberalised pension rules, Central Civil Services extra‑ordinary pensions and compensation allowance, but excludes special additional pension for pre‑retirement orderly allowance and the monetised value of drivers or orderlies. If a pension is jointly paid by the federal and another government, the increase will be shared proportionally.