Islamabad (HRNW): The federal government has significantly increased pension allocations for the fiscal year 2026-27, earmarking a total of Rs 1.169 trillion for military and civilian pensions.
According to budget documents, Rs 822 billion has been allocated for military pensions, while Rs 272.5 billion has been set aside for civilian pensions for the fiscal year beginning on July 1, 2026.
In comparison, the outgoing fiscal year 2025-26 had allocated Rs 742 billion for military pensions and Rs 243 billion for civilian pensions. This represents an increase of Rs 80 billion in military pension spending and Rs 29.5 billion in civilian pension allocations.
The budget documents further reveal that the government has increased funding for the Federal Pension Fund by 133 percent, raising the allocation from Rs 4.3 billion to Rs 10 billion.
Overall pension expenditures for the upcoming fiscal year have increased by Rs 114 billion, compared to the Rs 1.055 trillion allocated in the current fiscal year.
Economic analysts note that the continued rise in pension liabilities is placing additional pressure on the federal budget, prompting discussions on pension reforms and long-term fiscal sustainability.
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Important Note (Disclaimer)
This report is based on official federal budget documents and government figures. Actual expenditures and allocations may vary during the fiscal year depending on government policies and economic conditions. HRNW remains committed to neutral and responsible reporting.
