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Goverment employees likely to see 10% increment in salary under the budget 2025-26

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ISLAMABAD – Sources indicate that the Government is planning to give a relief package to its employees along with a significant increase in salaries and pensions under the budget 2025-26.

Official resources reported that the government is planning to increase the salaries and pensions of all the public sector employees by 10% in the upcoming budget. Moreover, a 30% disparity allowance is also expected for the employees in grades 1 to 16 to address long-standing pay gaps in lower-tier government positions.

A 15% increment is under review in the salaries of the employees of grades 17 to 22.

This initiative reflects the government’s wider commitment to ease the financial burden of citizens who are facing high inflation and rising living expenses.

In addition, there is a proposal to integrate the 2022 ad-hoc relief allowance into the base salary. This strategic shift would not only alleviate immediate financial pressures but also yield substantial long-term advantages for pension calculations and future salary increments, paving the way for a more secure economic future.

Pakistan

NA allows PTA taxes on imported phones to be paid in instalments

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LAHORE – The National Assembly has approved a provision in the Finance Bill 2026-27 allowing individuals to pay taxes on imported mobile phones in instalments, a move aimed at reducing the upfront cost of device registration.

Under the new measure, consumers registering imported smartphones through the Pakistan Telecommunication Authority’s (PTA) Device Identification, Registration and Blocking System (DIRBS) will be permitted to clear applicable taxes through a government-prescribed instalment plan.

The legislation stipulates that all instalments must be paid within the same financial year in which the device is imported.

The facility will be available for both new and used imported mobile phones and is set to take effect from July 1, 2026, following the enforcement of the Finance Act 2026-27.

The government is expected to issue separate notifications outlining the payment procedure, eligibility requirements and other operational details.

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Pakistan electricity system ‘operating beyond recorded solar capacity’: Report

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ISLAMABAD – Pakistan’s electricity sector is facing a significant data gap in rooftop solar adoption, with actual installed capacity estimated to be nearly twice the officially documented figures, according to a new report.

A joint study by HeraldX and Renewables First, titled “The Uncounted Gigawatts: Distributed Solar Mapping and Grid Impact Analysis in Pakistan”, uses artificial intelligence and power system modelling to evaluate the scale and operational impact of distributed solar generation.

The report estimates that national rooftop and distributed solar capacity stands at around 38 gigawatts, significantly higher than what is reflected in official datasets.

In Lahore, the AI model identified 177MW of rooftop solar capacity compared to an official estimate of 95MW, pointing to substantial gaps in reporting and registration, particularly for systems outside or partially outside net-metering frameworks.

The study notes that this unrecorded capacity is already influencing grid behaviour, despite remaining largely invisible to planners and distribution companies.

Using PSS/E simulation software, researchers compared grid performance under recorded and actual solar penetration levels, finding increased reverse power flows and a rise in transformer loading from 34 per cent to 76 per cent during daytime conditions.

Voltage levels were also found to exceed Grid Code 2023 compliance thresholds under both scenarios, indicating mounting stress on distribution infrastructure.

The report further states that while a simulated 10MW battery energy storage system helped improve voltage stability and reduce reverse flows, it also led to power factor deterioration in lower solar penetration conditions, suggesting storage alone cannot address the challenge.

According to the researchers, the AI model was trained on Pakistan-specific rooftop imagery to improve accuracy, unlike generic international datasets.

The report calls for urgent adoption of updated monitoring systems and planning tools, warning that the widening gap between recorded and actual solar capacity poses risks for distribution companies and grid operators.

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Pakistan

Public holidays declared for 9th and 10th Muharram across Pakistan: Details

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ISLAMABAD – The federal government has announced public holidays on June 25 and 26, 2026, on account of 9th and 10th Muharram-ul-Haram (Ashura), during which all government offices across the country will remain closed.

Prime Minister Shehbaz Sharif has approved the two-day holiday, following which the Cabinet Division issued a formal notification confirming the closure of public offices operating under both five-day and six-day work schedules.

The holidays will fall on Thursday and Friday, marking the observance of Ashura nationwide.

According to the notification, the decision has been taken in line with annual observances of Muharram, during which religious gatherings, processions and majalis are held across the country.

Authorities are finalising administrative and security arrangements to ensure law and order during the period, particularly in view of large processions and congregations in major cities and towns.

Ashura, observed on the 9th and 10th of Muharram, holds significant religious importance for Muslims and is commemorated every year in Pakistan with mourning processions and religious gatherings.

The notification confirms that the public holidays correspond to 9th and 10th Muharram 1448 Hijri.

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