KARACHI: Salaries and pension of government employees are likely to be increased about 15 percent in the upcoming budget for fiscal year 2017-18.

According to sources preparation of budget has entered in final phase.

Source added that allocated amount with 45pc increase could be Rs395bn against salaries.

Similarly funds amounting to Rs 275 billion with Rs30bn increase are likely to be allocated against pension of government employees in the budget for the next financial year 2017-18, sources added.

Sources added Instead of this, allowances of government employees are likely to be increased also. Sources further added that the federal government is busy to increase annual development budget that could be Rs850bn. More funds are likely to be allocated to overcome shortage in energy sector, sources added.