Business Desk 
Jul 08, 2025
The federal government has announced a 7% increase in net pensions for civilian and armed forces personnel, effective July 1, 2025. The increase will also be added to family pensioners under various schemes.
The Finance Ministry notification states that the increase applies to a broad range of civil pensioners, including civilians who were paid from defence estimates, as well as retired armed forces and civil armed forces personnel. Medical allowance and other specified components of the pension system will not be included in the increase.
The government also clarified that this increase will remain separate from pensions going forward.
The announcement was made by Prime Minister Shehbaz Sharif while chairing a meeting on tax reform and FBR automation activities. He said introducing AI tax systems is one of the immediate priorities of the government to allow for transparency, decrease human involvement, and make business easier.
He mentioned that the new technology will help to estimate the cost of goods on imports and exports using artificial intelligence, models, and bots.
The FBR's recently introduced Risk Management System (RMS) performance gains saw more than 92% improvement in initial testing, increased the green channel clearance, and identified a greater number of goods declarations.
A joint report from the FBR and the Intelligence Bureau (IB) indicated recoveries of Rs178 billion in anti-hoarding and tax evasion activities.
Moreover, PM praised the FBR and IB for their efforts and urged continued collaboration to grow national tax revenue. The government is also continuing austerity measures, including bans on vehicle purchases and foreign trips, to control spending.
