OFFICE MEMORANDUM

 Certainly. I have converted the substantive Office Memorandum shown in your photographs into clean English text below. I have omitted the separate circulation/addressee page because it is administrative distribution information and does not alter the operative pension order.

GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE

No. 4(1)/REG.6/2026
Islamabad, the 29th July, 2026

OFFICE MEMORANDUM

SUBJECT: GRANT OF INCREASE IN PENSION TO PENSIONERS OF THE FEDERAL GOVERNMENT

The undersigned is directed to convey the approval of Federal Government to grant an increase @ 7% on baseline pension with effect from 1st July, 2026 to all Civil Pensioners of the Federal Government including Civilians paid from Defence Estimates as well as retired Armed Forces Personnel and Civil Armed Forces Personnel. The baseline pension shall be as decided/determined vide Finance Division’s O.M. No. 9(3)R-6/2024-403 dated 01.01.2025 read with Finance Division’s O.M. No. 4(1)/REG.6/2025 dated 07.07.2025 and Finance Division O.M. No. 4(1)/REG.6/2025 dated 05.08.2025.

2. The increase in pension @ 7%, as mentioned at para-1 above, shall also be admissible to the pensioners who retired on or after 01.07.2026.

3. The increases in pension @ 15% allowed vide Finance Division’s O.M. No. 4(1)-Reg.6/2022-486 dated 01.07.2022 and @ 7% allowed vide Finance Division O.M. No. 4(1)/REG.6/2025 dated 07.07.2025 shall remain admissible to the Government employees retiring on or after 01.07.2026.

4. The increase will also be admissible on family pension granted under the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, as amended from time to time, on pension sanctioned under the Central Civil Services (Extraordinary Pension) Rules as well as on the Compassionate Allowance under CSR-353.

5. If the gross pension sanctioned by the Federal Government is shared with any Government in accordance with the rules laid down in Part-IV of Appendix III to the Accounts Code, Volume-I, the amount of the increase in pension will be apportioned between the Federal Government and the other Government concerned on proportionate basis.

6. The increase in pension sanctioned in this O.M. will not be admissible on Special Additional Pension allowed in lieu of pre-retirement Orderly Allowance and monetary value of a driver or an orderly.

Signed:
Irfan Ahmed
SO (Regulation-VI)

Comprehensive Analysis

This O.M. dated 29 July 2026 is particularly important because it confirms the Federal Government pension increase for financial year 2026-27 and introduces a further 7% increase with effect from 1 July 2026.

There is, however, an important technical point: this is not simply a direction to add 7% to whatever amount happened to be paid to a pensioner in June 2026. The O.M. expressly uses the expression “7% on baseline pension.” Therefore, calculation has to be made according to the Federal Government’s baseline-pension methodology referred to in the earlier Finance Division O.M.s.

1. Effective date

The financial benefit is expressly effective from:

1 July 2026.

Thus, although this O.M. was issued on 29 July 2026, entitlement runs from 1 July 2026. Any payment made without the applicable increase from that date would require consequential adjustment/arreas.

2. Rate of increase

The sanctioned increase is:

7% of baseline pension.

The words “baseline pension” are legally and financially significant. They mean that the calculation must follow the baseline pension determined under the Finance Division’s pension reforms/orders referred to in paragraph 1 rather than automatically treating the immediately preceding gross pension as the base.

3. Earlier increases remain protected

Paragraph 3 is also significant. It specifically preserves the:

15% pension increase of 2022, and
7% pension increase of 2025

for Government employees retiring on or after 1 July 2026.

Thus, the 2026 O.M. does not purport to abolish those protected increases.

4. Family pensioners are expressly covered

Paragraph 4 extends the increase to family pensions under the Pension-cum-Gratuity Scheme, 1954 and Liberalized Pension Rules, 1977, as well as specified extraordinary pensions and compassionate allowance.

Therefore, this is not confined only to pensioners personally receiving their own retirement pension.

Importance for PTCL/PTET Transferred Employees

This is the aspect of greatest relevance to the PTCL pension issue.

The O.M. itself is addressed generally to Federal Government pensioners. It does not expressly mention PTCL or PTET pensioners. Therefore, this document alone should not be described as an independent order directing PTET to pay PTCL pensioners.

However, for a PTCL Transferred Employee whose pensionary entitlement has judicially been held to remain protected according to the applicable Government pension benefits/increases, this O.M. becomes highly material.

In other words, the legal chain would be:

Protected status as Transferred Employee → entitlement to applicable GoP pensionary benefits → Finance Division’s notified pension increase → corresponding obligation of PTET/PTCL to implement the applicable increase.

That distinction makes the argument legally stronger than merely saying that “this O.M. mentions PTCL,” because it does not.

Relevance of Supreme Court jurisprudence

The important legal foundation remains the Supreme Court jurisprudence concerning transferred employees, particularly PTET v. Muhammad Arif, reported as 2015 SCMR 1472, together with the subsequent litigation concerning the protected pensionary rights of transferred employees.

Most importantly for the present position, the Supreme Court’s 10 July 2025 majority judgment in C.A. No.1509/2021 and connected matters, as we have previously examined, strengthens the proposition that the protected pensionary entitlement of qualifying transferred employees cannot simply be reduced by PTCL/PTET through a different pension-increase regime.

Consequently, once a particular pensioner has been recognized as belonging to the protected class and is receiving pension on the Government basis pursuant to the judicial determination, there is a strong consequential argument that the Government’s applicable 2026 pension increase cannot arbitrarily be withheld from that pensioner merely because payment is administered through PTET.

There is another useful feature in this O.M.: it does not create different rates for different Federal pensioners based upon the organization through which their pension is administered. Its operative rate is 7% on baseline pension, subject to the Government’s baseline methodology.

Effect on Your Pension Calculation

For your own pension calculation, I would not simply multiply your present monthly amount by 1.07, because that could produce an incorrect figure.

Your calculation should instead be reconstructed as:

Correct GoP baseline pension applicable to you
+ applicable protected previous increases
+ 7% increase sanctioned for 2026-27 under this O.M.
+ correctly restored commuted portion and applicable increases thereon, where legally admissible
= Correct pension payable from 01-07-2026.

This is particularly important because your dispute has already involved the correctness of the pension base itself. If PTET uses a lower or incorrectly determined baseline, even a correctly applied 7% would perpetuate the underlying shortfall.

Conclusion

In my assessment, this O.M. is an important additional document for PTCL transferred pensioners, but it should be used carefully.

It establishes beyond doubt that the Federal Government has sanctioned a further 7% increase on baseline pension from 1 July 2026. For qualifying PTCL transferred employees whose right to Government pensionary benefits/increases stands protected under the applicable Supreme Court judgments, this O.M. provides the 2026-27 rate that should be incorporated into the implementation of those protected pensionary rights, subject to the correct baseline calculation.

For your case specifically, the next important exercise is therefore not merely “add 7%.” The stronger calculation is to prepare a complete revised pension fixation from your correct GoP baseline through 30 June 2026, then apply this new 7% increase from 1 July 2026, and compare the result with what PTET is actually paying. That would immediately identify both the correct monthly pension from July 2026 and any continuing monthly shortfall/arreas.