Introduction to Pakistan’s Budget 2024-25

Pakistan’s Federal Budget for the fiscal year 2024-25 was presented on June 12, 2024, by Finance Minister Muhammad Aurangzeb, with a total outlay of Rs18.887 trillion. The budget projects a GDP growth rate of 3.6% and a budget deficit of 6.9% of GDP. An overview of Pakistan’s Budget is given below.

Salaries and Pension in the Budget

In terms of salaries and pensions, the budget proposes a 25% increase for grades 1 to 16 and a 20% increase for grades 17 to 22. Moreover, the minimum monthly salary has also been increased from Rs32,000 to Rs37,000.

Major Allocations in Budget 2024-25

Major allocations in Pakistan’s Budget include Rs2.122 trillion for defense, a 14.99% increase from last year. In addition, Rs253 billion for the development projects in the energy sector. The Kissan Package has been allocated Rs5 billion for farmers.

Allocations for Social Programs in the Budget

Pakistan’s Budget also focuses on social programs, with a 27% increase in funding for the Benazir Income Support Program (BISP) to Rs593 billion, helping an additional 700,000 eligible persons. The education scholarship program will now include 10 million more children.

Sector-Specific Measures in Budget 2024-25

Sector-specific measures include exemptions on import tax for the solar panel industry and discounts on import tax for shrimp breeding and fish. The budget also proposes reforms for state-owned enterprises, including restructuring and privatization plans. Moreover, the budget also allocates funds for various projects, including the Jamshoro Power Plant and the improvement of the National Transmission & Despatch Company (NTDC) system.

Pension Reforms in the Budget

Pension reforms in Pakistan’s Budget 2024-25 include a new scheme for new government employees, with monthly salary deductions for the pension fund.

Inflation and Reforms in FBR in Budget 2024-25

The government has highlighted its efforts to reduce inflation, which has decreased from 38% to 11.8%, and it aims in achieving single-digit inflation. The Federal Board of Revenue (FBR) reforms also aim to expand the tax net.

Miscellaneous

Finally, the government has abolished all vacant posts in grades 1 to 16, saving Rs45 billion annually, and imposed a tax on material used in cigarette filters to curb fake cigarette sales. Pakistan’s Budget 2024-25 has allocated Rs93 billion for education, and it has assigned Rs27 billion for healthcare.

The opposition has protested the budget, while the government emphasizes its achievements amidst economic challenges, aiming for sustainable growth and stability.