Key Takeaways from Pakistan’s Federal Budget 2024-25

Finance Minister of Pakistan Muhammad Aurangzeb unveiled budget for fiscal year 2024-25 on Wednesday. Key targets of Budget 2024-25 include GDP growth target of 3.6pc, inflation at 12pc, and a budget deficit at 5pc of GDP.

The government aimed to increase income, reduce unnecessary expenses, and shift to a market-driven economic model.  Key measures include reforms in the pension system, privatisation of state-owned enterprises, and efforts to boost the agriculture and IT sectors.

Budget 2024-25 also includes easing regulatory frameworks to attract business investment and increase exports.

Key Takeaways from Budget 2024-25

Budget Outlay: Total outlay of Rs. 18.877 trillion, with 30pc increase

Current Expenditure: Proposed Rs. 17,203 billion, around 29pc increase

Minimum Wage Increased from Rs. 32,000 to Rs. 37,000.

Budget 2024-25 Objectives

  • Ensure stability and growth
  • Reform external sector
  • Strengthen private sector
  • Support vulnerable groups
  • Improve public sector efficiency
  • Introduce targeted energy and agriculture reforms
  • Focus on youth education and skill development
  • Integrate green and gender-responsive budgeting

Tax Policy Highlights

  • Increasing tax base
  • Digitize economy
  • Implement progressive taxation
  • Increase transaction taxes for non-filers
  • Protect vulnerable segments from inflation

Federal Revenue

Total revenue of Rs. 17,815 billion, net revenue of Rs. 10,377 billion after provincial transfers.

Transition to Market-Driven Economy

Emphasis on transitioning from government-controlled to a market-driven economy.

Equity and Inclusion

Importance of considering equity and inclusion in economic reforms.

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