ISLAMABAD – Finance Minister Muhammad Aurangzeb unveiled federal budget for the fiscal year 2024-25 with a total outlay of over Rs18.877 trillion in the National Assembly on Wednesday, amid rumpus from the opposition benches.
The PPP, coalition partner of the ruling PML-N, decided to stay away away from the budget session due to differences on PSDP projects. However, the PPP legislators reached the House before the budget speech on persuasion of PML-N team led by Deputy Prime Minister Ishaq Dar.
The budget is presented at a time when Pakistan is in talks with the International Monetary Fund (IMF) for a loan package ranging between $6 billion to $8 billion.
As per the budget speech, the document had been formulated while considering the existing challenges being faced by the economy at domestic and international fronts. Hence, mitigating people’s sufferings, transforming agriculture sector, promoting Information Technology (IT), boosting exports, promoting industrial growth and bolstering businesses are the main focus of the document.
The federal government has proposed 25 per cent increase in the salaries of the BPS-1 to BPS-16 employees and 22 per cent for BPS-17 and above. Exports have been estimated at $32.7 billion and imports at $58 billion, trade deficit of $25.3 billion.
The federal government has estimated GDP growth at 3.6 per cent, average inflation at 12 per cent and budget deficit at 3.6 per cent of the GDP. FBR revenues are estimated at 12.97 trillion and non-tax revenue at 3.587 trillion.
The government has proposed allocation of Rs2.122 trillion for defense, Rs839 billion for civil administration expenditures, Rs1.014 trillion for pensions, Rs1.363 trillion for electricity and gas subsidy.
The government has proposed Rs1500 billion for PSDP including Rs100 billion for public-private partnership projects, Rs597 billion for Benazir Income Support Program (BISP), Rs253 billion for energy sector, Rs206 billion for water resources, Rs79 billion for IT sector, Rs86.9 billion for encouraging remittances, Rs50 billion for production sector including agriculture and Rs5 billion for Markup and Risk Sharing Scheme for Farm Mechanization.
Economic Survey of Pakistan 2023-24:
Pakistan’s economy registered moderate recovery reflected by a GDP growth of 2.38 per cent against previous year’s contraction of 0.21 per cent but it missed the target.
“Agriculture emerged as a main driver of economic growth, registering a growth of 6.25 per cent on the back of double-digit growth in output of major crops. Industrial and services sectors also showed resilience with each posting a growth of 1.21 per cent,” read the economic survey.
Current account deficit was kept under check, with marked improvement in foreign exchange reserves, reaching $14.6 billion by end May 2024.
The fiscal sector progressed towards stability, propelled by consolidation efforts and targeted reforms. Fiscal deficit remained manageable with an overall primary surplus. Rupee appreciated by almost 3 per cent during the first eleven months, it said.
