The National Economic Council on Monday approved the development budget of Rs 1500 billion for the next fiscal year 2024-25.
The Rs 1500 billion development budget would consist of Rs 1400 billion from the federal budget and Rs 100 billion from the Public Private Partnership share.
Prime Minister Shahbaz Sharif chaired the NEC meeting that also approved a 5-year plan. The growth rate is fixed at 3.6 percent in the next financial year which would be increased to 6 percent by 2029.
The average economic growth target for the next five years has been set at 5.1 percent.
According to the budget document, a growth target of 2 percent has been fixed for agriculture, 4.4 percent for industry, and 4.1 percent for services.
According to sources, the export target for the next financial year has been set at $40.5 billion, while the import target is set at $68.1 billion.
Similarly, the target for remittances from overseas Pakistani workers is estimated at $30.2 billion. Meanwhile, the current account deficit target has been set at 3.7 percent.
The budget 2024-25 which was earlier scheduled to be presented on June 10 is now likely to be presented on June 12.
The Pakistan Economic Survey 2023-24 will be presented on June 11 after a meeting of the council on June 10, the sources said.
The federal budget 2024-25 will likely get approval from the Senate by June 26. The Pakistani government is likely to end tax exemptions in the FY2024-25 budget on IMF’s demand.
According to budget proposals for the budget 2024-25, Pakistan is likely to end exemption on sales and income tax, phase-wise.
The government is also considering imposing a sales tax on tractors and pesticides, potentially leading to price hikes for these essential agricultural products.
