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Business & Finance

Key highlights of Budget 2024-25

  • Business Recorder takes a look at key points
Published June 13, 2024 Updated June 15, 2024

The government of Pakistan presented the budget for the fiscal year 2024-25 on Wednesday. Business Recorder takes a look at some of the key highlights of the documents.

  • Economic growth target fixed at 3.6% for fiscal year 2024-25

  • Inflation seen at 12% in FY2024-25

  • Total outlay of the budget for FY25 is Rs18.9 trillion

  • Gross revenue receipts expected at Rs17.8 trillion

  • Non-bank borrowing expected at Rs2.662 trillion

  • Rs5.142 trillion expected from bank borrowing

  • Rs666 billion earmarked for net external receipts

  • Privatisation proceeds expected at Rs30 billion

  • Rs9.775 trillion earmarked for interest payments

  • Rs1.014 trillion to be spent on pensions

  • Rs2.122 trillion allocated for Defence affairs and services

  • Rs1.777 trillion earmarked for grants and transfers to provinces

  • Rs1.363 trillion to be spent on subsidies

  • Running of civil government and emergency provision expected to consume Rs1.152 trillion

  • Rs1.674 trillion allocated for development and net lending

  • Overall fiscal deficit is at Rs7.283 trillion

  • Overall fiscal deficit at GDP 5.9%, down from the revised 7.4% of FY2023-24

  • FBR taxes envisaged at Rs12.97 trillion, around 40% higher than outgoing fiscal year

  • Non-tax revenue envisaged at Rs4.8 trillion

  • Federal PSDP budgeted at Rs1.400 trillion

  • Increase in allocation of BISP from Rs466 billion to Rs592 billion, subsidy allocation of Rs65 billion for utility stores corporation, Rs10 billion kept for Ramzan package

  • Pensions of government employees to be increased by 15%

  • 25% increase in salaries of Grade 1 to 16 and 20% in Grade 17 to 22

  • Rs37,000 minimum wage proposed

  • Extra Federal Excise Duty (FED) of Rs1,000 per ton imposed on cement, bringing total FED to Rs3,000 per ton of cement dispatched

  • GST exemption granted to the FATA/PATA region to be removed

  • Sales tax rate for point-of-sale (POS) retailers dealing in leather and textile products increased from 15% to 18%

  • Maximum limit for petroleum levy enhanced for petrol and diesel to Rs80 per litre

  • Withdrawal of custom duties exemptions on CBU imports of hybrid vehicles

  • Withdrawal of concession on import of electric vehicles with value exceeding US$ 50,000

  • Advance tax on registration of motor vehicles above 2,000 cc will be fixed at a certain amount in proportion to the value of the vehicle

  • Iron and steel scrap to be exempted from levy of sales tax

  • Rs253 billion allocated for development of energy sector

  • ‘National Fiscal Pact’ proposed with all provinces

  • A new category of ‘Late Filers’ introduced in the income tax law under the Finance Bill 2024

The story, originally published June 13, 2024, was updated on June 15, 2024 as further details came to light.

Comments

200 characters
Az_Iz Jun 13, 2024 12:14pm
Drafted by IMF, presented by Aurangzeb and sufferings for us.
thumb_up Recommended (0) reply Reply
Az_Iz Jun 13, 2024 12:18pm
Fifteen percent increase in pension? Talk about burden.
thumb_up Recommended (0) reply Reply
Az_Iz Jun 13, 2024 12:20pm
Resources is equal to expenditure.
thumb_up Recommended (0) reply Reply
Abdullah Khan Jun 16, 2024 04:29pm
The development budget in Pakistan strengthens the ill-fated politicians
thumb_up Recommended (0) reply Reply