Shaukat Tarin unveils Rs8 trillion Budget 2021-22

04:00 PM | 11 Jun, 2021
Shaukat Tarin unveils Rs8 trillion Budget 2021-22

ISLAMABAD – Finance Minister Shaukat Tarin on Friday presented the Federal Budget 2021-22 amid ruckus by opposition inside and protests by the employees outside the lower house of Parliament.

Tarin – who unveiled the Pakistan Economic Survey 2020-21 a day earlier – began his speech soon after the National Assembly session started at 4:00pm.

Key Highlights


The federal government has set the GDP target at 4.8pc for next fiscal year.

Defence and Interior

Rs1370 billion have been earmarked for defence expenditure

  • Rs 1,977.63 million has been earmarked for Defence Division.
  • Rs 1,745 million has been set aside for Defence Production Division.
  • Rs 2,1048.71 million has been granted for Interior Division.
  • Rs 200 million has been set aside for Pakistan Nuclear Regulatory Authority.


  • A total of Rs12 billion has been fixed for the development of agriculture sector.

Education, Science & Technology

  • A total of Rs66 billion have been earmarked for HEC
  • Rs 8,341 million has been earmarked for Science and Technology Research Division.


  • No new tax is being imposed on the salaried class in the budget. In order to support small businesses, the annual turnover tax ceiling has been increased from Rs10 million to Rs100 million, while sales tax is being reduced.
  • Federal excise duty is being removed from cars up to 850cc while value-added tax (VAT) on these is being removed.
  • Sales tax on locally manufactured cars is being slashed from 17 percent to 12.5 percent, while the sales tax on electric vehicles from 17 percent to 1 percent.

Public Sector Development Programme (PSDP)

Rs900 billion allocated for federal PSDP – with an increase of 40pc from last year

  • Rs 5000 million has been set aside for COVID Responsive and Other Natural Calamities Programme.
  • An amount of Rs. 4461.911 million has been allocated for the ongoing and upcoming projects of Maritime Affairs Division for the fiscal year 2021-22. 

Climate Change

Around Rs14.327 billion has been earmarked for various ongoing and new projects of climate change division aimed at enhancing countries resilience against environmental degradation with maximum funding for its flagship project of Ten Billion Tree Tsunami Plantation (TBTTP).

Salaries & Pensions: Minimum wage is being increased to Rs20,000 while federal employees will be provided 10pc ad hoc relief. A 10pc increase is being made in all pensions.


  • NFC award allocation is going to be Rs. 2874 billion in this budget.
  • Rs5 billion allocated for new census in 2022, while Rs5 billion earmarked for election of local bodies.

Budget 2021-22

The budget envisages allocation of 900 billion rupees for the federal Public Sector Development Program (PSDP), which is thirty eight percent higher than the previous year.

The PSDP focuses on improving transport and communication facilities with special emphasis on inter-provincial and regional connectivity, investment on building large dams and water conservation systems, augmenting and strengthening health sector infrastructure, improving access to higher education, social protection, increasing employment and livelihood opportunities. It also aims at reducing regional disparities, mitigating effects of climate change, building knowledge economy, enhancing agricultural productivity and ensuring food security and supporting Public Private Partnership initiatives.

According to the annual plan, an amount of 469 billion rupees, which is fifty two percent of total PSDP, has been allocated for projects aiming at modernizing infrastructure for accelerating growth. An amount of 228,767 million rupees has been earmarked for energy sector projects for the next fiscal year. By June next year, an additional 5981 megawatts of electricity is expected to be plugged into the system, including 1536 megawatts from renewable sources.

To boost industrial development, electricity and gas supply schemes for Special Economic Zones under CPEC are expected to be completed by June next year.

There is a plan to add another ten million acre feet in the water storage capacity during the next year.  To overcome water scarcity and enhance storage capacity, two major storage dams Diamer-Basha and Mohmand along with 518 medium and small dams having cumulative storage capacity of 8.33 million acre feet have been initiated throughout the country. An amount of 90.313 billion rupees has been allocated for water sector projects, excluding hydel projects during the next fiscal year.

In order to attain one percent additional afforestation during the next fiscal year, the government has allocated 14,000 million funds to ensure efficient implementation of Ten Billion Tree Tsunami Program-Phase 1.

An amount of 302 billion rupees, which is seventy four percent higher than the PSDP 2020-21, has been earmarked for the development program of the transport and logistics. The concessional financing agreement for landmark ML-1 project of Pakistan Railways is expected to be finalized in the first quarter of next financial year and subsequently arrangements will be made for its groundbreaking.

The Ministry of National Health Services has proposed forty two new schemes for financing out of the next year's PSDP. Some important initiatives include improving emergency and response services for COVID-19 and other transmittable diseases.

An amount of 5.52 billion rupees has been earmarked for projects in education sector including one billion rupees earmarked for Azad Kashmir. An amount of 37.3 billion rupees for development projects of higher education sector projects and 8341 million rupees for the development projects of the Ministry of Science and Technology.

For Physical Planning and Housing Sector programs, forty nine billion rupees have been allocated.

Funds to the tune of 1899.86 million rupees have been allocated in the PSDP for the Ministry of Information and Broadcasting and 125.93 million rupees for the National Heritage and Culture Division.

In order to promote balanced regional development, an amount of 160 billion rupees, which is eighteen percent of the PSDP, has been kept aside for projects aiming at fostering harmony in the federation.

The government has planned to invest one hundred billion rupees during the next fiscal year in Azad Kashmir and Gilgit Baltistan and for the merged districts in Khyber Pakhtunkhwa.

The CPEC planned activities during the next fiscal year include continuing work on four Special Economic Zones whilst work will commence on the remaining twenty-three of the twenty seven projects identified for poverty alleviation, health, education, vocational training, agriculture and water supply.

Cabinet okays 10pc increase in govt employees' ... 03:06 PM | 11 Jun, 2021

ISLAMABAD – The federal cabinet on Friday approved 10 percent increase in the salaries and pension of government ...

Earlier today, the federal cabinet met in Islamabad with Prime Minister Imran Khan in the chair to discuss and approve the federal budget proposals.

This is the third budget presented by PTI government, with an estimated outlay of around Rs8.487 trillion.