ISLAMABAD – The coalition government of Pakistan on Wednesday presented the budget of for the fiscal year 2024-25 with a outlay of Rs.18.877 trillion.
The session for the budget of 2024-2025 commenced in the National Assembly under the chairmanship of Speaker Ayaz Sadiq, two hours later than scheduled. The session began with the recitation of verses from the Holy Quran, followed by the recitation of Naat-e-Rasool (peace be upon him). After the national anthem, Speaker Ayaz Sadiq directed Finance Minister Mohammad Aurangzeb to present the budget.
Budget Speech in brief
Finance Minister Muhammad Aurangzeb opened his budget speech by thanking the leaders of allied parties, including Nawaz Sharif, Shehbaz Sharif, Bilawal Bhutto, and Khalid Maqbool Siddiqui. He emphasized that the budget is focused on development, noting that economic growth is accelerating compared to previous years.
He claimed it “a robust budget aimed at fostering economic stability, promoting sustainable growth, and enhancing public welfare.”
Further details revealed that the target for tax collection in the budget is set at Rs. 13 trillion, with a development budget of Rs. 1.5 trillion. The growth rate target is set at 3.6%, with Rs. 9.775 trillion allocated for debt servicing. Additional allocations include over Rs. 2 trillion for defense, Rs. 847 billion for law enforcement agencies, Rs. 1.014 trillion for pensions, and Rs. 1.013 trillion for electricity and gas subsidies.
The estimated revenue from the Federal Board of Revenue (FBR) is Rs. 12 trillion, while the government’s net income is estimated at Rs. 9 trillion.
Increase in Salaries and Pensions
The Finance Minister announced a proposed increase of up to 25% in the salaries of government employees and a 15% increase in pensions for retired employees. The proposed increase includes a 25% raise for government employees in grades one to sixteen and a 22% raise for officers in grades seventeen to twenty-two. Similarly, retired government employees are proposed to receive a 15% increase in pensions.
Allocation for Airports and IT Parks
It was revealed that bids have been invited for outsourcing operations at Islamabad Airport, and similar plans are underway for airports in Lahore and Karachi. Additionally, funds have been allocated for the construction of IT parks in Karachi and Islamabad.
Income Tax Threshold Increase
The income tax threshold has been raised from Rs. 600,000 to Rs. 900,000, providing relief to the salaried class. However, for the non-salaried class, the tax rate has been proposed at 45%.
Benazir Income Support Program
Under the Benazir Income Support Program (BISP), a 27% increase has been proposed, with a dedicated amount of Rs. 593 billion.
Investments in Various Sectors
Various programs and projects have been outlined, including the introduction of a Financial Independence Program under the BISP, initiation of graduation and skills programs, inclusion of an additional ten million children in the education job program, expansion of the Nashonuma program, and provision of loans to farmers under the Kisan package.
Key Takeaways from Budget 2024-25
| Category | Details |
|---|---|
| Budget Outlay | Over Rs18 trillion |
| Presentation Date | June 12, 2024 (Wednesday) |
| Finance Minister | Muhammad Aurangzeb |
| Focus Areas | Mitigating public hardships, transforming agriculture, promoting IT, boosting exports, stimulating industrial growth, supporting businesses |
| Fiscal Consolidation | Contain budget deficit |
| Salary Increase Proposal | 15 to 20 percent |
| Revenue Mobilization | Improve tax collection, broaden tax base, facilitate taxpayers |
| Revenue Collection Target | Over Rs12 trillion |
| Tax Target for FBR | Over Rs12.9 trillion |
| Federal Budget Deficit | Over Rs9.5 trillion |
| Federation Income | Rs15.424 trillion |
| Tax Revenue Estimate | Rs13.32 trillion |
| Petroleum Levy Revenue | Rs1.08 trillion |
| Total Allocation for Expenses | Rs22.037 trillion |
| Defense Budget | Rs1.252 trillion |
| Social Sector Development | Emphasis on development and governance reforms |
| Private Sector Investment | Encourage and boost private sector investment |
The budget session faced protests from members of the Sunni Ittehad Council, who surrounded the Speaker’s dais with loud slogans against the government, specifically in favor of Imran Khan. The session began with a boycott by members of the Pakistan Peoples Party, alleging lack of trust in the budget. However, Deputy Prime Minister swiftly intervened, convincing PPP leadership to participate in the session.
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