On June 12, 2024 Muhammad Aurangzeb, the federal minister of finance and revenue, give the budget address to the federal cabinet for the financial year of 2024-2025.
He stated that in comparison to other nations, Pakistan’s Tax-to-GDP Ratio is significantly lower. For this reason, tax reform is essential to the health of our economy and government increases tax ratio in different sectors.
Additionally, he disclosed that the Cabinet will be presented with a merchant-friendly scheme that the government established specifically for wholesalers and retailers. As a first step towards Right Sizing, the Prime Minister has announced the closure of the PWD department.
While the expected revenue of the Federal Bureau of Revenue is RS 12.97 trillion, or 38% greater than the current financial year, the entire budget outlay for the financial year 2024–25 is estimated to be RS 18.877 trillion.
The federal government’s net income is expected to be RS 9.119 trillion, while the aim for non-tax revenue is expected to be RS 3.587 trillion.
Privatization
Privatization has been declared a top priority by the government. It will not only commence an operational program of providing other SOES for private sector investment, but it will also speed up the current privatization of organisations such as PIA, Roosevelt Hotel, House Building Finance Corporation, and First Women’s Bank. The shift to the sector will receive extra consideration.
The energy, banking, and industrial sectors were controlled and governed by SOES in the next years. Government will accept bids in this regard until July 15, 2024. In a few months, the airports in Karachi and Lahore will begin to be privatised.
Increment, Salaries and Pension
People’s purchasing power has been affected by inflation. This has a special impact on the salaried class. The pay of government employees in grades 1 through 16 have been boosted by 25% in order to increase their purchasing power. Officers in grades 17 to 22 will see a 20% boost in pay.
Additionally, a 15% rise in pensions for retired personnel is being recommended. The government recommend that the minimum monthly pay for the government employees should be from RS 32,000 to RS 37,000.
Benazir Income Support Program
The government has decided to increase the BISP funding for the coming financial year by 27%, amounting to RS 593 billion for the initiatives. Ten million more kids will be signed up for the scholarship program, making 10.4 million scholarships available in total.
The government of BISP is going to launch a program under the auspices of poverty graduation and skills development for the first time in an effort to improve people’s economic circumstances and encourage economic inclusion.
Energy Budget
An amount of RS 1.363 Trillion has been allocated as a subsidy for electricity, gas and other sectors.
253 billion Pakistani Rupees has been budgeted in the development budget for the energy sector. Increasing the privatization of 9 DISCOS and GENCOS is the plan.
There will be a stronger formality and organisational structure to the fight against electricity theft. In the same way, RS 5 billion has been set aside for the project.
Proposals for a 1200 MW coal power station at Jamshoro worth RS 21 billion and an NTDC system upgrade of RS 11 billion have been made.
The total budget for Technology Park in Islamabad will be 9.92 Billion.
Water resources have been allotted RS 206 billion in the upcoming financial year’s development budget. Among these are the hydropower project, the Mohammedan Dam, which will cost RS 45 billion; the Diamir Bhasha Dam, which will cost RS 40 billion; the lift-cum-gravity project, which would cost RS 18 billion; and the proposed reconstruction of the pit feeder canal in Balochistan, which will cost RS 10 billion.
Education Sector
Instead of Rs59.7 billion this year, the Higher Education Commission (HEC) would receive Rs66.3 billion. The combined districts of Khyber Pakhtunkhwa (KP) would receive money of RS 70 billion, up from RS 57 billion this year. Gilgit-Baltistan and AJ&K, two special areas, will get Rs74.5 billion in the coming year as opposed to Rs60 billion this year.
To provide young children with a solid educational foundation, 100 schools will build early childhood education centers in all over Pakistan.
Health Sector
The National Health Services & Research Division would receive RS 27 billion as opposed to RS 14 billion in the current year, while the National Food & Security Division will receive RS 41 billion compared to the current year’s budget of RS 8.8 billion.
Solar Panel Industry
According to the Federal Minister’s speech on the budget, in order to lessen reliance on imported solar panels and preserve valuable foreign exchange, subsidies have been provided on the import of plant, machinery, and related equipment as well as raw materials and components used in the production of solar panels to meet local needs.
Overseas Pakistani
The foundation of our economy is made up of Pakistanis living abroad, and their financial contributions are significant to the national GDP.
To honor the outstanding contributions of Pakistanis residing overseas, the Mohsin Pakistan Award is being created. It is suggested to set aside Rs86.9 billion in the budget for TT charge reimbursement in order to encourage the sending of remittances by Pakistanis living abroad.
Import and Export
Taking into account the significance of this industry the sum allotted for the refinance scheme went from RS 3.8 billion to RS 13.8 billion, through EXIM Bank.
PIFRA Registration Form Online salary Pay slip for Govt Employee
Defense Sector
Increased defence spending by about 15% and allotted RS 2,122 billion in the 2024-2025 budget. The budget for civil administration costs is RS 839 billion. The budget for pension expenses is RS 1.014 trillion.
Income Tax
If an individual earns less than 600,000 RS per year, they will not be subject to income tax. The tax for non-filers will be 45 percent.
Starting on July 1, 2024, the proposed tax changes would lower the 19% tax rate to 16%, which lower the tax rate from 32.5 % to 30%.
These modifications will be finally implicated from 1 July 2024.
