Key Points of the Federal Budget 2024-25
Date of Presentation: 12 June 2024
Total Budget
- Total budget outlay: Rs18.887 trillion
- Increase from the previous year: 30%
Tax Collection and GDP Growth
- Tax collection target: Rs13 trillion
- GDP growth target: 3.6%
- Budget deficit: 6.9% of GDP
Salary and Pension Increases
- 25% increase for grades 1 to 16
- 20% increase for grades 17 to 22
Key Allocations and Packages
- Kissan Package: Rs5 billion
- Energy Sector: Rs253 billion
- Rs65 billion for electricity lane installation
- Rs5 billion for electricity distribution improvement
- Rs21 billion for the 1200 MW Jamshoro Power Plant
- Rs11 billion for NDTC system improvement
Economic Reforms and Initiatives
- Emphasis on restructuring and privatizing State-Owned Enterprises (SOEs)
- Active monitoring of Federal Board of Revenue (FBR) reforms
- Closure of the Public Works Department (PWD) for austerity
Economic Challenges and Achievements
- Depreciation of the Pakistani Rupee by 40 rupees within a year
- Reduction in inflation from 38% to a more manageable level
- Improved investor confidence due to IMF Standby Arrangement
Opposition and Political Climate
- Opposition protest during budget presentation
- Sunni Ittehad Council (SIC) members’ protest against budget policy
Government Approvals
- Budget approved by the federal cabinet
- Additional packages for farmers, youth, and industries approved
Conclusion
The Federal Budget 2024-25 focuses on ambitious tax targets, economic reforms, and significant allocations for development projects, despite facing political opposition and economic challenges.