Pakistan Fedral Budget 2024-25

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.