Introducing the Budget Pakistan 2023-24, a comprehensive financial roadmap that sets the course for the nation’s economic future. Developed with a focus on sustainable growth and equitable development, this budget aims to address the pressing needs of Pakistan. Budget Pakistan 2023-24 presents a strategic framework that seeks to propel the nation toward prosperity, develop key sectors, and uplift the lives of its citizens.
In its formulation, Budget 2023 Pakistan takes into account the country’s Gross Domestic Product (GDP) as a crucial parameter. By aligning expenditures, revenue generation, and borrowing plans with the expected GDP, the budget aims to achieve a sustainable fiscal balance while maximizing the resources available for development initiatives.
Budget Pakistan 2023-24 was presented by Pakistan’s current government. We bought this article for you on the topic Top 10 Highlights of Budget Pakistan 2023-24.
Current Government Finance Minister Ishaq Dar targeted the economic growth of the country to 3.5% in the upcoming fiscal year. This is in comparison to the growth of 0.29% in the current fiscal year. The lower growth target for the next fiscal year is due to a number of factors, including:
- The ongoing economic crisis in Pakistan has been exacerbated by the Russia-Ukraine war.
- The high fiscal deficit, which is expected to reach 6.5% of GDP in the next fiscal year.
- The high inflation rate, which is expected to remain above 10% in the next fiscal year.
Inflation has been targeted to an average of 21%, as said by Dar during Budget Pakistan 2023-24 speech. Which is a very higher target as compared to the previous fiscal year’s target of 11.5%. For your information, Pakistan’s current inflation rate is around 35%.
Defence Affairs and Service Allocation
Rs 1.8 trillion has been allocated by the Government of Pakistan for defence spending I mean the army of Pakistan. The defence budget is increased from 1566 bn to 1809 bn in the recent budget Pakistan 2023-24. The defence budget is around 13 per cent higher than the revised allocation for the outgoing year.
Rs950 bn has been allocated by GOP on account of the Public Sector Development Programme. Federal PSDP was allocated Rs727bn in the previous fiscal year. According to the finance minister, the Public Sector Development Programme (PSDP) has a budget of Rs. 1,150 billion, of which Rs. 200 billion will come from PPPs(public-private partnerships).
Salaries, pension increase
Dar disclosed that the government retiree pensioners will get an equivalent increase of 17.5%. They aren’t taxed, but this hike is reasonable given inflation, according to Dar. The minimum pension will be Rs12,000 while there is a proposal to increase the EOBI pension from Rs8500 to Rs10,000.
For federal government personnel in grades 1 through 16, Dar offered a significant 35% increase, and for those in grades 17 through 22, he announced a 30% increase in ad-hoc relief allowance.
Students, IT and Freelancers
Rs10 bn has been allocated to provide 100,000 laptops to deserving students under the youth scheme.
According to Dar, the 0.25% income tax rate has been extended for freelancers until 2026. According to the finance minister, professionals in the IT field are now able to import equipment duty-free up to 1% of their exports. Imports are restricted to $50,000 annually. Additionally, IT specialists who earn up to $24,000 annually are excused from submitting income tax returns.
Subsidies Budget has been increased by 62 percent, from Rs 664 billion in budget 2022–23 to Rs 1.074 trillion in FY 2023–24, according to the federal budget. Govt. has separated Rs6bn for subsidies on imported urea. Keeping in mind the inflation rate, govt. has announced targeted subsidies on wheat flour, ghee, rice and pulses.
According to Pakistan’s budget for 2023–24, the amount of subsidies for the power sector will rise by more than 27%, from Rs. 455 billion authorised for 2022–23 to Rs. 579.075 billion for FY 2023–24.
Budget Pakistan 2023-24 has exposed some big plans to uplift the largest sector of Pakistan. Govt. has separated Rs30 billion for the conversion of 50,000 tubewells to solar power. Duties and import taxes are decided to be removed on hybrid seeds.
“It has been decided that agri-based industrial units in rural areas with a yearly turnover of Rs800 million would be exempted from taxes for five years,” as stated by the finance minister.
Pakistan’s Government has expected exports to reach $30 billion and remittances are aimed at $33 billion in the next fiscal year 23-24.
For the education sector, the government has set aside Rs 97.1 billion. Education expenditure is increased from Rs 90.6 bn to Rs 97.1 billion as compared to the previous year.
For the health sector, the government has set aside Rs 24.2 billion. Health expenditure in budget Pakistan 2023-24 is increased from Rs 19.58 bn to Rs 24.2 billion as compared to the previous year.