Budget 2024-25: Govt adds taxes of Rs 12.97 trillion

Federal Minister of Finance and Revenue Senator Muhammad Aurangzeb presented the budget 2024-25 on the floor of the National Assembly Wednesday, which is estimated to be more than Rs18 trillion.

Official sources said the budget aims to alleviate the hardships of the people, transform the agriculture sector, promote information technology (IT) and promote exports.

Speaker Ayaz Sadiq was presiding over the National Assembly session.

“This is a great honor for me to present the budget for fiscal year 2024-25,” said Aurangzeb to begin the budget speech. “We are working on a homegrown reform to accelerate the economic growth of Pakistan.”

“I thank the leadership of all the coalition parties, despite the difficulties, our progress has been impressive, despite the economic challenges, our progress on the economic front has been excellent,” he said.

He said that inflation is likely to come down further in the coming days but expressed concerns regarding the new program of the International Monetary Fund (IMF).

“Today nature has given Pakistan an opportunity to walk on the path of economic development, so we cannot afford to waste this opportunity,” he said.

Aurangzeb said that the value of the rupee had decreased by Rs 40 in one year, inflation was at such a level that people were going below the poverty line, the standby agreement ended the uncertainty, the IMF program came to an end in June last year.

The minister further said that investment is coming into the country due to stability in the economy. “It is time to give importance to the private sector in your economy, reduce unnecessary expenditure in the new financial year and continue efforts to reduce inflation,” he said.

Moreover, he said that the present government has introduced a business-friendly scheme, the reduction in the policy rate by the central bank is welcome, however, the journey of development has started, the fruits of which will reach the people.

“Rs4 billion allocation made for ‘e-bikes’ and another Rs2 billion for fuel stations that promote energy conservation,” Aurangzeb said. Rs86.9 billion allocated to promote remittances in Pakistan.

Aurangzeb said that Rs79 billion allocated for IT sector.

The government has also claimed that apart from fiscal management, the budget will include measures for revenue mobilization, economic stability and growth, reduction in non-development expenditure, employment generation and pro-people policies for the socio-economic prosperity of the country.

It is to be noted that in the federal budget, the target of tax collection has been proposed to be Rs 13,000 billion.

Highlights of Budget 2024-25:

• 25% increase in salaries of government employees
• Increase pensions by 22 percent
• Minimum wage fixed at Rs 37,000
• Rs 2,122 billion allocated for Defence
• Development budget for energy sector to be Rs 253 billion
• 27% increase in allocation for BISP
• More than Rs 79 billion allocated for IT sector
• Tax collection target of Rs 12,970 billion
• Largest budget set in history of Rs 1500 billion for development projects
• Rs 1500 billion allocated for Public Sector Development Programme