Prime Minister Shehbaz Sharif-led government on Thursday announced new petrol and diesel prices for the next fortnight.

According to a notification issued by the finance ministry, the prices of petroleum products for the next fortnight, starting from 1st November 2024.

With the adjustment, the petrol price has increased by Rs1.35 per litre to reach Rs248.38 per litre, while the new price of high-speed diesel has increased by Rs3.85 per litre to reach Rs255.14.

The price of light diesel has now reached Rs147.51 after witnessing a drop by Rs2.61.

On October 15, the Pakistan government announced that the price of petrol would remain unchanged, while the price of high-speed diesel (HSD) was raised by Rs5 per litre for the next fortnight.

Prime Minister Shehbaz Sharif-led government on Tuesday announced that the price of petrol would remain unchanged, while the price of high-speed diesel (HSD) was raised by Rs5 per litre for the next fortnight.

According to a notification issued by the finance ministry, "The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices of petroleum products, based on the price variations in the international market."

It added the prices of petroleum products for the next fortnight, starting from 16th October 2024.

With the adjustment, the petrol price now stands at Rs247.03 per litre, while the new cost of high-speed diesel is Rs251.29  per litre.

It is noteworthy that just a few weeks prior, on September 30, the government had announced a reduction in fuel prices. Petrol was decreased by Rs2.7, high-speed diesel by Rs3.40, and light-speed diesel by R1.3per litre.

A sigh of relief for inflation-stricken masses as Prime Minister Shehbaz Sharif-led government on Monday announced a massive reduction in petrol and diesel prices from October 1 for the next fortnight.

According to a notification issued by the Finance Ministry, the price of petrol has been reduced by Rs2.7 per litre, while high-speed diesel (HSD) has seen a reduction of Rs3.40 per litre.

With the adjustment, the price of petrol now stands at Rs247.03 per litre, while the new price of high-speed diesel is set at Rs246.29 per litre.

The government also announced a reduction in kerosene oil prices by Rs3.57 per litre, bringing the new rate to Rs154.90 per litre.

The reductions will be effective for the next fortnight, providing temporary relief to consumers as global fuel prices fluctuate.

Petrol and diesel prices in Pakistan are expected to see a reduction starting October 1, 2024, as the government considers passing on relief to consumers following a significant decline in global oil rates.

Sources privy to the matter said with the matter revealed that while discussions are underway, the exact figures for the upcoming price adjustment have yet to be finalized.

Globally, Brent crude oil prices have experienced a decline of approximately $0.50, settling at around $72.27 per barrel. Meanwhile, US crude oil prices have decreased by 37 cents. This downward trend in global oil prices has created an optimistic outlook for Pakistani consumers, as it signals potential relief at the fuel pumps.

In light of these developments, consumers are advised to remain patient and await official confirmation from the government regarding the adjustments in petrol and diesel prices.

The federal government reviews and adjusts fuel prices biweekly, taking into account fluctuations in international oil prices, exchange rates, and domestic demand.

Current petrol, diesel prices in Pakistan

On September 15, the government announced a reduction in fuel prices effective from September 16. According to a notification from the Finance Ministry, petrol prices have been decreased by Rs10 per litre, bringing the new price to Rs249.10 per litre, while high-speed diesel (HSD) has been reduced by Rs13.6 per litre, now costing Rs249.69 per litre.

Additionally, kerosene oil prices have dropped by Rs11.15 per litre, setting the new rate at Rs158.47 per litre.

A sigh of relief for inflation-stricken masses as Prime Minister Shehbaz Sharif-led government on Sunday announced a massive reduction in petrol and diesel prices from September 16 for the next fortnight.

According to a notification issued by the Finance Ministry, the price of petrol has been reduced by Rs10 per litre, while high-speed diesel (HSD) has seen a reduction of Rs13.6 per litre.

With the adjustment, the price of petrol now stands at Rs249.10 per litre, while the new price of high-speed diesel is set at Rs249.69 per litre.

The government also announced a reduction in kerosene oil prices by Rs11.15 per litre, bringing the new rate to Rs158.47 per litre.

The reductions will be effective for the next fortnight, providing temporary relief to consumers as global fuel prices fluctuate.

In a potential relief for the inflation-stricken populace, Prime Minister Shehbaz Sharif-led federal government is expected to announce a reduction in petrol and diesel prices by up to Rs6 per litre for the first half of September 2024.

This anticipated decrease follows a notable dip in global crude oil prices, which have dropped by $2 to $2.30 per barrel.

Sources within the oil industry have indicated that the reduction will likely see the price of petrol decrease from Rs260.96 to Rs254 per litre, while high-speed diesel (HSD) may drop from Rs266.07 to Rs261 per litre.

However, it is important to note that there has been no official confirmation from the federal government or the Oil and Gas Regulatory Authority (OGRA) regarding the new rates.

OGRA is scheduled to review the prices on August 31, after which they will present their proposal to the government for final approval. 

Current petrol, diesel prices in Pakistan

The current price of petrol, at Rs260.96 per litre, was set in mid-August following a reduction of Rs8.47 ahead of Pakistan's Independence Day. 

The Punjab government has announced a 10% discount on vehicle token tax payments made through the ‘ePay Punjab’ app, providing a significant benefit for vehicle owners.

This initiative aims to encourage the use of the app for tax payments, reducing the need to stand in long queues at government offices.

The discount on token tax payments through the ePay Punjab app is available until September 30, 2024. Vehicle owners are encouraged to take advantage of this offer by using the app to pay their taxes quickly and conveniently from their phones.

Token tax on new vehicles

In the fiscal budget for 2024-25, the provincial government has introduced a new token tax policy for vehicle owners. Under this policy, if a vehicle has an engine power of up to 1000 cc, the new owner must pay the entire token tax upon transfer of ownership.

Annual token tax

The new regulations state that the annual vehicle token tax will now be based on the invoice value of the vehicle rather than engine power (cc). Vehicles with an engine capacity between 1000 cc and 2000 cc will be taxed at 0.2% of the invoice value annually. For vehicles with an engine capacity above 2000 cc, the tax rate will be 0.3% of the invoice value per annum.

Lifetime token tax

The lifetime token tax for vehicles up to 1000 cc has been increased from Rs 15,000 to Rs 20,000. If ownership of a 1000 cc vehicle is transferred, the new owner will be required to pay the lifetime token tax. A 10% annual discount will be applied if the transfer occurs within 10 years. However, no lifetime token tax will be levied if the transfer takes place after 10 years.

The automobile sector in Multan is reeling from a severe crisis following the implementation of a new tax on vehicles in the federal budget 2024-25.

The advance tax, levied at a rate of 0.2% on vehicle invoices, has caused a significant increase in car prices, leading to a dramatic slowdown in business.

Impact on car dealers, buyers

Car dealers and enthusiasts across Multan are expressing their frustration and concern over the new tax. The increase has not only affected the sale of new vehicles, but also the prices of existing inventory, putting a strain on their businesses.

Also Read: Cement, construction material prices surge after strike, taxes

Rana Kaleem, vice president of the Car Dealers Association, highlighted the issue: "Earlier, there was a fixed tax, but now it has been added to the invoice. Although it is 0.2%, it varies for each vehicle and is not negligible."

He further said that the withholding tax already imposed has also been increased, which has had an adverse effect on the business.

Buyer concerns

Potential car buyers are facing significant challenges due to the tax increase. Muhammad Imran, a local citizen, shared his frustration:

"I have been visiting showrooms for four days, but I cannot find affordable Japanese cars. The prices of the available ones are so high that I cannot buy them, and the rates of local cars have also increased."

Business slowdown

Car dealers report that the new invoice tax has led to an increase in car prices, severely affecting their business. The once-thriving market for both new and old vehicles has come to a near standstill, with fewer buyers able to afford the increased costs.

The coalition government has informed the International Monetary Fund (IMF) about significant changes in the new budget, indicating a major financial challenge for the fiscal year 2024-25.

According to officials from the Ministry of Finance, the net government income is projected to decline by Rs1,258 billion, decreasing from Rs10,377 billion to Rs9,119 billion. This decline is expected to increase the financial deficit to Rs9,758 billion, surpassing the initial target of Rs8,500 billion. The budget deficit is expected to increase by Rs1,258 billion this fiscal year. 

Sources within the ministry attribute the need to revise these targets to a significant drop in non-tax revenue. The budget originally set a non-tax revenue target of Rs4,845 billion, which has now been revised downward to Rs3,587 billion. Specifically, the State Bank's profit is now anticipated to be Rs1,258 billion, down from the previous estimate of Rs2,500 billion. 

Also Read: Pakistan records $1.9 billion in foreign investment for FY 2023-24

To address the budget deficit, the government plans to secure additional local and foreign loans. The estimated increase in government loans for this financial year is Rs8,489 billion. Despite this, the debt-to-GDP ratio is expected to remain at 64%, with total government debt projected to reach Rs79,731 billion.

The Ministry of Finance also projects that Rs9,775 billion will be spent solely on interest payments for the loans in the current financial year. However, considering a provincial surplus of Rs1,217 billion, the federal budget deficit could be limited to Rs8,541 billion. 

Also Read: Inflation continues to climb in Pakistan

Additionally, the government expects to receive Rs1,281 billion from the Petroleum Development Levy, which will contribute to managing the deficit.

In summary, while the government aims to keep the debt-to-GDP ratio stable, the significant drop in revenue and increased reliance on loans highlight the fiscal challenges ahead for Pakistan. The revised budget figures and strategies to manage the deficit will be crucial in the government's financial planning and negotiations with the IMF.

The recent budget for the fiscal year 2024-25 has brought significant changes to the pricing of Samsung phones in Pakistan.

With the government imposing an 18% sales tax on Samsung and other mobile devices, consumers are now facing higher costs for their favourite gadgets.

Samsung, known for its reliable and diverse range of smartphones, from budget-friendly to high-end models, has become a popular choice among Pakistanis. The brand's strong reputation for quality and innovation has made it a household name in the country.

However, the new tax regulations have affected the prices of several Samsung models, making them less accessible for many.

Here is a detailed comparison of the old and new prices for various Samsung models in Pakistan:

The increase in prices is a result of the government's efforts to reform various sectors, including the technology industry. While these reforms are aimed at boosting revenue and ensuring economic stability, they have also led to a rise in the cost of essential electronic goods.

Pakistanis grappling with inflation received another blow as the National Electric Power Regulatory Authority (NEPRA) announced a massive hike in power tariff.

The new tariff translates to a hike of Rs 3.32 per unit, which will directly impact household and business budgets. This is likely to put a strain on many citizens already struggling with rising costs of essential goods.

The adjustment aims to account for fluctuations in fuel prices, which directly affect electricity generation costs. However, this increase comes at a challenging time for consumers, who are already facing rising prices for essential goods and services.

NEPRA’s notification outlines the specifics of the rate change, which will be reflected in upcoming electricity bills. The regulatory authority periodically reviews and adjusts electricity prices based on various factors, including changes in fuel costs.

Federal Cabinet

Earlier, federal cabinet had approved a substantial increase in the basic power tariff by PKR 5.72 per unit. This decision, made through a circulation summary, was forwarded to the National Electric Power Regulatory Authority (NEPRA) for uniform tariff implementation.

The Power Division submitted an application to NEPRA for the tariff hike, which is set to take effect on July 1, 2024, for the fiscal year 2024-2025. The average basic electricity tariff will rise from PKR 29.78 to PKR 35.50 per unit.

NEPRA's recent report highlighted a significant PKR 403 billion loss in Pakistan's power sector for the financial year 2022-2023. This loss was attributed to line losses and low recovery rates from nine power distribution companies, including K-Electric, which failed to achieve 100% recovery. The report also noted that these companies did not purchase electricity as per their assigned quotas, leading to deliberate load-shedding.

20% increase in national tariff

In June, NEPRA announced a nearly 20% increase in the uniform national tariff, aimed at securing approximately PKR 3.8 trillion in funding for the 10 ex-Wapda electricity distribution companies (Discos) for the fiscal year 2024-2025. This adjustment is expected to generate an additional PKR 485 billion in revenue for Discos, aiding the government in securing an IMF bailout scheduled for July.

NEPRA clarified that the government retains the authority to apply varying rates of increase across different consumer categories through cross-subsidies, ensuring the overall revenue requirements set by the regulator remain unaffected.

In another jolt for inflation-hit masses, Prime Minister Shehbaz Sharif-led federal government on Sunday increased petrol price by Rs7.45 and diesel price by Rs9.56 per litre.

The Ministry of Finance in an issued notification stated that " The prices of Petroleum products have seen an increasing trend in the international market during the last fortnight.

It added that The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices, based on the price variations in the international market.

There will be no change in the applicable taxes & duties, which will remain at the existing level. The prices of Motor Spirit & HSD for the next fortnight, starting from 01st July, 2024.

Earlier on June 15, the government announced a reduction in petroleum prices as a special gift to the public for Eid-ul-Adha.

Following the reduction the new petrol was priced at Rs258.16 per litre, while HSD stands at Rs267.89 per litre.

Petroleum development levy

Earlier today, Finance Minister Muhammad Aurangzeb clarified that the Petroleum Development Levy (PDL) is not increasing at present, and the current rate of 70 rupees PDL will not be applicable.

The FinMin's press conference highlighted the government's commitment to economic stability and transparency through ongoing reforms and initiatives.

The measures outlined aim to foster investor confidence, curb corruption, and ensure sustainable growth for Pakistan's economy.

President Asif Ali Zardari signed the Finance Bill 2024 approving the federal budget 2024-25.

A signed copy of the Finance Bill will also be sent to Parliament. The new federal budget will come into effect from July 1

On June 28, the National Assembly passed the federal budget amid opposition protests. 

The National Assembly, in a session chaired by Speaker Ayaz Sadiq, approved the federal budget worth Rs18.877 trillion. However, the session saw a walkout by the opposition after they were not allowed to speak on their objections during the passage of the financial bill.

Despite the opposition's protest, the assembly passed the provision to increase the tax rates on international air travel tickets. From July 1, passengers travelling in economy and economy plus classes must pay an additional tax of Rs12,500 on international tickets. 

Tax hikes are more substantial for travellers in business, club, and first-class. The ticket tax rate for travel to North, Central, and South America has been increased to Rs350,000. Additionally, the tax on business and club class tickets for the USA and Canada has risen to Rs100,000. 

For those travelling to the Middle East and Africa, there will be an additional tax of Rs30,000 on business, first, and club class tickets. Similarly, a tax of Rs210,000 will be levied on business, first, and club class tickets for air travel to Europe. The same tax rate applies to travel to the Far East, Australia, and New Zealand.

The budget's approval marks a significant step in the government's fiscal plan, despite the contention and walkout from opposition members who felt their concerns were not addressed. 

Must Read:

Federal budget 2024-25 key points 

Salaries, pension increase update in federal budget 2024-25

In the latest budget for 2024-25, air travel costs are set to rise massively, particularly for those flying in business and club class.

Starting from July 1, the government has introduced new excise duties on air tickets to various international destinations.

These changes take effect on July 1st and will be felt most by travelers heading to destinations like the United States, Canada, North and Latin America. The excise duty for these routes has jumped significantly, from Rs 250,000 to Rs 350,000. That's a cool Rs 100,000 extra you’ll need to shell out for that premium flying experience.

Europe isn’t spared either. Business class flights to European countries will now come with a Rs 210,000 duty, up from the previous Rs 150,000. This represents a Rs 60,000 increase for those hoping to explore European destinations in style.

Travelers to New Zealand and Australia will also face a similar Rs 60,000 duty hike, bringing the total to Rs 210,000. And it’s not just long-haul trips that are affected. The duty on business class tickets to popular Asian destinations like China, Malaysia, and Indonesia has also been raised to Rs 210,000.

Meanwhile, travelers to Saudi Arabia, UAE, the Middle East, and African countries will now pay an additional Rs 30,000, with the new excise duty totaling Rs 105,000. These changes reflect the government’s strategy to increase revenue through higher taxes on luxury travel options.

The National Assembly, in a session chaired by Speaker Ayaz Sadiq, approved the federal budget worth Rs18.877 trillion. However, the session saw a walkout by the opposition after they were not allowed to speak on their objections during the passage of the financial bill.

Despite the opposition's protest, the assembly passed the provision to increase the tax rates on international air travel tickets. From July 1, passengers travelling in economy and economy plus classes will be required to pay an additional tax of Rs12,500 on international tickets. 

For travellers in business, club, and first-class, the tax hikes are more substantial. The tax rate on tickets for travel to North, Central, and South America has been increased to Rs350,000. Additionally, the tax on business and club class tickets for the USA and Canada has risen to Rs100,000. 

For those travelling to the Middle East and Africa, there will be an additional tax of Rs30,000 on business, first, and club class tickets. Similarly, a tax of Rs210,000 will be levied on business, first, and club class tickets for air travel to Europe. The same tax rate applies to travel to the Far East, Australia, and New Zealand.

The budget's approval marks a significant step in the government's fiscal plan, despite the contention and walkout from opposition members who felt their concerns were not addressed. 

Also Read: Federal Budget 2024-25 Key Points

Other several key amendments to the federal budget were also approved amidst significant developments and debates.

An amendment to enhance the powers of Federal Board of Revenue (FBR) officers for sales tax audits was approved. Under this new provision, FBR officers will have access to all relevant records and data necessary for conducting tax audits.

During a sales tax audit, individuals or competent authorities must be present, and the FBR cannot request records older than six years. Furthermore, a new tax fraud investigation wing will be established within the FBR to address tax evasion and fraud. 

Also Read: Salaries, pension increase update in federal budget 2024-25

This wing will consist of a chief investigator, senior investigators, a senior forensic analyst, a senior data analyst, and other staff members. The unit will include a fraud investigation unit, a legal unit, and an accounts unit, focusing on preventing and investigating tax fraud.

Amendment to increase parliamentarians' privileges

The Pakistan Peoples Party (PPP) presented an amendment to increase the privileges of parliamentarians, which sparked opposition.

Despite this, the National Assembly approved the amendment related to the salaries and allowances of members by a majority vote. The Parliamentarians Salaries and Allowances Act is being amended through the Finance Bill. 

Also Read: Govt sets ambitious economic targets in Federal Budget 2024-25

Presented by Abdul Qadir Patel of the PPP, the amendment increases the travelling allowance for lawmakers from Rs10 per km to Rs25 per km.

Additionally, unused air tickets of the MNAs could be utilized in the following year instead of being cancelled. The authority over salaries and allowances of lawmakers is now entrusted to the finance committee of the respective House, rather than the federal government.

Amendments on Petroleum Levy

An amendment regarding the petroleum levy, presented by the finance minister, was passed by a majority vote, with 170 votes in favour and 84 against.

Also Read: Budget 2024-25: Govt allocates Rs2.122 trillion for defense

This amendment sets the maximum limit of the petroleum development levy at Rs50 per litre for light diesel and kerosene, and at Rs70 per litre for petrol and diesel.

Shehbaz Sharif's Speech

Prime Minister Shehbaz Sharif addressed the National Assembly, emphasizing the historical significance of the National Finance Commission (NFC) award. He recalled that the NFC award was a joint agreement by all four provinces during the tenure of former prime minister Yousuf Raza Gilani and President Asif Ali Zardari.

Prime Minister Sharif highlighted his personal involvement in the NFC award discussions.

Punjab Chief Minister Maryam Nawaz addressed the Punjab Assembly amid opposition clamour and informed the House about her government's initiatives.

She stated that the Punjab government had completed 100 days, while the opposition raised slogans of 'Zulm ke ye zaabte, hum nahi maante'. Maryam Nawaz addressed them and told them to sit down or their throats will get sore.

She further said the government had presented its first budget for the fiscal year 2024-25, claiming it to be the largest budget in the history of Punjab. She further claimed that no tax was imposed on the people of the province for the first time.

The chief minister said it was impossible for her to summarize the work her government did in 100 days in a single budget speech, She said she knew the opposition members were under pressure because they had something to say. She reminded the House she had said it was a double challenge for her to run this government as there had been chief ministers like Nawaz Sharif and Shehbaz Sharif here, who shaped the destiny of the people of Punjab. 

Maryam Nawaz stated that after three months of performance, the former Pakistan Tehreek-e-Insaf government had got an advertisement published in the newspapers claiming to be busy, while they were engaged in seeking revenge and not in serving the nation.

She further said whether Imran Khan gets the necessary facilities in jail, including desi chicken and exercise machines, there should be no abuse from their end.

The CM said that the implementation of the development plans they presented will commence today following the approval of the budget, adding that such a young and educated cabinet has never been seen as the one sitting here. The promises made today in the budget will be fulfilled within a year. "They should have been ashamed of themselves when they were attacking their own nation," she remarked. 

She further claimed that the amount her government was going to spend on health and education has never been done in the past.

Maryam claimed that inflation had been reduced to a great extent today, adding that people had heaved a sigh of relief after years of the opposition's incompetence. Flour, bread, sugar, ghee, vegetables, and bakery products have all come down and hospitals have once again started providing free medicine, which had been stopped by the opposition.

She said she had inherited a Punjab where people were involved in corruption, and where no file is processed without bribery.

The CM said that Punjab is the only province where the price of roti has not just been reduced but is also implemented uniformly in the entire province. A bag of 10kg flour cost Rs1,380 in March, whereas it is currently available at Rs800. She lamented that other provinces announced Rs12, Rs13 per roti but could not ensure its availability. Addressing the opposition, she asked them to reduce the price of roti in Khyber Pakhtunkhwa. 

She also claimed that the Punjab administration worked for 18 hours, which was called real service to the people. "The people of Punjab have communicated their satisfaction to me through messages," she added. Maryam also mentioned that a program, 'Maryam Ki Dastak', had been started under which facilities were delivered to the doorsteps of the people.

This included the historic Rs30 billion Ramazan package, while health facilities were delivered at the doorstep. She added that the program started with 10 services and later 65 more were added to it in three months.

The chief minister said that key performance indicators have been formulated for the deputy commissioners and commissioners, and she personally presided over their meetings. "They are all examined on each indicator and their scorecards are maintained. We have also introduced a culture of competition among district administrations," she remarked. 

He stated that historical farmers are bringing a package of 400 billion rupees, whereby agricultural reforms will provide all facilities under one roof. Farmers will receive one and a half lakh rupees for interest-free loans, funds for seeds, and medicines. I would like to inform farmers not to be seduced by anyone, as they will experience great prosperity in the near future.

She further said that a historic Rs400 billion farmers package was being introduced through which agriculture reforms will provide all facilities under one roof. She added that farmers will get Rs150,000 interest-free loans, and money for seeds and medicines. She vowed that farmers will be very prosperous in the coming future.

CM Maryam said that in the first phase of the introduction of modern agriculture, the government was providing threshers and super seeders at discounted prices to the farmers. In this project of Rs8 billion, the Punjab government is paying 60%, and the farmers will have to pay the remaining 40%. “We are going to start agriculture solarization,” she announced.

Maryam said that the children of the rich studied in schools by paying millions of rupees in fee, adding that Punjab will launch schools of the same standard. In this regard, the Nawaz Sharif Children's Library Complex is being established in Lahore, in which they will start elementary education, pre-school learning, and arrange specialized teachers.

The chief minister also announced that the Punjab government was going to announce a ‘Himmat Card’ for the handicapped, so they did not become a burden on their family. Under the scheme, such people will get a good amount of money for three to four months as well as wheelchairs.

 She said there was so much poverty that children did not have breakfast before going to school and fell unconscious around 11am. “We are going to launch a ‘free milk’ programme for children studying in government schools from pre-school to Grade V. Under this Rs27 billion project, when schools reopen after summer vacation, all children will get free milk,” she announced.

Maryam Nawaz said that Prime Minister Shehbaz Sharif was going to restart the laptop scheme at Rs10 billion. Additionally, Google International is going to impart digital skills to more than 300,000 children every year.

She further said that it was decided to convert school grounds into a community sports grounds, which would be used by the entire population of the area in the evenings.

The CM said they are starting the biggest tractor scheme in history with Rs30 billion. She further declared that she would not be blackmailed, whether it is the YDA or anyone else. “I will not let patients suffer. Two air ambulances are coming to Punjab this week,” she added.

Federal Planning Minister Ahsan Iqbal has announced a significant cut of Rs 250 billion in Pakistan’s development budget even before its approval by parliament.

Speaking about the decision, Minister Ahsan Iqbal cited stringent conditions imposed by the International Monetary Fund (IMF) for the new economic program as the reason behind this reduction.

Addressing the media, Ahsan Iqbal expressed the challenges faced by the government, including poverty, lack of education, and mismanagement of resources.

He highlighted that the original Public Sector Development Program (PSDP) budget of Rs 1400 billion has now been slashed to Rs 1150 billion due to these economic constraints.

The minister emphasized that the current economic situation leaves no room for alternative choices and requires resource mobilization to address pressing financial issues.

He clarified that the decision to cut the development budget aims to alleviate the burden on the people and agricultural sectors, preventing the necessity for additional taxes.

Ahsan Iqbal mentioned the possibility of revising and potentially increasing the development budget in the upcoming financial year to better meet national economic needs.

In a dramatic session at the Gilgit-Baltistan Assembly, chaos erupted as the budget for the fiscal year 2024-25, amounting to over Rs 1.402 trillion, was tabled for approval.

The proceedings, chaired by Speaker Nazir Advocate, quickly spiraled into unrest as opposition members vociferously protested and even tore copies of the budget documents.

Before Finance Minister Engineer Muhammad Ismail could deliver his budget speech, opposition leaders surrounded both the speaker’s desk and the finance minister himself, creating a tumultuous atmosphere with constant noise and even the sound of a bugle blaring.

Despite the disruptions, Minister Ismail managed to present a comprehensive budget totaling Rs 1.402 trillion.

Presenting the budget in the provincial assembly, Finance Minister Engineer Ismail said Rs 86.6 billion was allocated for non-development expenditures and Rs 34.5 billion for development projects.

“The development budget includes Rs 20 billion for the annual development programme and Rs 13.5 billion for the Federal Government projects,” he said.

The minister said in order to provide to relief to the GB people, a significant amount of Rs 19.07 billion was earmarked for wheat subsidy.

He announced budgetary allocations for various departments. The education sector got Rs 1.37 billion, health sector Rs 1.52 billion, agriculture department Rs 597.9 million, food department Rs 998 million, tourism department Rs 260 million, mineral resources department Rs 110 million, irrigation department Rs 1.728 billion, forestry and environment department Rs 1.524 billion, rural development department Rs 1.19 billion, information technology department Rs 1.316 billion, technical education department Rs 7.763 billion, social welfare department Rs 3.632 billion, power department Rs 2.88 billion, communication department Rs 5.63 billion, and information department Rs 41.4 million.

Additionally, Rs 536.8 million was specified for the prison department, Rs 192.6 million for law department and Rs 57.4 million for excise and taxation department.

The minister also announced an adhoc relief of 25 percent for grade 1-16 government employees and 20 percent for grade 18 and above.

The Senate Standing Committee on Finance has raised serious concerns about the proposed tax measures in the budget for the next fiscal year, warning that they will fuel inflation in the country and increase malnutrition.

The committees recommendations to finance ministry and FBR will include withdrawal of 18% GST on child nutrition products, according to news reports in the media.

Committee chairman Senator Saleem Mandviwalla made these remarks during the committee meeting on Saturday. Criticising the imposition of taxes on basic food items, the committee rejected the proposed taxes on locally produced baby food and infant nutrition, as well as packaged milk.

The budget drew ire from lawmakers from both the ruling PML-N and PPP, as well as opposition Senators, with FBR being criticized for heavy taxation on essential items, as it will make life difficult for the common man.

The committee rejected the proposal to impose an 18 percent sales tax on baby milk, with members voicing concerns about how such a measure could be allowed in a country with a 40 percent stunting rate. PML-N Senator Anusha Rehman and PPP Senator Sherry Rehman both criticized the increase in sales tax on milk as cruel and noted that no consultation was held before making the decision.

In his budget speech, Finance Minister Muhammad Aurangzeb emphasized the vital importance of nutrition during the first 1,000 days of a child's life and the urgent need to address stunting. However, industry experts see the proposed 18% GST on locally produced infant formula, baby food, and child nutrition milk powders as counterproductive and misaligned with the government's stated goals.

In earlier meetings, industry representatives cognizant of the challenges being faced by the economy suggested three-year phase-wise general sales tax as a win-win solution for both the government and the industry, with the 5% on Y1, 10% Y2 and 18% on Y3.

Amid high inflation, it is crucial to recognize that locally produced infant formula, baby food, and fortified child nutrition milk powders are approximately 50% less expensive than imported versions, making them more affordable for the general population and less burdensome on foreign exchange reserves.

Prime Minister Shehbaz Sharif-led federal government is poised to announce a substantial hike in petrol prices, effective July 1, in line with the implementation of the Budget 2024-25.

This will be the first price revision since the budget for the fiscal year 2024-25 was presented on June 12.

In the recently proposed Finance Bill 2024, the government has introduced a notable increase in the maximum petroleum levy, raising it by Rs20 to Rs80 per litre.

This adjustment is expected to have a significant impact on petrol and high-speed diesel (HSD) prices nationwide.

Current petrol, diesel prices in Pakistan

Currently, petrol is priced at Rs258.16 per litre, while HSD stands at Rs267.89 per litre, following a reduction earlier this month by Rs10.20 and Rs2.33, respectively. However, with the new levy, these prices are anticipated to rise sharply.

Petroleum levy 

The petroleum levy has been identified as a crucial revenue stream for the government, which is seeking to bolster its finances and secure another bailout package from the International Monetary Fund (IMF).

This move aims to enhance the government’s revenue, targeting Rs12.97 trillion for the Federal Board of Revenue (FBR) in the upcoming fiscal year.

Market analysts predicted that the increase in the petroleum levy will directly translate to higher fuel costs for consumers. The precise extent of the price rise will be confirmed on June 31, when the government finalizes the revision.

The expected surge in fuel prices comes at a time when the public is already grappling with inflationary pressures, and this development is likely to exacerbate the economic burden on households and businesses alike.

The Balochistan provincial cabinet, under the leadership of Chief Minister Sarfraz Bugti, has given its nod to the budget proposals for the upcoming fiscal year 2024-2025.

This decision includes significant increases in salaries for government employees and prioritizes sectors like health and education.

During a crucial budget meeting chaired by Chief Minister Sarfraz Bugti, the Finance Department presented its recommendations.

It highlighted that enhancing salaries for government employees is a focal point, with a proposed 25% increase for employees from Grade 1 to Grade 16. Meanwhile, employees from Grade 17 to Grade 22 are slated to receive a 22% raise.

In addition to salary increments, the budget allocates Rs 13 billion for pensions and other benefits, underscoring the government's commitment to supporting retired personnel.

The education sector is set to receive Rs 126.26 billion, aiming to bolster educational infrastructure and quality across the province. Furthermore, Rs 57.12 billion has been earmarked for the health sector to improve healthcare services.

The provincial cabinet also approved the introduction of a pension country scheme during the meeting, reflecting the government's efforts to address long-term financial security for retired individuals.

The Balochistan provincial cabinet, led by Chief Minister Mir Sarfraz Bugti, on Friday, approved the budget proposals for the upcoming fiscal year 2024-25.

The provincial finance department briefed the cabinet, emphasizing that health and education sectors remain top priorities in the new budget.

The budget also focuses on agriculture, livestock, and mineral and mines development, with significant allocations for each. During the meeting, the cabinet approved a new pension scheme aimed at benefiting government employees.

Chief Minister Bugti highlighted a historic move in Balochistan's budget planning, stating that for the first time, 70% of approved development projects are included in the budget proposals. He directed that work on new fiscal year development projects should commence from the first month to ensure timely progress.

Bugti urged provincial ministers and assembly members to personally oversee development projects within their departments and constituencies. He warned that departments showing slow progress would not receive additional funds, while those completing projects on time would be encouraged and supported.

Budget outline

The new budget outlines substantial allocations across various sectors to address public needs and promote development. A total of Rs 138.40 billion has been earmarked for general public services, and Rs 93.12 billion has been designated for maintaining law and order.

Economic affairs departments are set to receive Rs 79.36 billion, while Rs 0.90 billion is allocated for environmental protection. Housing and community facilities will benefit from Rs 49.92 billion, and the health sector will receive Rs 57.12 billion.

Additionally, the budget includes Rs 6 billion for entertainment, tourism, culture, and religious affairs. The education sector is allocated Rs 126.26 billion, and social protection is set to receive Rs 13.35 billion. Loan repayments are allocated Rs 8.65 billion, and pensions and other obligations will receive Rs 13 billion.

The development budget, sourced from provincial resources, is allocated Rs 219 billion. This includes Rs 28.28 billion for foreign development projects and Rs 73.28 billion for federal development projects.

Today, all eyes are on Quetta as the Balochistan Assembly prepares for the presentation of the budget for the financial year 2024-25.

Provincial Finance Minister Mir Shoaib Nausherwani is set to unveil the budget at 4pm in the assembly. Prior to that, a meeting of the provincial cabinet regarding the budget of the next financial year will be held at 3pm. 

The budget session of the assembly, scheduled from June 21 to 29, will not only feature the presentation of the main budget but also include discussions on a supplementary budget for the current financial year. This supplementary budget, aimed at addressing immediate fiscal needs, is expected to receive approval during the session.

According to the Balochistan Finance Department, the total size of the budget is proposed to be Rs850 billion. This includes a non-developmental budget proposal of Rs600 billion and a development budget proposal amounting to Rs250 billion. 

Health and education sectors are set to receive substantial allocations, with more than Rs67 billion earmarked for health initiatives and a possibility of Rs120 billion allocated towards education reforms. 

Also Read: Balochistan's budget 2024-25 to be presented on June 21

Additionally, Rs70 billion are expected to be allocated for peace and security measures, reflecting the province's focus on maintaining stability and enhancing safety.

The budget is also likely to propose Rs2 billion for the Benazir Scholarship program and increase the grant for universities to Rs5 billion.

Furthermore, the proposal is likely to include a significant increase in salaries, with a potential 25% raise for government employees in grades 1 to 16 and a 20% increase for employees in grades 17 to 22.

Under the National Finance Commission (NFC) Award, Balochistan anticipates receiving Rs647 billion, a crucial source of revenue for the province. Additionally, Pakistan Petroleum Limited (PPL) is expected to contribute Rs60 billion to Balochistan, supporting local development initiatives.

The budget approval process will involve discussions and deliberations between government and opposition members to ensure comprehensive consideration of all proposals and priorities.

In a bid to ease tensions between the ruling Pakistan Muslim League-Nawaz (PML-N) and its major coalition partner, the Pakistan Peoples’ Party (PPP), Prime Minister Shehbaz Sharif and PPP chairman Bilawal Bhutto Zardari have agreed to continue negotiations at the committee level.

This decision came during a meeting on Thursday where both leaders sought to address and resolve existing grievances.

During the meeting, a PPP delegation led by Bilawal Bhutto Zardari met with Prime Minister Shehbaz Sharif.

He expressed concerns over the non-implementation of the power-sharing agreement, highlighting issues such as the PPP’s limited influence in Punjab and lack of administrative positions and funds. He also pointed out that significant development projects in Sindh were overlooked in the federal budget.

The Prime Minister assured the PPP chairman of addressing all concerns and promised to eliminate any doubts and complaints.

The meeting was attended by key officials, including Speaker Sardar Ayaz Sadiq, Deputy Prime Minister Ishaq Dar, Federal Finance Minister Muhammad Aurangzeb, and Information and Broadcasting Minister Ataullah Tarar.

Declaration

According to a statement from the Prime Minister's Office, the meeting was held in a positive atmosphere. Shehbaz Sharif noted the positive economic indicators, citing the stock market's historic performance as a sign of the business community's confidence in the budget. He emphasized the importance of all political parties working together for the country's development and the welfare of its people.

To further strengthen relations, Prime Minister Shehbaz Sharif hosted a dinner in honor of the PPP delegation.

Inside story

Inside sources revealed that Bilawal Bhutto Zardari voiced his concerns about the unmet promises made during the formation of the government. He specifically mentioned the PPP's challenges in Punjab and the neglect of Sindh's major development projects in the federal budget.

In response, the Prime Minister pledged to form committees to resolve these issues. These committees, comprising members from both the PPP and PML-N, are set to meet today to discuss and move forward with the resolution of these matters.

Pakistan Tehreek-e-Insaf (PTI) leader and Leader of Opposition in the National Assembly Umar Ayub on Thursday vehemently criticized the government’s budget, labeling it as “economic terrorism” against the people and future of Pakistan.

Speaking during the heated session of the National Assembly chaired by Speaker Ayaz Sadiq, he accused the government of robbing the Pakistani populace through its financial policies, describing the budget as a scheme devised by economic hitmen to undermine the country’s stability.

Addressing Finance Minister Muhammad Aurangzeb, Ayub acknowledged his personal respect but criticized the consequences of the budget, which he likened to a betrayal by close associates who have metaphorically “slaughtered the nation.”

The opposition leader emphasized that the budget would shake the foundations of Pakistan’s economy and highlighted the challenges faced in attracting investments due to prevailing lawlessness.

He also invoked historical contexts, mentioning the founder of PTI and his contributions during challenging economic times, contrasting it with the current government’s approach.

Furthermore, Ayub blamed the government for derailing the economy, referencing what he called the “London plan” as a contributing factor to the current economic woes. He highlighted the importance of restoring law and order to attract investments.

He underscored the need for effective governance to restore economic stability and criticised the priorities of government officials, referring to recent incidents involving social media distractions during official visits.

The opposition leader accused the government of manipulating facts and mismanaging the country’s economy. He criticized the administration for its alleged fabrication of economic figures, asserting that under the founding PTI government, Pakistan witnessed a 6 percent growth rate with significant industrial development.

Ayub blamed the current government's policies for allegedly sabotaging this progress, citing negative development budgets, rising unemployment, and inflation spikes.

During his address, Ayub highlighted a substantial increase in loans and a decline in foreign exchange reserves from July 2023 to March 2024. He also criticized the previous administration’s decision to procure wheat worth Rs 450 billion, describing it as ill-considered. Ayub slammed the Public Sector Development Program (PSDP) allocation of Rs 1.4 trillion as mere smoke and mirrors, accusing the government of misleading the public about its development efforts.

The session saw passionate exchanges as Ayub called for accountability and strategic reforms to salvage the country's economic prospects, concluding with pointed remarks about the government's perceived shortcomings and the urgent need for corrective measures.

Referring to the Prime Minister’s recent visit to China, the PTI leader criticized the Deputy Mayor’s TikTok video during the visit, contrasting it with the perceived lack of seriousness in addressing Pakistan's economic challenges.

He lamented the state of lawlessness impacting investment and argued for decisive action to salvage the economy.

Pakistan Tehreek-e-Insaf (PTI) leader and Senator Barrister Ali Zafar on Thursday said that the Constitution cannot be bulldozed at the behest of the International Monetary Fund (IMF).

In a recent Senate session chaired by Deputy Chairman Syedaal Khan Nasar, he voiced strong objections to the proposed budget, claiming it to be detrimental to the country’s economic growth and influenced by the International Monetary Fund (IMF).

The PTI leader criticized the budget as a “recipe for disaster,” emphasizing that imposing a 40% tax would hinder economic growth and disproportionately affect those already struggling to afford basic necessities like medicine and food.

He stressed that without resolving the ongoing political crisis and restoring the mandate, the budget would fail to serve its intended purpose.

Highlighting the negative impact on the property and construction sectors, Zafar argued that the budget was crafted amidst chaos. He criticized the budget’s formulation amid chaos, asserting that the PTI had managed the economy effectively during the COVID-19 pandemic, asserting that the current approach is flawed.

The Senator also placed partial blame on the Election Commission of Pakistan (ECP), accusing it of contributing to political instability. He alleged that the ECP’s actions, including the withdrawal of PTI’s mandate, have led to the present economic turmoil.

Mr Zafar also pointed out the absence of Khyber Pakhtunkhwa senators from the budget session as a significant concern.

Barrister Ali Zafar reiterated that the Constitution should not be compromised under IMF directives, calling for a more balanced and internally-driven economic strategy.

In a crucial consultative meeting held at Zardari House under the leadership of Pakistan Peoples’ Party (PPP) Chairman Bilawal Bhutto, key party figures expressed strong dissatisfaction with the government’s recent actions.

Sources reveal that senior PPP leaders advocated for a firmer stance, highlighting that the party was not adequately consulted during the budget-making process.

Several party leaders criticized the Pakistan Muslim League-Nawaz (PML-N) for disregarding prior agreements with the PPP. They pointed out that the agreed-upon power-sharing formula in Punjab had been violated and that PPP members were unjustly deprived of development funds.

Additionally, the PPP members complained about being excluded from the allocation of development funds.

The sentiment among these leaders was that conceding now would mean that the PPP’s concerns might never be addressed. On the other hand, some participants leaned towards reconciliation and negotiation.

They suggested offering conditional support to the government for passing the budget while continuing dialogue to resolve ongoing issues.

There was a consensus that the future of the PPP-PML-N alliance should be determined through direct discussions between Bilawal Bhutto and the Prime Minister. This approach, they believed, could ensure that the party's grievances are addressed while maintaining a collaborative relationship with the government.

Balochistan's Department of Finance has announced that the provincial budget for the fiscal year 2024-25 will be presented in the Balochistan Assembly on June 21.

Provincial Finance Minister Mir Shoaib Nosherwani will table the budget during a session scheduled to commence at 4pm on June 21, according to a notification issued.

In preparation for this significant event, a meeting of the provincial cabinet to discuss the budget details will also convene on the same day. The budget session of the Balochistan Assembly is slated to span from June 21 to 29, according to the Finance Department.

Alongside the main budget presentation, the supplementary budget for the current fiscal year will also be tabled and subsequently approved by the House during this session.

A debate on the proposed budget for the upcoming financial year will commence on June 24. The Finance Department anticipates rigorous discussions between government and opposition members, culminating in the budget's final approval.

The upcoming budget session holds considerable importance for the province, setting the financial agenda and priorities for the next fiscal year amidst various economic challenges and development objectives.

Finance Minister Muhammad Aurangzeb extended his heartfelt Eid greetings to the nation and held meetings with farmers and businessmen in Kamalia to discuss ‘achievements’ and challenges faced in the region.

He clarified that countries run on taxes and not from charity.

The Finance Minister noted that agricultural and industrial growth in Kamalia is encouraging.

Minister Aurangzeb reiterated the principles outlined in his budget speech, emphasizing that while charity runs schools, universities, and hospitals, a country's treasury relies on taxes.

The minister stated that the country's economy is on a path to improvement and stressed the importance of balancing the system to sustain growth.

Tax System Enforcement

He announced that efforts are being made to bring more sectors into the tax net, with 31,000 to 32,000 retailers registered. Retailer pre-tax enforcement will begin in July.

Tax Compliance

The Finance Minister highlighted the need for strict enforcement of tax laws, asserting that tax authorities must ensure compliance.

No reduction in govt expenditure

Aurangzeb acknowledged that there has been no reduction in government expenditure and emphasized the necessity to reduce it. He mentioned that certain ministries have been earmarked for closure to cut costs.

Sales Tax Priority

He also indicated a preference for sales tax and mentioned that departments previously not paying taxes are being integrated into the tax system.

Minister Aurangzeb shared his experience of living in the private sector for six years, expressing confidence in understanding the potential and limitations of both sectors.

Finance Minister Aurangzeb conveyed optimism about the country's economic future and reiterated the importance of tax enforcement and government expenditure reduction to achieve sustainable growth.

Balochistan government is set to unveil its budget for the next financial year on June 22 with totalo outlay of Rs850 billion, with focus on health, education, and agriculture.

Provincial Finance Minister Shoaib Nosherwani will present the budget, emphasizing a reduction in the tax burden on the populace.

Nosherwani assured that the budget will be people-friendly and aimed at addressing the needs of Balochistan’s residents.

“Tax burden on people will be reduced. Despite the difficulties, the people will present a friendly budget,” said Nosherwani.

The budget will prioritize the education, health, and agriculture sectors, with substantial support from the federation to complete ongoing and proposed projects tailored to the province’s requirements.

Provincial Minister for Planning and Development Zahoor Bilidi highlighted the importance of these sectors in the upcoming budget.

Balochistan Budget 2024-25 key points

Health Rs67 billion

Benazir Scholarship program Rs2 billion

Universities grant Rs5 billion

In response to widespread public outcry and opposition from various sectors, the government of Pakistan is contemplating a partial rollback of its ambitious tax proposals, particularly concerning income tax hikes on salaried individuals.

The move comes amidst escalating discontent over the proposed fiscal measures aimed at generating additional revenue amounting to Rs 1.5 trillion in the upcoming fiscal year.

The Finance Ministry, led by Muhammad Aurangzeb, has initiated internal consultations following severe backlash from taxpayers and businesses alike. The proposed budget, totaling 18.9 trillion rupees, represents a staggering 30% increase over the current fiscal year, yet faces mounting resistance for its heavy reliance on increased taxes rather than expenditure cuts.

Prime Minister Shahbaz Sharif has been pressed by Finance Minister Aurangzeb to reconsider the substantial burden imposed on the salaried class, which has already contributed 360 billion rupees this year alone. Despite efforts to reduce this burden by 240 billion rupees, an additional 75 billion rupees in income taxes has been earmarked for the upcoming fiscal year.

Exporters, who have traditionally enjoyed a fixed income tax rate of 1%, are also slated to face gradual increases under the new proposals. Critics argue that such measures could jeopardize Pakistan's export competitiveness at a time when global economic uncertainties prevail.

Furthermore, contentious proposals such as an 18% sales tax on baby milk have sparked fierce debate. Stakeholders from the dairy industry warn that such a tax hike, if implemented abruptly, could lead to a significant spike in prices, burdening consumers already grappling with rising costs of living.

The Standing Committee on Finance, chaired by Senator Saleem Mandviwala, has emerged as a vocal opponent of these tax hikes. Mandviwala's committee has recommended a thorough review of the budgetary proposals, particularly the imposition of taxes affecting vulnerable groups like the salaried class and consumers of essential goods.

Chairman FBR, Malik Amjad Zubair Towana, has indicated openness to revisiting the proposed 18% sales tax on baby milk, suggesting a phased implementation instead. Industry leaders, including Nestlé Pakistan's Sheikh Waqar Ahmad, emphasize the potential hardships that an immediate tax hike on baby milk could impose on Pakistani families.

Meanwhile, the government's move to grant Pakistan International Airlines a 10-year deficit adjustment plan has drawn criticism from opposition figures like Senator Mohsin Aziz of Tehreek-e-Insaf. Aziz argues that such measures could amount to hidden incentives for potential buyers of state-owned enterprises, raising concerns over transparency and fiscal accountability.

In addition to tax policy revisions, the government has also proposed stringent measures such as banning non-filers from traveling abroad, a move aimed at expanding the taxpayer base and enhancing revenue collection.

With ongoing deliberations and consultations underway, the fate of these proposed tax revisions hinges on both Pakistan's financial capacity and its obligations under the International Monetary Fund's program, underscoring the delicate balance between fiscal consolidation and public sentiment.

Sindh Chief Minister Murad Ali Shah announced that the province’s budget for the current fiscal year is 34% higher than the previous year, highlighting a significant increase in the development budget.

Addressing a post-budget press conference, he said that Sindh’s development allocation surpasses that of other provinces, with efforts underway to cooperate with the federal government in terms of GDP growth.

The Sindh CM said that total budget for Sindh stands at Rs 3,560 billion, with a challenging growth rate target. He pointed out that 31% of the budget is dedicated to development projects, urging the federal government to consider Sindh for development schemes, especially those halted by the caretaker government.

Shah explained that the suspension of development schemes included in the caretaker government’s budget has caused delays, compounded by inflation-driven cost increases.

“The current budget prioritises the rehabilitation of flood victims, with a focus on completing ongoing projects rather than initiating new ones,” he said. However, he assured that growth would still occur within the year.

Out of the total budget, Rs 1,912 billion is allocated for current revenue expenditure, Rs 184 billion for capital expenditure, and over Rs 1,000 billion for development in the next financial year. A major portion of the current revenue expenditure, 70%, is earmarked for salaries, including 38% for current salaries and 14% for pensions and other grants.

The Sindh CM further revealed that Sindh expects Rs 1,900 billion from the federal government, with Rs 619 billion allocated for tax revenue and Rs 43 billion for non-tax revenue. Additionally, around Rs 27.5 billion is projected from current capital receipts, with foreign assistance projects bridging any gaps.

The Chief Minister said the provincial government also announced salary increases for government employees. The minimum wage is proposed to be Rs 37,000. Employees in grades 1 to 6 will receive a 30% pay hike, while those in grades 7 and above will see an increase beyond Rs 37,000. Salaries for grades 6 to 16 will rise by 25%, and grades 17 to 22 will see a 22% increase.

Sindh Chief Minister Murad Ali Shah presented the provincial budget 2024-25 with a total outley of Rs3.056 trillion on Friday in the Sindh Assembly budget session. 

Murad Ali Shah said he felt privileged to present the 13th budget of the Sindh government as he has been elected for the third term in the February 2024 general elections on the PPP ticket. 

• Salaries and Pensions: Increases ranging from 22% to 30% for salaries and a 15% increase in pensions.
• Development Focus: Significant allocation towards development, social services, and rehabilitation efforts.
• Education and Health: Prioritized with substantial budget allocations to enhance services and infrastructure.
• Agriculture and Energy: Specific allocations to support agricultural development and energy projects.
• Social Welfare: Emphasis on social security, housing schemes, and subsidies to reduce financial burdens.
• Law and Order: Special budget for police stations and initiatives for public safety.

Read more: Sindh govt announces 30% salary increase, 15% pension hike

Budget allocation percentage-wise

• Current Revenue Expenditure: 63%
• Current Capital Expenditure: 6%
• Development Expenses: 31%

Sectoral-wise allocation highlights

• Education: Rs 519 billion
• Health: Rs 334 billion
• Local Government: Rs 329 billion
• Agriculture: Rs 58 billion
• Energy: Rs 62 billion
• Irrigation: Rs 94 billion
• Transport: Rs 56 billion

The Sindh budget came up with good news for government employees as the PPP-led provincial government increased 22 to 30 percent increase in the salaries of the Sindh government employees.

The Sindh government increased the 30 percent salary for grade 1 to 16 government employees.

It has been decided to increase the salary of officers from grade 17 and above up to 22%.

PPP-led government has decided to increase 15 percent pension of government employees. Sindh government has decided to increase the minimum wage to Rs37,000.

Read more: Sindh to present Rs3.056 trillion budget for 2024-25 today

Women across the port city of Karachi expressed dismay over the expected rise in prices for essential makeup items, following the government's decision to increase taxes on cosmetics in the FY2024 budget.

Eyeliner, blush, face powder, foundation, mascara, lipstick, and nail polish are all expected to become more expensive, causing concerns among consumers who rely on these products for their daily beauty routines.

The proposed budget includes a 5 to 7 percent increase in taxes on various facial and beauty-enhancing products, further adding to the financial burden on consumers.

Shopkeepers in the city are also apprehensive, predicting a decline in sales if prices go up as expected.

They emphasize that any increase in costs due to higher taxes will directly impact consumer affordability and purchasing power.

One shopkeeper stated, "If the goods become more expensive, naturally the sales will also decrease."

There is a call for the government to reconsider the tax hike on decorative items, suggesting that relief should be provided to ensure continued access to essential beauty products.

In a turbulent session, the Punjab Assembly witnessed a dramatic rejection of the proposed budget for the next financial year by the opposition. The session, marked by chaos and confrontations, underscored the deep divisions within the house.

As Finance Minister Mujtaba Shuja-ur-Rehman began his budget speech, the opposition responded with loud slogans and protests, quickly escalating to the point of surrounding the speaker’s podium.

The uproar continued unabated, with opposition members moving towards the Chief Minister’s seat, prompting ministers and government members to form a protective barrier.

The situation intensified as Provincial Minister Sohaib Bharat and MPA Ghazali Saleem Butt intervened to prevent the opposition from reaching the government benches. At one point, two ministers and opposition members engaged in physical confrontations, further highlighting the fraught atmosphere.

In the presence of Maryam Nawaz, the budget documents were dramatically torn up, symbolising the opposition’s vehement disapproval.

The opposition accused the government of presenting a fraudulent budget, criticising both the federal and provincial governments for failing to provide relief and instead burdening the salaried class with additional taxes.

The session was abruptly adjourned by Speaker Malik Ahmed Khan amidst the ongoing commotion, with the next meeting scheduled for 11 am on Thursday, June 20.

The Punjab government has unveiled a budget for the fiscal year 2024-25, which includes a significant initiative to provide free solar systems to low electricity consumers.

This move aims to alleviate the burden of high electricity costs and bills for the province's residents.

According to the budget document, this initiative, called the “Roshan Gharana Program”, is set to alleviate the financial burden of high electricity costs and bills on the province's residents.

The program, with a budget allocation of Rs 9.5 billion, will offer complete solar systems at no charge to domestic users who consume up to 100 units of electricity in the first phase. The Punjab government will cover all associated costs.

Additionally, the budget outlines the Chief Minister's Solarization of Agriculture Tube Wells Program, which will receive Rs 9 billion in funding. This program aims to convert 7,000 agricultural tube wells to solar power, providing significant support to the agricultural sector.

The fiscal year 2024-25 budget was presented today in the Punjab Assembly. During his budget speech, the Finance Minister highlighted that the total budget volume is Rs 5,446 billion, with an estimated total income of Rs 4,643.4 billion. The budget proposes Rs 842 billion for development expenditure, and 77 new mega projects will be included in the annual development plan.

Punjab Chief Minister Maryam Nawaz assured on Thursday the public that the forthcoming budget will not impose any new taxes.

During a high-level meeting, CM Maryam stressed her commitment to alleviating the financial burden on the people of Punjab, while simultaneously increasing the province's revenue through internal sources.

Chief Minister Nawaz stated, "Our focus is on expanding the financial resources of Punjab without burdening the public. We are exploring innovative ways to boost our revenue streams from within our own capabilities."

She elaborated on the administration's performance-based approach, mentioning that Deputy Commissioners will be appointed strictly on merit. Continuous monitoring and performance assessments will ensure that officials are accountable and effective in their roles.

In a significant infrastructural move, the Punjab's executive announced the establishment of a unified department dedicated to the supply and irrigation of water throughout Punjab. This is part of a broader initiative to modernise and streamline essential services across the province.

A key highlight of the meeting was the ambitious plan to transform Punjab into a safe city. The Chief Minister revealed that comprehensive camera coverage will be implemented in all cities, enhancing security and surveillance capabilities.

Addressing agricultural concerns, Nawaz shared that savings from wheat procurement will be redirected to support farmers. Special attention will be given to the farmers of South Punjab, who will receive livestock aid. This initiative underscores the administration's focus on agricultural development and rural support.

For the first time, rural health centers are receiving unprecedented attention. Maryam Nawaz announced that all health centers will undergo a complete revamp.

There has been a positive response from the public regarding the provision of medicines in field hospitals and the distribution of free medicines in government hospitals.

Furthering her commitment to housing, she introduced the "Apna Chhat Apna Ghar" programme. Under this initiative, financial assistance will be provided to individuals with plots up to 5 marlas to help them build homes, promoting housing development and ownership.

Expressing her gratitude and dedication, Maryam mentioned the encouragement from her father, Nawaz Sharif. "Nawaz Sharif is very happy with our hard work. He believes that Allah's blessings are with us. We are determined to work day and night to fulfill our promises and development plans," she said.

She praised her cabinet and team for their relentless efforts and assured the public of continued dedication to their welfare and the province's development.

Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman presented the Punjab budget 2024-25 in an assembly session under the chair of Speaker Malik Ahmed Muhammad Khan amid the opposition protest. The session kicked off with a delay of one hour and 38 minutes. 

The budget outlay of Rs5,446 billion, including Rs842 billion allocated for development expenditure and a surplus of Rs630 billion.

Punjab Chief Minister Maryam Nawaz Sharif reached the assembly session. 

Opposition members raised slogans against the budget announcements and tore copies of the Punjab budget for 2024-25. 

This year the volume of the budget is Rs910 billion more than last FY.

Journalists boycott assembly session 

Journalists associations present in the Punjab Assembly session to cover the budget session protested against the Defamation Act passed by the PML-N-led unity government through the provincial assembly. 

PPP lawmakers are present in the session. 

Rs10 billion housing project for underprivileged people

Punjab Finance Minister said the government has allocated Rs10 billion for housing projects to the poor.

NFC quota

The minister said under the National Finance Commission (NFC) award, the Punjab government will get Rs3683 billion. 

Rs75 billion Interest-free loans for farmers

Punjab finance minister said the Punjab government has allocated 75 billion in interest-free loans for 500,000 farmers.

“7,000 tube wells will be transferred to solar across Punjab,” he said.

“Chief Minister Green Tractor Program is being started for 30 billion. Farmers will be able to own their tractors in easy installments,” he said.

Punjab salaries, pensions update in budget

Punjab government has allocated Rs603 billion for salaries, Rs491 billion and Rs857 billion for the local governments.

PPP symbolically boycott budget session

Pakistan People's Party (PPP) boycotted the Punjab Assembly session symbolically as only two members attended the session.

PPP leader Haider Gilani said PPP was not included in the consultation in the preparation of the budget and could not support the government's budget in these circumstances.

CM Roshan Gharana Program 

The finance minister said Rs9.5 billion has been allocated for the 'Chief Minister Roshan Gharana Program'.

Punjab govt to provide free solar installations

Punjab government on Thursday announced that complete solar systems are being provided free of cost to domestic consumers consuming up to 100 units of electricity.

Highlights 

• Education Rs669 billion
• Laptop scheme Rs10 billion
• Livestock Card Rs2 billion
• CM Green Tractor Scheme Rs30 billion
• Interest-free Farmers loans Rs75 billion
• Specialized Healthcare Rs86 billion
• Health facilities Rs539.15 billion
• Primary Secondary Healthcare Rs42.60 billion
• HEC Rs17 billion
• Danish Schools Rs2.50 billion
• Salaries Rs603.10 billion
• Pensions Rs451 billion
• Minimum wage increased from Rs32,000 to Rs37,000

  Rs135 billion allocates for road rehabilitation

The minister in his speech said Maryam Nawaz Sharif-led Punjab government has allocated Rs135 billion under 482 schemes for repair and rehabilitation of dilapidated and old roads.

Garment City to Boost Foreign Exchange

Punjab will establish its first Garment City for Rs3 billion to increase foreign exchange.

South Punjab budget and Education overall 

Khelta Punjab Initiative

A major project named Khelta Punjab will commence for Rs7 billion. This initiative will provide field and basic sports facilities in all provincial constituencies.

Reconstruction of sports facilities

In the next financial year, a significant project for the maintenance and reconstruction of existing sports facilities in Punjab will be launched, costing 6.5 billion rupees.

Digital Punjab Vision

Chief Minister Maryam Nawaz's vision of a Digital Punjab is rapidly becoming a reality. In just three months, the foundation of Pakistan's first Nawaz Sharif IT City has been laid in Lahore.

Punjab cabinet approves ‘largest’ tax-free surplus budget in history

Punjab provincial cabinet chaired by Chief Minister Maryam Nawaz has approved the largest tax-free surplus budget in the province's history.

The budget, amounting to Rs5,446 billion, includes Rs842 billion allocated for development expenditure and a surplus of Rs630 billion.

Maryam Nawaz announced that the budget would focus on enhancing revenue from the province's own sources without imposing new taxes on the public.

The revenue target has been significantly increased from the previous Rs625 billion rupees to Rs960 billion.

Other notable initiatives include establishing a single department for water supply and irrigation, making Punjab a safe city with comprehensive camera coverage, and allocating funds saved from wheat procurement to support farmers, particularly in South Punjab.

The budget also includes provisions for rural health improvements and funding for housing projects for the next five years.

Maryam Nawaz expressed her commitment to fulfilling these promises and developmental projects, with Nawaz Sharif expressing satisfaction with the team's hard work.

Key highlights of the budget include:

• Approval of 77 new mega projects in the annual development plan.
• A 53% increase in revenue from fiscal sources without raising taxes.
• A record Rs842 billion allocated for development expenditure.
• An increase in the minimum wage from Rs32,000 to Rs37,000.
• A 20-25% increase in salaries and a 15% increase in pensions.
• A historic increase of one billion rupees in the Minority Development Fund.
• Allocation of 26 billion rupees for agricultural implements, 10 billion for the Kisan Card, and 30 billion for the CM Green Tractor Program.
• Two billion rupees each for the livestock card and Himmat and Nighaban cards.
• Approval of 26 billion rupees for restructuring education.

Federal Finance Minister Muhammad Aurangzeb said that countries run on taxes, and increasing the scope of taxes is inevitable and regretted that a tax rate of 10% of GDP is unacceptable.

Finance Minister Muhammad Aurangzeb said the budget for the next fiscal year revolves around five principles, including widening tax base and digitizing economy.

Addressing the post budget news conference in Islamabad Thursday, he said implementing a progressive income tax regime, eliminating non-filers, and protecting low-income groups are other points emphasized in the budget.

The Finance Minister said below ten percent tax to GDP ratio is not sustainable. He emphasized enhancing it to 13 percent in the next three years.

Muhammad Aurangzeb announced that tax on retailers and wholesalers will be applicable from the 1st of July. He said the Federal Board of Revenue has so far registered thirty one thousand retailers and the process of registration will continue.

Muhammad Aurangzeb said end to end digitization in FBR is aimed at minimizing human intervention and improving transparency and client service.

During the post-budget press conference in Islamabad, Muhammad Aurangzeb said, "Higher income earners will be taxed more." No one should object. Inflation will remain in line with the interest rate.

Muhammad Aurangzeb stated that the budget was prepared by taking all the government allies on board. The PPP was represented in the budget session. There is hope for negotiations with the IMF, and it is expected that a staff-level agreement will be reached with the IMF in July. Talks with the IMF are moving in a positive direction. It is not appropriate to make any final decision about the IMF program yet.

The finance minister said that 6-7 strategic SOEs have been removed from the privatization plan and strategic SOEs are not being included in privatization along taking all the stakeholders together on the issue of privatization. The prime minister has directed the outsourcing of Lahore and Karachi airports.

He said that talks are ongoing with the provinces to increase revenue. “If the provinces play a role in increasing revenue, the federation will be able to provide relief. It is hoped that the provinces will bear some burden regarding the expenses. Consultations with the provinces regarding the NFC are ongoing,” he added.

Muhammad Aurangzeb said that the institutions which have been transferred to the provinces should be closed.

“EOBI is an independent institution; EOBI will decide on its own pension. Welfare works will not be possible without tax collection. There will be no physical space and no improvement in the social sector unless taxes are collected,” the finance minister emphasized.

Digitization of sales tax first priority

The finance minister said that the more things are digitized, including sales tax, the more things will improve. Digitization of sales tax is the first priority.

He further said that the tax base has to be expanded. “The digitization of the economy is being done. The system of various institutions has to be improved. The wealth from progressive tax will be transferred to the people, and the tax base will be gradually expanded.”

Petroleum levy to be increased phased wise

Muhammad Aurangzeb said that the petroleum levy is not increasing immediately. The petroleum levy will be increased in a phased manner. The petroleum levy will be gradually increased next year. The tax rate has been raised to 45%. The business transaction tax of non-filers has been significantly increased. The tax laws have not been fully implemented. The tax rate is to be raised to 13% in three years. We are moving towards the abolition of the term 'non-filers.'

The finance minister said that the salaried class cannot move forward without tax. “It is necessary to bring the salaried class into the tax net. 31,000 retailers have been registered as they must be brought into the tax net so that the burden is shared,” he said.

PSDP

Muhammad Aurangzeb said that 19% of funds are being kept for new projects in PSDP, and 81% funding is being given to ongoing projects in PSDP. Efforts are being made to complete PSDP projects. Regarding financing in agriculture, IT, and SME, 3-4 meetings of the Banks Association were held in two months with the Governor of the State Bank. Banks need to work hard in SME.

According to the finance minister, IT exports are 3.5 billion dollars. They will provide facilities to the youth in the IT sector. They are moving towards documentation by ending cash transactions. They are looking at a fixed tax in a phased manner.

The Finance Minister said that tax has been enhanced on business transactions of the non-filers. He said this is the first step towards doing away with non-filers in the country.

Replying to a question, the Finance Minister said record allocations have been made for the IT sector to facilitate IT exports and youth in their startups. Regarding the Small and Medium Enterprises, he said banks are back to finance SME's, IT and agriculture sectors.

Answering another question, Muhammad Aurangzeb said 81 percent of Public Sector Development Programme spending has been reserved for ongoing projects, while rest of the amount will go for new projects.

Regarding relief measures, Minister of State for Finance Ali Pervaiz Malik said significant allocations have been made in this respect under the Benazir Income Support Programme.

Similarly, the largest chunk of subsidies will go for power sector to facilitate electricity consumers, including the protected customers using up to 200 units.

The Minister of State further said additional amount has been reserved for the Utility Stores Corporation to provide essential kitchen items to the deserving people at subsidized rates.

The Minister of State said there is no tax on the employees earning up to Rs50,000.

In the newly presented budget for the fiscal year 2024-25, the federal government has proposed a substantial allocation of funds for the education and health sectors.

Finance Minister Muhammad Aurangzeb announced that Rs 93 billion is earmarked for the education sector, and Rs 27 billion has been allocated for healthcare.

The budget includes significant investments in various educational initiatives. Rs 25.75 billion is set aside for the Federal Ministry of Education, while the Higher Education Commission (HEC) is allocated a development budget of Rs 66.31 billion.

The government is committed to upgrading facilities in 166 public schools in Islamabad, ensuring that students have access to modern educational resources.

Furthermore, Minister Aurangzeb highlighted plans to provide free meals to students in 200 primary schools in Islamabad. An education voucher scheme will be introduced to assist underprivileged students attending private schools.

The government aims to expand the education scholarship program, adding one million more children, bringing the total beneficiaries to 10.4 million.

In the healthcare sector, the budget includes a proposal to construct the Quaid-e-Azam Health Tower at the Pakistan Institute of Medical Sciences (PIMS) in Islamabad. This initiative is part of the government's broader efforts to enhance healthcare infrastructure and provide better medical services to the public.

Federal Finance Minister Aurangzeb unveiled on Wednesday budget of 18,877 billion rupees for the fiscal year 2024-25.

This substantial allocation raises questions regarding its implications on consumer prices, with certain sectors facing potential hikes while others may see decreases.

Here's a compilation of all times and sectors experiencing a surge or adjustment in Budget 2024-25.

Hybrid and luxury vehicle taxes

The government's budget reveals plans to terminate subsidies on hybrid and luxury electric vehicle imports, foreseeing an inevitable surge in their prices.

Initially introduced in 2013 to bridge the price gap between hybrid and conventional vehicles, these subsidies are now deemed redundant as hybrid technology becomes more commonplace and locally produced.

Sales tax on mobile phone

As part of the budgetary measures, the government proposes a uniform sales tax rate of 18 percent on various categories of mobile phones.

A targeted revenue of 24.081 billion rupees is earmarked from mobile phone duties in the upcoming financial year.

Levy on petroleum Products

 The budget proposes an increase in the development levy on petrol from Rs 60 to Rs 80 per litre, while maintaining the levy on kerosene at Rs 50 per litre.

Similarly, the levy on light diesel oil is slated to rise from Rs 50 to Rs 75 per litre.

Customs duties for glass, steel, and paper products

In a bid to boost local industries, the government opts to eliminate customs duty concessions on glass products.

Furthermore, import duties on paper and steel products are set to rise, aligning with the agenda to promote domestic manufacturing.

Tax adjustments on textile and leather goods
   
The budget outlines a proposal to elevate the sales tax rate on textile and leather products from 15% to 18%. However, this adjustment targets high-end branded items, ensuring minimal impact on the general populace.

Revision in federal excise duty on cement

 Federal excise duty on cement is slated to undergo an upward revision, climbing from Rs 2 to Rs 3 per kilogram. This move aims to bolster government revenue streams while potentially affecting construction costs.

 Incentives for solar industry
   
Encouraging the growth of the solar panel industry, the government unveils concessions on the import of raw materials and components for solar panels, inverters, and batteries.

With an emphasis on local production and export facilitation, these incentives aim to reduce reliance on imported goods and conserve foreign exchange reserves.

In the Federal Budget 2024-25, Finance and Revenue Minister Senator Muhammad Aurangzeb announced an allocation of Rs 1 billion for the establishment of the National Digital Commission (NDC) and the Digital Pakistan Authority (DPA).

This initiative aims to foster digital transformation, innovations, and digital solutions across various government departments.

Minister Aurangzeb highlighted the government's commitment to boosting the Information Technology (IT) sector, recognizing its potential for rapid and substantial returns on investment. He projected that, with the support of Pakistan's talented youth and the government's IT-friendly policies, the country's IT exports could reach $3.5 billion.

The budget allocates a total of Rs 79 billion to the IT sector. Of this, Rs 7 billion is earmarked for the digitalization and reforms within the Federal Board of Revenue (FBR). These funds will be used to implement modern IT systems to expand the tax base and address inefficiencies in the tax collection process.

Additionally, Rs 11 billion is set aside for the Technology Park Development Project in Islamabad. The Pakistan Software Export Board (PSEB) will receive Rs 2 billion to support IT sector exporters and to fund internship programs for students within IT firms.

Furthermore, the budget proposes Rs 20 billion for developing digital infrastructure information, underscoring the government's strategic focus on strengthening Pakistan's digital landscape.

In the recently presented budget for the fiscal year 2024-25, the federal government has proposed significant changes to the tax rates on the sale and purchase of property.

According to the budget documents, there will be an increase in the tax on capital gains for property transactions in the next financial year.

Federal Finance Minister Muhammad Aurangzeb, during his budget speech in the National Assembly, announced that filers will now face a 15% tax rate on the purchase and sale of property.

In contrast, non-filers will be taxed at a rate as high as 45% for similar transactions. Additionally, the budget introduces separate tax rates for filers, non-filers, and late filers concerning immovable properties.

The minister emphasized that these changes are aimed at documenting the economy and addressing rumors within the housing sector. He noted that these measures would also help ensure proper accommodation for the public by promoting transparency and accountability in property transactions.

The government’s target for the upcoming fiscal year is to generate Rs 477.11 billion from income tax on properties. This initiative is expected to play a crucial role in achieving this revenue goal while fostering a more structured and documented real estate market.

Leader of Opposition in National Assembly Umar Ayub expressed strong disapproval of the newly presented federal budget for the fiscal year 2024-25, calling it meaningless and a violation of constitutional norms.

Speaking to media, Ayub, who has previously presented four budgets in the National Assembly, voiced his concerns regarding the budget’s legitimacy and content.

He pointed out procedural issues, stating, “Neither a CD was provided nor was the budget written in English, which is a first in this parliament.” He emphasized that the Finance Minister’s speech lacked transparency and failed to present accurate records.

Rejecting the budget entirely, the opposition leader labeled it a “fake budget by a fake government,” arguing that it does not reflect the country's true growth rate. He highlighted the plight of Punjab farmers, mentioning that their wheat crops are burning while the government remains unresponsive.

Ayub also criticized the industrial growth claims made by the government. “They say that the production of the industry has increased, but where is this production?” he questioned. He further noted that electricity prices have surged by Rs 3.50 per unit recently, adding to the public’s financial burden.

The opposition leader accused the government of lacking consultation and transparency. He raised concerns about Mohsin Naqvi, alleging that Naqvi failed to submit his tax returns, and criticized the government’s handling of trade with Iran, suggesting that rice would be smuggled out of the country.

He condemned the actions of the Punjab Police in Mianwali, where a judge was allegedly surrounded, and his orders to release prisoners’ handcuffs were ignored. “Anarchy is spreading in the country,” Ayub warned, blaming the government for the increasing instability.

He concluded by accusing the PPP of betrayal and questioned the overall governance and administrative decisions of the current regime.

The federal government has presented the budget for the fiscal year 2024-25 in the National Assembly, introducing significant income tax reforms aimed at aligning with international standards.

Finance Minister Muhammad Aurangzeb outlined the proposed changes during the budget session, emphasizing the need for personal income tax reforms.

Finance Minister Aurangzeb emphasized the need for personal income tax reforms following the Federal Board of Revenue’s (FBR) implementation of income tax reforms.

He proposed maintaining the income tax exemption on incomes up to Rs 600,000 annually and suggested not increasing the maximum slab for the salaried class, while introducing changes to the tax slabs.

Salaried Class Tax Changes:

• Income between 600,000 and Rs 1,200,000 annually will now be taxed at 5%. For those earning Rs 100,000 monthly, the tax has been increased from 1,250 to 2,500 rupees per month.
• Income between Rs 1,200,000 and Rs 2,200,000 annually will see a tax increase to 15%. Individuals earning Rs 183,344 monthly will now pay Rs 15,000 in income tax, up from Rs 11,667.
• Annual incomes between Rs 2,200,000 and Rs 3,200,000 will be taxed at 25%. For a monthly salary of Rs 267,667, the tax has increased from Rs 28,770 to Rs 35,834.

Non-Salaried Persons: The maximum tax rate for non-salaried individuals is proposed to be set at 45%.

Additional Tax Reforms:

The government has proposed maintaining the minimum and maximum tax slab rates but hinted at potential adjustments to the slabs in the future. The aim is to ensure a fairer tax system that better aligns with international standards and addresses the needs of various income groups.

Minister Aurangzeb highlighted that these reforms are designed to enhance the efficiency of the tax system, ensure equitable tax distribution, and foster economic growth. By reducing tax burdens on lower-income groups and adjusting rates for higher earners, the government aims to create a more balanced and fair tax structure.

The federal government has proposed a significant hike in the development levy on petroleum products in its budget for the fiscal year 2024-25.

The proposal, which was presented in the National Assembly, includes an increase in the development levy on petrol from Rs 60 to Rs 80 per litre.

The finance minister presented the budget, outlining the government's fiscal plans and strategies for the upcoming year. Among the key measures proposed, the increase in petroleum development levy (PDL) stands out, reflecting the government's need to bolster revenue amid economic challenges.

According to the budget documents, the development levy on petrol will see a steep rise of Rs 20 per litre. This increase, from the current Rs 60 to Rs 80 per litre, is expected to generate substantial additional revenue for the government.

However, it is also anticipated to have a ripple effect on the cost of living, as transportation and production costs are likely to rise in response.

In addition to the hike in petrol, the government has also proposed an increase in the levy on light diesel oil. The development levy on light diesel oil is set to rise from Rs 50 to Rs 75 per litre. This Rs 25 increase is one of the more substantial adjustments in the proposed budget.

Meanwhile, the development levy on kerosene has been maintained at the existing rate of Rs 50 per litre, offering some respite to users of this essential fuel, often relied upon in rural and low-income households.

The government has unveiled a budget plan that includes a discount on importing raw materials needed to produce solar panels, inverters, and batteries.

In a bid to promote local production of solar panels, inverters, and batteries, they've slashed import duties on the raw materials needed to manufacture these key components.

Finance Minister Muhammad Aurangzeb highlighted that the government is offering tax concessions to support the import of plant machinery, related equipment, and raw materials necessary for the manufacturing of solar panels. These incentives are designed to foster local production and meet both export and domestic demands, thereby conserving valuable foreign exchange.

The budget document outlines that subsidies are being provided on the import of goods and components required for manufacturing solar panels, inverters, and batteries. This initiative is expected to stimulate growth in the solar industry and encourage the use of renewable energy sources within the country.

Additionally, the government aims to reduce dependence on imported solar panels by bolstering local manufacturing capabilities. This strategy not only supports sustainable energy development but also enhances economic stability by preserving foreign currency reserves.

The federal government has allocated Rs2.122 trillion for defense in the budget for the fiscal year 2024-25, reflecting a significant increase in defense spending.

This shows an increase of approximately 14.99% from last year's allocation. 

Last year, the government allocated Rs1.804 trillion on defence for the year 2023-24, which was around 13% higher than the revised allocation for the outgoing year.

The defence budget for last year made up nearly 1.7pc of the GDP and 12.5pc of the total expenditure planned by the government over the next year. 

Also Read: Finance minister presents Federal Budget 2024-25 amid Opp protest

In 2022-23, Rs1.57tr was allocated for defence affairs and services. However, it was later revised higher to Rs1.59tr.

Finance Minister Muhammad Aurangzeb presented the Federal Budget 2024–25 worth Rs18.887 trillion as the National Assembly session kicked off after a delay of around an hour amid loud opposition protest. 

The members of the Sunni Ittehad Council (SIC) encircled the NA speaker's dice and raised slogans against the government's budget policy. The budget copies reached Parliament and were placed at each member's designated seat.  

The federal cabinet approved the budget for the financial year 2024-25. In the cabinet meeting, the package for farmers, youth, and industries was also approved.

Sources claimed that the PM also approved the increase of 25 percent increase in the salaries and pensions of grades 1 to 16 and while 20 percent hike for grade 17 to 22 government officers. 

Finance Minister Muhammad Aurangzeb Wednesday presented the Federal Budget 2024-25 with a total outley of Rs18.887 trillion in the National Assembly session amid the opposition protest. 

The government set ambitious Rs13 trillion tax collection target aiming 3.6 percent GDP growth. The budget deficit is projected at 6.9 percent of GDP. The finance minister said total expenditure estimated to be Rs18.9 trillion. 

The total outley of budget Rs18.9 trillion is 30 percent more than the total outley of previous year. 

The members of the Sunni Ittehad Council (SIC) encircled the NA speaker's dice and raised slogans against the government budget policy. The budget copies reached Parliament and placed at each member's designated seat.  

Earlier, federal cabinet approved the budget for the financial year 2024-25. The cabinet also approved package for farmers, youth, and industries. 

PM-ped cabinet huddle also approved the increase of 25 percent in the salaries and pensions of grades 1 to 16 and while 20 percent hike for grade 17 to 22 government officers. 

All the development schemes were announced by the Federal Finance Minister in the budget speech. Prime Minister banned the publication of the budget document, and the contents of the speech before the budget speech and directed authorities to take action against persons guilty of of leaking the documents.

The Finance Minister presented the coalition government's inaugural budget before the House, emphasized on administration's achievements amidst economic challenges, and outlined a roadmap for sustainable growth and economic stability.

The Finance Minister acknowledged the coalition leadership's role in steering the economy towards progress despite numerous hurdles. He stressed that Pakistan now stands at a critical juncture with a unique opportunity to embark on a path of economic development that cannot be squandered.

He highlighted that the Pakistani Rupee significantly depreciated by 40 rupees within a year amid the backdrop of Delays in the International Monetary Fund (IMF) program.

The IMF Standby Arrangement has since set the stage for economic recovery, as evidenced by the downward trend in inflation and rising investor confidence across various sectors.

The minister said the government is determined to restructure and privatize State-Owned Enterprises (SOEs). In past year, inflation decreased from a staggering 38 percent to a more manageable level.

He said Prime Minister Shehbaz Sharif is actively monitoring the Federal Board of Revenue's (FBR) reforms, aiming to expand the tax net.

In a decisive move to streamline austerity governance, the Prime Minister has ordered the closure of the Public Works Department (PWD).

Federal Budget 2024-25 key points

Rs5 billion Kissan Package

The minister said Rs5 billion has been allocated for the farmers’ packager and the government has decided to take advantage of the investment of the private sector in this regard.

Energy sector

It is proposed to allocate Rs253 billion for the development projects of the energy sector including Rs65 billion for the installation of the electricity lanes and Rs5 billion for the improvement in of distribution of electricity.

Rs21 has been allocated for the 1200 MW Jamshoro Power Plant. Rs11 billion is allocated for the improvement of the system of NDTC.

Defence Budget  

The federal government has allocated Rs2.122 trillion for defense in the budget for the fiscal year 2024-25, reflecting a significant increase in defense spending.

This shows an increase of approximately 14.99% from last year's allocation. 

Last year, the government allocated Rs1.804 trillion on defence for the year 2023-24, which was around 13% higher than the revised allocation for the outgoing year.

Govt exempts import tax on Solar panel industry

The coalition government of PMLN, PPP, and other parties exempted import tax on equipment for the promotion of the solar panel industry including raw materials for the manufacture of plant machinery and related equipment, solar panels, inverters, and batteries.

Discount on import tax of seed and feed for fish

The minister said adequate decision has been taken to give discount on import tax of seed and feed for fish and shrimp breeding.

New pension scheme 

He said reforms will be brought in the existing pension scheme and with initiatives, the pension expenses will be significantly reduced in the next three decades.

A new pension scheme is being introduced for new government employees and under the new scheme, the deduction will be made from the monthly salary for the pension of the employees.

Salary of new government employees

The minister said the salary of new government employees will be fully funded.

BISP budget increased by 27%

The minister said it is proposed a 27 percent increase in the amount allocated for the Benazir Income Support Program (NISP). BISP fund will be increased to Rs593 billion.

“The present number of eligible persons will be increased from 9.3 million to 10 million,” he said.  

FBR Tax Target

Education scholarship programme

He said 10 million more children are to be included in the education scholarship programme.

Income tax exempted in FATA, PATA

It has been decided to extend the income tax exemption given to erstwhile FATA and PATA by one year.

Advance tax on vehicle registration

The minister said advance tax on vehicle registration will be based on price rather than engine capacity.

“It has been decided to impose advance withholding tax on non-filers retailers and wholesalers,” he said.

Uptick in advance, withholding tax non-filers retailers

It is proposed to increase advance and withholding tax for non-filers retailers and wholesalers from 1% to 2.25 percent.

Inflation decreased

He claimed that inflation has come down from 38% to 11.8% due to the government measures and efforts to single digit inflation will continue.

The minister said reforms are being brought into the pension system.

All vacant posts of grade 1 to 16 abolished

“It is proposed to abolish all vacancies in grades I to 16. This initiative is likely to save 45 billion rupees annually,” Finance Minister Muhammad Aurangzeb.

Sales tax increase on branded shoes, clothes

The federal finance minister in his speech announced that the government has imposed an 18 percent sales tax on branded shoes and branded clothes in a bid to increase the GST on textile products.

Govt abolishes sales tax exemptions

The federal unity government has decided to abolish sales tax exemptions and concessional rates and to impose a standard rate of sales tax on various goods.

The 18 percent sales tax will be levied on various categories of mobile phones. It has been decided to impose a levy holding tax on copper, coal, paper, and plastic scrap products.

The minister decided to end tax exemption on the import of luxury vehicles. It has been decided to increase taxes and duties on an imported vehicle worth $50,000.

The government has eliminated import duty on imported glass products. It has been decided to increase the rate of import duties on steel and paper products

FED on cement hiked 

The FED on cement is decided to be increased from Rs2 per kg to Rs3 per kg. 

Property tax increased

The minister announced to imposition of 5 percent on the purchase of new plots and residential and commercial properties.   

Govt increases basic salary from Rs32,000 to Rs37,000

As per the budget speech, it is proposed to increase the minimum monthly salary from 32 to 37 thousand, budget speech. Finance Minister in his speech said due to inflation, salaried class purchasing power has been affected.

The finance minister said despite the financial difficulties, measures are being taken for the relief of government employees.

Tax on cigarettes increased

The federal government has decided to tighten the noose against the sale of fake cigarettes in the country. It has been decided to seal the factories selling fake cigarettes.

The Shehbaz-led cabinet has decided to impose a Rs44.000 tax on the material used in the production of cigarette filters.

Read more: 

Rs18.9 trillion Federal Budget 2024-25 to be presented today

Pakistan to accelerate CPEC phase 2 in next fiscal year

Federal development budget year-on-year comparison in charts

Punjab Budget 2024-25: All You Need To Know

Govt sets ambitious economic targets in Federal Budget 2024-25

These are the items set to become expensive after budget

PPP, PML-N settle differences over federal budget; PPP pledges support

In a significant policy shift, Pakistan has decided to expedite phase two of the China-Pakistan Economic Corridor (CPEC) in the upcoming fiscal year.

The government aims to enhance cooperation with China in the industrial and agricultural sectors, along with fostering social and economic development.

According to the budget document, priority will be given to completing mining and mineral projects within the next financial year. The completion of four out of nine special economic zones (SEZs) will be prioritised. These zones include Rashakai, Allama Iqbal, Dhabeji, and Bostan Special Economic Zones. Several industrial units are expected to commence production soon.

In a bid to boost exports, the government plans to increase agricultural production by integrating modern technology into the sector. Enhanced cooperation in science and technology between Pakistan and China is also on the agenda. 

Additionally, 27 critical projects aimed at poverty eradication have been identified. Of these, 17 priority projects are set for completion next year, with Memorandums of Understanding (MoUs) to be signed for 10 more projects within the same period. 

Ensuring the security of CPEC projects has been made a top priority, with advanced technology slated to play a key role. The scope of poverty alleviation projects includes initiatives in health, education, agriculture, vocational training, and water supply. 

Moreover, the oil and gas, as well as power sectors, have been declared priorities under CPEC, reflecting a comprehensive approach to leverage this pivotal economic corridor for Pakistan's development.

This strategic acceleration of CPEC Phase Two underscores Pakistan's commitment to deepening its economic ties with China and driving forward its development agenda through this flagship initiative.

In the upcoming financial year, the Punjab Police will not receive funding for any new projects, focusing instead on completing previously issued schemes, according to police authorities.

The Punjab Police had initially requested funds for 91 new schemes across the province, including Lahore, amounting to Rs1.8 billion. However, the authorities have decided to allocate funds exclusively for ongoing projects.

For the completion of these ongoing schemes, the police had sought over Rs7 billion for 149 projects. More than Rs5 billion was requested specifically for completing these ongoing initiatives. However, police officials expect to receive only Rs5 billion in the next fiscal year. 

With this allocation, the Punjab Police plans to complete 98 out of the 149 existing schemes. The new schemes initially proposed included the construction of police stations, offices, and residences throughout Punjab. 

Despite these funding constraints, police officials are committed to finishing the ongoing projects to enhance the infrastructure and operational efficiency of the Punjab Police force.

The Punjab fiscal year 2024-25 budget with a total outlet of Rs 5370 billion will be presented today (Thursday). 

Acting Governor Malik Muhammad Ahmed Khan has allocated the day for the purpose under rule 134 of the Rules of Procedure of the Punjab Assembly 1997.

The Punjab Assembly secretariat has issued a notification to the effect, says a press release, adding the budget session will start at 2pm.

Punjab is expected to receive Rs3700 billion from the federation under the NFC award, with a provincial revenue target of Rs1026 billion rupees.

The expenditure breakdown includes Rs595 billion for salaries, Rs445 billion for pensions, Rs840 billion for service delivery costs, and Rs700 billion for the development budget. Specific allocations feature Rs30 billion for a Ramadan Package and Rs8 billion for the Central Business District (CBD).

The budget outlines 1863 total schemes, comprising 1617 ongoing schemes and 246 new schemes.

Sector-wise allocations are as follows: 1210.74 billion rupees for roads, 2 billion rupees for special education, 3.50 billion rupees for literacy and non-formal education, 4.875 billion rupees for sports and youth affairs, 76.615 billion rupees for specialized health care, 33.897 billion rupees for primary health care, 3 billion rupees for population welfare, 8.99 billion rupees for water supply and sanitation, 1.0579 billion rupees for social welfare, 0.926 billion rupees for women development, and 14.048 billion rupees for local government.

budget will receive final approval from the cabinet before being presented in the assembly.

The federal government has set ambitious economic targets in the budget for the fiscal year 2024–25 amidst challenging global and domestic economic conditions. 

According to official documents, the budget aims for a GDP growth rate of 3.6% for the next fiscal year. To curb rising living costs, the inflation target has been set at 12%. The government is optimistic about achieving these targets through strategic economic policies and reforms.

Per capita income, sectoral growth

The budget projects the per capita income to reach Rs543,968. Growth targets have been defined across various sectors:

Agriculture: A modest growth target of 2%, despite an expected decline to -4.5% in major and important crop production. However, other crops are expected to grow by 4.3%. 

Industrial sector: Targeted to grow by 4.4%, with large-scale manufacturing set at 3.5% and small and cottage industries aiming for an impressive 8.2% growth.

Services sector: Anticipated to grow by 4.1%, with wholesale and retail sectors also targeting a 4.1% growth.

Trade and external accounts

The budget sets a target for domestic exports at $32.34 billion, while imports are projected at $57.28 billion, leading to a trade deficit target of $24.94 billion.

Remittances and current account deficit

The target for remittances from Pakistanis abroad is set at $30.27 billion, reflecting the crucial role of expatriate income in the national economy. The current account deficit is projected to be managed down to $3.7 billion, while the primary income balance is expected to be a negative $7.64 billion.

Today marks a pivotal moment as the federal budget for the fiscal year 2025-2024, amounting to Rs18.9 trillion, is set to be presented in the National Assembly.

However, the anticipation surrounding this budget is coupled with concerns over proposed tax reforms and potential price hikes on various consumer goods.

In the upcoming budget, the government plans to withdraw tax exemptions from several sectors, paving the way for a slew of additional taxes. It is estimated that these measures are likely to increase the prices of hundreds of items and introduce an additional tax burden of Rs2,000 billion on consumers. Consequently, the prices of hundreds of items are expected to rise, impacting the purchasing power of consumers across the nation. 

Also Read: Rs18.9 trillion Federal Budget 2024-25 to be presented today

Among the items likely to see a price increase are:

• Old imported cars
• Imported mobile phones
• Imported food items
• Chocolate
• Milk
• Yogurt
• Clothes
• Soap, shampoo, hair colour, make-up, perfumes, and lotions

Imported milk and clothing, in particular, are expected to become more expensive.

The Federal Board of Revenue (FBR) has proposed an overall tax target of Rs12,970 billion for the fiscal year. To achieve this target, the government plans to increase the General Sales Tax (GST) rate from 18% to 19%, generating an additional revenue of Rs100 billion.

Also Read: PPP, PML-N settle differences over federal budget; PPP pledges support

Additionally, a 6% General Sales Charge (GSC) is proposed to be imposed on petroleum products, with an estimated revenue generation of Rs180 billion.

Federal Finance Minister Muhammad Aurangzeb is set to present the highly anticipated federal budget for the fiscal year 2024-25 in the National Assembly today. The proposed budget stands at approximately Rs18,900 billion, aiming to address various economic challenges while fostering growth and stability.

Government employees can expect a 10 to 15% increase in their salaries and pensions. The increment is anticipated to provide significant relief, especially to lower-grade employees.

The pressing matters regarding the federal budget 2024-25 have been settled between the Pakistan Peoples Party (PPP) and the  ruling Pakistan Muslim League-Nawaz (PML-N).

Sources have revealed that negotiations at the leadership level of both parties have resulted in a resolution. It has been disclosed that the PPP has pledged full support to the government in passing the budget.

Despite initial reservations, the PPP has decided to vote in favour of the budget, ensuring its passage through parliament. Sources indicate that the PPP leadership is committed to passing the budget, despite potential protests and speeches within parliament.

Also Read: PM Shehbaz, President Zardari discuss budget relief proposals

Moreover, the government has assured the PPP that some of its proposals will be incorporated into the budget, indicating a collaborative approach to address key concerns raised by the opposition party. 

The situation reportedly shifted following a meeting between Prime Minister Shehbaz Sharif and President Asif Zardari on Tuesday.

Late-night consultations between PPP Chairman Bilawal Bhutto-Zardari and party leadership further solidified the decision to support the government's budgetary plans.

Also Read: Rs18.9 trillion Federal Budget 2024-25 to be presented today

On Tuesday, PM Sharif had called on President Zardari at the President's House. The country's overall economic situation and the upcoming budget 2024-25 took centre stage during the huddle. Meanwhile, Federal Minister for Planning and Special Measures Ahsan Iqbal was also present during the discussions.

PM Shehbaz and President Zardari deliberated on various strategies to alleviate the economic burden on the poor and middle classes in the forthcoming fiscal plan. Zardari stressed the importance of addressing the needs of the underprivileged sections of society. He urged the PM to ensure that the upcoming budget includes significant measures to support the poor and middle-income groups.

In addition to relief measures, the meeting also reviewed development projects slated for the upcoming budget.

The proposed Public Sector Development Program (PSDP) for the fiscal year 2024-25 reflects a substantial increase in development spending compared to the previous year.

The total allocation has been increased from 950 billion rupees in 2023-24 to Rs1,400 billion in 2024-25, highlighting the government's commitment to enhancing infrastructure and social sectors.

The largest increase is seen in the infrastructure sector, particularly in energy, which has seen its allocation rise from Rs81 billion to Rs253 billion.

In the social sector, health and education have also seen significant increases, ensuring better services and facilities for the population. Overall, the proposed PSDP 2024-25 aims to accelerate development across multiple sectors, fostering economic growth and improving the quality of life for citizens.

The Sindh government is set to present its budget for the financial year 2024-25 on Friday. The total volume of the new budget is Rs3.056 trillion, with substantial allocations aimed at employee welfare and development initiatives.

The budget proposals will be reviewed and approved during the provincial cabinet meeting before being presented to the assembly by Sindh Chief Minister Syed Murad Ali Shah.

Sources indicate that the budget will include a proposed increase of 15% to 20% in the salaries of government employees. Additionally, there is a proposal to set the minimum wage at Rs35,000.

Also Read: Rs18.9 trillion Federal Budget 2024-25 to be presented today

The Annual Development Program (ADP) is another highlight, with a proposed allocation exceeding Rs430 billion. A notable proposal includes an increase of Rs30 billion in the district development program, aimed at enhancing local-level projects and initiatives. 

The budget also anticipates the announcement of new recruitments across more than 50,000 positions in various government departments, addressing both employment and administrative efficiency.

Also Read: FinMin Aurangzeb links stability to IMF agreement, admits 'no Plan B'

In an effort to promote sustainable energy solutions, the budget includes a proposal to provide solar systems to over 200 villages in the first phase. This initiative aligns with broader efforts to improve energy access and promote renewable energy sources in rural areas.

Meanwhile, the PML-N-led Punjab government will present its budget on June 13. The Punjab Assembly Secretariat issued a notification that the provincial budget will be presented on Thursday at 2pm in the 11th session of the assembly.

Punjab Assembly Speaker Malik Muhammad Ahmed Khan will preside over the budget session. Punjab Chief Minister Maryam Nawaz has expressed commitment to ensuring equal access to services for every citizen.

Federal Finance Minister Muhammad Aurangzeb is set to present the highly anticipated federal budget for the fiscal year 2024-25 in the National Assembly today. The proposed budget stands at approximately Rs18,900 billion, aiming to address various economic challenges while fostering growth and stability.

Tax Revenue Targets:

The Federal Board of Revenue (FBR) has set an ambitious tax collection target of Rs12,970 billion.

Salaries and Pensions:

Government employees can expect a 10 to 15 percent increase in their salaries and pensions. The increment is anticipated to provide significant relief, especially to lower-grade employees.

BISP and Social Welfare:

The budget proposes an increase in the number of beneficiaries under the Benazir Income Support Programme (BISP) and an enhancement in the stipend amounts, aiming to support the most vulnerable segments of society.

Defense and Security:

An allocation of Rs2,100 billion has been proposed for the defense sector to ensure national security and support the armed forces.

Financial Deficit and Debt Servicing:

The budget outlines a financial deficit of 9,800 billion rupees. Additionally, Rs9,700 billion has been allocated for interest payments on existing debt, reflecting the government's commitment to managing its financial obligations.

Additional Taxes and IMF Demands:

To meet the International Monetary Fund (IMF) requirements, the budget introduces several additional taxes. This includes potential increases in the prices of old imported vehicles, imported mobile phones, and cigarettes.

Cost of Living Adjustments:

Imported food items, baby milk, medicines, and stationery are expected to become more expensive due to the proposed elimination of sales tax exemptions on thousands of goods.

Agricultural implements, tractors, fertilizers, and seeds may also see price hikes, affecting the agriculture sector.

General Sales Tax (GST) Increase:

The GST rate is proposed to increase from 18% to 19%, which is expected to generate an additional 100 billion rupees in revenue.

Petroleum Development Levy:

The levy on petroleum products is proposed to rise from Rs. 60 to Rs. 80 per litre, potentially increasing fuel prices across the country.

The new budget aims to balance fiscal responsibility with social welfare, though the introduction of new taxes and reduction of exemptions may lead to higher costs for consumers.

As the budget proposals are debated in the National Assembly, the government will need to navigate the challenges of satisfying IMF conditions while ensuring economic relief for its citizens.

In a recent unveiling of Pakistan's economic survey by Federal Finance Minister Muhammad Aurangzeb, startling figures have emerged regarding the country's donkey population.

The survey, presented ahead of the upcoming National Assembly session where the federal budget will be scrutinised, indicates a notable surge in the number of these resilient animals.

According to the survey, Pakistan's donkey population has climbed to 5.9 million, marking a significant increase from the previous financial year's count of 5.8 million.

This upward trend in donkey numbers has persisted over the past two years, with an additional 0.2 million donkeys reported within this timeframe.

 
Notably, the survey also highlighted that the count of horses has remained stagnant at 0.4 million over the last year, while there has been no growth in the camel population.

Moreover, the survey revealed a substantial rise in the number of goats and sheep across the country. Over the course of the year, the goat population surged by a staggering 22.2 million, whereas the count of sheep witnessed a commendable uptick of 4 million.

In his address while presenting the economic survey, Finance Minister Muhammad Aurangzeb underscored the necessity of adhering to financial obligations, asserting that the International Monetary Fund (IMF) remains the primary recourse for stabilizing the country's economic trajectory.

Aurangzeb reiterated the imperative for all citizens to contribute their due share of taxes in accordance with their respective financial standings.

Federal Finance Minister Muhammad Aurangzeb confessed on Tuesday the government had exclusively relied on the standby agreement with the International Monetary Fund (IMF) asserting that there was no alternative plan.

The finance czar's remarks came while presenting the Economic Survey for the financial year 2024-25 alongside the economic team.

During the presser, Aurangzeb emphasised that the agreement, made under the leadership of Prime Minister Shahbaz Sharif, was crucial due to the absence of a contingency plan.

Currency devaluation

At the end of the fiscal year 2022-23, Pakistan faced significant economic challenges. The GDP contracted by 2%, and the Pakistani rupee depreciated by 29%. Foreign exchange reserves dwindled to a level that could only cover two weeks of imports.

Aurangzeb noted that prior to taking office, he had advocated for entering the IMF programme, as there was no viable alternative.

IMF deal

The 9-month standby agreement with the IMF, signed by the prime minister and his team, was instrumental in averting a more severe economic crisis. "Without this agreement, we would not be discussing our goals today," Aurangzeb stated, underscoring the agreement's critical role in the country's economic management.

Tax collection 

Aurangzeb reported a 30% growth in tax collection, an unprecedented achievement. The current account deficit was projected at $6 billion for the fiscal year, with an anticipated reduction to $20 million in the new fiscal year.

The finance minister attributed the stability of the rupee in recent months to administrative measures, including tightening controls on Afghan transit trade.

Pakistan's foreign exchange reserves now cover two months' worth of imports, amounting to over $9 billion. Aurangzeb highlighted that the quality of these reserves is strong, providing a solid foundation for the next fiscal year. Inflation, which had peaked at 48%, has dropped to 11.8% as of May, significantly easing pressure on core inflation and food prices.

Monetary policy 

A recent reduction in the policy rate was attributed to decreased inflation. Aurangzeb projected that the rate could fall to 10% by the beginning of the next fiscal year, leading to a gradual reduction in the policy rate.

Measures taken by the State Bank, such as restructuring and increasing the capital requirements for exchange companies, were instrumental in stabilizing the exchange rate.

Structural reforms

Aurangzeb emphasized the need for increased tax-to-GDP ratios and reforms in the tourism sector, while addressing governance issues. He stressed the importance of policy implementation, particularly in tax and energy sectors, and reducing leakages in the Federal Board of Revenue (FBR).

"Every sector must contribute to the economy; schools, universities, and hospitals can be run on charity, but the country can only run on taxes," he remarked.

Energy sector challenges

Minister of State for Energy, Ali Pervez Malik, acknowledged the burden of capacity payments on electricity prices, which impacts industrial growth and exports. He indicated that ongoing reforms and growth would eventually alleviate this problem.

Despite past challenges, the growth rate for the current year stands at 2.38%, with the agricultural sector experiencing its highest growth in 19 years. Aurangzeb attributed the economic recovery to government initiatives and the IMF standby agreement, highlighting its necessity in achieving current economic goals.

The Federal Finance Minister concluded by reiterating that without the IMF programme, Pakistan would have faced severe difficulties. The government's strategic decisions and reforms are now paving the way for a more stable and prosperous economic future.

Prime Minister Shehbaz Sharif called on  President Asif Ali Zardari at the President's House on Tuesday.

The country's overall economic situation and upcoming Budget 2024-25 took centre stage during the huddle. Meanwhle  Federal Minister for Planning and Special Measures, Professor Ahsan Iqbal, was also present during the discussions.

PM Shehbaz and President Zardari deliberated on various strategies to alleviate the economic burden on the poor and middle classes in the forthcoming fiscal plan.

During the huddle, President Zardari stressed the importance of addressing the needs of the underprivileged sections of society.

He urged the premier to ensure that the upcoming budget includes significant measures to support the poor and middle-income groups.

In addition to relief measures, the meeting also reviewed development projects slated for the upcoming budget.

Prime Minister Sharif took the opportunity to brief President Zardari on his recent visit to China, highlighting the potential economic benefits and developmental cooperation discussed with Chinese counterparts.

President Zardari expressed his full support for the government's efforts to achieve the country's development and economic objectives. He assured Prime Minister Sharif of his cooperation in implementing policies aimed at sustainable economic growth and public welfare.

Several development projects planned for the new financial year will heavily depend on external funding, according to the budget documents for the fiscal year 2024-25. The federal and provincial governments have decided to take an external loan amounting to Rs932 billion to finance these initiatives.

The federal government plans to borrow Rs316 billion, while the four provinces collectively will secure Rs616 billion in external loans. Sindh is set to take the largest share, borrowing Rs334 billion, highlighting its significant reliance on external funding for its development agenda.

Khyber Pakhtunkhwa will depend on external debt amounting to Rs131 billion for its development projects. Punjab will secure Rs123 billion in external loans, and Balochistan borrow Rs29 billion for its development projects in the next financial year. 

Also Read: Salaries, pension increase update in federal budget 2024-25

In response to a request from the International Monetary Fund (IMF), details of investments from local sources were also shared. 

Various departments are projected to spend Rs196.89 billion from their resources on development projects. 

Moreover, the National Transmission and Dispatch Company (NTDC) and distribution companies (DISCOs) will invest Rs102.23 billion from their own resources.

The reliance on external loans underlines the financial challenges faced by the country in funding its development agenda. The significant borrowing also reflects the ambitious scale of the development projects planned across the country. 

PML-N-led Punjab government will present the budget on June 13.

Punjab Assembly Secretariat issued a notification that the provincial budget will be presented on June 13 at 2 pm in the 11th session of the Punjab Assembly.

Punjab Assembly Speaker Malik Muhammad Ahmed Khan will preside over the budget meeting.

Punjab Chief Minister Maryam Nawaz Sharif expressed commitment to ensuring equal access to services for every citizen.

She stated this during a meeting with Provincial Ombudsman Major (R) Sulaiman Khan in Lahore.

During the meeting, matters related to administration, good governance, public grievances, and redressal mechanisms related to government departments were discussed.

The Provincial Ombudsman presented the annual report to Punjab Chief Minister Maryam Nawaz Sharif and also informed about the steps taken to resolve public complaints and disputes.

Pakistan is set to allocate a historic development budget of Rs3,792 billion in the upcoming financial year. This substantial investment marks a significant increase compared to previous years.

In the new financial year, the federal and provincial governments will spend on development schemes together, while the highest expenditure will come from Sindh.

According to the budget document for the new financial year, the proposed finance bill of 2024 reflects an increase of Rs1,012 billion compared to the previous fiscal year. The federal Public Sector Development Programme (PSDP) is earmarked at Rs1,500 billion, indicating a noteworthy increase of Rs500 billion.

Furthermore, the annual development plan of the four provinces has seen a substantial rise of Rs462 billion, totalling Rs2,095 billion. 

Also Read: Federal budget proposals unveiled: Deficit, inflation to burden public

Among the provinces, Sindh is set to allocate the highest development budget, amounting to Rs764 billion. Punjab follows closely with a development budget of Rs700 billion, while Khyber Pakhtunkhwa has allocated Rs351 billion, and Balochistan Rs281 billion for development projects.

Significantly, the development budget of Sindh has witnessed a substantial increase of Rs241 billion, highlighting a strategic focus on accelerating development initiatives in the province. Meanwhile, Punjab's budget has seen a marginal increase of Rs51 billion, Khyber Pakhtunkhwa's budget has surged by Rs61 billion, and Balochistan's development budget has expanded by Rs110 billion.

This unprecedented allocation reflects the government's commitment to fostering sustainable growth, improving infrastructure, and addressing socio-economic challenges across Pakistan. The substantial increase in development expenditure underscores a concerted effort to drive progress and prosperity in the country's various regions.

The federal budget for the new financial year will be presented in the National Assembly on Wednesday (tomorrow), revealing an ambitious expenditure plan of Rs18,900 billion, based on a deficit of Rs9,800 billion.

The fiscal strategy will place a considerable burden on the public through heightened inflation and additional taxes, with electricity prices expected to rise by Rs5 to 7 per unit. Inflation is projected to exceed the official target of 12 percent. 

For the first time in history, a Rs3,792 billion development budget has also been proposed.

Key points from the budget proposal include:

Development Projects and External Funding

Several development initiatives will depend heavily on external funding. The government has decided to borrow Rs 932 billion for these projects. Out of this, the federal government will take Rs 316 billion, while the provinces will borrow Rs 616 billion, with Sindh taking the largest share at Rs 334 billion. Khyber Pakhtunkhwa, Punjab, and other regions will also depend significantly on external debt.

Growth and Development Targets

The budget aims for a growth rate of 3.6 percent, with industrial development set at 4.4 percent and agricultural development at 2 percent. The export target is set at $40.5 billion, against an import target of $68.1 billion. The development budget is approved at Rs 827 billion, with key allocations including Rs 253 billion for energy, Rs 279 billion for communication, and Rs 93 billion for education. Additional funds are allocated for merged districts (Rs 64 billion) and Azad Kashmir and Gilgit-Baltistan (Rs 75 billion).

IT and Telecom Sector Prioritization

The government proposes to increase the development budget for the IT and telecom sector by over Rs 21 billion, totaling Rs 27.43 billion. Key allocations include Rs 21 billion for ongoing projects and Rs 6.28 billion for new initiatives. Notable projects include the Digital Economy project (Rs 3.5 billion), the IT park in Karachi (Rs 6.78 billion), the technology park in Islamabad (Rs 9.92 billion), and various IT startup and cybersecurity initiatives.

Sectoral Allocations

• Education: Rs 32 billion
• Health: Rs 17 billion for national health projects
• Infrastructure: Rs 877 billion for federal projects
• Energy: Rs 378 billion for federal development projects

Incentives and Social Welfare

Proposed incentives for small farmers, an increase in salaries and pensions for government employees (10-15 percent), and a scheme for providing cheap loans to farmers are under consideration.

The annual income tax exemption limit may increase from Rs600,000 to Rs900,000, while taxes are likely to rise for the salaried and non-salaried business classes. The target for tax collections is set at Rs13,000 billion.

The federal budget was presented on Wednesday wherein government announced to increase 25 percent increase in salaries of government employees.

An increase of 15 percent was also announced in the pension of retired employees.

Every year, government employees and retired employees of federal government-owned institutions and departments wait for the announcement of salaries and pension increases.

Read more: Federal Budget 2024-25 Key Points

Amid the inflation wave, the government employees wanted a maximum increase in salaries and also retorted persons who served their country with utmost dedication wanted an increase of maximum increase in pensions.

In the federal budget 2024-25, the government has prioritized the IT and telecom sector, proposing a substantial increase in the development budget by over Rs21 billion.

The proposed allocation for the development budget of the IT and telecom sector stands at Rs27.43 billion, a significant rise from the Rs6 billion allocated in the current financial year.

The budget includes Rs21 billion for ongoing development projects and Rs6.28 billion for new initiatives. Among the key projects, Rs3.5 billion has been earmarked for expanding the digital economy, a project that will be completed with World Bank funding. Additionally, Rs1 billion is set aside to foster innovation within the IT industry, a project totaling Rs9.95 billion.

Specific allocations include Rs50 million for a Rs400 million digitization project for the National Assembly, and another Rs50 million for upgrading the broadcast system of the National Assembly. The plan for establishing an IT park in Karachi will receive Rs6.78 billion, while a technology park project in Islamabad is allocated Rs9.92 billion. 

Furthermore, Rs1.80 billion is designated for the Prime Minister's IT startups project, aiming to boost entrepreneurship and innovation in the tech sector. An additional Rs1 billion will be spent on enhancing cybersecurity under the Digital Pakistan initiative.

Meanwhile, during April this year, Pakistan saw an increase of 62.3% in IT exports compared to the same period last year. According to a BBC report, the increase in IT exports is a result of policy reforms and business-friendly policies introduced by the Special Investment Facilitation Council.

The report further stated that the stability of the local currency and allowing freelancers to deposit foreign earnings into local bank accounts are the main factors of this surge in IT exports. The State Bank of Pakistan has also relaxed the retention limit for IT companies from 35 to 50%, which is a factor in this increase.

The IT sector is regarded as one of the priority sectors of the Special Investment Facilitation Council, and all stakeholders have been assured of its reliability. Another significant reason for this increase in IT exports is that over 25,000 IT graduates and freelancers earned money from foreign companies, which resulted in a surge in foreign exchange.

In the upcoming budget for the fiscal year 2024-25, imported mobile phones are expected to see a hike in prices as the government proposes to increase taxes on these devices.

Sources reveal that the new budget includes provisions to raise the tax burden on imported mobile phones, including the imposition of federal excise duty.

Additionally, regulatory duty and Pakistan Telecommunication Authority (PTA) tax on imported luxury mobile phones are likely to witness an increase, according to insider reports. These measures aim to encourage local manufacturing of smartphones by making imported devices less competitive in the market. 

Also Read: Govt proposes major budget boost for defence development

On the other hand, the budget is expected to offer incentives for the local production of smart mobile phones. Sources suggest that tax reductions are anticipated on the manufacturing of mobile parts, batteries, chargers, and headphones. These incentives aim to promote domestic manufacturing and stimulate the growth of the mobile phone industry within the country.

Meanwhile, Prime Minister Shehbaz Sharif-led federal government has proposed an allocation of Rs5.63 billion for the Ministry of Defence's development projects in the upcoming budget 2024-25. This comprehensive allocation encompasses 29 key projects, reflecting the government's commitment to enhancing military infrastructure and technology.

According to the budget document, Rs3.92 billion has been earmarked for nine ongoing projects within the Ministry of Defence.

Pakistan's middle class should not expect much relief from the budget which is being prepared on IMF strict conditions as the government is all set to increase price of electricity and gas and impose taxes in the new financial year budget 2024-25.

The government is preparing a federal budget for FY24-25 to secure a bailout package of up to $8 billion from the International Monetary Fund (IMF). The new proposed federal budget of Rs18,900 billion will be based on a deficit of Rs9800 billion.

The public will have to bear the burden of inflation and additional taxes to meet government expenditures.

Electricity per unit rate to shoot up by Rs7

The price of electricity will be more expensive by Rs5 to Rs7 per unit and inflation will rise well above the official target of 12 percent.

Economic affairs expert Ashfaq Tola said that the conditions that are being discussed and he thought that there were going to be a lot of ‘difficulties’ in the budget.

In the new budget, the potential annual tax target of FBR will be Rs13,000 billion, which will have to be levied in additional taxes.

2.5% income tax on non-filers

To bring non-filers into the tax net, it is proposed to impose a 2.5 percent income tax on the entire supply chain from manufacturing to retailers, and increase the tax on the income of contractors, professionals, and sportsmen. Apart from this, there is a plan to collect 4800 billion rupees.

18% GST on hundreds of items

The new budget plans to impose 18% GST on hundreds of items, including imported food, baby milk, and stationery. There is a plan to increase the tax on old vehicles and include many sectors including lakhs of retailers in the tax net.

Defense budget

It is estimated that Rs9700 billion will be spent on paying interest on loans in the new financial year. Rs2100 billion on defense, it is proposed to increase the budget of the federal PSDP from Rs1221 billion to Rs1500 billion while subsidies for various sectors have been estimated at Rs1300 billion.

BISP to continue

Small government employees will get a pay rise and the poor will get some relief from BISP, but the difficulties for the middle class will increase.

Economic affairs expert Dr Waqar Ahmad said that the possibility of relief in the budget is expected to be very low given the IMF agreement. The middle-income and high-income groups will face difficulties with additional taxes imposed.

The new budget proposes to levy 18% GST on retailers, agricultural implements, seeds, fertilizers, tractors, and other equipment. The target is to bring 60 lakh traders into the tax net. These measures are aimed at ramming the IMF for a bailout package.

According to Dr. Abid Silhari, an expert in economic affairs, Pakistan would want to implement reforms but predicted political tensions would not come by any chance when the budget is approved.

“After that, the negotiations for your next program will start. Inflation is not seen to decrease and at that time the entire focus of the government should be stability in the value of the currency,” he said.

In the lead-up to the 2024-25 budget, Prime Minister Shehbaz Sharif has turned down a proposal to increase the tax on cash withdrawals from banks for non-filers, as confirmed by Federal Board of Revenue (FBR) officials.

The proposal was meant to raise the tax rate to 0.9% for bank withdrawals exceeding Rs50,000 for non-filers.

Currently, non-filers are subjected to a 0.6% withholding tax on bank withdrawals above this threshold. The suggested hike was part of a broader strategy to generate additional revenue and was projected to bring in Rs20 billion from non-filers. However, the prime minister decided against the increase, prioritizing the potential financial burden on non-filers.

“Prime Minister Shehbaz Sharif has rejected the proposal to increase the tax on cash transactions for non-filers,” said FBR officials, highlighting the government's stance on maintaining the existing tax framework for these transactions. 

Also Read: Budget 2024-25: Massive increase in salaries on the cards

Following the PM's directive, FBR officials have been instructed to communicate this decision to the Finance Ministry, as it impacts the ongoing discussions related to fiscal policy and economic reforms.

Meanwhile, the Ministry of Finance has revealed initial proposals to increase salaries for government employees. Sources within the ministry suggest a potential salary hike of 15% to 20% for federal employees, though final decisions will be made by the PM after consultations with the Finance Ministry and the cabinet. 

One of the key proposals is an increase in the pay policy for bureaucrats. For officers up to grade 20, an increase from Rs65,000 to Rs105,000 has been proposed. For grade 21 officers, the salary is proposed to rise from Rs75,000 to Rs120,000. Grade 22 officers could see their salaries increase from Rs95,000 to Rs155,000.

In the lead-up to the announcement of the federal budget, the Ministry of Finance has revealed initial proposals to increase salaries for government employees.

Sources within the ministry suggest a potential salary hike of 15 to 20 percent for federal employees, though final decisions will be made by the Prime Minister after consultations with the Finance Ministry and the Cabinet.

Despite these proposals, there are significant constraints. The International Monetary Fund (IMF) has emphasized the need for cost reductions and pension reforms, suggesting that substantial increases in salaries and pensions might not be feasible.

This has created a challenging scenario for the government, which must balance fiscal responsibility with the need to support its employees.

One of the key proposals is an increase in the monetization policy for bureaucrats. For officers up to grade 20, an increase from Rs 65,000 to Rs 105,000 has been proposed. For grade 21 officers, the monetization is proposed to rise from Rs 75,000 to Rs 120,000. Grade 22 officers could see their monetization increase from Rs 95,000 to Rs 155,000.

A 10% salary increase for employees across grades 1 to 22 is estimated to cost approximately Rs 80 billion. However, there are additional demands for a 200% increase in medical and conveyance allowances for employees in grades 1 to 16. Currently, these employees receive Rs 1,800 as conveyance allowance and Rs 1,500 as medical allowance. For grades 17 and 18, officers receive Rs 5,000 as conveyance allowance, and a similar 200% increase is proposed for them as well.

Employees in grades 1 to 16 received a disparity allowance of 25% in 2021 and 15% in 2022 to address salary differences between provincial and federal employees. There is a proposal to continue this disparity allowance to further reduce these discrepancies.

All these proposals are still in the preliminary stages. The final decisions will be made by the Prime Minister in consultation with the Finance Ministry and the Cabinet. The upcoming budget will reveal how these proposals are balanced with the IMF's recommendations and the government's fiscal policies.

The Punjab government is gearing up to allocate a substantial development budget of Rs700 billion for the upcoming fiscal year, according to documents obtained by Samaa TV.

The budget is intended to fuel progress and growth across various sectors in the province.

A comprehensive overview of the budget reveals that a total of 4,211 schemes worth Rs620.59 billion have been included in the proposals. Of these, 2,805 schemes worth Rs391 billion are ongoing, while 1,391 new schemes worth Rs195.39 billion are set to be initiated in the next financial year.

Moreover, Rs33.82 billion have been allocated for other development projects, as per the budget documents. 

The budget also outlines plans to complete 1,863 schemes in the next financial year, with a target of finishing 1,617 ongoing schemes and initiating 246 new projects. 

Among the key sectors targeted for development, more than Rs121 billion have been allocated for road infrastructure projects, demonstrating the government's emphasis on improving connectivity and transportation networks across the province. Furthermore, over Rs110 billion have been allocated for the healthcare sector, underscoring the importance of enhancing healthcare facilities and services for the citizens of Punjab.

Other significant allocations include Rs14.4 billion for local government initiatives, Rs2 billion for special education, and Rs3.5 billion for literacy and non-formal education programs, reflecting the government's commitment to promoting education and empowering local communities.

In addition, the Department of Industries is set to receive Rs10.79 billion, while the Planning and Development Department will be allocated Rs37.38 billion, the documents stated.

The upcoming budget for 2024-25 is expected to bring significant changes to the pricing of used vehicles in Pakistan, with a proposed increase in regulatory duty.

Sources indicate a 30% rise in regulatory duty on vehicles larger than 1800cc, potentially leading to higher costs for imported used vehicles.

According to reports, there is a proposal to increase the regulatory duty on old vehicles, which could further contribute to the expected price hike. 

Imported used vehicles, particularly those with engine capacities larger than 1800cc, are likely to face the brunt of these changes, with the rate of duty possibly escalating from 70% to 100%. Additionally, there is a proposal to impose a 15% duty on used vehicles up to 1800cc.

However, there is a silver lining for buyers of new and old hybrid vehicles with engine capacities up to 1800cc, as it is suggested that they will continue to enjoy zero duty, providing some relief amidst the anticipated price increases.

It's worth noting that last year saw a significant surge in vehicle imports, up by 255%, largely attributed to the reduction in regulatory duty. The proposed adjustments in regulatory duty aim to curb excessive imports and promote local manufacturing.

The recent decision by the federal government to drastically cut the Higher Education Commission's (HEC) budget has thrown Pakistan’s higher education sector into chaos. It is a perplexing move for a nation that depends on its youth to lead it towards a prosperous future, yet undercuts the very budget that fuels their education.

As of the new fiscal year, the HEC's recurrent budget has been slashed from Rs65 billion to a mere Rs25 billion. The sudden disappearance of Rs40 billion has not only sparked outrage and confusion but also highlighted a glaring disconnect between the government’s stated priorities and the actual needs of the educational sector. This financial blow affects over 160 public universities in Pakistan, which had collectively requested Rs126 billion to meet their operational and developmental needs.

The developmental budget from the Planning Commission has also been severely reduced from Rs59 billion to Rs21 billion. This financial strangulation has prompted emergency meetings among vice chancellors, who unanimously agree that these budget cuts are catastrophic for higher education in Pakistan.

Budget cuts and universities

HEC Chairman Dr. Mukhtar Ahmed confirmed receiving the official notification from the Ministry of Finance and the Planning Commission. His concern is well-founded. Federal universities are now expected to stretch a budget that barely covers basic operational costs, let alone supports ambitious research projects or maintains academic standards. The situation is further exacerbated by the HEC's inability to fund provincial universities, leaving them to fend for themselves in an already dire financial climate.

The lack of response from significant political parties on this issue is telling. It suggests that higher education has never been a priority, despite the fact that 60% of Pakistan’s population is under the age of 30. Neglecting education for this demographic is not only shortsighted but also detrimental to the nation's future.

 System in crisis

A colleague from Quaid-i-Azam University (QAU) aptly described the situation as education being “in the emergency room” for quite some time. The government's lackadaisical attitude towards higher education indicates a deeper systemic apathy. This raises a critical question: where exactly is the nation headed when its youth, brimming with potential, are deprived of educational support?

Financial mismanagement within universities is also a significant issue. Universities are not only victims of external budget cuts but also of internal inefficiencies. There are frequent allegations of funds being misappropriated or diverted. If universities are to plead for more funds, they must also demonstrate financial responsibility and transparency.

Consider the stark reality: Rs25 billion for 24 federal universities. This amount is insufficient to cover even the basic salaries, let alone other operational costs. Among these institutions are major universities like QAU, NUST, PIEAS, NDU, and Bahria University, each with substantial financial needs. The current budget allocation is akin to asking an elephant to subsist on crumbs.

During discussions at QAU, one professor emphasized that federal universities need not just increased budgets but also foolproof management of those funds. A dual approach of seeking increased financial support while ensuring meticulous budget management is crucial. This is not rocket science, yet it seems to elude many in positions of power.

Provincial discrepancies

Interestingly, the Sindh government has consistently allocated reasonable funds for higher education. In contrast, Khyber Pakhtunkhwa (K-P) allocated only marginal funds for universities in the 2024 budget. This discrepancy highlights the uneven priorities and capacities of provincial governments. Ultimately, the federal government will bear the brunt of these budget cuts, potentially affecting the funding shares of even federal universities.

A professor summarized it well: vague political decisions invariably end up costing the public, exacerbating the politics of divide and rule. The inconsistency in funding across provinces is not just a financial issue; it’s a political one, underscoring a fragmented approach to education in Pakistan.

It is no surprise that institutions of higher learning are struggling to contribute meaningfully to the national economy. The government needs to not only increase the higher education budget but also develop a long-term, concrete plan. While Pakistani universities have been improving their quantitative rankings, their impact on educational or economic policies remains negligible.

Call for action

As the country grapples with these budget cuts, it is time for a reality check. Financial mismanagement within universities needs addressing, but so does the government's role in ensuring adequate funding. The political landscape must shift to genuinely prioritize education. Universities, in turn, must prove their worth not just in numbers but in their tangible impact on society and the economy.

Higher education in Pakistan is at a critical juncture. The nation can either let it wither under financial constraints and mismanagement or take bold steps to ensure it thrives. The youth of this nation deserve better, and it is our collective responsibility to fight for a robust, well-funded educational system that can propel Pakistan into a brighter future.

The severe budget cuts to Pakistan’s higher education sector are more than just numbers on a ledger; they represent a significant threat to the nation’s future. Immediate and coordinated action is required from both the government and educational institutions to address this crisis. By increasing funding and ensuring efficient use of resources, Pakistan can provide its youth with the education they need to lead the country towards prosperity. It is not just an investment in education; it is an investment in the future of Pakistan.

Pakistan’s development budget has been drastically impacted by the requirements of the International Monetary Fund (IMF) program, leading to significant cuts in funding for crucial social sector and infrastructure projects.

The development budget, which was initially set at Rs 950 billion for this year, has seen a drastic reduction, with only Rs 389 billion being utilised.

The substantial budget cuts have had a ripple effect across various sectors, including health and higher education. These cuts have hindered the progress of numerous social sector and infrastructure projects, which are essential for the country's development.

According to official documents, the Public Sector Development Program (PSDP) requires Rs 9,800 billion to fund ongoing projects. However, only Rs 1,221 billion have been proposed for the next financial year’s federal PSDP, highlighting a significant shortfall.

Over the past decade, the average federal development budget has been around Rs 630 billion per year. However, the current financial constraints have forced the government to cut back on development spending to meet IMF targets.

The depreciation of the rupee and rising inflation have further exacerbated the budget constraints. These economic challenges have made it difficult for the government to allocate sufficient funds to development projects.

The federal government has also pointed to provincial projects as a significant burden on the budget. This has added to the strain on the already limited development funds.

The document reveals that the development budget has fallen to 0.9 percent of GDP, down from 1.7 percent. This decline underscores the severe impact of budget cuts on Pakistan's overall economic growth and development.

The Khyber Pakhtunkhwa government has unveiled its fiscal year 2024-25 budget, introducing significant changes to the tax regime aimed at boosting provincial revenue.

To increase tax revenue by Rs10 billion, the provincial government has set an ambitious target, estimating the collection of provincial taxes at Rs63.19 billion.

One of the most notable introductions is the provincial excise duty on tobacco. For the first time, this tax will be collected from tobacco companies at the rate of Rs50 per kilogram. Additionally, the tax on snuff tobacco has been increased from Rs2.5 to Rs7.5 per kilogram.

In the real estate sector, a 2% tax has been imposed on purchasing and selling plots within housing societies. Residential properties will also see new taxes, with owners of 5 to 10 marla houses required to pay Rs3,000, owners of 15 marla houses Rs3,500, and owners of 18 marla houses Rs4,000.

For larger properties, a tax of Rs15,000 will be imposed on one-kanal houses, and Rs40,000 on two-kanal residences.

The education sector is also impacted, with private institutions facing new annual taxes: Rs40,000 for primary schools, Rs50,000 for middle schools, Rs100,000 for high schools, and Rs250,000 for universities.

Service providers are not exempt from these changes. Service stations will now be taxed Rs20,000 annually, CNG stations Rs50,000, and mobile towers Rs40,000. Additionally, marriage halls will face new tax brackets: Rs15,000, Rs20,000, and Rs25,000 depending on their category.

Traffic fines are also set to increase, with penalties rising from Rs400 to Rs1,000 for various violations.

In a significant development, the Khyber Pakhtunkhwa Assembly presented its budget for the fiscal year 2024-25, with a surplus of Rs 100 billion. The budget meeting, which started 2 hours and 15 minutes late, was presided over by Speaker Babar Saleem Swati.

Finance Minister Aftab Alam presented the budget, with Chief Minister KP Ali Amin Gandapur in attendance. The total revenue for the province is estimated at Rs 1754 billion, while the total expenditure is Rs 1654 billion.

Salary and Pension Increases

Under the new budget, basic salaries for government employees will see a 10% increase, alongside a corresponding 10% rise in monthly pensions. Additionally, the minimum monthly wage is set to rise from Rs 32,000 to Rs 36,000, aimed at improving the livelihoods of workers across the province.

Investments in Education and Healthcare

Education remains a key priority, with Rs 362 billion 68 crore allocated for the sector, marking a 13% increase from the previous year. Higher education will receive Rs 35 billion 82 crore, while plans are underway to establish 30 degree colleges in rented buildings.

In a move to enhance healthcare accessibility, Rs 34 billion has been earmarked for the health card program, ensuring broader coverage for medical expenses.

Revenue Allocation and NFC Award

Finance Minister Aftab Alam highlighted the province's fiscal challenges, citing an annual deficit of Rs 139 billion due to discrepancies in the National Finance Commission (NFC) award distribution. Despite an allocated share of Rs 262 billion, KP has only received Rs 123 billion, exacerbating financial strains.

Hydropower Revenue and Taxation

Significant revenue from hydropower, totaling Rs 78 billion 21 crore, underscores the province's potential for energy generation. Meanwhile, efforts to bolster revenue streams include initiatives such as oil and gas royalties, windfall levies, and measures to address tax arrears.

The budget reflects KP's commitment to fostering economic growth, improving public services, and addressing fiscal challenges to ensure sustainable development across the province.

Tax Reductions for Hotels and Marriage Halls

Minister Alam announced a significant reduction in the sales tax rate for hotels, which has been lowered to 6%. Additionally, he mandated the use of a restaurant invoice management system for all hotels. Furthermore, a fixed sales tax rate is proposed for marriage halls to streamline taxation in the hospitality sector.

Property Tax Relief

In a move to alleviate the tax burden on property owners, the finance minister proposed a reduction in property tax rates. The current property tax on factories, set at Rs 2.5 per square foot or Rs 10,600 per kanal, is slated to be decreased to Rs 10,000 per kanal, providing relief to industrial enterprises.

Minister Alam outlined a revenue mobilization plan with a target of Rs 93.50 billion, emphasizing efforts to expand the tax net and boost revenue collection. The proposed reforms include reducing the tax rate on commercial property from 16% to 10% of the monthly rent and slashing the tax rate for health sector businesses from 16% to 5%.

Acknowledging the burden of federal taxes on property transactions, the finance minister proposed a reduction in provincial taxes on property transfers from 6.5% to 3.5%. This move aims to encourage property transactions and provide a 3% tax relief to individuals involved in property transfers.

Rs 232.80 billion allocated for health sector

Khyber Pakhtunkhwa Finance Minister Aftab Alam announced substantial allocations aimed at improving the health sector and other key areas. A total of Rs 232.80 billion has been designated for the health sector, marking a 13% increase in health expenditure compared to the previous year.

Key highlights of the health budget include the introduction of an air ambulance service and the establishment of a satellite center for the Peshawar Institute of Cardiology in the southern districts. Additionally, new medical and dental colleges will be developed with private sector participation. The development budget also encompasses various accommodation projects.

The finance minister detailed that Rs 10.97 billion has been allocated for the purchase of medicines. The Health Card Plus initiative will receive a total budget of Rs 28 billion, with Rs 9 billion specifically earmarked for planned and merged districts.

Rs 140.62 billion allocated for law and order

For law and order improvements, Rs 140.62 billion has been allocated, which is a 12% increase from last year. This includes the launch of the PEHL 911 project under the Home Affairs department, aimed at enhancing emergency response and public safety.

Rs 8.11bn earmarked for social welfare sector

In the social welfare sector, Rs 8.11 billion has been allocated to support various programs designed to uplift underprivileged communities and improve social services across the province.

Agriculture and Energy Sector Investments

The agriculture sector will receive Rs 28.93 billion, reflecting the government's commitment to enhancing agricultural productivity and sustainability. Additionally, Rs 31.54 billion has been allocated for the energy sector.

Key initiatives include the establishment of the KP Distribution Company to increase electricity production and the launch of the Battakundi-Naran Hydropower Project in Mansehra, which will generate 235 MW of electricity.

The Green Khyber Pakhtunkhwa policy aims to shift mosques, tube wells, and street lights to solar energy, with plans to extend this to primary health centers, schools, universities, and colleges.

Social Welfare and Employment Programs

The finance minister highlighted that Rs 12 billion has been allocated for the Ehsaas employment, youth, and talent programs. These initiatives are expected to create employment opportunities for 100,000 youth. The Ehsaas Apna Ghar program has been allocated Rs 3 billion, with plans to construct 5,000 houses. The Chashma Right Bank Canal project, with a budget of Rs 3 billion, aims to irrigate 300,000 acres of land, addressing the province's food security concerns.

Infrastructure and Emergency Relief

Significant funds have been earmarked for infrastructure and emergency relief operations. Rs 10 billion is allocated for the CRBC lift canal project, Rs 26.90 billion for wheat procurement, and Rs 3 billion for the Bus Rapid Transit (BRT) project. Additionally, Rs 6.50 billion is reserved for the construction and repair of roads, and Rs 2.50 billion is set aside for emergency relief operations.

The Khyber Pakhtunkhwa Assembly is set to present a surplus budget of Rs1,754 billion for the upcoming fiscal year wherein the expenditure has been estimated at Rs1,654 billion.

The budget, which was approved by the provincial cabinet and to be unveiled by KP Finance Minister Aftab Alam in an assembly session on Friday, outlines a comprehensive financial plan aimed at addressing key developmental challenges while ensuring fiscal stability and economic growth, as per the documents. 

In the proposed budget for the fiscal year 2024-25, the total income is estimated at Rs1,754 billion. This income includes Rs1,212 billion to be received through various channels such as federal distribution of revenue, oil and gas levy, net profit of electricity, and its arrears. The province's own income is projected to be Rs93.5 billion, while funds from foreign loans and grants are expected to amount to Rs130 billion.

A significant portion of the budget, amounting to Rs1,237 billion, has been allocated for salaries, pensions, and various non-developmental expenses. Additionally, a development budget of Rs400 billion has been earmarked, with Rs130 billion allocated from foreign loans.

The budget also includes several key proposals aimed at improving the welfare of citizens and stimulating economic growth. Notably, the minimum wage for labourers is set to increase to Rs36,000. Furthermore, new tax reforms are introduced, including a reduction in the tax rate of land transfer from 6% to 3%.

In a bid to generate additional revenue, the budget proposes the implementation of a new tax called Vehicle Road User, targeting vehicles registered outside the province. Additionally, a new tax on tobacco companies, in the form of provincial excise duty, is proposed. The proposals include Rs10 billion for giving loans to the youth for business on easy terms,

The budget also includes ambitious social welfare programs, such as the 'Apna Ghar' scheme for the homeless and the 'Hunar Program' aimed at providing vocational training opportunities.

The preparations for the federal budget for the financial year 2024-25 have commenced in Islamabad, as a priority committee, tasked with determining both the current and development budgets, is set to convene starting today.

Chaired by the special secretary of the Ministry of Finance, the committee's discussions are scheduled to extend until March 30, as confirmed by the Ministry of Finance sources.

Sources within the ministry indicate that the committee's primary objective is to estimate the federal current and development budgets for the upcoming financial year. Additionally, it will undertake a comprehensive review of the current financial year's budgets of various federal ministries.

Furthermore, the committee will also assess the needs for grants and subsidies for the next financial year, ensuring that budget allocations align with the government's priorities and objectives. This includes budget estimates for salaries and other operational expenses of federal ministries and departments.

Moreover, the committee is entrusted with the task of formulating recommendations for the allocation of the development budget. These recommendations will be drafted in accordance with the government's strategic goals and priorities.