Finance Minister Muhammad Aurangzeb announced Pakistan’s federal budget 2024-25, targeting a modest 3.6% growth for the coming fiscal year, as Islamabad looked to appease the International Monetary Fund (IMF) and balance its burgeoning books with higher taxation.
The salaried group came out frustrated, while capital markets rejoiced at ‘status quo’. It was the real estate and IT sectors that were left disappointed. Government employees were offered raises, while pensions also increased.
Minimum wage was enhanced to Rs37,000, and some proposals discussed privatisation and the energy sector.
Inflation, which has proved to be a headache for Pakistan’s policymakers in recent years, was projected at 12% for the coming fiscal year.
The budget was announced with a total outlay of Rs18.9 trillion (up 30% compared to the budgeted outlay of FY24), and gross revenue receipts are expected at Rs17.8 trillion. The Federal Board of Revenue (FBR) taxes are envisaged at Rs12.97 trillion, an amount nearly 38% higher than the outgoing fiscal year.
media reported the budget speech live underneath.
Updates
GST on tier-1 textile retail sector enhanced from 15% to 18%, says Aurangzeb.
Capital markets
CGT on non-filers to go as high as 45%, while on filers of income tax returns, it will stay at 15%, says Aurangzeb.
Slabs for salaried group will change, says Aurangzeb.
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