Key highlights of Budget 2024-25

The government of Pakistan presented the budget for the fiscal year 2024-25 on Wednesday. media takes a look at some of the key highlights of the documents.

• Economic growth target fixed at 3.6% for fiscal year 2024-25

• Inflation seen at 12% in FY2024-25

• Total outlay of the budget for FY25 is Rs18.9 trillion

• Gross revenue receipts expected at Rs17.8 trillion

• Non-bank borrowing expected at Rs2.662 trillion

• Rs5.142 trillion expected from bank borrowing

• Rs666 billion earmarked for net external receipts

• Privatisation proceeds expected at Rs30 billion

• Rs9.775 trillion earmarked for interest payments

• Rs1.014 trillion to be spent on pensions

• Rs2.122 trillion allocated for Defence affairs and services

• Rs1,777 trillion earmarked for grants and transfers to provinces

• Rs1,363 trillion to be spent on subsidies

• Running of civil government and emergency provision expected to consume Rs1,152 trillion

• Rs1,674 trillion allocated for development and net lending

• Overall fiscal deficit is at Rs7.283 trillion

• Overall fiscal deficit at GDP 5.9%, down from the revised 7.4% of FY2023-24

• FBR taxes envisaged at Rs12.97 trillion, around 40% higher than outgoing fiscal year

• Non-tax revenue envisaged at Rs4.8 trillion

• Federal PSDP budgeted at Rs1.400 trillion

• Increase in allocation of BISP from Rs466 billion to Rs592 billion, subsidy allocation of Rs65 billion for utility stores corporation, Rs10 billion kept for Ramzan package

• Pensions of government employees to be increased by 15%

• 25% increase in salaries of Grade 1 to 16 and 20% in Grade 17 to 22

• Rs37,000 minimum wage proposed

• Extra Federal Excise Duty (FED) of Rs1,000 per ton imposed on cement, bringing total FED to Rs3,000 per ton of cement dispatched

• GST exemption granted to the FATA/PATA region to be removed

• Sales tax rate for point-of-sale (POS) retailers dealing in leather and textile products increased from 15% to 18%

• Maximum limit for petroleum levy enhanced for petrol and diesel to Rs80 per litre

• Withdrawal of custom duties exemptions on CBU imports of hybrid vehicles

• Withdrawal of concession on import of electric vehicles with value exceeding US$ 50,000

• Advance tax on registration of motor vehicles above 2,000 cc will be fixed at a certain amount in proportion to the value of the vehicle

• Iron and steel scrap to be exempted from levy of sales tax

• Rs253bn allocated for development of energy sector

• ‘National Fiscal Pact’ proposed with all provinces