In a session marked by both high expectations and vocal opposition, Finance Minister Muhammad Aurangzeb presented Pakistan’s budget for the fiscal year 2024-25 with a total outlay of Rs18.877 trillion. The National Assembly session, which began with the recitation of the Holy Quran and the national anthem, saw Prime Minister Shehbaz Sharif in attendance.
Opposition Protest
However, the budget presentation was not without controversy. Opposition lawmakers from the Pakistan Tehreek-e-Insaf (PTI)-backed Sunni Ittehad Council protested vigorously, standing on their desks, raising slogans against the government and PML-N president Nawaz Sharif, and tearing copies of the Finance Bill 2025.
Economic Context and IMF Deal
This budget comes at a critical time as Pakistan seeks to secure a new bailout deal with the International Monetary Fund (IMF) estimated between $6 billion and $8 billion. The government, optimistic about economic recovery, reported a GDP growth of 2.4% for the current year, below the targeted 3.5%, but with revenues up by 30% year-on-year and both fiscal and current account deficits under control.
Finance Minister Aurangzeb emphasized the importance of the IMF deal, highlighting the recent economic improvements following stabilisation measures, falling inflation, and a recent interest rate cut by the central bank.
Key Highlights of the Budget
– GDP Growth Target: Set at 3.6%
– Inflation Rate: Projected at 12%
– Development Budget: Rs1,500 billion
– Sales Tax on Smartphones: 18%
– Salary Increases: 25% for BPS1-16, 20% for BPS17-22
– Minimum Monthly Wage: Increased from Rs32,000 to Rs37,000
– Privatizations: Top priority
Major Allocations
– BISP: Rs597 billion
– IT Sector: Rs79 billion
– Energy Sector: Rs267 billion
– Water Resources: Rs206 billion
– Defense: Rs2,122 billion
– Civil Administration: Rs839 billion
Development Projects
Seventeen major development projects were announced, including:
– Quaid-e-Azam Health Tower in Islamabad: Rs5 billion
– Karakoram Highway Project: Rs6 billion
– Mohmand Dam Hydro Power Project: Rs45 billion
Relief Measures for Government Employees
The budget includes significant relief measures for government employees, with salary increases ranging from 20% to 25% and a 15% increase in pensions for retired employees.
Session Delay and PPP Concerns
The session experienced a nearly two-hour delay due to reservations voiced by the Pakistan Peoples Party (PPP) regarding the Public Sector Development Programme (PSDP) allocations. Despite initial reluctance, PPP lawmakers eventually attended the session to ensure the required quorum, albeit without their chairman, Bilawal Bhutto Zardari.
Finance Minister Aurangzeb expressed gratitude to the coalition partners, including Nawaz Sharif and Bilawal Bhutto Zardari, for their guidance in formulating the budget. He stressed the government’s commitment to inclusive and sustainable economic growth despite the political and economic challenges.
Conclusion
Finance Minister Aurangzeb concluded his address with optimism, emphasizing the government’s progress over the past year and urging Pakistan to seize the opportunity to revitalize its economy. He lauded the leadership of PM Shehbaz Sharif and the coalition partners for their efforts in overcoming the current economic challenges and paving the way for future development.
The 2024-25 budget reflects a robust plan aimed at stabilizing Pakistan’s economy, securing vital international support, and addressing the needs of its citizens through strategic financial management and development initiatives.
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