Minister for Finance and Revenue Muhammad Aurangzeb presented Pakistan’s budget for the fiscal year 2024-25 with a total outlay of Rs18 trillion, during a National Assembly session that began with the recitation of the Holy Quran and the national anthem. Prime Minister Shehbaz Sharif attended the session.
The budget is seen as a strategic move to secure a new bailout deal with the International Monetary Fund (IMF), as Pakistan negotiates for a loan estimated between $6 billion to $8 billion. The government aims to demonstrate its commitment to fiscal responsibility and economic reform. Analysts anticipate ambitious fiscal targets, particularly given that the country’s GDP is projected to expand by 2.4% this year, which falls short of the 3.5% target despite a 30% increase in revenues and controlled fiscal and current account deficits.
In his speech, Finance Minister Aurangzeb lauded Prime Minister Shehbaz Sharif and his team’s efforts over the past year to revive the economy. He emphasized Pakistan’s path toward inclusive and sustainable economic growth. Key announcements included a 101% increase in the development budget, with 81% allocated for ongoing schemes and 19% for new initiatives. Notable projects include:
- Quaid-e-Azam Health Tower in Islamabad: Rs5 billion.
- Development projects in the poorest districts: Rs7 billion.
- Karakoram Highway project: Rs6 billion.
- Digitalisation of the national economy: Rs4 billion.
- Establishment of Danish school in Islamabad: Rs2 billion.
- Seven Danish schools in Azad Kashmir and Gilgit-Baltistan: Rs5 billion.
For energy projects, significant allocations were made:
- 600 MW power plant in Jamshoro: Rs21 billion.
- 500 kV transmission line in Lahore: Rs14 billion.
- Karachi Coastal Power Project: Rs18 billion.
- Mohmand Dam Hydro Power Project: Rs45 billion.
Additionally, the budget includes relief measures for government employees:
- A 25% increase in salaries for BPS1-16 employees.
- A 20% increase in salaries for BPS17-22 employees.
- A 15% increase in pensions for retired employees.
- The minimum monthly wage has been raised from Rs32,000 to Rs37,000.
The Finance Minister acknowledged the challenges faced by government employees and expressed the government’s commitment to easing their economic burdens.