Pakistan: As per the latest updates, the Federal government has announced Pakistan’s budget for the fiscal year 2024-25. According to the sources, Finance Minister Muhammad Aurangzeb revealed the federal budget in the parliament house for the fiscal year 2024-25, which is Rs. 18.9 trillion.
Read More: Government Policies in Real Estate in Pakistan
Here are the salient features of Budget 2024-25:
| Pakistan’s budget for fiscal year 2024-25 | Rs. 18.9 trillion |
| FBR tax collection target | Rs. 12.97 trillion for FY25, +38% YoY |
| Non-tax revenue | Rs. 4,845 trillion for FY25 |
| Funds for Public Sector Development Program (PSDP) | Rs. 1,500 billion for FY25 |
| Government employees’ pension | Rs. 1,014 billion for FY25 |
| Subsidies budgeted to clock in | Rs. 1.363 trillion FY25 |
| Total grants to clock in | Rs. 1.777 trillion in FY25 |
| Budget deficit as a percentage of GDP budgeted | 6.9 per cent for FY25 |
| Non-bank borrowing (NSSs and Others – Public Account | Rs. 2.662 trillion |
| Net External financing | Rs. 666 billion |
| Bank borrowing (T-Bills, PIBs, Sukuk) – Fed. Consolidated fund: | Rs. 5.142 trillion |
| Privatization proceeds | Rs. 30 billion |
| Current expenditure | Rs. 17.2 trillion |
| Interest payment | Rs. 9.775 trillion |
| Pension payouts | Rs. 1.014 trillion |
| Defence Affairs & Services expenses | Rs. 2.122 trillion |
| Grants and Transfers to Provinces & Others | Rs. 1.777 trillion |
| Subsidies | Rs. 1.363 trillion |
| Expenditure for running of Civil Govt | Rs. 839 billion |
| Provision for emergency and others | Rs. 313 billion |
| Primary surplus budgeted | 1 per cent of GDP in FY25 |
| Federal Excise Duty on the cement sector | Rs. 1,000/ton for FY25 |
| Federal Revenue | Rs. 10.377 trillion |
| Total federal expenditure | Rs. 18.87 trillion |
| Capital Gains tax on securities on filers, irrespective of the holding period | 15 per cent |
| Capital Gains tax on securities on non-filers, irrespective of the holding period | 45 per cent |
| PDL maximum limit | Increased from Rs. 60 per liter to Rs. 80 per liter |
| General Sales Tax (GST) increased on textile and leather products sold by Tier-1 retailers | 15% to 18% |
| An increase in the minimum wage | Rs. 32,000 to Rs. 36,000 |
| New plots and residential and commercial properties | 5 percent |
| The tax rate on individuals who invest through mutual funds | 15 percent |
| Sales tax on computers and laptops doubled | 5% to 10% |
| PDL maximum limit | Increased from Rs. 60 per liter to Rs. 80 per liter |
| Sales tax on smartphone imports and IMEI registration | 25 per cent ad valorem (for smartphones valued above $500) |
| Hiring freeze on new hirings for Basic Pay Scale (BPS) | 1 to 16 positions |
The following are also included in the budget 2024-25:
- Exporters will fall under the normal tax regime
- New sales withholding tax on copper, coal, paper and plastic scrap
- The minimum value for sales tax on certain imported items, which is expected to address the issue of under-declaration by importers
For more news, stay tuned to Nexus Ideas.
