Pakistan Budget 2024-25 KSE-100 Surges 3.75% on IMF Deal Prospects
The KSE-100 index gained 2809 points, or 3.75 per cent to stand at 75,608 at 12:47 pm.
Analysts attributed the upward trajectory to the government’s willingness to unlock a deal with the International Monetary Fund (IMF) after the budget.
Analysts expect the budget for the fiscal year to June 2025 to set ambitious fiscal targets as it looks to strengthen the case for a new bailout deal with the International Monetary Fund (IMF).
Pakistan budget 2024-25
Minister for Finance and Revenue Muhammad Aurangzeb Wednesday presented Pakistan’s budget for the fiscal year 2024-25 with a total outlay of Rs18.877 trillion.
Outlining the budget points, Finance Minister Muhammad Aurangzeb said that the gross domestic project (GDP) growth target for the fiscal year 2024-25 is fixed at 3.6pc, whereas the inflation rate is expected to remain 12pc.
He said that the budget deficit to GDP during the period under review is estimated at 6.9pc, whereas the primary surplus during the review period is projected at 1.0pc of the GDP.
The minister said that the Revenue collection of the Federal Board of Revenue is estimated to be Rs12,970 billion during the upcoming fiscal year, adding that tax revenue collection during the current fiscal year grew by 38 percent and the provincial share would be Rs7,438 billion.
He said that the non-tax revenue targets of the federation are fixed at Rs3,587 billion, whereas the net income of the federal government would be Rs9,119 billion.
The total expenditures of the federal government are estimated at Rs18,877 billion out of the total amount of Rs9,775 billion would be spent on interest payments.
MAJOR POINTS AND ANNOUNCEMENTS
GDP growth target set at 3.6pc
Inflation rate projected at 12pc
Development budget set at Rs1500bn
18pc sales tax on smartphones
Reforms to control pension expenditure
101pc increase in development budget
Development projects for Azad Kashmir merged districts
17 major development projects
25pc increase in salaries for BPS1-16
20pc increase in salaries for BPS17-22
15pc increase in pensions for retired employees
Minimum monthly wage increased from Rs32,000 to Rs37,000
Privatisation top priority
Sales tax to be applied to various goods, services
5pc FED proposed on new plots, residential commercial property
Establishment of Danish schools in AJK, GB, Balochistan and Islamabad
Penalty for selling smuggled cigarettes
MAJOR ALLOCATIONS IN BUDGET 2023-24
Rs597 billion allocated for BISP
SME credit to be increased to Rs1100bn
Rs79bn allocated for IT sector
Rs267bn allocated for the energy sector
Rs206bn allocated for water resources
Rs7bn allocated for FBR reforms, digitalization
Rs86.9bn allocated for promotion of remittances
Rs1,400 allocated for PSDP
Rs2,122bn to be provided for defense
Rs839bn for civil administration
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