Pakistan Approves Finance Bill 2024 Historic Budget Focuses on Growth and Reforms
Minister for Finance and Revenue Muhammad Aurangzeb moved the motion for consideration of the Finance Bill, 2024 to give effect to the financial proposals of the federal government for the year, commencing on July 1, 2024.
The motion was passed with a majority vote which led to the passage of Finance Bill-2024 after clause-by-clause reading and adopting amendments after due process of voting.
All the amendments, presented by the opposition members, were rejected.
The total outlay of the federal budget for the fiscal year 2024-25 is Rs. 18.877 trillion. This budget outlines the government’s fiscal policies and budgetary allocations for the upcoming financial year, reflecting a comprehensive plan to address various economic and social challenges.
The government has allocated Rs. 1,400 billion for the Public Sector Development Programme (PSDP) in its current budget, and an additional amount of Rs100 billion would be allocated under Public-Private Partnership, bringing the total to Rs1,500, the highest in the country’s history.
In the budget grants amounting to Rs1,777 billion for the promotion of the Benazir Income Support Programme (BISP), Azad Jammu and Kashmir (AJK), Gilgit-Baltistan, merged districts of KP, Higher Education Commission, Railways, and IT sectors have been allocated.
Minister of Finance Muhammad Aurangzaib termed the budget 2024-25 as a growth budget and said it was based on a well-thought-out strategy to boost economic growth.
He said that the budget for the next fiscal year was aimed at narrowing the fiscal deficit by expanding the government’s revenues and cutting unnecessary expenditures.
The Finance Minister also called for reconstructing and digitizing the Federal Board of Revenue (FBR) to ensure a high GDP target. He said that the concept of non-filers would be eliminated from the tax system, making it mandatory for everyone to pay taxes.
The minister expressed the government’s resolve to curb tax evasion and expand the tax net, particularly targeting retailers and the real estate sector.
Budget 2024-25 Govt proposes 10pc GST on stationery items
He said that the current account deficit had decreased, the fiscal deficit was under control, and the country had foreign reserves of $9 billion, providing an import cover for two months.
Aurangzeb highlighted a significant reduction in inflation, from 38 percent to 11 percent, and sustained food inflation at two percent. He said that no tax had been imposed on the solar.
The Finance Minister said that cardiology stents, surgical items, books, printing, and items and in the FATA and PATA regions had been granted tax exemptions.
Responding to the points of the opposition on the Finance Bill, 2024, Minister for Finance Muhammad Aurangzeb said the economy has achieved stability.
He expressed the government’s determination to further enhance the stabilization process to steer the economy towards growth.
IMF appreciates Pakistan’s ‘tough decisions’ in budget 2024-25
Sharing the economic indicators, the Finance Minister pointed out that there is a reduction in the Current Account Deficit and the fiscal deficit is also under control.
Earlier Bilawal Bhutto Zardari while Speaking in the NA budget session, said PPP decided to support PML-N for the sake of the federation’s survival and complained of PML-N not implementing the pact agreed between both the parties.
It would have been better if suggestions from PPP and opposition parties were added to the budget 2024-25. “For National Economic Policy, everyone should be taken on board”.
It is pertinent to mention here that the International Monetary Fund (IMF) appreciated Pakistan’s tough economic decisions in budget 2024-25.
Pakistan and the International Monetary Fund (IMF) have made significant progress in their virtual negotiations.
The IMF expressed satisfaction over the tough economic decisions taken in the budget, acknowledging the positive role of political parties in the budget.
