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Ishaq Dar, the federal minister of finance and revenue, will deliver the fiscal year 2023–2024 budget on Friday during a meeting of the National Assembly.
Dar unveils budget FY 2023-24: The national anthem was played before the Holy Quran was recited to open the National Assembly (NA) session. Also present is Shehbaz Sharif, the prime minister.
The finance minister began by contrasting the economic results of the Pakistan Tehreek-e-Insaf (PTI) governments and the Pakistan Muslim League-Nawaz (PML-N).
Ishaq Dar: The PTI government ‘deliberately’ destroyed Pakistan’s economy by subsidising energy.
Ishaq Dar stated that the inflation rate during the PML-N’s previous administration was 4% and that Pakistan Stock Exchange (PSX) was ranked fifth in South Asia’s best-performing market.
The minister stated that the PML-N finished new projects to address the nation’s “electricity shortage.”
Dar noted that the country’s economy flourished when the PML-N was in power. “The infrastructure and motorways were developed, while employment opportunities were also created,” he remarked.
He added that the PTI government ‘deliberately’ destroyed Pakistan’s economy by providing energy subsidies. He continued that the nation was currently experiencing issues that resulted from the PTI government’s incompetence.
He added that public debt and obligations “doubled during PTI’s four-year tenure,” adding that the previous administration “broke an agreement with the International Monetary Fund (IMF) and damaged the country’s reputation.”
“During PTI’s four years in power, circular debt increased to Rs129 billion annually,” he noted. He further denounced the PTI administration for “destroying the nation’s economy,” asserting that the outgoing administration was set up with “economic mines” by the previous administration.
Following the failure of the PTI, Ishaq Dar insisted that the Pakistan Democratic Movement (PDM) government was implementing “corrective measures to bring the economy back on track.” The administration “saved Pakistan from default and exposed conspiratorial elements with the help of Almighty Allah,” he continued.
He added that the current government adopted “austerity measures” to cut the deficit, adding that the current account deficit “decreased drastically during the fiscal year 2022–23.”
The minister stated that the current government has significantly reduced unnecessary expenditures and mentioned that they managed to lower the fiscal deficit despite a significant increase in interest payments.
However, The people of Pakistan know who “tried to save the country and who pushed it towards destruction,” Ishaq Dar said, adding that the “PTI’s selected government prioritized political interests over national.”
The finance minister noted that the country has seen significant economic difficulties due to flooding.
MAJOR ANNOUNCEMENTS AND POINTS
3.5% is the intended growth rate of the GDP.
There are no new taxes imposed on the industrial sector.
SME designation for the IT sector was awarded Export Council of Pakistan was founded for the export sector.
Removed is a 10% regulatory duty on secondhand clothing.
Remittance Cards for Pakistanis living abroad
Nine thousand two hundred billion PKR is the FBR Revenue Target.
Target non-tax revenue is $2963 billion.
On a withdrawal of Rs. 50K from the bank, a non-filer will be charged 0.6 percent tax.
Super tax on income above Rs. 500 million per year
Government employees’ pay has increased by 35%.
100 percent more for special transportation allowance
Pensions increased by 17.5%
IMPORTANT ALLOCATIONS IN THE BUDGET FOR 2023–24
Higher Education Commission has been given Rs65 billion.
Amount of Rs70 billion allotted for HEC’s development costs
PSDP to receive Rs2709 billion
allotted for development is Rs. 1150 billion
Rs1559 billion for an agenda of provincial development
Rs32.5 billion for the newly combined regions of KP
Development of AJK and Giligit Baltistan to cost Rs28.5 billion
Rs244 billion for a program to develop tourism
£82 billion for education
26 billion for health
Rs. 50 billion for manufacturing
Rs244 billion for an agenda of social development
Defense budgeted at Rs1804 billion
Rs. 10 billion would go towards the PM Laptop Programme for pupils.
Rs. 5 billion would go towards a program for women’s empowerment.
PM-Specialized Training Programme for Youth to Receive Rs. 5 Billion
Budgeted for BISP is Rs450 billion.
PM’s Youth Loan Programme will receive Rs10 billion.
The Benazir Undergraduate Scholarship will receive Rs6 billion.
Budgeted for Utility Stores is Rs35 billion.
For the medical care of people in need, Bait-ul-Maal received Rs4 billion.
Provinces will receive Rs. 5 276 billion.
for pensions, Rs761 billion
Rs17.5 billion for the K4 program in Karachi
Rs161 billion for the transport sector
for the science and IT sector, Rs34 billion
Finances 2023–24
The federal government had budgeted for GDP growth of 3.5% for the next year, which the finance minister described as a “modest target” while outlining the federal budget for 2023–2024.
Ishaq Dar stated that the budget focuses on “elements of the real economy” and is not an election budget.
agricultural industry
Furthermore, Ishaq Dar said that the agriculture industry was the foundation of our nation’s economy. Along with other measures, the government boosted agricultural loans from Rs1800 billion to Rs2250 billion,
The minister further stated that they had allocated Rs 30 billion to convert 50,000 agricultural tube wells to solar power.
Additionally, no taxes or charges are now applied to the import of high-quality seeds. Dar also mentioned that food manufacturing facilities would be tax-free.
The government has allocated Rs10 billion for the business and agricultural loan scheme, and they have set aside Rs6 billion to import fertilizers,” he continued.
The government has eliminated all “taxes and duties” on machinery used to enhance rice output, as well as fees on importing seedlings, as Dar declared.
IT Industry
However, Ishaq Dar stated that the current administration had chosen to provide the Information Technology (IT) Sector with Small and Medium Enterprises (SMEs) status.
Furthermore, the finance minister announced the extension of the income tax break on imported IT until June 2026. The speaker also revealed plans to establish a $5 billion venture capital fund for the IT sector.
Additionally, the government has decided to give 50,000 IT graduates professional training.
The unstable economy of Pakistan
Due to financial difficulties and a delay in reaching an agreement with the International Monetary Fund (IMF), which would release much-needed cash essential to avert default risk, Pakistan’s economy is in disarray.
Additionally, The IMF-mandated harsh fiscal adjustment reform plan and the need to provide some comfort to the populace ahead of a scheduled national election in early November are putting pressure on the administration, resulting in close scrutiny of the budget.
The country’s GDP for the current fiscal year 2022–23, which ends on June 30, decreased to 0.29% from last year’s annual budget aim of 5% and the central bank’s reduced prediction of 2%.
However, The highest inflation rate ever recorded in Asia was 38% in May. Pakistan needs the IMF’s $1.1 billion investment, which has been stagnant since November, to unlock other bilateral and multilateral finance to prevent a debt default.