Islamabad, Pakistan's cash-strapped Parliament on Friday approved a Rs 18,877-crore budget for fiscal year 2024-25, amid protests from the opposition that called it an IMF-driven document that was detrimental to the public.
The Finance Bill 2024, which details government expenditure and revenue, was introduced in the National Assembly on July 12 and Treasury and opposition lawmakers spent several days discussing its various parts.
Finance Minister Muhammad Aurangzeb moved a motion seeking approval from the house, which was duly granted with the support of Pakistan People's Party led by former foreign minister Bilawal Zardari Bhutto.
According to the budget documents, the gross revenue has been estimated at Rs 17,815 billion, including Rs 12,970 billion in tax revenue and Rs 4,845 billion in non-tax revenue.
The share of provinces in federal revenue will be Rs 7,438 crore. The growth target had been set at 3.6 per cent during the next fiscal year.
Inflation is expected to be 12 percent, the budget deficit 5.9 percent of GDP and the primary surplus 1 percent of GDP.
Leader of Opposition in the National Assembly Omar Ayub along with Pakistan Tehreek-e-Insaf ( ) Chairman Gohar Ali Khan and Sunni Ittehad Council Leader Ali Muhammad said relevant stakeholders were not taken into account during the formulation of the bill.
Omar Ayub said: “The Finance Bill does not address the critical economic challenges facing the country and has been drafted without adequate consultation with key stakeholders.”
Gohar Ali Khan said: “This bill does not reflect the aspirations of the people and the economic realities of the country.”
Policymakers have set a challenging tax revenue target of 13 trillion rupees for the fiscal year starting July 1, about 40 percent more than the current year, in the national budget presented on July 12 that sought strengthen the arguments for a new bailout deal. with the International Monetary Fund.
Pakistan is in talks with the IMF to obtain a loan of between $6 billion and $8 billion to overcome its financial problems.
The development budget has been set at the historic level of Rs 1,500 crore.
Prime Minister Shehbaz Sharif also spoke briefly in the House, especially to address concerns regarding Khyber-Pakhtunkhwa province, where the Pakistan Tehreek-e-Insaf party, led by jailed former prime minister Imran Khan, won the elections in the February 8 for the third time in a row.
He said the province had been paid an additional Rs 590 billion and had been transferred to the province since 2010 to combat militancy, but he had not even managed to establish the structure of the anti-terrorism department.
Finance Minister Aurangzeb said the government gave tax exemptions to education and health in difficult economic conditions.
Similarly, exemptions for agricultural inputs such as fertilizers and pesticides, as well as for researchers and teachers, will continue.
Terming the 2024-25 budget as a growth budget, Aurangzeb said it was based on a well-thought-out strategy to boost economic growth, adding that the budget aimed to reduce the fiscal deficit by expanding government revenue and cutting unnecessary expenditure.
The Finance Bill 2024, which details government expenditure and revenue, was introduced in the National Assembly on July 12 and Treasury and opposition lawmakers spent several days discussing its various parts.
Finance Minister Muhammad Aurangzeb moved a motion seeking approval from the house, which was duly granted with the support of Pakistan People's Party led by former foreign minister Bilawal Zardari Bhutto.
According to the budget documents, the gross revenue has been estimated at Rs 17,815 billion, including Rs 12,970 billion in tax revenue and Rs 4,845 billion in non-tax revenue.
The share of provinces in federal revenue will be Rs 7,438 crore. The growth target had been set at 3.6 per cent during the next fiscal year.
Inflation is expected to be 12 percent, the budget deficit 5.9 percent of GDP and the primary surplus 1 percent of GDP.
Leader of Opposition in the National Assembly Omar Ayub along with Pakistan Tehreek-e-Insaf ( ) Chairman Gohar Ali Khan and Sunni Ittehad Council Leader Ali Muhammad said relevant stakeholders were not taken into account during the formulation of the bill.
Omar Ayub said: “The Finance Bill does not address the critical economic challenges facing the country and has been drafted without adequate consultation with key stakeholders.”
Gohar Ali Khan said: “This bill does not reflect the aspirations of the people and the economic realities of the country.”
Policymakers have set a challenging tax revenue target of 13 trillion rupees for the fiscal year starting July 1, about 40 percent more than the current year, in the national budget presented on July 12 that sought strengthen the arguments for a new bailout deal. with the International Monetary Fund.
Pakistan is in talks with the IMF to obtain a loan of between $6 billion and $8 billion to overcome its financial problems.
The development budget has been set at the historic level of Rs 1,500 crore.
Prime Minister Shehbaz Sharif also spoke briefly in the House, especially to address concerns regarding Khyber-Pakhtunkhwa province, where the Pakistan Tehreek-e-Insaf party, led by jailed former prime minister Imran Khan, won the elections in the February 8 for the third time in a row.
He said the province had been paid an additional Rs 590 billion and had been transferred to the province since 2010 to combat militancy, but he had not even managed to establish the structure of the anti-terrorism department.
Finance Minister Aurangzeb said the government gave tax exemptions to education and health in difficult economic conditions.
Similarly, exemptions for agricultural inputs such as fertilizers and pesticides, as well as for researchers and teachers, will continue.
Terming the 2024-25 budget as a growth budget, Aurangzeb said it was based on a well-thought-out strategy to boost economic growth, adding that the budget aimed to reduce the fiscal deficit by expanding government revenue and cutting unnecessary expenditure.