Muhammad Aurangzeb, Pakistan’s finance minister, presented his first federal budget on Wednesday. A statutory budget with an expenditure of 18.9 trillions rupees. This budget is Organized under the guidelines of IMF leaders. The aim was to get another bailout from the IMF in Pakistan’s future finances Budget for the year.The important notes have been highlighted
Key highlighted
A total of 18.9 trillion rupees has been allocated for expenditure in the budget.
Target tax revenue:
FBR has set a target of Rs 13 trillion for tax collection.
Target non-tax revenue:
13 billion in this regard It was decided to increase.
Income from privatization:
30 by an estimate Billion rupees can be obtained under the privatization plan.
Non-tax:
3.5 Trillions of revenue can be collected through non-taxation.
Pay off loan:
9.8 trillion rupees estimate was fixed in relation to debt repayment.
Petroleum Levy:
20 rs on diesel and petrol While the Light Diesel E_10 on high octane oil
25 rs added.
GDP growth:
2024-25 The estimated GDP growth rate for the budget was 3.6 percent.
Budget deficit:
6.9 for budget deficit The GDP rate can be expected.
Zero rated import:
All imports of lithium-ion batteries, inverters, solar panels and other raw materials will be zero-rated imports.
B.I.S.P:
27 An estimated increase of 592 billion rupees for benazir income tax program .
Taxation and Revenue Measures of budget:
Aurangzeb presented this budget to the cabinet. The purpose of his presentation of this budget was that someone The tax net should be increased the budget raised significant taxes for the salaried public, called for the elimination of various taxes, with the sole aim of somehow collecting Rs 13 trillion.This budget was prepared according to the principles of IMF.So that a necessary bailout can be achieved in this way.
Mohammad Sohail, who is the CEO top line secretary, says that the budget was made according to IMF guidelines and it is a good step towards financial stability.
Focus on energy and infrastructure:
An important aspect of the 2025 budget is the emphasis on energy, solar panels, lithium-ion batteries, inverters and by zero-rating the import of raw materials, the government will promote manufacturing.And by doing so, the government wants to become less dependent on imported fossil fuels By doing this, the availability of energy will be further boosted, and in addition to this, environmental sustainability is also expected to be boosted.After energy, the development of these infrastructures was discussed Investments are planned for this development which includes water management systems, transportation networks and urban development. Such projects will eliminate unemployment in the country and provide more employment opportunities to people in power-related activities. The promotion of , can be expected to improve the quality of life.
Political and economic perspective:
On this budget, Aurangzeb acknowledged the political and ethical challenges he had faced last year and told how he faced a tough challenge, besides, he also met Chief Minister Shahbaaz Sharif, P M L N chief Nawaz Sharif and Thanks to other coalition leaders for making this budget.
Aurangzeb said٫Honorable Speaker, I think that despite the political and economic contests, our progress in the last one year on the economic front has been affected He further said that we need economic۔ Benefit from these projects for development Environmental responsibility should be taken And explained the path of sustainable development.
Challenger ahead:
13 trillion rupees is a big challenge to meet the target of tax revenue and for this we need a tax collection and the class will have to face additional tax in this regard and if the tax is not paid. If left, it can have a negative impact on various sectors. Debt payments consume a large part of the budget. Invention would need to be reduced to 6.9 percent of GDP to cover the budget deficit.
Conclusion:
2024_25 The federal budget is a strong vision for the development of Pakistan.The government wants to increase the tax net through tax revenue so that works can be done for social welfare and infrastructural development.Next year’s budget will provide a road map for stability and growth that lays the foundation for a strong economy.