| Pakistan Federal Budget | |
| Year: | 2024–2025 |
| Country: | Pakistan |
| Previous Budget: | 2023–24 Pakistan federal budget |
| Previous Year: | 2023–2024 |
| Next Budget: | 2025–26 Pakistan federal budget |
| Next Year: | 2025–2026 |
| Date Submitted: | 12 June 2024 |
| Submitter: | Muhammad Aurangzeb |
| Date Passed: | 28 June 2024 |
| Passed By: | National Assembly of Pakistan |
| Total Revenue: | Rs. 17,815 billion |
| Total Expenditures: | Rs. 18,900 billion |
| Deficit: | 6.9% of GDP |
| Debt Payment: | Rs. 9,800 billion |
The 2024–25 Pakistan Federal Budget is a financial statement of the government's estimated receipts and expenditures for the fiscal year that runs from 1 July 2024 to 30 June 2025.[1] [2]
On 12 June 2024, finance minister Muhammad Aurangzeb presented the federal budget with a total outlay of Rs18.877 trillion.[3] The same day, a copy of the finance bill was moved in the Senate.[4] On 28 June 2024, the National Assembly passed the finance bill.[5] [6] On 30 June 2024, President Asif Ali Zardari gave assent to the finance bill.[7]
The upcoming budget is expected to be a critical one as it is being prepared under the strict conditions of the International Monetary Fund (IMF). The budget is expected to be contractionary, aiming to close the gap between revenue collection and total expenditure. The budget is being prepared with the aim of securing a bailout package from the IMF.[8] [9]
On 10 June 2024, the National Economic Council (NEC) decided to continue funding ongoing provincial projects and constituency-based schemes, while approving a 47 percent increase in the federal Public Sector Development Programme to Rs 1.4 trillion.[10]
The NEC also approved the economic growth target of 3.6 percent.[11]
See main article: Pakistan and the International Monetary Fund. Pakistan is in talks with the IMF for a loan of between $6 billion and $8 billion. This budget is very important for Pakistan's IMF program.[8] The government is required to restrict budget deficits to 5% to 6% of GDP and achieve a primary surplus to meet the IMF's requirements.[12]
The government all set to collect an additional Rs2,000 billion in revenue by imposing new taxes.[13] The middle-income and high-income groups will face difficulties with additional taxes imposed. The new budget proposes to levy 18% GST on retailers, agricultural implements, seeds, fertilizers, tractors, and other equipment.[9]
The new proposed federal budget of Rs18,900 billion will be based on a deficit of Rs9800 billion.[9] The government is required to restrict budget deficits to 5% to 6% of GDP.[12]