In the federal budget, Rs2,122 billion has been reserved for defense. It reflects a 19.29 percent increase as the allocation for fiscal year 2023-24 was Rs1,804 billion.
ISLAMABAD: Finance Minister Muhammad Aurangzeb presented the federal budget for the fiscal year 2024-25 on Wednesday. The key targets of Budget 2024-25 include targeting GDP growth at 3.6 percent, inflation at 12 percent and budget deficit at 5 percent of GDP.
The government aims to increase revenue, reduce unnecessary expenditure and shift towards a market-driven economic model. Key initiatives include reforming the pension system, privatization of state-owned enterprises and efforts to promote the agriculture and IT sectors.
Budget 2024-25 also includes relaxation of regulatory framework to attract business investment and boost exports.
Highlights from Budget 2024-25
- 101 percent increase in the development budget
- 81pc has been allocated for ongoing schemes and 19pc for new schemes
- 25 percent increase in salaries for BPS1-16
- 22 percent increase in salaries for BPS17-22
- 15 percent increase in pension
- Difficulties for non-filers to buy property
- End in tax exemption proposed
- 17 major development projects included in the budget
Major allocations in Federal Budget 2024-25
- Provinces – Rs7438 billion
- BISP – Rs597 billion
- National Highway Authority – Rs180 billion
- Energy sector – Rs253 billion
- Public Sector Development Programme (PSDP) – Rs1400 billion
- Karachi IT Park – Rs8 billion
- Cabinet Division – Rs75.77 billion
- Climate Change Division – Rs6.25 billion
- Defence – Rs2,122 billion
- Interior Division – Rs9 billion
- Petroleum Division- Rs3 billion
- Telecommunication – Rs28 billion
- SUPARCO – Rs35 billion
- Railway Division – Rs43 billion
- Revenue Divison – Rs17 billion
- Water Resources –
- Quaid-e-Azam Health Tower in Islamabad – Rs5 billion
- Development projects in the poorest districts – Rs7 billion
- Karakoram Highway project – Rs6 billion
- Digitalization of the national economy – Rs4 billion
- Establishment of Danish school in Islamabad – Rs2 billion
- Establishment of 7 Danish schools in Azad Kashmir and Gilgit-Baltistan – Rs5 billion
Defence Allocation
In the federal budget, Rs2,122 billion has been reserved for defense. It reflects a 19.29 percent increase as the allocation for fiscal year 2023-24 was Rs1,804 billion.
The federal government had allocated Rs920 billion in the federal budget for 2017-18, Rs1,100 billion in 2018-19, Rs1,153 billion in 2019-20, Rs1,289 billion in 2020-21, Rs1,370 in 2021-22 and Rs1,563 billion in the budget for 2022-23.
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Energy Sector allocation
Referring to the energy projects, the minister said Rs21bn has been allocated for a 600 MW power plant in Jamshoro, Rs14bn for a 500 kV transmission line in Lahore, Rs18bn for the Karachi Coastal Power Project, and Rs45bn for the Mohmand Dam Hydro Power Project.
Budget targets for FY 2024-25
- GDP – 3.6%
- Economic Development – 3.6%
- Minor crop – 4.3%
- Cotton – 2.3%
- Live stock – 3.8%
- Forest – 3.1%
- Education progress – 3.5%
- Mining – 5%
- Industrial progress – 4.4%
- Service sector – 4%
