Mohsin Siddiqui (Chief Reporter)
The incumbent government is poised to unveil its first growth-oriented federal budget for the fiscal year 2024-25, with an anticipated outlay exceeding Rs18 trillion, on June 12 (Wednesday). This budget will be presented before the National Assembly by the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.
Formulated with careful consideration of the prevailing economic challenges both domestically and internationally, the budget aims to alleviate public suffering, transform the agriculture sector, promote Information Technology (IT), boost exports, enhance industrial growth, and strengthen businesses.
The government is firmly committed to presenting a pro-people, business-friendly, and progressive Federal Budget for FY 2024-25. It will implement policies aimed at fiscal consolidation to contain the budget deficit. Key components of the budget include fiscal management, revenue mobilization, economic stabilization, growth, reduction in non-development expenditures, job creation, and socioeconomic policies aimed at prosperity.
A significant emphasis will be placed on social sector development. The budget will introduce reforms aimed at improving governance and fostering private sector investment. The government’s strategy includes measures to enhance the tax collection system, broaden the tax base, and facilitate taxpayers, all aimed at achieving robust revenue growth.
Given the strong revenue growth during the current fiscal year (2023-24), the government is likely to set an ambitious revenue collection target of over Rs.12 trillion for the fiscal year 2024-25. This target underscores the government’s confidence in its ability to mobilize revenue effectively.
Preparations for the announcement of the federal budget for FY 2024-25 are progressing rapidly and efficiently, with all departments and ministries involved working in close coordination. This includes the presentation of the budget in Parliament and the launch of the Economic Survey.
The budget will pursue policies aimed at fiscal consolidation, which includes measures to control and reduce the budget deficit. Fiscal management will be a cornerstone, ensuring that expenditures are kept in check while prioritizing essential developmental projects.
To support the projected revenue collection target, the government plans to introduce significant improvements in the tax collection system. Efforts will be made to broaden the tax base and simplify tax procedures to encourage compliance and facilitate taxpayers.
Agriculture Transformation: The budget will include measures to transform the agriculture sector, ensuring food security and boosting agricultural exports. Investments in modern farming techniques and support for farmers will be prioritized.
Information Technology Promotion: Recognizing the potential of the IT sector, the budget will allocate funds to promote IT initiatives. This includes incentives for tech startups and investments in digital infrastructure to make Pakistan a competitive player in the global IT market.
Export Boosting Measures: To enhance the country’s export capabilities, the budget will introduce policies aimed at supporting export-oriented industries. This includes financial incentives, subsidies, and infrastructural support to make Pakistani goods more competitive internationally.
Industrial Growth: The budget will focus on policies that encourage industrial growth, including tax incentives, reduced tariffs on raw materials, and support for small and medium-sized enterprises (SMEs).
Job creation is a pivotal goal of the 2024-25 budget. By investing in various economic sectors and encouraging private sector growth, the government aims to generate employment opportunities across the country. People-friendly policies will also be introduced to improve the overall socioeconomic conditions, ensuring that the benefits of economic growth reach all segments of society.
