Government aims to gain 3.6% economic growth with federal budget 2024-25
A man walks with sacks of supplies on his shoulder to deliver to a nearby shop at a market in Karachi, Pakistan June 11, 2024. — Reuters
The federal government has launched the budget for the fiscal year to June 2025 on Wednesday, setting a target of 3.6% economic growth as it aims to achieve a new bailout deal from the International Monetary Fund (IMF).
Following are some of the highlights from the 2024-25 budget:
GDP-deficit
Targets 3.6% economic growth for 2024-25.
Fiscal deficit seen at 6.9% of GDP for 2024-25.
Expenditure
Total spending estimated to be 18.9 trillion Pakistani rupees ($67.84 billion) in 2024-25.
Expects debt servicing of 9.8 trillion rupees in 2024-25.
Defence expenditure of 2.1 trillion rupees expected in 2024-25.
Pension payments seen at 1 trillion rupees in 2024-25.
Total subsidies projected at 1.4 trillion rupees in 2024-25.
Projects 27% increase in cash handouts to 600 billion rupees under income support in 2024-25.
Revenue
Targets total tax revenue of 13 trillion rupees for 2024-25.
Targets total non-tax revenue of 3.5 trillion rupees in 2024-25.
Aims to secure 30 billion rupees from privatisation in 2024-25.
Targets next external receipts of 666 billion rupees in 2024-25