Budget 2024: Govt proposes billions in subsidies for various sectors

In a move to support economic stability and development in the various sectors in Pakistan, the federal government has proposed subsidies exceeding Rs 1363.41 billion for the upcoming financial year 2024-25, ARY News reported on Wednesday.

The proposed subsidies for the development of various sectors in Pakistan, include Power Sector with Rs 1190 billion, Balochistan Agricultural Tube Wells with Rs 9.50 billion, and Electricity Tariff Differential with Rs 276 billion.

Similarly, the government allocated subsidies of Rs 62 billion for regions in FATA and Khyber Pakhtunkhwa (KP), Azad Kashmir Tariff Differential with Rs 108 billion in subsidies, Pakistan Energy Revolving Fund and K-Electric with Rs 48 billion and Rs 174 billion in subsidies, respectively.

READ: Pakistan to present Rs18 trillion budget today

It is pertinent to mention here that the federal minister for Finance and Revenue Senator Muhammad Aurangzeb announced ‘significant’ relief for government employees, increasing their salaries up to 25 percent.

Presenting the budget for the fiscal year 2024-25 on the National Assembly floor, the finance minister said that the government proposed to raise salaries by 25 percent for grade 1-16 employees and a 20 percent increase for grade 17-22 employees.

In the budget, the finance minister also proposed a 15 percent increase in pensions for retired employees. The minimum monthly wage for a worker has been raised from Rs 32,000 to Rs 37,000.

Muhammad Aurangzaib said that despite financial difficulties, the government acknowledged the hardships faced by its employees and has taken steps to address them.