Govt decides to cut PSDP budget by Rs 250bn to 'overcome' shortfall

ISLAMABAD: Federal Minister for Planning Ahsan Iqbal said that the government would cut Rs 250 billion from the proposed budget for the fiscal year 2024-25, ARY News reported.

Speaking to the media, Ahsan Iqbal said that confirmed that a cut of Rs 250 billion would be made in the federal development program.

He said that the cut was essential to overcome  the revenue shortfall and that the development budget had to bear the brunt of it.

“The Public Sector Development Programme’s (PSDP) budget has been reduced from Rs 1400 billion to Rs 1150 billion,” the minister for planning added.

Ahsan Iqbal said that the sacrifice of the development budget is aimed at relieving the public and agriculture sector from the burden of taxes.

Earlier on Monday, The Senate of Pakistan approved recommendations for the federal budget 2024-25, asking the government to fix the minimum monthly wage for labourers at Rs 45,000

The upper house approved 128-point recommendations presented by the Senate Standing Committee on Finance Chairman Saleem Mandviwala.

The recommendation also included the reduction of indirect taxes by 50 percent and an increase in direct taxes. The Senate also recommended the government to exempt 660 CC cars from customs duty just like the electric cars.

The upper house also recommended that taxes on the construction sector must be abolished. The other recommendations included the introduction of a one-window operation for overseas Pakistanis to invest, imposing uniform taxes on imported and local solar panels and the reduction of taxes on eight stationery items.