ISLAMABAD: Federal Minister for Finance and Revenue Ishaq Dar on Saturday described the FY2023-24 budget as being different from past traditional budgets, emphasising its focus on progress linked to economic growth.
The minister was addressing the post-budget press conference in Islamabad a day after he presented the federal budget for Fiscal Year 2023-24 with a total outlay of Rs14.5 trillion.
Addressing the presser, the finance minister said that the coalition government will remove reservations of traders before passing the federal budget from parliament. The minister said that he will form 2 committees to address business-related issues and technical matters.
“There is a customary practice of forming two committees within the FBR — one for business-related issues and the other for technical matters,” Ishaq Dar added.
The finance minister said committees will be formed by Monday by FBR chairman, adding that the main purpose of forming these committees is to address any missed aspects and provide an opportunity for individuals to consider their genuine reservations.
‘No new tax imposed’
Dar defended the allocation of Rs950 billion and Rs200 billion from the Public and Private Partnership mode, terming it a “new high.” He described the FY2023024 budget as being different from past traditional budgets, emphasising its focus on progress linked to economic growth.
“No new tax is being imposed this year, and the government has tried to provide as much relief as possible, “Ishaq Dar said.
He expressed the government’s aim to reverse all economic losses. “Employment opportunities would increase, a reduction in inflation, and the creation of more jobs. Consequently, the policy interest rate would also decrease,” he added.
He further said that inflation would be around 21 per cent in the next fiscal year [2023-24] while the government expenditure was estimated at Rs14,040 billion.
Reforms necessary in power sector
The finance czar said that over Rs1900 billion was allocated solely for the power sector in the budget. He underlined the need to address and improve this sector.
Dar mentioned the emphasis placed on renewable energy sector and clarified that no new subsidies were being introduced in this sector.
The minister addressed the circulation of another report regarding the withdrawal of edible oil, clarifying that no such withdrawal has taken place.
‘Pakistan won’t default’
The finance minister once again categorically stated that Pakistan will not default, stressing that the country has ensured payment of external liabilities in the past and will do so in future as well. He was confident that the European countries will extend the GSP-Plus statues of Pakistan.
To a question, he made it clear that Pakistan has no plan for rescheduling of Paris Club or multilateral debt. “We will make all the payments on time,” he added.
Dar clarified that sales tax has not been levied on the packaged milk. He said the sales tax on import of edible oil has not been abolished. He said that the recent reduction in the prices of edible oil is the result of international trends.
Ishaq Dar said that the government has allocated Rs42 billion for the elections and he doesn’t see any reason for delay in this regard.
Budget 2023-24
Federal Minister for Finance and Revenue Senator Ishaq Dar on Friday presented the federal budget for Fiscal Year 2023-24 with a total outlay of Rs14.5 trillion.
At the outset of his speech, the finance minister compared the economic performances of Pakistan Muslim League-Nawaz (PML-N) and Pakistan Tehreek-e-Insaf (PTI) governments.
Dar maintained that the Pakistan Democratic Movement (PDM) government was taking ‘corrective measures to bring the economy back on track’ after PTI disaster. “By the help of Almighty Allah, the government saved Pakistan from getting default and exposed conspiratorial elements,” he added.
“Current account deficit decreased drastically during fiscal year 2022-23,” he said, adding that the incumbent government adopted “austerity measures” to reduce the deficit.
MAJOR POINTS AND ANNOUNCEMENTS
- GDP growth target set at 3.5 percent
- No new taxes for the upcoming year
- IT sector being granted SME status
- Export Council of Pakistan established for export sector
- 10pc regulatory duty removed on used cloths
- Remittance Cards for overseas Pakistanis
- FBR Revenue Target at 9200 billion PKR
- Non-Tax revenue target at 2963 billion
- Non-filer to be charged 0.6pc tax on withdrawal of Rs50K from bank
- Super tax on annual income of more than Rs500 million
- 35pc increase in salaries of govt employees
- 100 pc increase in special conveyance allowance
- 17.5 percent increase in pensions
- Tax on credit card payments at restaurants slashed by 10%
- Minimum wage proposed at Rs32,000
MAJOR ALLOCATIONS IN BUDGET 2023-24
- Rs65bn allocated for higher education commission
- Rs70bn allocated for HEC’s development expenditure
- Rs2709 billion for PSDP
- Rs1150bn allocated for development
- Rs1559bn for provincial development programme
- Rs32.5bn for KP’s newly-merged territories
- Rs28.5bn for AJK and Giligit Baltistan’s development
- Rs244bn for Tourism Development Programme
- Rs82bn for Education
- Rs26bn for health
- Rs50bn for manufacturing sector
- Rs244bn for social development programme
- Rs1804 billion allocated for defence
- Rs10bn allocated for PM Laptop Scheme for students
- Rs5bn allocated for women empowerment programme
- Rs5bn allocated for PM-Specialised Training Programme for Youth
- Rs450bn allocated for BISP
- Rs10bn allocated for PM’s Youth Loan Programme
- Rs6bn allocated for Benazir Undergraduate Scholarship
- Rs35bn allocated for Utility Stores
- Rs4bn granted to Bait-ul-Maal for medical treatment of poor
- Provinces to get Rs5276 billion
- Rs761billion for pension
- Rs17.5billion for Karachi’s K4 programme
- Rs161bn for transport sector
- Rs34bn allocated for Science And IT sector
- Rs1bn allocated for health insurance of working journalists
