Budget 2024-25: NEC okays Rs 1500 billion for development

ISLAMABAD: The National Economic Council (NEC) approved the development budget of Rs 1500 billion for the next fiscal year 2024-25, ARY News reported.

The Rs 1500 billion development budget would consist of Rs 1400 billion from the federal budget and Rs 100 billion from the Public Private Partnership share.

Prime Minister Shahbaz Sharif chaired the 13th NEC meeting that also approved a 5-year plan. The growth rate is fixed at 3.6 percent in the next financial year which would be increased to 6 percent by 2029.

The average economic growth target for the next five years has been set at 5.1 percent.

According to the budget document, a growth target of 2 percent has been fixed for agriculture, 4.4 percent for industry, and 4.1 percent for services.

According to sources, the export target for the next financial year has been set at $40.5 billion, while the import target is set at $68.1 billion.

Similarly, the target for remittances from overseas Pakistani workers is estimated at $30.2 billion. Meanwhile, the current account deficit target has been set at 3.7 percent.

Speaking on the occasion, PM Shehbaz said that the government would ensure the best utilisation of the existing resource for revival of the economy and prosperity of the people.

He said that in all important decisions regarding the economy, the Federation would ensure consultation with the provinces and other stakeholders so that as a result of the collective vision for the development of the country, such decisions were made that were positive and involved the consent of all.

“The National Economic Council is the biggest forum for important decisions regarding the country’s economy, which will be used for important decisions for the recovery of the economy,” PM Shehbaz added.

The prime minister also directed the National Economic Council to set up a committee which in consultation with the provinces and other stakeholders, should formulate the proposals to not only make the Council active but also to harmonize it with the modern requirements.

Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, federal ministers Khawaja Muhammad Asif, Muhammad Aurangzeb, Ahsan Iqbal and Ahad Khan Cheema, Punjab Chief Minister Marryam Nawaz Sharif, Sindh CM Syed Murad Ali Shah, Khyber Pakhtunkhwa CM Ali Amin Gandapur, Balochistan CM Sarfaraz Khan Bugti, Punjab Minister Marryum Aurangzeb, Sindh Minister Jan Khan Shoro, Advisor to the KP CM Muzamil Aslam, Balochistan Minister Zahoor Ahmed Buledi, State Bank of Pakistan Governor Jameel Ahmed and relevant high officers participated in the meeting.

The budget 2024-25 which was earlier scheduled to be presented on June 10 is now likely to be presented on June 12.

The Pakistan Economic Survey 2023-24 will be presented on June 11 after a meeting of the council on June 10, the sources said.

The federal budget 2024-25 will likely get approval from the Senate by June 26. The Pakistani government is likely to end tax exemptions in the FY2024-25 budget on IMF’s demand.

According to budget proposals for the budget 2024-25, Pakistan is likely to end exemption on sales and income tax, phase-wise.

The government is also considering imposing a sales tax on tractors and pesticides, potentially leading to price hikes for these essential agricultural products.