Economic Development Priorities
Discuss the government’s key priorities for economic development, such as promoting investment, fostering entrepreneurship, enhancing export competitiveness, and addressing inflation and unemployment.
Budget Allocations for Key Sectors
Highlight the budget allocations for key sectors, including healthcare, education, infrastructure, agriculture, energy, and technology. Discuss the government’s focus on sector-specific development plans and initiatives.
Some of the key features of Budget 2023-24 include:
- Economic growth target fixed at 3.5% for FY 2023-24
- Inflation is forecasted to average at 21%
- Tax-to-GDP ratio to stand at 8.7%
- Current account deficit is projected to be USD 6 billion by the end of FY 2023-24
- Government has allocated PKR 1.8 trillion for defence spending
- PKR 1.1 trillion earmarked for subsidies
- PKR 761 billion allocated for pensions
- Government to spend PKR 950 billion on Public Sector Development Programme
- PKR 22.7 billion earmarked for the health sector
- Agricultural credit limit enhanced from PKR 1,800 billion to PKR 2,250 billion
- Solarisation of 50,000 agriculture tube wells through PKR 30 billion
- Withdrawal of all duties and taxes on imported seeds, combined harvesters, dryers, and rice planters
- PKR 10 billion earmarked for PM’s Youth Business and Agriculture Loans scheme
- PKR 6 billion subsidies announced on imported urea
- Targeted subsidy announced on wheat flour, ghee, pulses, and rice
- 35% increase in salaries of government servants of grades 1-16 in the form of ad-hoc relief
- 30% increase in salaries of government servants of grades 17-22 in the form of ad-hoc relief
- Tax-free imports of software and hardware by IT and IT-enabled services equal to 1% of their exports with a ceiling of USD 50,000
- No sales tax return is required by freelancers with exports of USD 2,000 per month
- Increase in Benazir Income Support Programme allocation from PKR 400 billion to PKR 450 billion
- Upward revision in pensions and increase in minimum pension to PKR 12,000
- PKR 10 billion was set aside for the provision of 100,000 laptops for students
- Exemption of customs duty on the import of raw material for batteries, solar panels, and inverters
DEVELOPMENT INITIATIVES IN FY 2023-24
The Annual Development Program (ADP) has been allocated a budget of PKR 1,150 billion and PKR 90 billion has been earmarked for the Public Sector Development Program (PSDP).
The following are the details of the initiatives in FY 2023-24:
- PKR 170 billion has been reserved for Special Initiatives of the Prime Minister and Development Schemes of lawmakers
- PKR 58.59 billion are reserved for Dasu Hydropower Project
- PKR 17 billion are allocated for Karachi Greater Water Supply Scheme
- PKR 17.63 billion will be used for purchasing railway freight wagons and passenger bogies
- PKR 14.86 billion allotted for Karachi Coastal Power Project
- PKR 26 billion is reserved for Merged districts of Khyber Pakhtunkhwa
- PKR 31 billion will be utilised for a 10-year development plan for the former tribal areas
- PKR 10.5 billion has been allocated for Mohmand Dam Hydropower Project
- PKR 12 billion reserved for Jamshoro Coal Power Project
- PKR 16 billion will be allocated for the Pakistan-Tajikistan transmission line
- PKR 6 billion has been allotted for the Rehabilitation of flood-affected areas
- PKR 5.70 has been set aside for the Hyderabad-Sukkur Motorway project
- PKR 5 billion has been reserved for New Gwadar International Airport
- PKR 5 billion allotted for Lahore-Sialkot Motorway, from Narang Mandi to Narowal.
Tax Reforms and Revenue Generation Measures
Explain the tax reforms and revenue generation measures introduced in the budget to enhance fiscal sustainability, broaden the tax base, and ensure a fair and transparent tax system.
Social Welfare Programs and Poverty Alleviation
Discuss the social welfare programs and poverty alleviation efforts outlined in the budget, such as initiatives to improve healthcare services, expand social safety nets, enhance access to education, and empower marginalized communities.
Infrastructure Development and Investments
Explore the infrastructure development projects and investments planned in areas such as transportation, energy, digital connectivity, and urban development. Discuss the anticipated impact on economic growth and quality of life.
GROWTH TARGETS FOR VARIOUS SECTORS FOR 2023-24
The budget for the fiscal year 2023-24 also outlines growth targets for different sectors. The target for GDP growth rate is set at 3.5%, with the agriculture sector and major crops also expected to grow by 3.5% each. The industrial production growth target is 3.4%, while manufacturing is targeted at 4.3%. The services sector is projected to grow by 3.6%.
