Senator Muhammad Aurangzeb, the federal minister of finance and revenue, announced the federal budget for the fiscal year 2024–25. He stated that the government has suggested raising gasoline and diesel prices by 33%.
The administration has suggested to the National Assembly raising the fuel and diesel taxes from Rs 60 to Rs 80 per litre.
In a similar vein, the proposal called for raising the tax on ethanol, light diesel, and high-octane gasoline by 50%. Following the proposal’s ratification, high-octane, light diesel, and ethanol would each cost Rs 50 per litre.
According to the minister of finance, the administration has suggested imposing an 18% sales tax on certain types of mobile phones.
To increase revenue, the federal government suggested significant modifications to its tax laws. In a similar vein, there’s a plan to remove exclusions for different kinds of things based on their classification.
Additionally, the administration suggested raising import taxes on high-end vehicles costing more than $50,000. Additionally, the House was asked to raise import duties on paper and steel products in the budget proposal.
Muhammad Aurangzeb unveiled Pakistan’s fiscal year 2024–25 budget, which included an expenditure of more than Rs18 trillion, to the disapproval of opposition members from the Sunni Ittehad Council, which is supported by Pakistan Tehreek-e-Insaf (PTI).
The Holy Quran was recited at the start of the National Assembly (NA) meeting, and Prime Minister Shehbaz Sharif was present as well. Next came the national anthem.
Finance Minister Aurangzeb began by praising Prime Minister Shehbaz Sharif and his team for their efforts over the past year to boost the economy. He promised that Pakistan would soon be experiencing sustainable and inclusive economic growth.
The finance minister announced a 101% increase in the development budget, stating that existing programs will receive 81% of the funding and new programs will receive 19%.
Read more: The Prices of Petrol are Expected to Decrease
In addition, he declared that the government’s first priority will be finishing the ongoing development projects in Azad Kashmir and the combined districts. “Under the 5-E framework, the government would prioritize export, equity, empowerment, environment, and energy,” he continued.
The Quaid-e-Azam Health Tower in Islamabad will cost Rs5 billion, while the government has set aside Rs7 billion for development initiatives in the most impoverished districts, Rs6 billion for the Karakoram Highway project, Rs4 billion for the digitization of the national economy, Rs2 billion for the opening of a Danish school in Islamabad, and Rs5 billion for the opening of seven Danish schools in Gilgit-Baltistan and Azad Kashmir.
The finance minister mentioned the energy projects, stating that Rs21 billion had been set aside for a 600 MW power plant in Jamshoro, Rs14 billion for a 500 kV transmission line in Lahore, Rs18 billion for the Karachi Coastal Power Project, and Rs45 billion for the Mohmand Dam Hydro Power Project.
Additionally, the budget includes steps to alleviate the situation of government employees, such as raising salaries by 25% for BPS1–16, 20% for BPS17–22, and 15% for retired employees’ pensions. In the meantime, an increase to Rs 37,000 has been made to the minimum monthly wage.