ISLAMABAD: The development budget of Rs 1500 billion has been approved by the National Economic Council (NEC) for the next fiscal year 2024-25, local media reported on Monday.
Out of the Rs 1500 billion development budget Rs 1400 billion would come from the federal budget and Rs 100 billion from the Public Private Partnership share.
Prime Minister Shahbaz Sharif chaired the NEC meeting that also okayed a five-year plan. The growth rate is fixed at 3.6 percent in the next fiscal year which would be increased to 6 percent by 2029.
The average economic growth target has been set at 5.1 percent for the next five years.
According to the budget document, a growth target of 2 percent has been fixed for the agriculture sector, 4.4 percent for industry, and 4.1 percent for other services.
The export target has been set at $40.5 billion, while the import target is set at $68.1 billion for the next financial year.
Similarly, the target for remittances from overseas Pakistani workers is projected at $30.2 billion, while, the current account deficit target has been set at 3.7 percent.
The budget 2024-25 which was earlier scheduled to be unveiled on June 10 is now likely to be presented on June 12.
The sources said the Pakistan Economic Survey 2023-24 will be presented on June 11 after a meeting of the council on June 10.
The federal budget 2024-25 is expected to be approved by the Senate by June 26. The government is likely to end tax exemptions in the budget on the demands of the International Monetary Fund (IMF).
According to budget proposals for the budget 2024-25, Pakistan would also end exemption on sales and income tax.
The government is also considering imposing a sales tax on tractors and pesticides, which would lead to price hikes for these essential agricultural items.
Prime Minister Muhammad Shehbaz Sharif chairs meeting of the National Economic Council, today in Islamabad. pic.twitter.com/ereEtsgI4N
— Government of Pakistan (@GovtofPakistan) June 10, 2024
