The 2024 budget of Pakistan, unveiled by Finance Minister Ishaq Dar, reflects a focused approach towards economic stability and growth amid challenging economic conditions. With a total outlay of PKR 14.5 trillion, the budget aims to address fiscal imbalances, stimulate economic activities, and ensure social welfare.

Key Highlights

1. Fiscal Discipline and Revenue Generation: The government has set an ambitious revenue target of PKR 9.2 trillion, largely relying on tax reforms and widening the tax net. The introduction of new taxes on luxury items and enhanced compliance measures are expected to boost the tax-to-GDP ratio. The budget deficit is projected to be contained at 4.9% of GDP, showcasing the government’s commitment to fiscal discipline.

2. Social Sector Investments: A significant portion of the budget is allocated to social sectors, with PKR 1.2 trillion earmarked for health and education. The aim is to improve public services, particularly in underserved areas. Additionally, PKR 500 billion has been allocated for the Ehsaas Program, which supports low-income households through cash transfers and other social safety nets.

3. Infrastructure and Development: Infrastructure development remains a priority, with PKR 2.5 trillion allocated for various projects under the Public Sector Development Program (PSDP). These projects are expected to create jobs and stimulate economic activity. Special attention is given to the energy sector, with PKR 300 billion designated for improving energy infrastructure and promoting renewable energy sources.

4. Agricultural and Industrial Support: Recognizing the backbone role of agriculture and industry, the budget allocates PKR 200 billion for agricultural subsidies and support. For industrial growth, PKR 150 billion is set aside to enhance industrial zones, provide low-interest loans to SMEs, and promote technological advancements.

5. Inflation and Monetary Measures: To combat inflation, the government plans to introduce targeted subsidies and price controls on essential commodities. The State Bank of Pakistan will continue its tight monetary policy to control inflationary pressures and stabilize the currency.

Conclusion

The 2024 budget of Pakistan is a balanced attempt to address immediate economic challenges while laying the foundation for sustainable growth. It emphasizes fiscal responsibility, social welfare, and development, aiming to steer the country towards economic stability and prosperity. However, its success will largely depend on the effective implementation of the proposed measures and the government’s ability to navigate the complex economic landscape.