Latest Updates on Budgets 2023 Pakistan:
Main Points in Today Budget 2023 is below
- Finance Minister Ishaq Dar presented a budget of Rs14.46 trillion ($50.45 billion) in the National Assembly.
- The budget deficit target for the fiscal year starting July 1 is set at 6.54% (Rs7.57 trillion), slightly lower than the current year’s revised estimate of 7%.
- The budget has been described as “responsible,” not influenced by upcoming elections.
- The government plans to meet its expenses through taxes, internal borrowings, and over $2 billion in IMF loans.
- Ishaq Dar attributed the country’s financial difficulties to the PTI, the Ukraine war, and the 2022 flash floods.
- High-ranking government officials, including Prime Minister Shehbaz Sharif and Defence Minister Khawaja Asif, were present during the announcement.
- The deficit target for the current fiscal year was revised upwards from the initial projection of 4.9%.
- The budget aims to satisfy the IMF’s requirements to secure the release of held-up bailout funds before the general elections in November.
- Of the total budget, Rs1.8 trillion is allocated for defense and Rs7.3 trillion for debt servicing.
Budget 2023 Pakistan Summary
- The budget targets an inflation rate of 21%.
- The projected total revenue for FY23 is set at Rs12,163 billion, and after deducting a provincial transfer of Rs5,276 billion, the net revenue is anticipated to be Rs6,887 billion.
- Estimated expenses amount to Rs1,460 billion, with the Public Sector Development Program (PSDP) budget at Rs1,150 billion.
- There is a provision for a Rs1,074 billion subsidy for electricity, gas, and other sectors.
- Exports are aimed at reaching a value of $30 billion, with the allotment for debt servicing standing at Rs7.3 trillion.
- Proposed taxation includes a 5% levy on services offered by a range of food outlets if payments are made electronically.
- A budget of Rs17.5 billion is set aside for the K-IV project.
- Salaries of government employees are expected to rise by 30% to 35%, with pensions increasing by 17.5%.
- New tax tiers are set for banking transactions, shareholder income, and the defense budget.
- The agriculture sector’s budget includes provisions for increasing agricultural loans, subsidies for transitioning tube wells to solar energy, tax exemptions for specific imports, concessional loans, and more.
- The IT sector is set to experience tax reductions, with a 0.25% income tax for freelancers until 2026 and a decrease in the sales tax on IT services.
- Provisions have been made for Small and Medium Enterprises (SMEs), infrastructure, the metal industry, benefits for overseas Pakistanis, and the construction sector.
- Allocations have been made for higher education, sports advancement, women’s empowerment, youth initiatives, the Benazir Income Support Programme (BISP), Utility Stores Corporation (USC), and Pakistan Baitul Mal.
- The budget also details health insurance coverage for journalists and media workers.
- A list of specific products has been provided for which duty rates will be zero, along with duty exemptions and reductions on certain imports.
- Some items are exempt from Sales Tax, and duty on several imported items has been lowered.
Budget 2023 Pakistan Complete details in Urdu
وفاقی کابینہ نے نئے مالی سال کے لیے 14 ہزار 6 ارب روپے مالیت کے بجٹ کی منظوری دے دی جس میں 6 ہزار ارب خسارہ ہے جبکہ کم سے کم اجرت 32 ہزار اور سرکاری ملازمین کی تنخواہوں میں 35 فیصد تک اضافے کی منظوری دے دی۔
ایکسپریس نیوز کے مطابق نئے مالی سال کے بجٹ کی منظوری کے لیے وفاقی کابینہ کا اجلاس وزیراعظم شہباز شریف کے زیر صدارت منعقد ہوا۔ اجلاس میں وزیر خزانہ اسحاق ڈار نے کابینہ کو بریفنگ دی۔
سالانہ ترقیاتی پروگرام
اجلاس میں وفاقی کابینہ نے 1150 ارب روپے کے وفاقی ترقیاتی پروگرام (پی ایس ڈی پی) کی منظوری دے دی جس میں انفرا اسٹرکچر کے لیے 491.3 ارب روپے مختص کیے گئے ہیں۔
توانائی، شعبہ آب، ٹرانسپورٹ اینڈ کمیونی کیشن
ذرائع کے مطابق کابینہ نے توانائی کے شعبے کے لیے 86.4 ارب روپے رکھنے کی منظوری دے دی، ٹرانسپورٹ اور کمیونی کیشن کے شعبے کی ترقی کے لیے 263.6 ارب روپے مختص کرنے کی منظوری دی گئی ہے، آبی ذخائر اور شعبہ آب کے لیے 99.8 ارب روپے رکھے گئے ہیں۔
دفاع کی مد میں 1804 ارب روپے مختص کیے گئے ہیں۔ دفاعی بجٹ میں ڈالرز کے مقابلے میں روپے کی قدر میں کمی کے سبب خاطر خواہ اضافہ نہ کیا جاسکا، دفاعی بجٹ تینوں مسلح افواج کے علاوہ وزارت دفاع، دفاعی پیداوار، ذیلی اداروں کے لیے مختص کیا گیا ہے۔
مالی سال 2022-23 میں دفاعی بجٹ 1510 ارب روپے مختص کیا گیا تھا تاہم اس بار روپے کی قدر کی مناسبت سے دفاعی بجٹ بہت کم رکھا گیا ہے۔ جاری مالی سال2022-23 میں مسلح افواج نے قومی بچت مہم میں حصہ لیتے ہوئے اپنے کئی اخراجات کم کردیے تھے۔
صحت و تعلیم
کابینہ نے سماجی شعبے کی ترقی کے لیے 241.2 ارب روپے، صحت کے شعبے کے لیے 22.8 ارب روپے، تعلیم کے شعبے اور اعلی تعلیم کے لئے 81.9 ارب روپے، پائیدار ترقی کے اہداف کے حصول کے پروگراموں کے لیے 90 ارب روپے مختص کرنے کی منظوری دے دی۔
کم سے کم تنخواہ 32 ہزار روپے مقرر
وفاقی کابینہ نے آئندہ مالی سال کے لیے کم سے کم تنخواہ 32 ہزار روپے مقرر کرنے کی منظوری دے دی۔
تنخواہوں میں اضافے کی منظوری
سرکاری ملازمین کی تنخواہوں میں 35 فیصد اور پنشن مین بھی اضافے کی تجویز کی گئی ہے جبکہ اُن کی پنشن میں بھی اضافہ کیا جارہا ہے۔ بجٹ تقریر کے مسودے کے مطابق اسلام آباد کی حدود میں کم سے کم اجرت کو پچیس ہزار سے بڑھا کر تیس ہزار روپے کرنے کی تجویز دی گئی ہے جبکہ ای او بی آئی کی پنشن کو 8500 سے بڑھا کر دس ہزار روپے کرنے تجویز کی گئی ہے۔
گریڈ ایک سے 16 تک کے سرکاری ملازمین کی تنخواہوں میں 35 فیصد جبکہ گریڈ 17 سے بائیس کے ملازمین کی تنخواہوں میں 25 فیصد اضافے کی تجویز کی گئی ہے۔اسی طرح کابینہ نے ریٹائرڈ ملازمین کی پنشن میں ساڑھے سترہ فیصد اضافہ کی منظوری دی۔
کوکنگ آئل اور خوردنی تیل پر سیلز ٹیکس ختم کرنے کا فیصلہ، فنانس بل
ٹیکسٹائل کے شعبے کے رنگ اور دیگر متعلقہ خام مال پر کسٹمز ڈیوٹی ختم، فنانس بل
سولر پینل کی مینوفیکچرنگ کے خام مال پر کسٹمز ڈیوٹی ختم، فنانس بل
کاروبار میں آسانی اور تجارتی سہولیات بڑھانے کا فیصلہ، فنانس بل
وفاقی کابینہ نے سرکاری ملازمین کی تنخواہوں میں 30فیصد اضافے کی منظوری دے دی۔
گریڈ 1 سے 16 تک کے سرکاری ملازمین کی تنخواہوں میں 35 فیصد 17 گریڈ سے زائد کی تنخواہوں میں 30 فیصد اضافہ…..
پنشنرز 17.50 فیصد
مزدوروں کی اجرت 32 ہزار روپے مقرر
بجٹ کا ٹوٹل حجم 14 ہزار 460 ارب روپے ہے، فنانس بل
بجٹ میں صوبوں کو 5276 ارب روپے دییے جائیں گے، فنانس بل
بجٹ میں دفاع کے لئے 1804 ارب مختص، فنانس بل
سود اور قرضوں کی ادائیگی پر 7303 ارب خرچ ہونگے، فنانس بل
ایف بی آر کا ٹیکس ہدف 9200 ارب مقرر، فنانس بل
نان ٹیکس ریونیو 2963 ارب مقرر، فنانس بل
پینشن کے لئے 761 ارب روپے رکھنے کی تجویز، فنانس بل
سبسڈیز کی مد میں 1074 ارب روپے رکھنے کی تجویز، فنانس بل
بےنظیر انکم سپورٹ پروگرام کے لئے 450 ارب روپے مقرر، فنانس بل
ای او بی آئی پنشنرز کی پنشن 8000 سے بڑھا کر 10000 روپے مقرر کرنے کی منظوری
50 ہزار زرعی صارفین کے ٹیوب ویلز کو شمسی توانائی پر منتقل کرنے کے لیے 30 ارب روپے مختص۔
زرعی قرضوں کے حد کو بڑھا ہے 2250 ارب کر دیا گیا
معیاری بیج کی امپورٹ پر تمام ٹیکس اور امپورٹ ڈیوٹی کو ختم کردیا گیا
پچاس ہزار ٹیوب ویلز کو شمسی توانائی پر منتقل کرنے کیلئے 30 ارب روپے مختص، وزیر خزانہ اسحاق ڈار
بچوں کے دودھ, چائے اور چینی پر سیلز ٹیکس 18 فیصد کردیا گیا
سولر پینل، انورٹر، بیٹریوں پر سے کسٹم ڈیوٹی ختم کر دی گئی ہے
ایشیا میں بننے والی پرانی اور استعمال شدہ 1300 سی سی سے بڑی گاڑیوں کی درآمد پر ڈیوٹی اور ٹیکسز کی حد بندی ختم کردی
برانڈڈ کپڑے مہنگے ہوں گے۔ جی ایس ٹی 12 فیصد سے بڑھا کر 15 فیصد کر دیا گیا، کافی ہاؤسز، شاپس اور فوڈ آؤٹ لیٹس پر 5 فیصد ٹیکس لگے گا، ٹیکس ڈیبٹ اور کریڈٹ کارڈ سے کی گئی ادائیگی پر ہوگا
نان فائلر افراد کی جانب سے بینک سے رقم نکالنے کو دستاویزی اور ان کی ٹرانزیکشن کے اخراجات بڑھانے کیلئے 50 ہزار روپے سے زائد کی رقم نکالنے پر 0.6 فیصد کی شرح سے ٹیکس عائد
Complete Budget 2023 Details Below
- Increase agri loans from Rs1,800 billion to Rs2,250 billion
- Rs30 billion for 50,000 shifting tube wells to solar panel
- End taxes on import of saplings, seeds
- Ending duty and taxes on rice seeder, planter, and dryer in order to increase production
- Scheme for concessional loans, Rs5 billion allocated for it
- All agro-based units that are industrial in rural areas that have an annual turnover of 800 million, will be exempted from taxes for 5 years
- Business and agricultural loan scheme: Rs10 billion allocated for concessional loans
- $6 billion for subsidy on imported urea
- Loans to farmers at a small interest rate, Rs10 billion allocated for it
IT and freelancers
- Income tax for freelancers will be 0.25% till 2026
- If a freelancer brings $24,000 annually they will be exempt from tax returns
- Companies will able to import hardware, software upto $50,000 without tax
- Sales tax on IT services which stands at 15% is brought down to 5%
- IT sector given small and medium enterprise (SME) status and concessional tax will be applicable to them
- Banks will have 20% concessional taxes (exemption) on providing loans to IT
- The government will form an Rs5 billion venture capital fund for the IT sector to encourage entrepreneurs
- Rolling out a scheme to give professional training to 50,000 IT graduates
- SMEs to be supported through special allocation and SBP loan scheme
- Export Council of Pakistan will be formed under the PM to see matters of exports only
- Banks will have a 20% concession on taxes that will provide loans to agri, IT, and SMEs. It will be available for two years. SMEs turnover threshold has been increased from Rs250 million to Rs800 million
- Rs10 billion allocated for small businesses under the PM scheme
- Government will bear tax payments up to 20% if SMEs fail to pay loans
- Tax on young entrepreneurs decreased by 50%
- Separate credit agency for SMEs
- Energy projects: Rs86.4 billion
- Infrastructure: Rs491.3 billion
- Metal and mineral sales through online platforms made tax free
- Tax on listed companies to come down from 1.5% to 1%
- Custom duty on pet scrap material down to 11% from 20%
- Capacitators, mining machinery, adhesive tapes, rice mill machinery, machine tools are cleared of customs duty
- Filament yarn for the textile industry to be made tax free
- Remittances are equal to 90 % of exports, that is how important overseas Pakistanis are
- They have a tax worth 2% on something, that is being removed
Concessions for overseas Pakistanis
- Abolishes 2% tax on buying immovable property in Pakistan
- Diamond card category added in remittances card. It will be issued to those who will send more than $50,000 worth of remittance to Pakistan. They will have non-prohibited board licenses, greatest passport of Pakistan, preferential access to Pakistan’s embassies and consulates, fast track immigration facilities at airports. A scheme will be launched by SBP to award prizes via a lucky draw to diamond cardholders.
- Construction company, for construction of new homes and buildings, to get tax relief of 10% or Rs5 million in their earning
- It is proposed that 10% tax credit or Rs1 million to those who will construct homes for themselves. It is proposed that it should be applicable to projects after July 31, 2023.
- More than 40 industries are associated with this sector
- Tax benefits for Real Estate Industry Trust (REIT) will be extended for another year. So it will be applicable till June 30, 2024
- Rs65 billion for HEC
- Rs70 for development expenditure
- The total of this is Rs135 billion for higher education
- Setting up Pakistan Endowment Fund, for which Rs5 billion is kept. Under this scholarship and stipend will be given to high school students
- Rs10 billion for the laptop scheme. 100,000 laptops will be given.
- Rs5 billion for the development of sports at schools, colleges, and professional sports
- Rs5 billion for women’s empowerment
- Skill development, easy loans for business, training for business
- Relief in tax for businesswomen
- It is proposed that for the next three years, tax should be reduced by 50% for income earned by youth from businesses under AOP.
- It will be 2 million for individual or group level and 5 million for company level
- The age of the owner should be up to 30 years and this programme should start after July 31, 2023.
- Rs10 billion for the PM youth programme
- Rs5 billion for trainings under the PM youth programme
- 92,000 students to get undergrad salary under the BISP. For this, $6 billion has been allocated.
- 1.5 million children will be provided services under the BISP nutrition programme. Rs32 billion allocated for it
- Second-hand clothes have a 10% duty which is not being removed
- Rs450 billion allocated for low-income families
- Rs8,750 quarterly will be available for 9.3 million families under the BISP Kafalat programme. The government has allocated Rs346 for it.
- Stipend prorgamme will be expanded from 6 million to 8.3 million children. It will have 52% girls. Over Rs55 billion has been allocated for it.
- Rs35 billion allocated for basic items for deserving families
- Targeted subsidies on flour, rice, sugar, pulses, and ghee
Pakistan Baitul Mal
- Rs4 billion for treatment and assistance of deserving families
- Solar panels and their raw materials are exempted from the customs duty
Health insurance for journalists, media workers
- Rs1 billion allocated for health insurance of journalists and media workers
Below is the list of products on which duty has been kept at zero
Parts of Lithium Batteries
- Copper Bar (cell to cell connection)
- BMS (level 1) Electronic Card
- Harness Set (Cells Monitoring Wires with tags)
Solar PV Modules Panels manufacturing machinery and equipment
- Sun Simulator
- Glass Lifter
- Tabber Stringer (iv).Hi-Speed Layup Station with ROBOT
- Motorized Visual Inspection
- Buffer before Bussing
- Multi-station for Bussing
- Centering Conveyor with Visual Inspection
- Fully Automatic or Semi-automatic Laminator with Centering, Loading & Unloading
- Automatic Inline Framing Machine
- Automatic Silicon Dispenser
- Direction Changer with 90 Degree Rotator
- Centering Conveyor for Sun Simulator
- Hi-Pot Test Equipment
- Electroluminescence (EL) Tester
- Motorized Conveyor
- EVA/Black sheet Cutting Machine
- Ribbon Cutting & Bending Machine
- Lab Test Equipment
- Conveyer Belt
- Laser cutting machine for cell
- Cell sorting machine & testers
Lithium-ion batteries manufacturing machinery and equipment
- Weighting kettles
- Weighting and conveying systems
- Storage tanks
- Glue port
- Transfer tanks
- High speed spiral mixer
- Booster pumps
- Magnetic filters
- High speed homogenizer
- Auxiliary equipment and DCS central control system components
- Pole piece cathode machine
- Polo piece rolling machine
- CNC nibbling machine
- CNC bending machine
- Sport welding plant
- Auxiliary equipment
- High temperature circulation thermal tester
- UL 2054 fire testing equipment
- Pack rotation simulation
- Free fall tester
- Battery impact tester IEC
- UL 1642 flame tester
- Electromagnetic vibration tester
- Single wing electromagnetic power drop testing equipment
- Hydraulic crush testing equipment
Solar Inverters manufacturing machinery and equipment
- Solder Paste Screen Machine
- SMT pick and place machine
- Wave-soldering machine
- PCB Conveyor Belt
- SMT Workstation
- Solder Pot
- Solder Cleaning Equipment
- Wire Cutting & Stripping Machine
- Crimping Machine
- Dextrose Anhydrous Injectable Grade (Pyrogen Free) USP
- Caspian (Caspofungin 50 mg and 70 mg injection)
- Bovine Lipid Extract Surfactant
- Other seeds for sowing
Following IT Related Equipment
- Laptop computers, notebooks whether or not incorporating multimedia kit
- Personal computers
- Micro computer
- Key boards
- Mouse and other pointing devices
- CD ROM drive
- Multimedia kits for
- Software Export Board
- Hard disk drives
Imports exempted from duty
- Specific papers and art cards and board for the printing of Holy Quran
- Solar panels and import of related machinery
- Diapers, Sanitary Napkins and Adhesive Tape
- Mining machinery
- Rice mill machinery
- Machine tools
- Imported seeds
- Shrimp/prawns for breeding
- Roasted peanuts
- Any machinery imported into erstwhile Fata
Products exempted from Sales Tax
- Agricultural machinery including combine harvesters, dryers for agricultural products, no-till-direct seeders, planters, trans-planters
- Sales tax in FATA’s newly merged districts
- import of IT equipment (for exporters)
Reduced duty on imported items
- Customs duty on Heavy Commercial Vehicles from 10% to 5%
- Scrap for manufacturers of polyester filament yarn
- Second-hand clothing, fish, tiles, sports goods
- IT based system development consultants reduced to 15% from 16%
Here, on this page we are going to provide you complete information about the Budget 2023 Pakistan Summary. The federal budget for the fiscal year 2023-24 is expected to be significantly higher than the previous year’s budget. The budget is expected to be presented on June 9 or 10, and preparations are already underway. The National Economic Survey will be presented on June 8, and the National Economic Council is also likely to be convened in the first week of June.
The annual planning coordination committee will meet in mid-May to outline the development budget’s key features. The Federal Development Budget is expected to see a significant increase of around 250 billion rupees compared to the current financial year. The forthcoming budget is expected to be particularly challenging, as the government aims to implement conditions put forth by the International Monetary Fund.
Finance Minister Ishaq Dar has confirmed the budget’s tabling in the National Assembly on June 9, and it is speculated that the mini budget may be integrated into the overall budget for 2023-24.
Key Facts About Budget 2023 Pakistan
- The federal budget for the fiscal year 2023-24 is expected to be Rs14.46 trillion.
- The budget is expected to be presented on June 9 or 10.
- Preparations for the budget are already underway.
- The National Economic Survey will be presented on June 8.
- The National Economic Council is also likely to be convened in the first week of June.
- The annual planning coordination committee will meet in mid-May to outline the development budget’s key features.
- The Federal Development Budget is expected to see a significant increase of around 250 billion rupees compared to the current financial year.
- The forthcoming budget is expected to be particularly challenging.
- The government aims to implement conditions put forth by the International Monetary Fund.
- Finance Minister Ishaq Dar has confirmed the budget’s tabling in the National Assembly on June 9.
- It is speculated that the mini budget may be integrated into the overall budget for 2023-24.
The government relies on the budget as an essential instrument to effectively distribute resources, tackle economic hurdles, and foster long-term sustainable development. Now, let’s explore the key facets of the budget and how it can influence different sectors.
The federal budget for the year 2023-24 is expected to be of Rs14.46 trillion. It is a significant improvement in budget as it increased from previous year’s budget 9.5 Trillion
Budget 2023-24 Pakistan Date Time
Reliable sources have indicated that the Federal Budget for the Fiscal Year 2023-24 is scheduled to be presented on either June 9 or 10. Preparations for the budget are already in progress, with the National Economic Survey slated to be unveiled on June 08. In the first week of June, it is expected that the National Economic Council, led by the prime minister, will convene to discuss budgetary matters.
Moreover, the annual planning coordination committee is set to meet in mid-May to outline the key features of the development budget. The upcoming Federal Development Budget for Fiscal Year 2023-24 is anticipated to witness a substantial increase, surpassing 900 billion rupees and potentially exceeding 250 billion rupees compared to the current financial year.
The government faces significant challenges in formulating the forthcoming budget as it strives to meet the conditions outlined by the International Monetary Fund. Finance Minister Ishaq Dar has confirmed that the budget will be presented in the National Assembly on June 9, and there are speculations that the mini-budget may be integrated into the overall budget for 2023-24.
Total Outlay: A Boost in Financial Allocation
The anticipated federal budget for the fiscal year 2023-24 aims to allocate a total sum of Rs16.6 trillion, marking a noteworthy surge compared to the previous year’s budget of Rs9.5 trillion. This considerable rise in financial provisions exemplifies the government’s steadfast dedication to tackling urgent economic requirements and promoting growth within diverse sectors.
Budget 2023-24 Pakistan Salary Increase for Govt Employees
- In an effort to support federal government employees, the upcoming budget proposes a substantial salary increase of 20%, aiming to uplift their financial situation.
- Similarly, pensioners can also look forward to a 15% raise, recognizing their valuable contributions.
However, it is crucial to consider that the impact of inflation cannot be fully offset by these salary adjustments alone. With the current inflation rate surpassing 40%, employees may still face challenges in maintaining their purchasing power. Acknowledging this concern, the government acknowledges the necessity of additional measures to ensure that the increased salaries effectively assist employees in managing the escalating cost of living.
Budget 2023 Pakistan Summary Date Salary Increase Details For Govt Employees
Public Sector Development Program PSDP
- The upcoming fiscal year is set to prioritize the Public Sector Development Program (PSDP) with a significant focus.
- Allocating an estimated Rs950 billion, the budget for PSDP in 2023-24 slightly exceeds the allocation of Rs800 billion in the current fiscal year. This increased allocation aims to direct resources towards crucial infrastructure projects, social welfare programs, and initiatives that contribute to overall economic growth.
- However, there have been reports suggesting a potential reduction in the allocation to Rs700 billion.
- Furthermore, an additional Rs150 billion will be specifically dedicated to public-private partnership programs, fostering collaboration between the government and private entities to drive development and innovation in the country.
The upcoming fiscal year, 2023-24, will prioritize and give great importance to the Public Sector Development Program (PSDP). The estimated allocation for the PSDP during this period is Rs950 billion, showing a slight increase from the previous fiscal year’s allocation of Rs800 billion.
This allocation intends to direct resources towards essential infrastructure projects, social welfare programs, and initiatives that promote economic growth.
Moreover, an extra Rs150 billion will be dedicated to public-private partnership programs, fostering collaboration between the government and private entities to stimulate development and innovation.
Taxation Policy and GST Under Budget 2023-24 Pakistan
- In order to maximize revenue generation, the government has decided not to provide any tax relief to the public in the upcoming budget.
- The taxes implemented through the mini-budget will be seamlessly integrated into the next year’s budget, maintaining the Goods and Services Tax (GST) rate at 18%.
- Consequently, certain goods, such as packed food, will continue to be subject to higher costs. The mini-budget successfully generated approximately Rs177 billion in taxes, and these taxes will persist in the upcoming fiscal year.
- Additionally, luxury items will remain under a 25% tax bracket, contributing to the government’s revenue stream.
Reliable sources indicate that the government aims to bolster its total revenue collection by Rs500 billion through an increase in direct taxes. As part of its revenue generation strategies, the government has decided not to provide tax relief to the public in the upcoming budget. The taxes introduced in the mini-budget will be incorporated into the next year’s budget, thereby maintaining the Goods and Services Tax (GST) rate at 18%.
Consequently, certain goods, such as packed food, will continue to be subject to higher costs. Through the mini-budget, the government has generated around Rs177 billion in taxes, and these taxes will persist in the upcoming fiscal year. Additionally, luxury items will be subjected to a 25% tax, contributing to the government’s revenue stream. These measures aim to enhance total revenue collection by Rs500 billion through direct taxes, according to reliable sources.
Revenue Collection and Debt Servicing
- The government has set a target for the Federal Bureau of Revenue (FBR) to collect Rs8,200 billion in the next fiscal year, which is more than what they collected last year.
- They also plan to raise Rs2,396 billion from sources other than taxes.
- In the upcoming year, Pakistan will allocate around Rs2,140 billion to pay off its debts, and they may borrow money from different places to help with the interest and principal payments.
- The government aims to secure at least Rs1,804 billion from other countries or financial institutions to help manage the debt effectively. The government wants to make sure they collect enough money to keep the country financially stable and fulfill their debt obligations.
Efficient revenue collection plays a vital role in ensuring financial stability and managing the country’s debt obligations. In the fiscal year 2023-24, the Federal Bureau of Revenue (FBR) has been given a revenue collection target of Rs8,200 billion, marking an increase from the previous year’s target of Rs7,000 billion.
This ambitious target demonstrates the government’s commitment to strengthening revenue streams and reducing fiscal deficits. Furthermore, the government aims to raise Rs2,396 billion from non-tax revenue sources, diversifying its income channels.
It is important to note that Pakistan faces a significant burden of debt servicing, with $7.56 billion (equivalent to Rs2,140 billion) allocated for the repayment of interest and principal amounts in the upcoming fiscal year. To address these obligations, the government plans to secure a minimum of Rs1,804 billion from other countries or financial institutions, utilizing external resources to effectively manage the country’s debt.
Pay Scale Revised in Budget 2023 for Government Employees
Exciting updates are in store for government employees as the upcoming Budget 2023 introduces revisions to the pay scale. These revisions will bring about increased allowances, including house rent, transport, and medical allowances. The Federal Budget 2023 is eagerly awaited and is scheduled to be announced in the second week of June 2023, providing detailed information about these changes and their impact.
Three Salary Packages BPS-01 to BPS-22 Proposals
We are thrilled to announce the introduction of three salary increase packages in the proposals for Budget 2023-24. These packages are designed to benefit employees in all pay grades, from BPS-01 to BPS-22.
According to a recent report in the Daily Dunya newspaper dated 04-06-2023, the upcoming budget offers employees the opportunity to receive substantial salary increments. The increments range from 20% to 50%, providing hardworking individuals like yourself with a well-deserved boost in income.
But that’s not all. The government of Pakistan is also committed to enhancing the overall employee benefits package. Medical Allowance and Conveyance Allowance will see an impressive increase of 100% compared to the existing rates. Additionally, improvements will be made in the House Rent Allowance (HRA) and the Rental Ceiling for Hiring Accommodation. These measures aim to address the changing needs of employees and ensure their well-being.
Furthermore, pensioners will not be overlooked. To acknowledge their dedicated service, the proposed budget includes a substantial 20% increase in pensions for retired government servants. This increase will provide them with the necessary financial support and a more secure future.
The Finance Minister and the cabinet are actively working on the budget, taking into consideration the country’s financial condition and the impact of inflation. Suggestions discussed in the latest cabinet meeting indicate a collective agreement on increasing all Adhoc relief allowances for government servants. The final approval is scheduled to be announced on 9th June 2023, bringing much-awaited relief to employees.
The proposed budget also highlights the allocation of funds to different departments based on their specific needs. The Ministry is dedicated to making optimal allocations to meet the requirements of employees and pensioners. They are well aware of the challenges posed by inflation and are committed to providing relief to government servants affected by it.
Regarding allowances, the cabinet recommends a significant increase in various Adhoc allowances, including Hiring Allowance, Medical Allowance, and Traveling/Conveyance Allowance. The proposed packages aim to make the budget more appealing, offering employees the following options:
- 20% increase in Adhoc Allowances
- 30% increase in Adhoc Allowances
- 50% increase in Adhoc Allowances
- 100% increase in Medical Allowance
- 100% increase in Conveyance Allowance
Outline for the proposed rates fro the Adhoc allowance are given as:
Grade Existing Rate of Hiring Allowance Proposed Rate
- BPS-01 to BPS-02 Rs.6,991 Rs.13,182
- BPS-03 to BPS-06 Rs.9,654 Rs.18,672
- BPS-07 to BPS-10 Rs.14,982 Rs.29,365
- BPS-11 to BPS-13 Rs.21,462 Rs.42,924
- BPS-14 to BPS-16 Rs.27,134 Rs.54,260
- BPS-17 to BPS-18 Rs.35,896 Rs.71,996
- BPS-19 Rs.46,816 Rs.93,632
- BPS-20 Rs.59,079 Rs.1,18,158
- BPS-21 Rs.71,107 Rs.1,42,208
- BPS-22 Rs.89,230 Rs.1,78,460
Pay Scale Revised in Budget 2023 Chart Grade 1 to 21 Salary Increased Chart Govt Employees
- Recent reports from the Daily Dunya News shed light on the anticipated Pay Scale Revision that has garnered considerable attention and support from government employees in Pakistan.
- As the budget for the fiscal year 2023 takes shape, various recommendations are being prepared for incorporation.
- Multiple media sources suggest that revisions to the pay scales of government employees are being considered, which could potentially lead to salary increases.
- The government is actively exploring avenues to secure resources and ensure the fulfillment of expected salary increments for government employees in Budget 2023.
Impact on Government Employees
- Exciting developments await government employees in Budget 2023 with the Pay Scale Revision.
- This revision will not only impact salaries but also introduce increased allowances for employees across different departments. There is anticipation that the upcoming budget will include a salary increase of either 5% or 10% for all government employees.
- This news of a salary raise in Budget 2023-24 is expected to bring great joy and satisfaction to employees.
- Budget 2023 takes into account the needs of retired government employees by incorporating an increase in their pensions.
- The Pensioners Budget 2023 is currently being prepared by the National Assembly to ensure that pensioners receive the deserved benefits and support.
- It is important to note that each province in Pakistan has its own distinct set of government and administrative rules when it comes to implementing changes for government employees.
- As a result, budget announcements are made separately by representatives of each province, providing specific details regarding the adjustments in General Sales Tax, both in terms of increases and decreases.
Summary: ”The fiscal year 2023-24 brings with it a federal budget that holds immense significance for Pakistan’s economic landscape. This budget carries implications such as increased financial allocation, measures to tackle inflation, emphasis on public sector development, and strategies for revenue generation. The government’s objectives revolve around fostering sustainable growth, improving public welfare, and effectively managing debt obligations. It is vital for all stakeholders to closely observe the implementation and effects of this budget as it plays a crucial role in shaping the future of the country.”
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