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ISLAMABAD: Pakistan’s Finance Minister Muhammamd Aurangzeb presented the country’s federal budget for the fiscal year 2024-25, with a total outlay of Rs18.9 trillion.
The budget allocates a significant portion to interest payments, which have surged 34 per cent to Rs9,775 billion, consuming more than half of the total budget outlay.
This makes a significant increase from the previous year’s budget and highlights the government’s priority in serving its debts. The interest payments are expected to be the single largest expense, surpassing other critical sectors such as education and healthcare.
The finance minister emphasized the need for fiscal discipline and revenue generation to address the country’s economic challenges.
The budget aims to achieve this through a combination of tax reforms, expenditure rationalization and investment in key sectors such as energy and agriculture.
Despite the challenges, the government remains optimistic about the country’s economic prospects, with a projected GDP growth rate 3.6 per cent for the next fiscal year.
The budget also allocates significant funds for Public Sector Development (PSDP), which has been increased by 47 percent compared to the previous year.
The opposition parties have raised concerns over budget, citing the lack of representation for the vulnerable segment of the society, with minister finance urging all stakeholders to work together to achieve sustainable economic development.
Overall, the budget presents a mixed bag, with a focus on debts serving and fiscal discipline, while also allocating funds for development projects and social welfare programmes.
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As Pakistan navigates its economic challenges, the success of this budget will depend upon the government’s ability to implement reforms and generate revenue. By The Tribune Int’l Staff
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