The government is set to present its annual budget for the fiscal year 2023-24 (today) with a proposed outlay of Rs14.7 trillion today to the Parliament.
According to the details, the federal cabinet meeting for the approval of the budget is scheduled for 3 pm, and Finance Minister Ishaq Dar is set to deliver his budget speech to Parliament after 4 pm.
Finance Minister Senator Mohammad Ishaq Dar will present Federal Budget 2023-24 before National Assembly of Pakistan today (09-06-2023) at 1600 hrs PST.
— Ministry of Finance, Government of Pakistan (@Financegovpk) June 9, 2023
The budget for 2023-24 aims to meet the requirements of the International Monetary Fund (IMF). The coalition government is hoping to persuade the IMF to unlock at least some of the $2.5bn left in a $6.5bn program that Pakistan entered in 2019 and which expires at the end of this month.
Read more: What to expect from FY23-24 budget
The coalition government is under intense pressure to make last-ditch efforts to satisfy the IMF on reviving the stalled program because the continuing stalemate might jeopardize the dwindling foreign exchange reserves.
Pakistan needs convincing budget for any chance of more funds – IMF official https://t.co/D6jRu8gsc9 pic.twitter.com/7tdHM6MsVS
— Reuters (@Reuters) June 8, 2023
Some budget figures were announced earlier this week, including development spending of Rs1.15 trillion ($4bn) and an economic growth target of 3.5 percent for the coming fiscal year.
Furthermore, the provinces are expected to receive Rs 5,244 billion from the national divisible pool, while defense expenses are estimated to exceed Rs 1,800 billion.
There is a possibility of a 20-30 percent increase in salaries for government employees in the upcoming federal budget, along with a 20 percent increase in pensions. Moreover, the government will likely allocate over Rs 700 billion for pensions.
Read more: Pakistan ‘very hopeful’ of sealing IMF deal in June: Prime Minister Sharif
Meanwhile, the government has set the Federal Board of Revenue’s (FBR) tax collection target at Rs 9.2 trillion and a non-tax revenue target of Rs 2.7 trillion.
For the non-tax revenue target, the government plans to secure powers by amending the finance bill to jack up the petroleum development levy (PDL) from Rs50 per litre to Rs55-60 per litre in order to collect Rs870 billion in the next budget against revised estimates of Rs550 billion for the outgoing fiscal year.