The National Economic Council (NEC) has sanctioned a substantial development budget of Rs 3.5 trillion for the upcoming fiscal year 2024-25.
Prime Minister Shahbaz Sharif presided over the NEC meeting, which also greenlighted a five-year development plan. For the next fiscal year, the growth rate is targeted at 3.6 percent, with an ambitious goal to escalate this to 6 percent by 2029.
Over the next five years, the average economic growth target has been set at 5.1 percent. Specifically, the budget document outlines a growth target of 2 percent for agriculture, 4.4 percent for industry, and 4.1 percent for services.
Sources indicate that the export target for the next financial year is $40.5 billion, while imports are projected at $68.1 billion. Additionally, remittances from overseas Pakistani workers are anticipated to reach $30.2 billion, with the current account deficit target set at 3.7 percent.
Initially scheduled for June 10, the presentation of the 2024-25 budget has been postponed to June 12. The Pakistan Economic Survey 2023-24 will be unveiled on June 11, following a council meeting on June 10, according to insider reports.
The Senate is expected to approve the federal budget by June 26. In response to demands from the International Monetary Fund (IMF), the Pakistani government is considering phasing out tax exemptions in the FY2024-25 budget.
This includes potential removals of exemptions on sales and income taxes, and the introduction of sales tax on tractors and pesticides, which could result in price increases for these vital agricultural products.
