ISLAMABAD: The federal budget for the fiscal year 2024-25, with an estimated total volume of around Rs18,000 billion, is set to be presented in Parliament on Wednesday. This budget is anticipated to propose a salary increase of 10-15% for public sector employees and set a tax collection target of Rs12.9 trillion.
The federal government is also likely to propose a 10% increase in pensions for retired employees. Additionally, there is consideration for boosting the funds of the Employees’ Old-Age Benefits Institution (EOBI).
The final decision will be made by the government after evaluating recommendations from the finance ministry. If approved, these increases will be effective starting July this year.
Federal Finance Minister Muhammad Aurangzeb highlighted that pension payments represent a “significant liability.”
Sources reveal that the budget will allocate Rs9.5 trillion for interest and debt servicing. Energy sector subsidies are expected to be set at Rs800 billion. Furthermore, the federal tax revenue is projected to be approximately Rs12.9 trillion, with non-tax revenue estimated at Rs2,100 billion.
To meet the additional tax target, a potential 1% increase in the sales tax rate is under consideration, which could generate substantial additional revenue.
