The Federal Minister for Finance and Revenue, Senator Ishaq Dar, delivered the budget speech for the financial year 2023-24 in the federal cabinet session. The budget aims to strike a balance between people-friendly measures and meeting the conditions set by the International Monetary Fund (IMF). The government has set a modest GDP growth target of 3.5% for the fiscal year.
In the agriculture sector, several measures are proposed, including increasing the agricultural credit limit, allocating funds for converting agricultural tube wells to solar energy, abolishing taxes on quality seed imports, exempting combine harvesters and rice planters from duties and taxes, and providing concessional loans to the agro-industry.
The IT and Enabled Services sector is given importance, with measures such as a concessional income tax rate for boosting IT exports, simplifying tax procedures for freelancers, and providing incentives for the IT industry. The budget also focuses on small and medium enterprises (SMEs), with steps taken to provide concessional taxes on loans, increase the turnover threshold, and allocate funds for subsidized loans and credit rating agencies.
The industrial and export sectors receive attention through the establishment of the Export Council of Pakistan, the exemption of taxes on certain items, and initiatives to promote textile industry exports. The budget highlights the importance of remittances from overseas Pakistanis and introduces incentives to promote remittances through formal channels.
In the education sector, allocations are made for the Higher Education Commission, the Pakistan Endowment Fund for scholarships, and the provision of laptops to deserving students. Other sectors addressed in the budget include women’s empowerment, energy, water resources, transport and communication, and social development.
The budget also mentions revenue measures, such as increasing income tax rates and rationalising the rates and scope of the super tax. However, no new taxes are proposed for the year. Overall, the budget aims to address various sectors of the economy, promote growth, create employment opportunities, and provide relief to the people of Pakistan.
