Budget Fiscal Year 2021-2022

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With third year dawning to close, the government of Pakistan is aiming for a growth oriented budget for the forthcoming year. In a recent meeting the government indicated towards meeting the demands of the IMF.

It is to be noted that the government hinted at the slapping of additional taxes. However, a 10% increase in the salaries of government employees is expected. For now, the government is putting off the electricity tariff and aims to do it in later stages.  Further, Finance Minister Shaukat Tarin hinted towards a reduction in rate of GST if the tax net is broadened. He added that 4.2% GDP growth estimated for the next fiscal year in the previous budget strategy paper had now been revised to 5%. Similarly, the fiscal deficit is revised from 6% to 6.2%.

In this regard, Asad Umer, Federal Minister for Planning and Development said that Pakistan’s national development budget for the next financial year has been set at Rs2102 billion, which is 36.4% higher than the current financial year. The government will focus on the development projects on energy, water and technology in the upcoming budget.

For the energy sector Rs100 billion are earmarked for the power transmission system and Rs14 billion for the 10 billion tsunami initiative. Moreover, a sum of Rs44 billion has been earmarked for the higher education sector and Rs51 billion for the health sector. To add further, Usman Buzdar, the chief minister of Punjab has announced that the upcoming budget aims to facilitate more people.

Elaborating further, in this budget the primary focus of the government will be on the growth of exports. They are aiming to offer better rates so that the industry could work in full swing and play its role in the development of Pakistan.

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