Key Facts About Budget 2024 Pakistan Date Summary Salary Increase Details For Govt Employees below

The federal budget for the fiscal year 2024-24 is expected to be Rs16.6 trillion, a significant increase from the previous year’s budget of Rs9.5 trillion.

Budget 2024 Pakistan Date Time

According to reliable sources, the Federal Budget for Fiscal Year 2024-24 is expected to be presented on either June 9 or 10. Preparations for the budget are already underway, with the National Economic Survey set to be presented on June 08.

The National Economic Council, chaired by the prime minister, is also likely to be convened in the first week of June. The annual planning coordination committee will meet in mid-May to outline the development budget’s key features. It is anticipated that the Federal Development Budget for Fiscal Year 2024-24 will see a significant increase of around 250 billion rupees compared to the current financial year, potentially exceeding 900 billion rupees.

The forthcoming budget is expected to be particularly challenging, with the government aiming to implement conditions put forth by the International Monetary Fund. Finance Minister Ishaq Dar has confirmed the budget’s tabling in the National Assembly on June 9, and it is speculated that the mini budget may be integrated into the overall budget for 2024-24.

Introduction

In this article, we will explore the key facts and details regarding Pakistan’s upcoming federal budget for the fiscal year 2024-24. The budget is a crucial tool for the government to allocate resources, address economic challenges, and promote sustainable growth. Let’s delve into the important aspects of the budget and its potential impact on various sectors.

Total Outlay: A Boost in Financial Allocation

The federal budget for the fiscal year 2024-24 is projected to have a total outlay of Rs16.6 trillion, a substantial increase from the previous year’s budget of Rs9.5 trillion. This significant boost in financial allocation demonstrates the government’s commitment to addressing pressing economic needs and fostering development across various sectors.

Budget 2024 Pakistan Date Summary Salary Increase Details For Govt Employees

Pay Raise for Government Employees

• Federal government employees can anticipate a 20% increase in salaries, while pensioners will receive a 15% raise.
• However, this raise may not sufficiently offset the impact of inflation, which currently stands at over 40%.

Recognizing the importance of uplifting government employees, the upcoming budget plans to introduce a 20% increase in salaries for federal government employees. Pensioners, on the other hand, can expect a 15% raise. However, it is important to note that despite this pay raise, government employees may still face challenges in beating the prevailing inflation rate, which currently stands at over 40%. The government acknowledges the need for further measures to ensure that the increased salaries effectively support employees in coping with the rising cost of living.

Public Sector Development Program (PSDP)

• The upcoming fiscal year will witness a strong emphasis on the Public Sector Development Program.
• The estimated allocation for PSDP in 2024-24 is Rs950 billion, slightly higher than the current fiscal year’s allocation of Rs800 billion.
• There are reports suggesting the possibility of reducing the allocation to Rs700 billion.
• An additional Rs150 billion will be dedicated to public-private partnership programs.

The fiscal year 2024-24 will witness a strong emphasis on the Public Sector Development Program (PSDP). The estimated allocation for the PSDP in this period is Rs950 billion, reflecting a slight increase compared to the previous fiscal year’s allocation of Rs800 billion. This allocation aims to channel resources into critical infrastructure projects, social welfare programs, and initiatives that contribute to economic growth. Additionally, an additional Rs150 billion will be allocated to public-private partnership programs, fostering collaboration between the government and private entities to drive development and innovation.

Taxation Policy and GST

• The government does not plan to offer tax relief to the public. The taxes introduced under the mini-budget will be incorporated into the next year’s budget.
• The Goods and Services Tax (GST) rate, increased from 15% to 18% in the mini-budget, will remain unchanged.
• Luxury items will continue to be subject to a 25% tax.
• The government generated approximately Rs177 billion in taxes through the mini-budget, and these taxes will continue to be levied in the upcoming fiscal year.
• Revenue from direct taxes is expected to increase by Rs500 billion.

In line with its revenue generation strategies, the government does not plan to offer tax relief to the public in the upcoming budget. The taxes introduced underthe mini-budget will be integrated into the next year’s budget, maintaining the Goods and Services Tax (GST) rate at 18%. This decision implies that certain goods, including packed food, will remain subject to higher costs. The government generated approximately Rs177 billion in taxes through the mini-budget, and these taxes will continue to be levied in the next fiscal year. Furthermore, luxury items will be subjected to a 25% tax, contributing to the government’s revenue stream. With these measures, the government aims to enhance total revenue collection by Rs500 billion from direct taxes, according to reliable sources.

Revenue Collection and Debt Servicing

• The Federal Bureau of Revenue (FBR) has been given a revenue collection target of Rs8,200 billion for the fiscal year 2024-24, compared to Rs7,000 billion in the previous year.
• The government plans to raise Rs2,396 billion from non-tax revenue.
• In the next fiscal year, Pakistan will allocate $7.56 billion (Rs2,140 billion) for debt servicing and will explore borrowing from local and international sources to manage interest payments and principal amounts.
• The government aims to secure at least Rs1,804 billion from other countries or financial institutions.

Efficient revenue collection is vital to ensuring financial stability and managing the country’s debt obligations. For the fiscal year 2024-24, the Federal Bureau of Revenue (FBR) has been tasked with a revenue collection target of Rs8,200 billion, indicating an increase from the previous year’s target of Rs7,000 billion. This ambitious target reflects the government’s commitment to strengthening revenue streams and reducing fiscal deficits. Additionally, the government aims to raise Rs2,396 billion from non-tax revenue sources, diversifying its income channels. It is worth noting that Pakistan faces a significant debt servicing burden, with $7.56 billion (equivalent to Rs2,140 billion at the current exchange rate) allocated for the repayment of interest and principal amounts in the upcoming fiscal year. To address these obligations, the government plans to secure at least Rs1,804 billion from other countries or financial institutions, leveraging external resources to manage debt effectively.

Pay Scale Revised in Budget 2024 for Government Employees

In the upcoming Budget 2024, the government has announced revisions to the pay scale for government employees. This revision will also include increased allowances such as house rent, transport, and medical allowances. The Federal Budget 2024, scheduled to be announced in the second week of June 2024, will address these changes.

Pay Scale Revised in Budget 2024 Chart Grade 1 to 21 Salary Increased Chart Govt Employees

 

• The Daily Dunya News has reported on the proposed Pay Scale Revision in Budget 2024, which has been a significant request from government employees in Pakistan.
• Different recommendations have been prepared to be integrated into the budget for the fiscal year 2024.
• According to various media sources, the pay scales of government employees will be revised, potentially resulting in salary increases.
• The government is actively seeking resources to meet the expected salary increase for government employees in Budget 2024.

Impact on Government Employees

• The Pay Scale Revision in Budget 2024 will not only affect salaries but also increase various allowances for government employees across all departments.
• There is anticipation that the forthcoming salary increase in Budget 2024-24 will raise the salaries of all government employees by 5% or 10%.
• This news of salary increase in Budget 2024-24 is likely to bring joy to employees.

Pensioners’ Benefits

• Retired government employees will also see an increase in their pensions, as this aspect is considered in Budget 2024.
• The National Assembly is actively preparing the Pensioners Budget 2024 to ensure pensioners receive the benefits they deserve.

Province-wise Implementation

• Each province in Pakistan has separate government and administrative rules for implementing changes for government employees.
• The budget announcements are made separately by representatives of each province, detailing the increased and decreased General Sales Tax.

 

Three Salary Packages BPS-01 to BPS-22 Employees Budget 2024 Proposals

We are excited to announce the launch of Three Salary Increase Packages in Budget 2024-24 proposals that aim to provide significant benefits to employees across all pay grades, from BPS-01 to BPS-22.

According to the recent report in the Daily Dunya newspaper dated 04-06-2023, these proposals offer employees the opportunity to receive substantial salary increments in the upcoming Budget 2024-2024. The increments range from 20% to 50%, allowing hardworking individuals like you to enjoy a well-deserved boost in income.

But that’s not all. The government of Pakistan is also committed to enhancing the overall employee benefits package. Medical Allowance and Conveyance Allowance will see a remarkable increase of 100% compared to the existing rates. Moreover, there will be an improvement in the House Rent Allowance (HRA) and an increase in the Rental Ceiling for Hiring Accommodation. These measures aim to address the evolving needs of employees and ensure their well-being.

Furthermore, pensioners will not be left behind. In recognition of their dedicated service, the proposed budget includes a substantial 20% increase in pensions for retired government servants. This increase will provide them with the necessary financial support and a more secure future.

The Finance Minister and the cabinet are actively working on the budget to ensure its proper allocation, taking into account the country’s financial condition and the prevailing inflationary pressures. The suggestions put forward in the latest cabinet meeting indicate a collective agreement on increasing all Adhoc relief allowances for government servants. The final approval is scheduled to be announced on 9th June 2024, bringing much-anticipated relief to employees.

The proposed budget also highlights the allocation of funds to different departments based on their specific needs. The Ministry is keen on making the best possible allocation to meet the requirements of employees and pensioners. They are aware of the challenges posed by inflation and are committed to providing relief to government servants who have been affected by it.

In terms of allowances, the cabinet recommends a significant increase in various Adhoc allowances, including Hiring Allowance, Medical Allowance, and Traveling/Conveyance Allowance. The proposed packages are designed to make the budget more attractive, offering employees the following options:

1. 20% increase in Adhoc Allowances
2. 30% increase in Adhoc Allowances
3. 50% increase in Adhoc Allowances
4. 100% increase in Medical Allowance
5. 100% increase in Conveyance Allowance

To ensure transparency and clarity, the proposed rates of Hiring Allowance for different grades have also been outlined. Please refer to the table below for the existing rates and the proposed rates:

Grade Existing Rate of Hiring Allowance Proposed Rate

1. BPS-01 to BPS-02 Rs.6,991 Rs.13,182
2. BPS-03 to BPS-06 Rs.9,654 Rs.18,672
3. BPS-07 to BPS-10 Rs.14,982 Rs.29,365
4. BPS-11 to BPS-13 Rs.21,462 Rs.42,924
5. BPS-14 to BPS-16 Rs.27,134 Rs.54,260
6. BPS-17 to BPS-18 Rs.35,896 Rs.71,996
7. BPS-19 Rs.46,816 Rs.93,632
8. BPS-20 Rs.59,079 Rs.1,18,158
9. BPS-21 Rs.71,107 Rs.1,42,208
10. BPS-22 Rs.89,230 Rs.1,78,460

We understand the importance of addressing the financial conditions of the country and ensuring a fair allocation of resources. The Ministry is working diligently to finalize the budget while considering the increased working hours and the need to provide relief to all government servants and pensioners affected by inflation.

we are dedicated to keeping you informed about the latest developments and news regarding the Budget 2024-24. Stay connected with us to receive timely updates on salary increases, government policies, and more.

Conclusion

The federal budget for the fiscal year 2024-24 carries significant implications for Pakistan’s economic landscape. With increased financial allocation, efforts to address inflation concerns, focus on public sector development, and revenue generation strategies, the government aims to foster sustainable growth, enhance public welfare, and navigate the challenges of managing debt obligations. It is crucial for all stakeholders to closely monitor the implementation and impact of the budget, as it plays a pivotal role in shaping the country’s future.