ISLAMABAD: Pakistan will present its deficit annual budget for the year 2023-24 with the country facing a tumultous political sitaution and all-time high inflation, which has further dampened the popularity of the Pakistan Democratic Government led by Prime Minister Shehbaz Sharif.
Finance Minister Ishaq Dar will present the over Rs14.5 trillion with an allocation of Rs1.15 trillion, Rs.18 trillion, debt servicing and an economic growth target of 3.5 per cent for the coming fiscal year.
Sources have also told Reuters that preliminary budget proposals envisaged a fiscal deficit of 7.7pc of GDP, with total spending at Rs14.5 trillion and revenue collection at Rs9.2 trillion.
The proposals also set an inflation target of 21pc, well below the record high of nearly
Salient Features 2023-24Salient features of budget
No increase of duties on import of essential items; trade facilitation and ease of doing business and encourage the industrialization and investment.
The budget envisages incentives for agriculture sector; promotion of energy efficiency & conservation and promotion of Information Technology (IT) and IT enabled services.
Relief Measures
The proposes exemption of Customs duties on specific papers and art card and board for printing of the holy Quran; incentive for pharma sector by including one more API and three drugs in the existing duty free regime; incentive for manufacturing of Solar Panels and allied equipment by exempting customs duties on import of machinery, equipment and inputs for manufacturing of solar panels, inverters and batteries.
It proposes incentive for exporters of Information Technology (IT) and IT enabled services by allowing duty free import of IT related equipment equivalent to 1% value of their export proceeds.
The budget proposes deduction of Customs duties and additional Customs duties on import of intermediary/ industrial inputs falling under 10 PCT codes.
It proposes exemption of Customs duties on raw materials of diapers, sanitary napkins and adhesive tape.
The budgest seeks concession of Customs duty on raw materials / inputs for manufacturers of capacitors; reduction of Customs duty from 10% to 5% on non-localized (CKD) of Heavy Commercial Vehicles (HCVs); exemption of ACD on import of raw materials of hemodialyzers fluid / powder; extension in exemption on machinery and equipment imported by erstwhile FATA areas till June, 2024.
