Government to Cut Rs 250 Billion from Federal Budget, Says Minister Ahsan Iqbal

Federal Minister for Planning Ahsan Iqbal announced that the government would reduce Rs 250 billion from the proposed budget for the fiscal year 2024-25.

Speaking to the media, Ahsan Iqbal confirmed the cut, stating it was necessary to address the revenue shortfall. Consequently, the federal development program will face a significant reduction.

“The Public Sector Development Programme’s (PSDP) budget has been reduced from Rs 1400 billion to Rs 1150 billion,” the minister added.

Iqbal emphasized that this adjustment aims to alleviate the public and agriculture sector from additional tax burdens.

Earlier on Monday, the Senate of Pakistan approved recommendations for the federal budget 2024-25, including setting the minimum monthly wage for laborers at Rs 45,000.

The Senate approved 128 recommendations presented by the Senate Standing Committee on Finance Chairman Saleem Mandviwala. Among these, the reduction of indirect taxes by 50 percent and an increase in direct taxes were highlighted.

The Senate also suggested exempting 660 CC cars from customs duty similar to electric vehicles, abolishing taxes on the construction sector, introducing a one-window operation for overseas Pakistanis to invest, imposing uniform taxes on imported and local solar panels, and reducing taxes on eight stationery items.