Understanding Pakistan's Federal Budget 2024-25

Understanding Pakistan's Federal Budget 2024-25
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The Federal Budget for FY2024-25 in Pakistan provides a snapshot of the government’s estimated revenues and expenditures. Here are the key takeaways:
Total Spending: The budget estimates total spending to be 18.9 trillion Pakistani rupees (approximately $67.84 billion) for the fiscal year 2024-25.
Debt Servicing: Debt servicing is projected to be 9.8 trillion rupees in the same period1.
Defence Expenditure: The budget allocates 2.1 trillion rupees for defence expenditure in 2024-25.
Economic Growth Target: The government aims for 3.6% economic growth during the fiscal year1.
Fiscal Deficit: The fiscal deficit is expected to be 6.9% of GDP.
The government has also implemented reforms, including end-to-end digitization at the Federal Board of Revenue and the use of AI to enhance tax compliance. Austerity measures have curtailed non-essential spending, creating fiscal space for pro-poor initiatives and climate change mitigation.
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