Ishaq Dar, the federal minister of finance and revenue, gave the National Assembly his budget for 2023–2024 on Friday.
He began by recalling the economic advancements made during the administrations of the previous governments and making comparisons between the policies implemented at the time.
Current Account & Trade Deficit:
Dar predicted a $4 billion reduction in the current account deficit from $17.5 billion. The trade gap has been decreased by 26% as a result of the suspension of luxury imports, he added.
IMF:
Dar said that the nation has avoided going into default and that negotiations with the IMF are in progress. The government is working to meet the demands of foreign lenders and anticipates quickly reaching a staff-level agreement.
Information Technology:
For IT exports, the government has suggested a generous 0.25 percent tax rate. Up until June 30, 2026, the service will be accessible. It is a huge relief that the federal government has exempted independent contractors from paying sales tax up to $24,000. The minister added that the government will train 50,000 IT professionals during the current fiscal year.
Agri: Relief for Farmers:
According to Dar’s speech, the federal government increased the number of loans for farmers from Rs. 1,800 to Rs. 2,250 billion.
He disclosed that Rs. 50 billion has been allocated for the installation of solar panels on 50,000 tube wells.
He added that all taxes and customs fees on seedlings have been eliminated by the government.
Dar also declared that all duties and taxes on combine harvesters would be eliminated. In his budget speech, the finance minister also mentioned that Rs. 10 billion would be set aside for loans to small farmers.
BISP:
He claimed that the amount for the oppressed has increased from Rs. 460 billion to Rs. 450 billion in a statement about the BISP program.
The government noted the accomplishments of lowering record POL prices in the most recent month and spent Rs. 26 billion on Utility Stores Corporation.
He claimed that foreign lenders received their $12 billion in loans back on time.
Entrepreneurship and the Empowerment of Women:
For the purpose of skill development for women entrepreneurs, the federal government has committed Rs. 5 billion.
The government has also allocated Rs. 5 billion for the Prime Minister Youth Skills Program.
According to Dar, the government has extended the Real Estate Investment Trusts (REITs) tax breaks until June 30, 2024.
Diamond Card for Expats:
The final 2 percent tax imposed by the government on the acquisition of real estate through international transfers has been eliminated.
According to Ishaq Dar, Pakistanis living abroad will be given the “Diamond Card,” which will grant them access to a number of benefits including a free passport, priority access to Pakistani embassies and consulates, quick immigration, and significant cash prizes through a lucky draw.
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