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Pakistan publishes its budget for 2022/23 and hopes for 5% growth (Corrects federal expenditure figure to 9.5 trillion rupees from 9.5 billion rupees)

Image: Reuters Berita 24 English -   Pakistan Finance Minister Miftah Ismail introduced the budget for the 2022/23 fiscal year beginning in...

Image: Reuters

Berita 24 English -  Pakistan Finance Minister Miftah Ismail introduced the budget for the 2022/23 fiscal year beginning in July on Friday, targeting 5% economic growth despite pressure to lower the fiscal deficit and get bailout funds from the International Monetary Fund.

These are the highlights of the budget year 2022/23:


* Targets 5 percent economic growth for the 2022/23 fiscal year beginning in July, compared to a projected 5.97 percent annual growth for the current fiscal year.

* Fiscal deficit target for 2022/23 established at 4.9% of GDP compared to revised objective of 7.1% for 2021/22

* The tax-to-GDP ratio will be 9.2 percent in 2022/23, up from 9 percent in 2021/22.


* The conflict between Russia and Ukraine poses a threat to the economy of Pakistan.

* Rising crude oil and food costs might fuel high inflation

* Monetary tightening and fiscal retrenchment may impede economic expansion.


* Federal expenditures for 2022/23 are estimated at 9.5 trillion rupees

* Development expenditure set at 800 billion rupees for 2022/23

* In 2022/23, Pakistan would spend 699 billion rupees on targeted subsidies.

* The defence budget will be 1.52 trillion rupees in 2022/23, up from 1.48 trillion rupees in 2021/22.

* In 2022/23, the budget allots 90.55 billion rupees for education, compared to 90.86 billion in 2021/22.

* Pakistan reduces its health budget for 2022/23 to 19.03 billion rupees from 154.49 billion rupees in 2021/22.


* Revenue target set at 7 trillion rupees for 2022/23

* Plans to generate 96.41 billion rupees through privatisation in 2022/23

* To levy a 2% extra tax on taxpayers having an annual income of 30 million rupees

* Expects central bank receipts of 300 billion rupees in 2022/23 compared to 474 billion rupees in 2021/22.


* The budget predicts inflation to average 11.5% in 2022/23, compared to 11.7% in 2021/22.

Inflation based on the consumer price index increased to 13.8% year-over-year in May, the highest rate in over two and a half years.

* Pakistan increased gasoline and diesel prices by approximately 20% earlier this month


* Pakistan's export target for 2022/23 is set at $35 billion

* Import target established at $70 billion for 2022/23

* The trade deficit objective for 2022/23 is set at 2.2% of GDP

* The budget anticipates receipts of $33.2 billion in 2022/23


* Prohibit purchasing new vehicles for government personnel

* Aims to reduce the gasoline usage of government officials

* Estimated debt service funds of 3.9 trillion rupees in 2022/23


* To increase the tax exemption ceiling for taxpayers with salary income.

* Announces plans to develop special economic zones in order to increase manufacturing

* Provides a 5-year tax exemption for the film industry

• Establish 250 miniature stadiums to encourage sports

* To exempt solar panel imports from taxation

* Exempts thirty pharmaceuticals from customs duties

* Propose a 15% increase in government employee salaries

($1 = 202.00 Pakistani rupees)

(This article corrects the federal expenditure figure to 9,500,000,000 rupees from 9,500,000,000 rupees).

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