Pakistan Budget 2019-20: Live Updates of Federal Budget


Here are the live updates and news regarding the Pakistan Budget 2019-20.

Pakistan Budget 2019-20 or Federal Budget 2019-20 of Rs 6 trillion is anounced. The federal government revealed the budget in the National Assembly in Islamabad at 5 pm.

The Pakistan budget 2019-20 is presented by Minister of State for Revenue Hammad Azhar.

Pakistan Budget 2019-20 Salient Features

These features are up till announced during the budget presentation.

  • 10 per cent ad hoc relief for armed forces employees
  • 10 per cent increase in salaries for government employees from grade 1 to 16, including armed forces employees
  • 5 per cent ad hoc relief for government employees from grade 17 to 20
  • A ration card scheme is being introduced. 80,000 people will benefit from this scheme with interest-free loans. 60,000 women will be given access to mobile phones.
  • Budget deficit to be Rs3,560 billion
  • Civil budget decreased from Rs460 billion to Rs437 billion.
  • Defence budget will remain Rs1.150 trillion.
  • Development expenditure for tribal districts fixed at Rs152 billion.
  • Increase in circular debt has fallen from Rs38 billion to Rs24 billion. This will be completely eliminated in the coming years.
  • Inflation targets have been set at between 5 and 7 per cent.
  • Minimum wage set at Rs17,500
  • Ministers agree to voluntary 10 per cent cut in salaries
  • No increase in salaries for civilian government employees from grade 21 to 22
  • Pensions increased by 10 per cent
  • Rs1,800 billion kept for PSDP. Rs950 billion kept for federal PSDP
  • Rs40 billion subsidy to be given for electricity, gas.
  • Rs45.5 billion allocated for Karachi’s development programme
  • Taking loans from the State Bank to bridge budget deficit results in rising inflation. The government has decided not to do this anymore.
  • The government has formed a new ministry to eliminate poverty, which will introduce programs for social safety. People benefiting from the Ehsaas program include the poor, orphaned, homeless, and disabled sectors of the population.
  • The stipend through the BISP scheme has been increased from Rs5,000 to Rs5,500.

Features that were expected during Federal Budget 2019-20

  • A target of Rs. 5,550 billion tax collection has been set for the Federal Board of Revenue (FBR)
  • Rs2,900 billion will be set aside to repay interest on loans
  • Approximately 7.5 per cent sale tax will be applied on the manufacturing sector
  • Further, non-filer consumers in the industrial and commercial sector will have to pay 25 per cent income tax
  • In the budget, the government aims to increase the taxpayers in the country to 40 million by next year. It has further suggested legal proceedings against those who do not file taxes
  • In the federal budget, the non-tax income is estimated to be around Rs. 750 billion. While the receivable target is suggested to be Rs. 3,800 billion
  • It will be mandatory for all Pakistanis to have a national tax number (NTN)
  • Of the total outlay, Rs3000 billion will be handed over to the provinces.
  • Rs1,837 billion have been earmarked for development projects in the country, of which Rs925 billion will go to the federal government, while Rs. 912 will be for development work in the provinces
  • Tax will be hiked up for the non-filers who travel by air on business class tickets. One recommendation is to increase their airfare.
  • The budget deficit may exceed Rs2,700 billion during the next fiscal year
  • The federal government will have a share of Rs675 billion from the Public Sector Development Program
  • The sales tax on non-registered industrial and commercial companies will be increased from 5 per cent to 20 per cent, especially of those consumers whose bill is more than Rs20,000 per month.


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