Finance minister unveils budget amid opposition’s hullabaloo

The presentation of the federal budget for fiscal year 2024-25 was delayed by over an hour-and-a-half on Wednesday as the ruling coalition struggled to placate its disgruntled ally, the Pakistan People’s Party (PPP), which had threatened to boycott the session over reservations on the development allocations.

Deputy Prime Minister Ishaq Dar held a meeting and successfully wooed the PPP to attend the budget session.

After the meeting, Dar said they all were trying to bring improvement to the economy and prosperity to the country.

However, later PPP chairman Bilawal Bhutto left the Parliament House while other PPP members joined the budget session.

According to sources, the government failed to fully convince the PPP and the reservations were still there despite the PPP attending the budget session.

PPP leader Khurshid Shah, speaking to reporters ahead of the session, said the party had reservations with regard to the Public Sector Development Programme (PSDP) budget and that the PPP should have been taken into confidence for the budget.

“It was decided that the PSDP for the four provinces would be decided together,” he said while speaking to the media.

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“We are in the same boat. If something goes wrong, it would be not just for the PML-N, but for us as well [as allies],” the PPP leader said, adding that the decision to not take part in the speech was to protect their party.

He stated that if his party were taken into confidence then they could have dialogue.

Following a PPP parliamentary party meeting, PPP MNA Shazia Marri told reporters that: “We had two party meetings, one yesterday and another today, to discuss our concerns and recommendations, but they were not addressed.

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The minister said the coalition government’s steps helped bring down inflation and attract investment.

He greeted the prime minister and the allies for the ‘achievement’ and said efforts are afoot to bring in betterment.

He said: “Under Prime Minister Shehbaz Sharif’s leadership, we have pursued a homegrown agenda that has enabled us to overcome current economic challenges and boost the pace of development.

Despite the difficulties, our progress has been impressive for a year. Inflation is likely to decrease further in the coming days. I thank the leadership of all the coalition parties

Opposition sloganeering

The opposition leader stood up to stage a protest. As the finance minister continued his budget speech the opposition leaders continued chanting anti-government slogans.

The PTI and its allied party leaders were beating the desk with copies of the financial bill.

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The house echoed with “Go, Nawaz, go,” slogans throughout the proceedings.

Need for patience 

“There is a need for patience and extreme hard work, combined with homegrown corrective plans. The public must work together with institutions to achieve our economic goals,” Aurangzeb said, stressing the importance of collaboration and sustained efforts.

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Aurangzeb acknowledged the challenges faced by Pakistan’s economy, which had been struggling with depleted foreign reserves, a 40 per cent depreciation of the rupee, stagnant economic growth, and soaring inflation that pushed citizens below the poverty line.

 “The previous IMF programme was ending, and a new deal was essential to prevent a default. I commend Shehbaz Sharif’s government for their efforts in securing the programme,” he said.

Call for joint efforts 

"We have heard the talk of all political parties to sit together in the country’s interest several times. Today, the nature has provided Pakistan with another chance to walk on the path of economic progress and we can’t afford to waste this opportunity," he said while requesting all the MNAs to cooperate with the government putting the country on the path of progress. 

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“A while ago, Pakistan’s economy faced a difficult situation as the State Bank's reserves were enough for only less than two weeks of imports. The value of the rupee depreciated by 40%, economic progress was almost nil, and inflation had reached a level that the people were going below the poverty line at a fast pace. Coming out of this situation seemed difficult,” said the minister.

GDP growth rate

The finance minister said the GDP growth rate is expected to remain 3.6 percent in the next fiscal year.

The inflation is expected to come down to 12 percent, he foresaw.

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He said the budget deficit is 6.9% of the GDP and the primary surplus to remain at 1% of the GDP.

The tax collection by the Federal Board of Revenue (FBR) is estimated at Rs12,970 billion which is 38% more than the current fiscal year.

Provinces' share 

The federal minister said the province’s share in the federal tax collection will be Rs7,438 billion as the centre estimated the tax collection at Rs12,970 billion which is 38% more than the current fiscal year.

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The federal government has set a non-revenue target at Rs3,587 billion, while the Centre’s net income is Rs9,119 billion, the finance minister said adding that total federal expenditures have been estimated at Rs18,877 billion of Rs9775 billion will be spent on interest payments.

'Significant improvement'

Aurangzeb pointed out the significant improvement in economic indicators, crediting the PM and his team for their efforts.

He said: “Inflation stood at 11.8pc in May, a notable achievement considering the challenges. We’re on the right track. Pakistan’s foreign exchange reserves have been strengthened, and international investors are now seeking opportunities to invest in our economy.”

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He applauded the State Bank’s decision to cut interest rates, citing visible efforts to combat inflation. “The State Bank’s interest rate cut is a significant move, and the efforts to curb inflation are evident. Shehbaz Sharif and his team deserve congratulations for their commendable efforts to turn the economy around,” Aurangzeb said.

“These achievements are not ordinary. As a result of these, the country has exited a difficult time.”

Reforms in power sector 

The minister stressed the need to bring reforms to the power sector and promote public-private patronship so that economic improvement could be brought in. 

He said the airports are being outsourced to provide the passengers as part of the government's economic policies. He emphasized capitalizing on a fresh opportunity to revitalise its economy.

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He added: “Pakistan has another opportunity to improve itself and embark on the path of economic development. I request everyone not to waste this chance.”

“Pakistan will soon return to the path of sustainable growth. Reforms will have to be pushed forward to improve sluggish growth.”