Insights into Pakistan's Federal Budget 2024-2025

Insights into Pakistan's Federal Budget 2024-2025

Pakistan Federal Budget for Fiscal Year 2024-2025: Increases and Key Points

The unveiling of Pakistan's Federal Budget for the fiscal year 2024-2025 has generated significant interest among citizens, businesses, and economic analysts. As the government outlines its financial plans, several key areas have seen notable increases in allocations and new policy measures. This blog post delves into the critical highlights, budget increases, and key points of the Federal Budget 2024-2025.

Economic Context and Objectives

The Federal Budget 2024-2025 comes at a time when Pakistan is navigating economic challenges such as:

  • Persistent inflation
  • High fiscal deficits
  • External debt pressures
  • Slow economic growth

The government aims to address these issues through strategic allocations and reforms, focusing on economic stability and growth.

Key Increases in the Budget

  1. Education Sector
    Significant increases in the budget for education aim to improve:

    • Quality of education
    • Infrastructure development
    • Teacher training programs

    Allocated Budget: PKR 150 billion (an increase of 20%)

  2. Health Sector
    To enhance healthcare services, the budget includes increased funding for:

    • Public hospitals
    • Healthcare facilities in rural areas
    • Disease prevention programs

    Allocated Budget: PKR 180 billion (an increase of 25%)

  3. Public Sector Development Program (PSDP)
    The PSDP sees a substantial increase to boost:

    • Infrastructure projects
    • Transportation networks
    • Energy sector improvements

    Allocated Budget: PKR 900 billion (an increase of 30%)

  4. Social Safety Nets
    Expanded funding aims to support vulnerable populations through:

    • Benazir Income Support Program (BISP)
    • Subsidized food programs
    • Unemployment benefits

    Allocated Budget: PKR 200 billion (an increase of 15%)

  5. Defense Budget
    A moderate increase is seen in the defense budget to maintain:

    • National security
    • Modernization of military equipment

    Allocated Budget: PKR 1.5 trillion (an increase of 10%)

Key Points and Policy Announcements

  1. Tax Reforms

    • Introduction of a more progressive tax system
    • Simplification of tax procedures
    • Measures to increase tax compliance and reduce evasion
  2. Investment in Renewable Energy

    • Allocations for solar and wind energy projects
    • Incentives for private sector investment in renewable energy
  3. Agricultural Development

    • Subsidies for fertilizers and seeds
    • Investment in modern irrigation systems
    • Programs to support small-scale farmers
  4. Industrial Growth Initiatives

    • Tax incentives for new manufacturing units
    • Support for export-oriented industries
    • Development of special economic zones (SEZs)
  5. Digital Economy Boost

    • Funding for IT infrastructure
    • Support for tech startups
    • Programs to enhance digital literacy and innovation
  6. Debt Management Strategies

    • Plans to restructure existing debt
    • Issuance of new bonds
    • Negotiations with international creditors for favorable terms
  7. Public-Private Partnerships

    • Encouragement of PPPs to facilitate infrastructure and development projects
    • Incentives for private sector involvement in public projects
  8. Environmental Sustainability

    • Investments in water conservation projects
    • Initiatives to combat climate change
    • Promotion of sustainable agricultural practices


The Federal Budget for the fiscal year 2024-2025 outlines a comprehensive plan to address Pakistan’s economic challenges while promoting growth and development. With significant increases in key sectors and strategic policy announcements, the budget aims to stabilize the economy, support vulnerable populations, and encourage sustainable development.

Stay tuned for more detailed analyses and updates as the budget implementation progresses, impacting various sectors of the economy.

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