The federal budget for 2024-2025 has brought both good and bad news.
The federal budget for 2024-2025 has brought both good and bad news regarding salaries and other aspects.

The federal budget for 2024-2025 proposals for the upcoming fiscal year are presented, highlighting the good and bad news for the common person.

Good News:

All federal and provincial employees eagerly await the annual budget announcement as the government considers inflation and various other factors to increase their salaries.

  • Salary Increase: According to the budget document, the salaries of government employees from grades 1 to 16 will be increased by 25% to improve their purchasing power, while officers’ salaries from grades 17 to 22 will be increased by 22%.
  • Pension Increase: Pensions for retired government employees will be increased by 15%.
  • Minimum Wage: The minimum wage in public and private sectors will be raised from 32,000 to 37,000 rupees.
  • Educational Scholarships: The number of students benefiting from the educational scholarship program will be increased to 14 million.
  • Anti-Counterfeit Measures for Cigarettes: To discourage counterfeit cigarettes, cigarette stamps will be introduced for retailers, making it illegal to sell cigarettes without these stamps.
  • Tax Exemption on Iron and Steel Scrap: Iron and steel scrap will be exempt from sales tax.

Bad News:

  • Hybrid Car Import Duty: The exemption on customs duty for importing hybrid cars is proposed to be withdrawn.
  • Motor Vehicle Registration Tax: It is proposed that advance tax on motor vehicle registration be collected based on the vehicle’s price instead of engine capacity.
  • Property Tax: A recommendation to impose a 5% federal excise duty (FED) on new plots, residential, and commercial property.
  • Import Duty on Glass Products: The subsidy on import duty for glass products is proposed to be eliminated.
  • Sales Tax on Scrap: It is proposed to apply sales tax withholding on scrap materials like copper, coal, paper, and plastic.
  • FED on Cigarette Filters: A proposal to impose FED of 44,000 rupees per kilogram on acetate tow used in cigarette filters.
  • GST Increase on Textiles and Leather: An increase in general sales tax for the textile and leather industries is proposed.
  • Duty Increase on Steel and Paper Products: An increase in import duty on steel and paper products is proposed.
  • FED on Cement: The federal excise duty on cement is proposed to be increased from 2% to 3%.

Federal Budget for 2024-2025:

The Finance Minister mentioned that Karachi plays a crucial role in the country’s economic development, and therefore, a comprehensive Karachi package is proposed to modernize its infrastructure in consultation with all stakeholders. Additionally, plans for Hyderabad, Sukkur, Mirpur Khas, and Benazirabad are also suggested. Furthermore, a significant allocation is proposed for the K-4 project to improve the water supply to Karachi, aiming to move this important project towards completion.

Read More: Budget 2023-24 Finance Minister Ishaq Dar Unveils Budget

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