Pakistan increased defense budget by 15.5 percent and allocated over Rs 1.8 trillion rupees
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“This budget should not be seen as an ‘election budget’. It should be seen as a ‘responsible budget’,” Dar said. Elections are due in Pakistan this year amid political instability since the fall of the Imran Khan government in April last year. He said that Rs 1,804 billion has been proposed in the budget for the defense sector, which is 15.5 percent more than last year’s proposal of Rs 1,523 billion. Defense expenditure accounts for about 1.7 percent of Pakistan’s gross domestic product (GDP).
The maximum provision of Rs 7,303 billion has been made in the budget for loan repayment. The Finance Minister said that the inflation target for the next financial year has been kept at 21 per cent while the budget deficit will be 6.54 per cent of GDP. Pakistan has not imposed any new tax in the new budget. Apart from this, there has been no increase in the duty on the import of essential goods. The Government of Pakistan has exempted customs duty on raw materials of diapers, sanitary napkins in the new budget.
In the new budget, the Pakistan government has reduced the customs duty on foreign heavy commercial vehicles from 10 per cent to 5 per cent. However, a tax of 5 per cent has been imposed on debit card payments in restaurants and resorts. The Government of Pakistan has announced a five-year tax exemption for agro-based industries set up on or after July 1, 2023.
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