Rs18tr budget to be unveiled on June 12

Finance Minister Muhammad Aurangzeb will present the current fiscal year's National Economic Survey tomorrow (June 11)
An undated image of Finance Minister Muhammad Aurangzeb. — Ministry of Finance
An undated image of Finance Minister Muhammad Aurangzeb. — Ministry of Finance 

Prime Minister Shehbaz Sharif-led government is set to table its first federal budget for the fiscal year 2024-25 on June 12 (Wednesday) with a total size of around Rs18 trillion.

The budget will be tabled by Finance Minister Muhammad Aurangzeb after which it will be presented in the Senate. Meanwhile, the finance czar will also present the Economic Survey for the outgoing fiscal year 2023-24 in the National Assembly on June 11 (Tuesday).

It should be noted that the budget announcement was delayed due to PM Shehbaz's trip to China.

Moreover, reports suggest that the budget is expected to include an additional tax of over Rs3 trillion, as the government is expected to increase in the general sales tax (GST) rate from 18% to 19%.

The federal government, in its first federal budget lay out ambitious fiscal targets in the FY25 budget that will help strengthen its case for a new bailout deal with the International Monetary Fund (IMF).

The cash-strapped nation is in talks with the Washington-based lender for a loan estimated to be anything between $6 billion to $8 billion to avert a default for an economy that is growing at the slowest pace in the region.

It will also be the first test for new Aurangzeb, formerly the chief of Pakistan's largest bank, who was brought in by Sharif to formulate fresh policy solutions to address persistent problems in the $350 billion economy.

The growth target for the upcoming year is expected to be higher at 3.6% compared to 2% this year and economic contraction last year.