2024-25 Budget
The federal government has set forth ambitious economic targets in the budget for the fiscal year 2024–25, despite challenging global and domestic economic conditions. The newly unveiled budget outlines several key goals aimed at fostering economic growth and stability.
According to official documents, the government has set a GDP growth target of 3.6% for the next fiscal year. This target reflects a determined effort to stimulate the economy through strategic policies and reforms.
Additionally, in response to the escalating cost of living, the government has set an inflation target of 12%, aiming to alleviate the financial burden on citizens.
The budget projects a notable increase in per capita income, which is expected to reach Rs543,968. This projection indicates a positive outlook for individual economic well-being.
The government has also established growth targets across various economic sectors to ensure a balanced and comprehensive economic development.
In the agricultural sector, despite an anticipated decline of -4.5% in major and important crop production, other crops are expected to grow by 4.3%, leading to an overall modest growth target of 2%.
This sectoral growth is crucial for maintaining food security and supporting rural economies.
The industrial sector is targeted to grow by 4.4%, driven by a 3.5% growth in large-scale manufacturing and an impressive 8.2% growth in small and cottage industries.
This sector’s robust growth is expected to boost employment and contribute significantly to GDP.
The services sector, which plays a pivotal role in the economy, is anticipated to grow by 4.1%. Within this sector, the wholesale and retail sectors are also targeting a 4.1% growth, reflecting the expected increase in consumer demand and business activities.
In terms of trade and external accounts, the budget sets ambitious targets for both exports and imports. Domestic exports are projected to reach $32.34 billion, while imports are expected to total $57.28 billion.
This results in a trade deficit target of $24.94 billion. Managing this trade deficit is critical for maintaining economic stability and ensuring sustainable growth.
Remittances from Pakistanis abroad are projected to play a crucial role in the national economy, with a target of $30.27 billion. These remittances are essential for supporting domestic consumption and investment.
The government aims to manage the current account deficit down to $3.7 billion, reflecting an effort to achieve a more balanced external account.
Additionally, the primary income balance is expected to be a negative $7.64 billion, indicating the challenges that lie ahead in managing international financial obligations.
Overall, the Federal Budget 2024-25 sets forth a comprehensive and ambitious economic agenda.
Through strategic policies and reforms, the government is optimistic about achieving these targets and fostering a resilient and prosperous economy amidst global and domestic challenges.
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