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Qanoon Digest

Annual Budget Statement

The Annual Budget Statement is part of the federal budget for FY 2024-25. This page reproduces the text of its 59 PDF pages, extracted automatically from the official PDF published by the Finance Division, Government of Pakistan.

This text was extracted automatically from the PDF's text layer. Tables may lose their column alignment, and a page with no text layer is marked rather than guessed. Check the official PDF before relying on any figure.

Page 1

FEDERAL BUDGET
2 0 2 4   - 2 5

   ANNUAL
   BUDGET
 STATEMENT

     GOVERNMENT OF PAKISTAN
          FINANCE DIVISION
           ISLAMABAD

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                    PREFACE

Article 80(1) of the Constitution of the Islamic Republic of Pakistan requires that the Federal
Government shall, in respect of every financial year, cause to be laid before the National Assembly
a statement of estimated receipts and expenditure of the Federal Government for that year,
referred to as the Annual Budget Statement. Article 80(2) obligates that the statement shall show
separately the charged and other expenditures to be made from the Federal Consolidated Fund as
well as distinguish expenditures on revenue account from other expenditures. The statement shall
also be transmitted to the Senate as required under Article 73(1) of the Constitution.
Section 4 of the Public Finance Management Act, 2019 states that the Annual Budget Statement
shall include a statement of purpose, a statement of contingent  liabilities of the Federal
Government, and a statement of fiscal risks. Further, Section 8 of the Act requires that the Federal
Government shall, in respect of every financial year, lay a statement of estimated tax expenditure
before the National Assembly. These statements are accordingly included in the Annual Budget
Statement.
Section 5 and 10 of the Fiscal Responsibility & Debt Limitation Act, 2005 require laying of a medium-
term budgetary statement and statements of responsibility before the National Assembly. These
are also included in the Annual Budget Statement.
It is added that the Explanatory Memorandum of Federal Receipts and the Demands for Grants and
Appropriations constitute the explanatory part of the Annual Budget Statement for FY2024-25.

                                  IMDAD ULLAH BOSAL
                                                  Secretary to the Government of Pakistan
Finance Division
Islamabad, the 12th June, 2024

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CONTENTS                                            PAGE

I.    Summary of Receipts …………………………………………………………………………     1
II.    Revenue Receipts  …………………………………………………………………………  2  - 4
III.    Capital Receipts   ………………………………………………………………………… 55   5
IV.    External Receipts  …………………………………………………………………………….     6
V.    Public Account Receipts ……………………………………………………………………… 7  - 10
VI.   Summary of Expenditure ………………………………………………………………………     11
VII.   Current Expenditure on Revenue Account ………………………………………………… 12  - 14
VIII.   Current Expenditure on Capital Account …………………………………………………      15
IX.   Development Expenditure on Revenue Account ………………………………………… 16  - 17
X.    Development Expenditure on Capital Account ……………………………………………     18
XI.    Capital Expenditure  ………………………………………………………………………….     19
XII.   Public Account Expenditure ………………………………………………………………… 20  - 23
XIII.   Estimated Charged and Other Expenditure
     met from Federal Consolidated Fund ……………………………………………………  2   24
XIV.  Statement of Purpose…………………………………………………………………………….     25
XV.  Demand for Grants and Appropriations for Expenditure 2024-25
     Demand-Wise Expenditure (Schedule-I)  …………………………………………………26  - 37
XVI.  Demand for Grants and Appropriations for Expenditure (Schedule - III)..................      38
XVII.  Statement of Contingent Liabilities……………………………………………….....      39  - 41
XVIII. Statement of Fiscal Risk………………………………………………………….......      42  - 44
XIX   Statement of Estimated Tax Expenditure……………………………………………………     45
XX   Medium Term Budgetary Statement 2024-27……………………………….........       46  - 47
XXI   Climate Budget Statemen .................................................................................           48
XXII   Gender Budget Statement............................................................................              49
XXIII  Disaster Budget Statement.................................................................................           50
XXIV   Employee Related Data..........................................................................                 51
XXV  Statements of Responsibility……………………………………………………….....      52  - 53

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                          SUMMARY OF RECEIPTS
Federal receipts are categorized as Revenue Receipts, Capital Receipts, Public Account Receipts and External
Receipts. All these receipts, except Public Account Receipts become part of the the Federal Consolidated Fund.
As per Section 22 of the Public Finance Management Act, 2019, the operation of the Federal Consolidated Fund
and the Public Account of the Federation vests in the Finance Division.
                                                                               (Rs in million)
                                                   Budget       Revised       Budget   Object                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25
          A- Revenue Receipts - Federal Consoli-
            dated Fund
B       1  Tax Revenue Receipts                           9,415,000      9,252,000     12,970,000
         FBR Taxes                                      9,415,000      9,252,000     12,970,000
  B01          Direct Taxes                                   4,255,000      3,721,000      5,512,000
  B02           Indirect Taxes                                 5,160,000      5,531,000      7,458,000
C       2  Non-Tax Revenue Receipts                      2,963,164      2,947,850      4,845,415
  B03          Levies and Fees                                 29,433         20,877         24,809
  C01         Income from Property and Enterprise              398,054        517,642        477,117
  C02          Receipts from Civil Administration etc             1,168,492      1,015,704      2,555,738
  C03          Miscellaneous Receipts                         1,367,185      1,393,627      1,787,751
         3  Total Revenue Receipts (1+2)                  12,378,164     12,199,850     17,815,415
E       4  Capital Receipts                                2,531,119      2,801,503      3,034,379
  E02         Recovery of Loans and Advances                 632,200        393,541        491,999
  E03         Domestic Debt Receipts (Non Bank) - Net         1,898,919      2,407,962      2,542,380
         5  Total Internal Receipts (3+4)                    14,909,283     15,001,353     20,849,794
         6  External Receipts                              7,169,136      5,053,335      5,685,801
         7  Total Internal and External Receipts (5+6)       22,078,419     20,054,688     26,535,595
       B - Public Account of Federation Net
            Receipts
G       8     Public Account Receipts                            7,210        (94,572)        120,232
               Deferred Liabilities (Net)                           (38,397)       (160,154)         53,035
               Deposit and Reserves (Net)                       45,607         65,582         67,197
         9  Gross Federal Resources (7+8)                 22,085,629     19,960,116     26,655,828
           Less Provincial Share in Federal        10                                                  5,399,001      5,427,000      7,438,000           Taxes
        11  Net Federal Resources (9-10)                  16,686,628     14,533,116     19,217,828
        12 Cash Balance Surplus by the Provinces           600,000        539,000      1,217,000
        13  Privatization Proceeds                            15,000         10,838         30,000
        14  Credit from Banking Sector                      2,259,769      3,335,188      3,924,002
        15  Total-Resources (11+12+13+14)                19,561,397     18,418,142     24,388,830

Page 8

                             REVENUE RECEIPTS
Revenue Receipts  constitute major component  of  total Federal resources. Revenue Receipts may be
categorized as Tax Revenue Receipts and Non-Tax Revenue receipts, which are largely derived from the
following sources:-
Tax Revenue Receipts
Tax Revenue is administered by the Federal Board of Revenue (FBR), which comprises Customs Duty and
Inland Revenue i.e Direct Taxes, Sales Tax and Federal Excise Duty. FBR taxes may also be categorized as
Direct Taxes and Indirect Taxes. Direct Taxes comprise Income Tax,  Capital Value Tax, WWF (Ordinary
Collection) and Contribution under Compnies Profit (WPPF). Indirect Taxes include Sales Tax, Federal Excise
Duty and Customs Duty. A snapshot of Budget Estimates is as under:-
                                                                               (Rs in million)
                                                   Budget       Revised       Budget   Object                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25
B          Tax Revenue
         FBR Taxes                                      9,415,000      9,252,000     12,970,000
  B01         i.Direct Taxes                                   4,255,000      3,721,000      5,512,000
   B011      Taxes on Income                               4,203,531      3,681,888      5,454,062
    B017-18    Capital Value Tax (CVT)                          925         10,573         15,662
   B01501  WWF (Ordinary Collection)                        15,666         11,231         16,637
               WPPF(Contribution under Companies   B01502                                                    34,878         17,308         25,639                    Profit)
  B02         ii.Indirect Taxes                                 5,160,000      5,531,000      7,458,000
    B020-22   Customs Duties                                1,211,000      1,324,000      1,591,000
   B023      Sales Tax                                     3,411,000      3,607,000      4,919,000
    B024-25    Federal Excise                                 538,000        600,000        948,000
     1       Total Tax Revenue (i+ii)                         9,415,000      9,252,000     12,970,000

Page 9

                                Non-Tax Revenue Receipts

As per Section 2(a) of the Public Finance Management Act, 2019 (amended), Non-Tax Revenue means
revenues received by the Government in terms of clause (1) of Article 78 of the Constitution and the recurring
income of the Government from investments and provision of services but does not include those mentioned in
clause (3) of Article 160 of the Constitution. Non-Tax Revenue of the federal government is administered by
various Ministries / Divisions/ Departments. Budget Estimates are as under:-

                                                                               (Rs in million)
                                                   Budget       Revised       Budget
   Object                            Description                  Estimates     Estimates     Estimates   Code
                                                        2023-24       2023-24       2024-25
C         Non Tax Revenue
B03           a) Levies and Fees                                29,433         20,877         24,809
  B03087     Mobile Handset Levy                             10,000          8,000         10,000
  B013-030     Receipts of ICT Administration                     19,380         12,824         14,756
  B03064      Airport Fee (CAA)                                 53            53            53

C01          b) Income from Property and Enterprise           398,054        517,642        477,117

  C01008      Surplus Profit of PTA                               1,628          2,802          1,200
  C01008     PTA (License Renewal Fees)                      72,597         30,941         32,612
  C01012      Regulatory Authorities (Surplus Profit)                7,203          1,168         10,036
  C012-18     Mark up Receipts                               195,201        389,737        294,353
   C012       Mark up Receipts (Provinces)                   77,201         89,737         96,353
    C013-18     Mark up Receipts ( PSEs & Others)             118,000        300,000        198,000
  C019      Dividend                                        121,425         92,994        138,915
               c) Receipts from Civl Administratin &C02                                                          1,168,492      1,015,704      2,555,738               Other Functions
  C021-24     General Administration Receipts                     7,613          4,594          4,846
  C02211      Surplus Profit of State Bank of Pakistan           1,113,000        972,183      2,500,000
  C025        Defence Services Receipts                        41,256         31,189         42,427
  C026       Law and Order Receipts                            2,016          2,124          1,954
  C027       Community Services Receipts                       2,629          3,892          4,586
  C028-29      Social Services                                    1,977          1,723          1,925
C03          d) Miscellaneous Receipts                       1,367,185      1,393,627      1,787,751
  C031-35     Economic Services Receipts                      15,806         13,116         16,916
  C03601      Foreign Grants (Budgetary Support)                25,000          6,000         15,000
  C03725       Extraordinary Receipts (UNO)                     58,322         37,200         46,000
  C037         Extraordinary Receipts (Others)                     2,647          4,755          5,854
  C03897       Nationalization, Passport and Others                59,004         59,004         75,005
  C038        Other Receipts of Attached Departts                65,405         75,662        100,516
                                                                                 Contd…..

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                                                                               (Rs in million)
                                                   Budget       Revised       Budget
   Object                            Description                 Estimates     Estimates     Estimates   Code
                                                        2023-24       2023-24       2024-25
           Non-Tax Revenue
  C03901      Petroleum Levy                                869,000        960,000      1,281,000
  C03902       Natural Gas Development Surcharge               40,000         27,169         25,618
  C03905      Royalty on Crude Oil                             50,000         57,917         58,654
  C03906      Royalty on Natural Gas                           75,000         93,567        103,751
  C03910      Discount Retained on Local Crude Price            20,000         25,000         25,000
  C03915       Windfall Levy against Crude Oil                    35,000         28,000         28,000
  C03916     Gas Infrastructure Development Cess              40,000          2,500          2,500
  C03917      Petroleum Levy on LPG                           12,000          3,516          3,537
  C03919       Windfall Levy on Gas                                                    -           220           400
C    2      Total Non-Tax Revenue (a+b+c+d)               2,963,164      2,947,850      4,845,415
     3      Total Revenue Receipts (1+2)                  12,378,164     12,199,850     17,815,415

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                                 CAPITAL RECEIPTS

Capital receipts comprise Recoveries of Loans and Advances from Provinces and other entities and Public Debt
which includes Permanent Debt and Floating Debt. The net  capital receipts so realized by the federal
government generally constitute the available resources for the financing of  its Public Sector Development
Programme. Budget Estimates are as under:-
                                                                               (Rs in million)
                                                   Budget       Revised       Budget
   Object                            Description                 Estimates     Estimates     Estimates   Code
                                                        2023-24       2023-24       2024-25
E02                 I. Recoveries of Loans and Advances             632,200        393,541        491,999
  E021         Provinces                                     621,700        269,493        479,999
  E022-27    PSEs and Others                                10,500        124,048         12,000
E03                 II. Total Domestic Debts Receipts (a+b)         30,796,958     26,496,897     21,592,415
  E031       a) Permanent Debt Receipts                     5,242,306      5,306,536      9,070,245
                Pakistan Investment Bonds (Bank)               2,985,455      3,047,749      5,182,427
                Pakistan Investment Bonds (Non Bank)            426,851       356,787       408,319
             Premium Prize Bonds (Registered)                 30,000         13,000         30,000
                   Ijara Sukuk Bonds                              1,800,000      1,889,000      3,066,000
             ICBC (Foreign Currency Denominated                                                                                                       -                      -        383,500              Domestic Loan)
  E032       b) Floating Debt Receipts                      25,554,653    21,190,361      12,522,169
                 Prize Bonds                                     18,653         11,361         11,169
               Treasury Bills Through Auction                 25,536,000     21,179,000     12,511,000
     4       Capital Gross Receipts (I+II)                    31,429,158     26,890,438     22,084,414
            Domestic Debt Receipts (i+ii)                  30,796,958      26,496,897     21,592,415
            Domestic Debt Repayment (page-17)            28,898,040     24,088,935     19,050,034
            Net Domestic Debt Receipts                     1,898,919      2,407,962      2,542,380

     5      Total Federal Internal Gross Receipts (3+4)      43,807,323     39,090,288     39,899,829

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                             EXTERNAL RECEIPTS
External Resources comprise loans and grants received from  multilateral, bilateral and other sources for
approved projects, programmes and other initiatives. Budget Estimates are as under:-
                                                                               (Rs in million)
                                                   Budget       Revised       Budget
                            Description                 Estimates     Estimates     Estimates
                                                        2023-24       2023-24       2024-25
     6       Total External Receipts                         7,169,136      5,053,335      5,685,801

Page 13

                             PUBLIC ACCOUNT RECEIPTS

Article 78(1) of the Constitution of Islamic Republic  of Pakistan provides that all revenues received by the
Federal Government, all loans raised by that Government and all moneys received by it in repayment of loan,
shall form part of the Federal Consolidated Fund. Article 78(2) provides that all other monies received by or
on behalf of the Federal Government shall be credited into the Public Account of the Federation.
Therefore, all the monies received by or on behalf of the Federal Government in terms of Article 78(2) are Public
Account receipts which are not revenues in terms of Article 78(1) of the Constitution. However, such Public
Account receipts cannot be operated without establishment of Special Purpose Funds, deposits, reserves etc
under the authority of an act of the Parliament or with the approval of the Federal Government. Moreover, as per
Section 32 of the Public Finance Management Act, 2019, special purpose funds, in which monies have been
appropriated by the National Assembly shall be established under any law or with the approval of the Federal
Government. There are two sources of Public Account Receipts as under:-

National Savings Schemes
National Savings Schemes include Savings bank accounts, Defence Savings Certificates, Special Savings
Certificates, Pension Benefit Accounts, Behbood Savings Certificates etc.
                                                                               (Rs in million)
                                                   Budget       Revised       Budget
   Object                            Description                 Estimates     Estimates     Estimates   Code
                                                        2023-24       2023-24       2024-25

            Investment Deposit Accounts (Savingsi. G111                                                       1,694,077      1,759,895      1,602,656           Schemes)
  G11101     Savings Bank Accounts                         681,697        675,934        663,642
  G11106     Defence Savings Certificates                      70,140         55,219         47,602
  G11111      Special Savings Certificates (Registered)            93,952        232,751        133,803
  G11112      Special Savings Accounts                       169,399         54,874         31,546
  G11113     Regular Income Certificate                       119,002        122,867        124,336
  G11126     Pension Benefit Accounts                         95,491        113,903         95,979
  G11127     Behbood Saving Certificates                     219,356        272,543        215,683
  G11130     Shuhada Welfare Account                          40            55            65
   New      Sarwa Islamic Saving & Term Accounts            200,000         98,749        170,000
  G11129     Short Term Savings Certificates                    45,000        133,000        120,000
ii. G061      Provident Fund                                   51,945         49,726         51,160
                                                             1,746,022      1,809,621      1,653,816       Gross Public Account Receipts ( i+ii )
         1  Gross Public Account Receipts ( i+ii )            1,746,022      1,809,621      1,653,816
           Gross Public Account Expenditure (Page-                                                             1,784,419      1,969,775      1,600,781              18)
            Net Public Account Receipts                       (38,397)       (160,154)        53,035
                                                                                Contd…..

Page 14

Deposits and Reserves (Receipts)
Deposits and Reserves represent all monies forming part of the Public Account of the Federation as per
Article 78(2) of the Constitution of Islamic Republic of Pakistan. Budget estimates of receipts in the
following table are however subject to fulfillment of following stipulations:-

(i) The funds appropriated by the National Assembly out of Federal Consolidated Funds in terms of Articles 80 to
84 of the Constitution for a particular financial year (being lapsable) shall be utilized as per Cash Management
and TSA Rules 2020 and shall not be deposited under these deposits and reserves heads of account (being non-
lapsable) under the Public Account.

(ii) The maintenance and operation of all these funds, deposits, reserves etc shall be subject to their due
establishment either under the authority of an act of Parliament or with the approval of the Federal Government,
as the case may be.

(iii) Revenues in terms of Article 78(1) of the Constitution shall not be deposited in these deposits and reserves
heads of account under the Public Account. The revenues shall only be deposited in the respective heads of
account of tax revenue and non tax revenue.

(iv) Receipt of funds into these deposits and reserves heads of account shall only be allowed by the Accounting
Offices subject to compliance of the stipulations at (i) to  (iii) above and to the extent of reconciled available
balance under the respective head of account.
                                                                               (Rs in million)
                                                   Budget       Revised       Budget   Object                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25
G           Deposits and Reserves
         FGE Benevolent Funds                             2,018          2,068          2,172
  G06202        Civil                                              1,915          1,977          2,075
  G06205      Pakistan Post Office Deptt.                          4             4             4
  G06206     Pak PWD                                       63            58            61
  G06209      National Saving                                  26            23            25
  G06210      Pakistan Mint                                     3                      -                      -
  G06212      Geological Survey of Pakistan                        7             6             7
           Group Insurance Fund                            501           474           497
  G06401    PAK PWD                                        6             7             7
  G06404      National Saving                                   6             6             6
  G06405      Pakistan Mint                                        0.19                      -                      -
  G06407      Geological Survey of Pakistan                        3             2             2
  G06409        Civil                                           486           458           481

  G07104      Fed. Govt. Empl. Group Insur. Fund PPO               1             0.4             0.4
                                                                                 Contd…..

Page 15

                                                                               (Rs in million)
                                                   Budget       Revised       Budget   Object                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25
G           Deposits and Reserves
            Defence                                            7,856         11,303         11,868

  G06203     F,G Employees Benevolent Fund (Defence)           4,310          4,273          4,486
  G06410     Group Insurance Fund (Defence)                    227          1,212          1,273
  G11224      Deposits Accounts with Defence                     3,319          5,818          6,109
             Federal Pension Fund                             10,000             0         10,000
  G12803      Federal Pension Fund Receipts                    10,000                      -         10,000
             Pakistan Post Office Department                                     -                      -                      -
  G07101      Post Office Renewal Reserve Fund                                  -                      -                      -

  G07102      Post Office Welfare Fund                                               -                      -                      -
           Pak PWD                                         85,756         70,592         74,122
  G10101     Pak PWD Receipts & Collection Account              938           457           480
  G10113     Pak PWD Deposits                               84,817         70,135         73,642
             Arts                                               1,000                      -                      -
                Film Finance Fund                                 1,000                      -                      -
G           Deposits and Reserves                            79,938        104,679        104,255
            Miscellaneous Funds
  G06304     Workers Welfare Fund                            32,336         45,000         40,000
  G06315       Judicial Officers Welfare Fund                        4             3             3
  G12140    PM Flood relief Fund 2010                            0.13            0.02            0.03
  G12150    PM Relief Fund for IDPs 2014                       1,886           142           150
  G12157    PM COVID-19 Pandemic relief Fund 2020             361             2             2
              PM's Relief Fund Flood, Earthquake Other  G12164                                                     10,530           179           188                 Cal.
              PM's Relief Fund for Turkiye & Syria  G12166                                                       1,134             3             3               Earthquake
  G12205      Pakistan Minorities Welfare Fund                      0.34                      -                      -
                Special Fund for Welfare & Uplift of  G12206                                                          0.33                      -                      -                  Minorities
               Federal Govt. Artists Welfare Fund  G12226                                                                                         -           176           185                 (Heritage)
  G12305      Export Development Fund                         16,703         23,582         24,761
              Reserve Fund for Exch. Risk on Foreign  G12308                                                       5,529         24,665         25,898              Loans
  G12412      Pakistan Oil Seed Development Fund                249           150           158
                                                                                 Contd…..

Page 16

                                                                               (Rs in million)
                                                   Budget       Revised       Budget   Object                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25
G           Deposits and Reserves
  G12419     Research and Development Fund                    2,349          1,789          1,879
           SCP Diamer Basha and Mohmand Dam  G12421                                                     8                      -                      -             Fund
  G12504     Workers Children Education Fund                     0.28            0.18            0.18
  G12612     Fund for Urdu Science Board                         1             2             2
  G12712      Trust Interest Fund(Charitable Endowment)             4             5             5

  G12738      National Fund for Control of Drug Abuse               14             2             2
  G12783      Universal Service Fund                             7,200          5,357          5,625
            Miscellaneous Deposit and Reserve
           Accounts
  G10104      Mint Receipt and Collection Account                  60          3,595          3,774

  G14100      Pakistan Mint                                      1,570            26          1,620
         2  Gross Receipts (Deposits and Reserves)          187,069        189,116        202,914
            Exp. Deposit and Reserves (page-23)              141,462        123,533        135,717
            Net Deposit and Reserves Receipts                45,607         65,582         67,197
         3  Gross Receipts (1+2)                            1,933,091      1,998,737      1,856,730
           Gross Expenditure (page-23)                    1,925,881      2,093,308      1,736,498
     7     PUBLIC ACCOUNT NET RECEIPTS                  7,210        (94,572)        120,232

Page 17

                         SUMMARY OF EXPENDITURE
                                      (Current & Development)
In this table, the Budget Estimates of current expenditure (on revenue and capital account) and Budget
Estimates of Development expenditure (on revenue and capital accounts) have been mentioned as per Article
80(2) of the Constitution of Pakistan.
                                                                               (Rs in million)
                                                   Budget       Revised       Budget  Function                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25
             Current Expenditure
                a. Current Exp. on Revenue Account            13,344,395     14,334,431     17,203,391
     01         General Public Services                     10,444,266     11,340,902     13,640,239
     02         Defence Affairs and Services                  1,809,467      1,840,841      2,128,781
     03           Public Order and Safety Affairs                 237,215        253,498        283,051
     04         Economic Affairs                             210,835        261,642        357,735
     05         Environment Protection                           1,226          1,142          7,252
     06         Housing and Community Amenities               22,986          6,414         27,917
     07          Health                                        24,210         27,789         28,171
     08          Recreation, Culture and Religion                 16,782         18,252         18,466
     09          Education Affairs and Services                   97,098        103,684        103,781
     10           Social Protection                             480,309        480,267        607,997

               b. Current Exp. on Capital Account               4,608,359      2,593,698      5,168,439

      011        Foreign Loans Repayment                    4,398,068      2,382,222      4,989,963

      011      Repayment of Short Term Foreign Credits         46,690         47,875         29,500

      014        Transfers                                    163,601        163,601        148,976
         1  Total Current Expenditure (a + b)               17,952,753     16,928,129     22,371,830
           Development Expenditure
                c. Dev. Exp. on Revenue Account                 632,350        488,646        952,558
               d. Dev. Exp. on Capital Account                  976,294      1,001,368      1,064,442
         2  Total Development Expenditure (c+d)            1,608,644      1,490,013      2,017,000
           Grand Total - Expenditure (1+2)                19,561,397     18,418,142     24,388,830
         3 Break-up of Expenditure
           Revenue Account (a+c)                        13,976,745     14,823,076     18,155,949
              Capital Account (b+d)                           5,584,653      3,595,066      6,232,881
              Total Expenditure:                             19,561,397     18,418,142     24,388,830

Page 18

Current Expenditure on Revenue Account
                                                                               (Rs in million)
                                                   Budget       Revised       Budget  Function                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25
01          General Public Service                         10,444,266     11,340,902     13,640,239
    011     Executive & Legislative Organs, Financial
         & Fiscal Affairs, External Affairs                 9,225,234      9,858,741     12,070,465

              Debt Servicing                                 7,302,524      8,286,539      9,775,000
                        Servicing of Foreign Debt                 872,219      1,039,833      1,038,602
                        Servicing of Domestic Debt              6,430,305      7,246,706      8,736,398
               Superannuation Allowances & Pensions           801,000        801,000      1,014,000
               Others (Details are in "Demands for Grants"                                                             1,121,711        771,202      1,281,465                books.)
    012        Foreign Economic Aid                              4,399          4,399          9,032
    014        Transfers                                      1,133,905      1,356,691      1,456,094

                              Provinces                       216,300        215,876        287,000
              Others (Details are in "Budget in Brief" book.)        917,605      1,140,814      1,169,094

    015       General Services                                23,328         30,800         31,712

    016       Basic Research                                   8,784          8,444         10,035

    017       Research & Dev. General Public Services           24,716         25,168         28,261
    018      Admn. of General Public Service                    7,786         39,404          9,635
    019       Gen. Public Services not elsewhere defined         16,113         17,255         25,005
02          Defence Affairs and Services                    1,809,467      1,840,841      2,128,781
    021       Defence Services                              1,804,000      1,835,528      2,122,000
    A01      Employees Related Expenses                    705,054        716,142        815,186
    A03       Operating Expenses                            442,232        451,332        513,328
    A09        Physical Assets                                461,195        464,078        548,612
    A12         Civil Works                                    195,520        203,976        244,874
    025       Defence Administration                             5,467          5,312          6,781
03           Public Order and Safety Affairs                   237,215        253,498        283,051
    031      Law Courts                                     11,708         11,325         13,601
    032        Police & Civil Armed Forces                      214,055        234,890        255,305
    033        Fire Protection                                  338           381           491
    034        Prison Administration and Operation                  50            64           108
    035     R&D Public Order and Safety                        60            65            70
    036        Administration of Public Order                     11,004          6,773         13,477
                                                                                Contd…..

Page 19

Current Expenditure on Revenue Account
                                                                               (Rs in million)
                                                   Budget       Revised       Budget  Function                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25

04         Economic Affairs                                210,835        261,642        357,735
      041     Gen. Eco., Commercial & Labour Affairs            53,038         87,180        204,400
      042       Agri., Food, Irrigation, Forestry & Fisheries          32,704         39,426         24,661
      043      Fuel and Energy                                 51,943         51,851         19,650
      044      Mining and Manufacturing                           2,884          3,089          9,503
      045      Construction and Transport                        40,513         40,265         45,877

      046     Communications                                 26,811         37,153         51,510

      047     Other Industries                                   1,741          1,893          1,347
      048     Research & Development Economic Affairs           1,200           786           785
05          Environment Protection                             1,226          1,142          7,252
      053      Pollution Abatement                              200           200          6,290
      054     Research & Development Environment               300           220                      -
      055      Administration of Environment Protection             726           722           962
06         Housing and Community Amenities                22,986          6,414         27,917
      061     Housing Development                              1,001           536          1,564

      062     Community Development                         21,985          5,878         26,353
07           Health                                           24,210         27,789         28,171
               Medical Products, Appliances and      071                                                    32            71            32              Equipments
      073      Hospital Services                                16,567         20,069         21,683
      074      Public Health Services                             3,110          4,618          1,110
      076      Health Administration                              4,501          3,031          5,346
                                                                                Contd…..

Page 20

Current Expenditure on Revenue Account
                                                                               (Rs in million)
                                                   Budget       Revised       Budget  Function                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25

08           Recreation, Culture and Religion                   16,782         18,252         18,466
    081        Recreational and Sporting Services                  200           200           400
    082        Cultural Services                                  1,433          1,544          1,244
    083       Broadcasting and Publishing                       11,120         13,701         12,404
    084        Religious Affairs                                   1,780          1,782          1,861
    086      Admn. of Information, Recreation & Culture           2,249          1,024          2,556
09          Education Affairs and Services                    97,098        103,684        103,781
               Pre-Primary and Primary Education Affairs    091                                                         4,468          5,128          5,224             and Services
    092       Secondary Education Affairs and Services           10,778         12,298         12,624
    093         Tertiary Education Affairs and Services              76,589         81,998         79,312
    094       Education Services Not definable by Level            180            49           726
    095        Subsidiary Services to Education                    346           359           273
    096        Administration                                     3,698          2,844          4,497
               Education Affairs & Services not Elsewhere    097                                                         1,040          1,008          1,124                 Classified
10           Social Protection                                480,309        480,267        607,997
    107        Administration                                     2,892          2,963          3,532
    108       Others                                           2,127          2,270          1,449
    109        Social Protection (Not elsewhere classified)        475,289        475,033        603,017
             a.Current Expenditure on Revenue                                                           13,344,395     14,334,431     17,203,391             Account
Revised Estimates 2023-24 are as of 24th May, 2024 based on SAP System

Page 21

Current Expenditure on Capital Account
                                                                               (Rs in million)
                                                   Budget       Revised       Budget  Function                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25

01          General Public Service                          4,608,359      2,593,699      5,168,439
    011        Foreign Loan Repayment                       4,398,068      2,382,222      4,989,963
    011      Repayment of Short Term Foreign Credits           46,690         47,875         29,500
    014        Transfers                                      163,601        163,601        148,976
               Federal Misc. Investments and Other Loans                                                            163,601        163,601        148,976             and Advances by the Fed. Govt.
               b. Current Expenditure on Capital                                                             4,608,359      2,593,699      5,168,439             Account
                       I. Total Current Expenditure (a+b)               17,952,753     16,928,129     22,371,830

Page 22

Development Expenditure on Revenue Account
                                                                               (Rs in million)
                                                   Budget       Revised       Budget  Function                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25

01          General Public Service                           308,471        261,410        496,471
                Executive & Legislative Organs, Financial &      011                                                       6,382          8,072         23,250                 Fiscal Affairs, External Affairs
      014      Transfers                                      254,750        233,221        377,066
      015     General Services                                24,898          8,985         60,927

      016     Basic Research                                  15,963          9,349         34,407

      017     Research & Dev. General Public Services             341           346           321
               General Public Services not elsewhere      019                                                       6,136          1,437           500                defined
02          Defence Affairs and Services                        3,467          3,053          6,573
      021       Military Defence                                   1,343          1,524          2,068
      024    R & D Defence                                  124           164           330
      025     Defence Administration                             2,000          1,365          4,176
03           Public Order and Safety Affairs                      3,928          2,621          3,007
      031    Law Courts                                       1,400           961          1,230
      032      Police and Civil Armed Forces                       1,736          1,547          1,673
      036      Administration of Public Order                      792           113           104
04         Economic Affairs                                183,399        141,662        305,820
      041     Gen. Eco. Commercial and Labour Affairs            1,297           331          5,784
      042       Agri., Food, Irrigation, Forestry & Fisheries         133,761        101,361        204,988
      043     Fuel and Energy                                    6,199          8,805         32,124
      044      Mining and Manufacturing                           1,115           114          1,658
      045      Construction and Transport                        39,144         28,276         58,735
      046     Communications                                  1,807          2,754          1,042
      047     Other Industries                                  22            22                      -
      048     Research & Development Economic Affairs            55                      -          1,488
05          Environment Protection                             4,050          2,750          6,257
      055      Administration of Environment Protection             4,050          2,750          6,257
06         Housing and Community Amenities                  6,504          4,288          7,057
      062     Community Development                           5,894          4,271          7,005
      063     Water Supply                                   610            17            52

                                                                                Contd…..

Page 23

DEVELOPMENT EXPENDITURE ON REVENUE ACCOUNT
                                                                               (Rs in million)
                                                   Budget       Revised       Budget  Function                            Description                  Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25

07           Health                                           13,270         13,254         28,185
    073        Hospital Services                                  6,906          7,104         14,596
    074        Public Health Services                             3,424          3,173         11,846
    076        Health Administration                              2,941          2,977          1,743
08           Recreation, Culture and Religion                    7,881          4,501          4,725
    081        Recreation and Sporting Services                    6,900          3,520          3,650
    082        Cultural Services                                                          -                      -                      -

    083       Broadcasting and Publishing                       981           981          1,075
09          Education Affairs and Services                    82,391         54,542         87,869
               Pre-Primary & Primary Edu. Affairs &    091                                                                                           -                      -                      -                Services
    092       Secondary Edu. Affairs & Services                                   -                      -                      -
    093         Tertiary Edu. Affairs & Services                    73,850         51,041         78,676
    095        Subsidiary Services to Education                    1,196           953           643
               Education Affairs & Services not Elsewhere    097                                                         7,345          2,548          8,550                 Classified
10           Social Protection                                 18,989           564          6,594
    107        Administration                                   18,467            49          6,594
    108       Others                                          23            15                      -

    109        Social Protection (Not elsewhere classified)           500           500                      -

                c. Dev. Exp. on Revenue Account                 632,350        488,646        952,558
Revised Estimates 2023-24 are as of 24th May, 2024 based on SAP System

Page 24

DEVELOPMENT EXPENDITURE ON CAPITAL ACCOUNT
                                                                               (Rs in Million)
                                                   Budget       Revised       Budget
  Function                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25

01          General Public Service                           916,068        908,095      1,022,209
    014        Transfers                                      889,818        885,265        996,952
    017       Research and Dev. General Public                                                              26,250         22,830         25,256
                Services

04         Economic Affairs                                 59,954         93,000         41,984
    041       Gen. Eco., Commercial and Labour Affairs            598           264           671

    043       Fuel and Energy                                 902          1,860          2,555
    044        Mining and Manufacturing                         13,000          1,923          4,919
    045        Construction and Transport                        43,395         86,866         33,839
    046       Communications                                  2,058          2,087                      -

06         Housing And Community Amenities                 272           272                      -
    063       Water Supply                                   272           272                      -
08           Recreation, Culture and Religion                                     -                      -           250
    083       Broadcasting and Publishing                                           -                      -           250
               d. Dev. Expenditure on Capital                                                            976,294      1,001,368      1,064,442             Account

                II.Total Development Expenditure (c+d)          1,608,644      1,490,013      2,017,000

                 III.Total Exp. (Current+Development)            19,561,397     18,418,142     24,388,830

Page 25

                               CAPITAL EXPENDITURE
The expenditure incurred on repayment of domestic debt receipts is termed as Capital Expenditure.
                                                                               (Rs in million)
                                                   Budget       Revised       Budget
Object Code                Description                 Estimates     Estimates     Estimates
                                                        2023-24       2023-24       2024-25

                                                             3,542,996      3,460,468      6,530,041A101         i.Domestic Permanent Debt
                Pakistan Investment Bonds (Bank)               2,985,455      3,047,749      5,182,427
                Pakistan Investment Bonds (Non Bank)            182,049        119,755        203,632
               Foreign Exchange Bearer Certificates                  5             0.5             5
               Foreign Currency Bearer Certificates                   5             1             5
           US Dollar Bearer Certificates                         3             0.1             3
                Special US Dollar Bonds                           50            40            50
             Premium Prize Bonds (Registered)                   5,000         14,000          5,000
                   Ijara Sukuk Bond                               368,430        274,698        752,531
                Pakistan Banao Certificate (3-years)                 694           588                      -
                Pakistan Banao Certificate (5-years)                 651          2,882          2,888
               Foreign Assets (D and R) Act, 2018                                                           654           754                      -             (FADRA)
                Special Drawing Rights Debt (SDRs)                                -                      -                      -
                  Principal Repayment of Foreign Currency                                                                                                       -                      -        383,500             Denomated - Domestic Debt
A104          ii.Floating Debt                               25,355,043     20,628,467     12,519,993
                 Prize Bonds                                       8,043          9,013          8,993
               Treasury Bills Through Auction                 25,347,000     20,619,453     12,511,000
                 Bai-Maujjal Ijara Sukuk Bonds                                         -                      -                      -
A10      IV.  Total Public Debt Repayment (i+ii)             28,898,040     24,088,935      19,050,034
              Total - Federal Consolidated Fund         V.                                                 48,459,437     42,507,077     43,438,864            Disbursement (III+IV)

Page 26

                           PUBLIC ACCOUNT EXPENDITURE
National Savings Schemes
The expenditure incurred on repayment of National Savings Schemes is termed as Public Account Expenditure.
                                                                               (Rs in million)
                                                   Budget       Revised       Budget   Object                            Description                 Estimates     Estimates     Estimates   Code                                                        2023-24       2023-24       2024-25

            Investment Deposit Accountsi. G111                                                       1,707,209      1,887,250      1,522,901             (Savings Schemes)
  G11101      Savings Bank Accounts                         669,937        669,514        644,376
  G11103     Khas Deposit Accounts                             5             5             5
  G11104     Mahana Amadni Accounts                         130           110           100
  G11106      Defence Savings Certificates                      96,171         88,679         78,275
  G11108      National Deposit Certificates                         1             1             1
  G11109     Khaas Deposit Certificates                           1             1             1
  G11111      Special Savings Certificates (Registered)          134,039        275,068        149,480
  G11112      Special Savings Accounts                       185,939         64,851         35,242
  G11113      Regular Income Certificate                       274,689        337,606        203,987
  G11126      Pensionery Benefits                              71,910         79,663         70,152
  G11127     Behbood Saving Certificate                      214,368        226,982        191,257
  G11130     Shauhda Welfare Account                          20            20            25
  New        Sarwa Islamic Saving & Term Accounts             40,000         32,749         40,000
                Short Term Savings Certificates (STSC)             20,000        112,000        110,000
ii. G061      Provident Fund                                   77,210         82,525         77,880
         1  Total Expenditure ( i+ii )                         1,784,419      1,969,775      1,600,781
                                                                                Contd…..

Page 27

Deposits and Reserves
Deposits and Reserves represent all monies forming part of the Public Account of the Federation as per Article
78(2) of the Constitution of Islamic Republic of Pakistan. Budget estimates of Expenditure (withdrawal of funds)
from the Deposits and Reserves as depicted in the following table are however subject to fulfillment of following
stipulations:-

(i) The maintenance and operation of  all these funds, deposits, reserves etc shall be subject to their due
establishment either under the authority of an act of Parliament or with the approval of the Federal Government,
as the case may be.

(ii) Withdrawal of funds from these deposits and reserves heads of account shall only be allowed by the
Accounting Offices subject to compliance of the stipulations at (i) above and to the extent of reconciled available
balance under the respective head of account.

(iii) There shall be no authority of directed access to Central Account No.1 (Non Food) in SBP.

(iv) Withdrawal of funds from these Deposits and Reserves head of accounts shall be in accordance with the
provisions of Public Finance Management Act, 2019, Cash Management and Treasury Single Account Rules
2020 and the Special Assignment Account Procedure for the Public Account of the Federation 2021. Personal
Ledger Accounts shall not be used for withdrawal of funds.
                                                                               (Rs in million)
                                                   Budget       Revised       Budget
   Object                            Description                 Estimates     Estimates     Estimates   Code
                                                        2023-24       2023-24       2024-25
 G          Deposits and Reserves
         FGE Benevolent Funds                             1,418          2,049          2,151
  G06202        Civil                                              1,328          1,962          2,060
  G06205      Pakistan Post Office Deptt.                                             -                      -                      -
  G06206     Pak PWD                                       57            59            61
  G06209      National Saving                                  25            23            24
  G06210      Pakistan Mint                                     3                      -                      -
  G06212      Geological Survey of Pakistan                        6             5             6
           Group Insurance Fund                            429           535           561
  G06401    PAK PWD                                        5             7             7
  G06404      National Saving                                   6             6             6
  G06405      Pakistan Mint                                           0.2                      -                      -

  G06407      Geological Survey of Pakistan                        2             2             2

  G06409        Civil                                           415           520           546
  G07104      Fed. Govt. Empl. Group Insur. Fund PPO                          -                      -                      -
                                                                                              Contd.....….

Page 28

                                                                               (Rs in million)
                                                   Budget       Revised       Budget
   Object                            Description                 Estimates     Estimates     Estimates   Code
                                                        2023-24       2023-24       2024-25
 G          Deposits and Reserves
            Defence                                            6,485          9,427          9,898
  G06203    FG Employees Benevolent Fund (Defence)           3,393          3,774          3,962

  G06410     Group Insurance Fund (Defence)                    168          1,176          1,235
  G11224      Deposits Accounts with Defence                     2,925          4,477          4,701
             Federal Pension Fund                             10,000             0         10,000
  G12803      Federal Pension Fund                            10,000                      -         10,000
             Pakistan Post Office Department                     25            0.04            0.04
  G07101      Post Office Renewal Reserve Fund                   25                      -                      -
  G07102      Post Office Welfare Fund                                               -            0.04            0.04
           Pak PWD                                         57,354         52,426         55,047
  G10101     Pak PWD Receipts & Collection Account              866           822           863
  G10113     Pak PWD Deposits                               56,488         51,604         54,184
             Arts                                               1,000                      -             0
                Film Finance Fund                                 1,000                      -                      -
G           Deposits and Reserves                            64,751         59,097         58,059
            Miscellaneous Funds
  G06304     Workers Welfare Fund                            16,117         29,155         25,000
  G06315       Judicial Officers Welfare Fund                           0.1             0.3             0.3

  G12140    PM Flood relief Fund 2010                         258            0.01            0.01

  G12150    PM Relief Fund for IDPs 2014                       1,886           142           150

  G12157    PM COVID-19 Pandemic relief Fund 2020              2                      -                      -
              PM's Relief Fund Flood, Earthquake Other  G12164                                                       8,986          1,096          1,150                 Cal.
              PM's Relief Fund for Turkiye & Syria  G12166                                                   490           805           845               Earthquake
  G12205      Pakistan Minorities Welfare Fund                                     -                      -                      -
                Special Fund for Welfare & Uplift of  G12206                                                                                         -                      -                      -                  Minorities
               Federal Govt. Artists Welfare Fund  G12226                                                    13            97           102                 (Heritage)
  G12305      Export Development Fund                          7,044          6,538          6,865
                                                                                              Contd.....….

Page 29

                                                                               (Rs in million)
                                                   Budget       Revised       Budget
   Object                                              Estimates     Estimates     Estimates                            Description   Code
                                                        2023-24       2023-24       2024-25
              Reserve Fund for Exch. Risk on Foreign  G12308                                                          0.40                      -                      -              Loans
  G12412      Pakistan Oil Seed Development Fund                 80                      -                      -
  G12419      Reserch & Development Fund                       3,530          7,226          7,587
           SCP Diamer Bhasha and Mohmand Dam  G12421                                                                                         -                      -                      -             Fund
  G12504     Workers Children Education Fund                     0.08            0.01            0.01
  G12612     Fund for Urdu Science Board                         1             4             4
  G12712      Trust Interest Fund(Charitable Endowment)                       -            0.03            0.03
  G12738      National Fund for Control of Drug Abuse                           -                      -                      -
  G12783      Universal Service Fund                           24,775         10,445         10,967
G           Deposits and Reserves
            Miscellaneous Deposits and Reserves
           Accounts
  G10104      Mint Receipt and Collection Account                                 -          3,589          3,768
  G14100      Pakistan Mint                                      1,570                      -          1,620
         2  Total Deposits and Reserves                     141,462        123,533        135,717
         3  Total Public Account Expenditure (1+2)          1,925,881      2,093,308      1,736,498

Page 30

                       STATEMENT OF ESTIMATED CHARGED
                          AND VOTED EXPENDITURE

In terms of Article 80(2) of the Constitution of Pakistan,  this statement distinguishes charged and voted
expenditure.
                                                                               (Rs in million)
                                                   Budget       Revised       Budget
   Object                            Description                  Estimates     Estimates     Estimates   Code
                                                        2023-24       2023-24       2024-25
        I.       Expenditure on Revenue Account              13,976,745     14,823,076     18,155,949
                Current                                      13,344,395     14,334,431     17,203,391
              Development                                  632,350        488,646        952,558
             Total-Authorized Expenditure                  13,976,745     14,823,076     18,155,949
              Charged                                      7,365,262      8,380,310       9,869,074
              Voted                                         6,611,483      6,442,767      8,286,874
        II.       Expenditure on Capital Account                34,482,692     27,684,000     25,282,916
                Current                                      33,506,398     26,682,633     24,218,474
              Development                                  976,294      1,001,368      1,064,442
              Total Authorized Expenditure                  34,482,692     27,684,000     25,282,916
              Charged                                    34,001,431     26,993,354     24,686,493
              Voted                                         481,261        690,646        596,423
        III.       Total Expenditure met from Federal
            Consolidated Fund                            48,459,437     42,507,076     43,438,864
                Current Expenditure                           46,850,793     41,017,063     41,421,864
              Development Expenditure                       1,608,644      1,490,013      2,017,000
     IV.      Total-Authorized Expenditure                  48,459,437     42,507,076     43,438,864
              Charged - Total                              41,366,693     35,373,664     34,555,567
              Voted - Total                                   7,092,744      7,133,412      8,883,297

Page 31

                           Statement of Purpose
This statement is being provided in compliance with section 4 of the Public Finance
Management Act, 2019. Based on the policy priorities of the Federal Government, the
“demands for grants” cater towards debt servicing of domestic and foreign loans and
advances, for expenditures to be incurred on re-current and development activities to
re-vitalize sustainable economic growth. Health, education, climate, gender and social
sector development are key focused areas for the government.

The FederalGovernment  is steadfast in its commitment to provide relief measures
aimed at alleviating the burdens faced by the populace, especially those in the low-
income strata of society. Through targeted interventions such as social safety programs
and subsidies on essential commodities, including food items and  electricity, the
government seeks  to  mitigate the adverse impacts  of economic  challenges on
vulnerable segments  of the population.Moreover,  recognizing the imperative  of
stimulating economic activity and fostering employment opportunities, the government
will extend support to Information Technology and industrial sector particularly the
small medium enterprises. While, stimulating the economic growth through these
interventions, government's focus is also to promote green economy.

                                             Imdad Ullah Bosal
                                             Secretary to the Government of Pakistan
Finance Division
Islamabad, 12th June, 2024

Page 32

Demand-Wise Expenditure for Budget Estimates 2024-25
                                                                           (Rs. in million)
                                              Budget Estimates 2024-25Demand                       Ministries / Divisions  No.                                           Charged      Voted        Total
  1          AVIATION DIVISION                               4,485         4,485
  2         AIRPORTS SECURITY FORCE                    14,383       14,383
  3         CABINET                                       352         352
  4         CABINET DIVISION                                3,334         3,334
          EMERGENCY RELIEF AND   5                                                        889         889             REPATRIATION
  6         INTELLIGENCE BUREAU                         18,325       18,325
  7         ATOMIC ENERGY                                19,266       19,266
            PAKISTAN NUCLEAR   8                                                             1,862         1,862           REGULATORY AUTHORITY
           NAYA PAKISTAN HOUSING   9                                                             1,564         1,564            DEVELOPMENT AUTHORITY
            PRIME MINISTER'S OFFICE   10                                                        794         794              (INTERNAL)
            PRIME MINISTER'S OFFICE   11                                                        861         861               (PUBLIC)
            NATIONAL DISASTER   12                                                        823         823           MANAGEMENT AUTHORITY
  13        BOARD OF INVESTMENT                          1,272         1,272
            PRIME MINISTER'S   14                                                        147         147             INSPECTION COMMISSION
            SPECIAL TECHNOLOGY ZONE   15                                                        750         750            AUTHORITY
  16        ESTABLISHMENT DIVISION                        9,669         9,669
           FEDERAL PUBLIC SERVICE   17                                                             1,338         1,338            COMMISSION

Page 33

          NATIONAL SCHOOL OF PUBLIC18                                                             3,369         3,369           POLICY
19           CIVIL SERVICES ACADEMY                        1,725         1,725
20         NATIONAL SECURITY DIVISION                    231         231
          COUNCIL OF COMMON21                                                        103         103          INTEREST (SECRETARIAT)
           CLIMATE CHANGE AND22                                                             1,010         1,010
           ENVIROMENTAL COORDINATION
             DIVISION
23       COMMERCE DIVISION                           20,530       20,530
24        COMMUNICATIONS DIVISION                     303         303
         OTHER EXPENDITURE OF25                                                          33,714       33,714          COMMUNICATIONS DIVISION
          PAKISTAN POST OFFICE26                                                          23,469       23,474         DEPARTMENT
                                                 5
27        DEFENCE DIVISION                               7,865         7,865

          FEDERAL GOVERNMENT
          EDUCATIONAL INSTITUTIONS28                                                          14,319       14,319             IN CANTONMENTS AND
          GARRISONS

                                                                         Contd…...

Page 34

                                                                         (Rs. in million)
                                            Budget Estimates 2024-25Demand                       Ministries / Divisions  No.                                           Charged      Voted        Total
29        DEFENCE SERVICES                          2,122,000     2,122,000
         DEFENCE PRODUCTION   30                                                             1,095         1,095              DIVISION
31        ECONOMIC AFFAIRS DIVISION                    905         905
         MISCELLANEOUS
32        EXPENDITURE OF ECONOMIC                    29,775       29,775
          AFFAIRS DIVISION
33       POWER DIVISION                              681,754      681,754
34        PETROLEUM DIVISION                           19,304       19,304
         GEOLOGICAL SURVEY OF   35                                                             1,103         1,103             PAKISTAN
         FEDERAL EDUCATION AND
36        PROFESSIONAL TRAINING                       39,337       39,337
           DIVISION
         HIGHER EDUCATION   37                                                          66,331       66,331            COMMISSION (HEC)
          NATIONAL REHMATUL -LIL-
38        ALAMEEN WA KHATAMUN                        102         102
           NABIYYIN AUTHORITY
          NATIONAL VOCATIONAL &
39        TECHNICAL TRAINING                           716         716
         COMMISSION (NAVTTC)
          NATIONAL HERITAGE AND   40                                                             2,295         2,295            CULTURE DIVISION
41         FINANCE DIVISION                                4,392         4,392
        OTHER EXPENDITURE OF   42                                                             7,076         7,076             FINANCE DIVISION
         CONTROLLER GENERAL OF   43                                                          13,268       13,268           ACCOUNTS

Page 35

          SUPERANNUATION44                                                5,188    1,008,812     1,014,000         ALLOWANCES AND PENSIONS
         GRANTS SUBSIDIES AND45                                              47,000    1,815,567     1,862,567          MISCELLLANEOUS
46        REVENUE DIVISION                             109         109
          FEDERAL BOARD OF47                                                          52,231       52,231         REVENUE
48        FOREIGN AFFAIRS DIVISION                       4,316         4,316
49        FOREIGN MISSIONS                   50      47,547       47,597
          HOUSING AND WORKS50                                                             8,552         8,552            DIVISION
51       HUMAN RIGHTS DIVISION                         1,159         1,159
          NATIONAL COMMISSION FOR52                                                        184         184         HUMAN RIGHTS
          NATIONAL COMMISSION ON53                                                         81          81          THE RIGHTS OF CHILD
          NATIONAL COMMISSION ON54                                                        118         118          THE STATUS OF WOMEN
           INDUSTRIES AND55                                                          75,931       75,931          PRODUCTION DIVISION
          INFORMATION AND56                                                             5,327         5,327          BROADCASTING DIVISION
                                                                         Contd…...

Page 36

                                                                         (Rs. in million)
                                            Budget Estimates 2024-25Demand                       Ministries / Divisions  No.                                           Charged      Voted        Total
         MISCELLANEOUS
         EXPENDITURE OF   57                                                          11,518        11,518            INFORMATION AND
         BROADCASTING DIVISION
         INFORMATION TECHNOLOGY
58        AND TELECOMMUICATION                       40,127        40,127
           DIVISION
59         INTERIOR DIVISION                              15,362        15,362
        OTHER EXPENDITURE OF   60                                                          10,778        10,778             INTERIOR DIVISION
         ISLAMABAD CAPITAL   61                                                          20,412        20,412            TERRITORY (ICT)
         COMBINED CIVIL ARMED   62                                                                       232,372           FORCES                                                             232,372
          NATIONAL COUNTER   63                                                             1,015         1,015            TERRORISM AUTHORITY
          INTER-PROVINCIAL   64                                                             2,451         2,451            COORDINATION DIVISION
         KASHMIR AFFAIRS AND GILGIT   65                                                             1,519         1,519             BALTISTAN DIVISION
66       LAW AND JUSTICE DIVISION                                     8,662
                                              388       8,273
67        FEDERAL JUDICIAL ACADEMY                                 325
                                                         325
68        FEDERAL SHARIAT COURT                                    928
                                                         928
         COUNCIL OF ISLAMIC   69                                                                     237
         IDEOLOGY                                     237
          NATIONAL ACCOUNTABILITY   70                                                                            7,110           BUREAU
                                                               7,110
           DISTRICT JUDICIARY,
71        ISLAMABAD CAPITAL                              1,368         1,368
         TERRITORY

Page 37

72         MARITIME AFFAIRS DIVISION                                    2,150                                                               2,150
          NARCOTICS CONTROL73                                                                            7,604
            DIVISION                                         7,604
74         NATIONAL ASSEMBLY                                         12,737
                                                  7,293       5,444
75        THE SENATE                         5,178       2,064         7,242
          NATIONAL FOOD SECURITY76                                                          14,786        14,786         AND RESEARCH DIVISION
          PAKISTAN AGRICULTURAL77                                                             6,410         6,410         RESEARCH COUNCIL
          NATIONAL HEALTH SERVICES,
78        REGULATIONS AND                             27,868        27,868
          COORDINATION DIVISION
         OVERSEAS PAKISTANIS AND
79       HUMAN RESOURCE                               3,885         3,885
         DEVELOPMENT DIVISION
          PARLIAMENTARY AFFAIRS80                                                        795         795            DIVISION
           PLANNING, DEVELOPMENT
81        AND SPECIAL INITIATIVES                         9,437         9,437
            DIVISION
         POVERTY ALLEVIATION AND82                                                             5,179         5,179           SOCIAL SAFETY DIVISION
          BENAZIR INCOME SUPPORT83                                                          598,718      598,718         PROGRAME (BISP)
                                                                         Contd…...

Page 38

                                                                         (Rs. in million)
                                            Budget Estimates 2024-25Demand                       Ministries / Divisions  No.                                           Charged      Voted        Total
84         PAKISTAN BAIT-UL-MAL                          14,009       14,009
85         PRIVATIZATION DIVISION                         356         356
86        RAILWAYS DIVISION                             64,439       64,439
          RELIGIOUS AFFAIRS AND
87         INTER-FAITH HARMONY                           1,956         1,956
           DIVISION
         SCIENCE AND TECHNOLOGY   88                                                          14,411       14,411              DIVISION
         STATES AND FRONTIER   89                                                        978         978            REGIONS DIVISION
90       WATER RESOURCES DIVISION                    3,886         3,886
         FEDERAL MISCELLANEOUS
91        INVESTMENTS & OTHER                       148,976      148,976
         LOANS AND ADVANCES
         DEVELOPMENT EXPENDITURE   92                                                             7,303         7,303           OF AVIATION DIVISION
         DEVELOPMENT EXPENDITURE   93                                                          75,272       75,272           OF CABINET DIVISION
         DEVELOPMENT EXPENDITURE   94                                                             1,658         1,658           OF BOARD OF INVESTMENT
         DEVELOPMENT EXPENDITURE
95        OF SPECIAL TECHNOLOGY                       501         501
        ZONES AUTHORITY
         DEVELOPMENT EXPENDITURE   96                                                        921         921           OF ESTABLISHMENT DIVISION
         DEVELOPMENT EXPENDITURE   97                                                          36,604       36,604           OF SUPARCO

Page 39

          DEVELOPMENT EXP OF
98         CLIMATE CHANGE AND ENV.                      6,257         6,257
          COORDINATION DIVISION
          DEVELOPMENT EXPENDITURE99                                                             2,205         2,205          OF COMMERCE DIVISION
          DEVELOPMENT EXPENDITURE100                                                            7,828         7,828          COMMUNICATION DIVISION
          DEVELOPMENT EXPENDITURE101                                                            5,636         5,636          OF DEFENCE DIVISION
          DEVELOPMENT EXPENDITURE
102       OF DEFENCE PRODUCTION                       3,776         3,776
            DIVISION
          DEVELOPMENT EXPENDITURE103                                                          22,605       22,605          OF POWER DIVISION
          DEVELOPMENT EXPENDITURE
104       OF FEDERAL EDUCATION &                      19,334       19,334
            PR. TR. DIVISION
                                                                          Contd…...

Page 40

                                                                          (Rs. in million)
                                             Budget Estimates 2024-25Demand                       Ministries / Divisions  No.                                           Charged      Voted        Total
          DEVELOPMENT EXPENDITURE
105       OF HIGHER EDUCATION                         66,315       66,315
          COMMISSION
          DEVELOPMENT EXPENDITURE
         OF NATIONAL VOCATIONAL &  106                                                            6,417         6,417             TECHICAL TRAINING
          COMMISSION (NAVTTC)
          DEVELOPMENT EXPENDITURE
107       OF NATIONAL HERITAGE &                        1,015         1,015
          CULTURE DIVISION
          DEVELOPMENT EXPENDITURE  108                                                            6,084         6,084           OF FINANCE DIVISION
         OTHER DEVELOPMENT  109                                                        220,456      220,456            EXPENDITURE
          DEVELOPMENT EXPENDITURE  110                                                          17,696       17,696           OF REVENUE DIVISION
          DEVELOPMENT EXPENDITURE  111                                                       104         104           OF HUMAN RIGHTS DIVISION
          DEVELOPMENT EXPENDITURE
112       OF INFORMATION &                               1,075         1,075
          BROADCASTING DIVISION
          DEVELOPMENT EXPENDITURE
          INFORMATION TECHNOLOGY  113                                                          28,929       28,929            & TELECOMMUNICATION
            DIVISION
          DEVELOPMENT EXPENDITURE  114                                                            9,070         9,070           OF INTERIOR DIVISION

Page 41

          DEVELOPMENT EXPENDITURE
115       OF INTERPROVINCIAL                             3,650         3,650
          COORDINATION DIVISION

          DEVELOPMENT EXPENDITURE116                                                            1,230         1,230          OF LAW & JUSTICE DIVISION

          DEVELOPMENT EXPENDITURE
117       OF NORCOTICS CONTROL                       170         170
            DIVISION
          DEVELOPMENT EXPENDITURE
118       OF NATIONAL FOOD SECURITY                  41,250       41,250
          AND RESEARCH DIVISION

          DEVELOPMENT EXPENDITURE
          OF NATIONAL HEALTH119                                                          27,000       27,000           SERVICES, REGULATION AND
          COORD. DIVISION

          DEVELOPMENT EXPENDITURE
          OF PLANNING, DEVELOPMENT120                                                          64,015       64,015          AND SPECIAL INITIATIVES
            DIVISION

                                                                          Contd…...

Page 42

                                                                          (Rs. in million)
                                             Budget Estimates 2024-25Demand                       Ministries / Divisions  No.                                           Charged      Voted        Total

          DEVELOPMENT EXPENDITURE
121       OF SCIENCE & TECHNOLOGY                      7,150         7,150
            DIVISION
          DEVELOPMENT EXPENIDTURE
122       OF STATES AND FRONTIER                        1,434         1,434
          REGIONS DIVISION
          DEVELOPMENT EXPENDITURE
123       OF WATER RESOURCES                        259,598      259,598
            DIVISION
           CAPITAL OUTLAY ON
124       DEVELOPMENT OF ATOMIC                      25,000        25,000
         ENERGY
           CAPITAL OUTLAY ON
          DEVELOPMENT OF PAKISTAN  125                                                        256         256            NUCLEAR REGULATORY
          AUTHORITY
             CAPITAL OUTLAY ON PETROLEUM  126                                                             3,226         3,226
              DIVISION
           CAPITAL OUTLAY ON FEDERAL  127                                                        324         324            INVESTMENTS
          DEVELOPMENT LOANS AND
128       ADVANCES BY THE FEDERAL                   206,911      206,911
         GOVERNMENT
          EXTERNAL DEVELOPMENT
129        LOANS AND ADVANCES BY         617,000     128,318      745,318
          THE FEDERAL GOVERNMENT
           CAPITAL OUTLAY ON CIVIL  130                                                           28,188        28,188          WORKS
           CAPITAL OUTLAY ON  131                                                             4,919         4,919             INDUSTRIAL DEVELOPMENT
           CAPITAL OUTLAY ON  132                                                             5,300         5,300             MARITIME AFFAIRS DIVISION

Page 43

  CAPITAL OUTLAY ON RAILWAY133                                                           45,000        45,000            DIVISION

  STAFF HOUSEHOLD &
 ALLOWANCES OF THE                863                     863
   PRESIDENT(PUBLIC)
  STAFF HOUSEHOLD &
 ALLOWANCES OF THE                1,418                      1,418
  PRESIDENT(PERSONAL)

  SERVICING OF FOREIGN DEBT    1,038,602                  1,038,602

 FOREIGN LOANS REPAYMENT     4,989,963                  4,989,963

 REPAYMENT OF SHORT TERM                                                  29,500                    29,500          FOREIGN CREDITS
  AUDIT                                8,639                      8,639
  SERVICING OF DOMESTIC                                                8,736,398                  8,736,398          DEBT

                                                               19,050,034
  REPAYMENT OF DOMESTIC DEBT   19,050,034
 SUPREME COURT                    4,402                     4,402
  ISLAMABAD HIGH COURT             1,874                     1,874
  ELECTION                            9,635                     9,635
 FEDERAL OMBUDSMAN
  SECRETARIAT FOR
 PROTECTION AGAINST               184                    184
 HARRASMENT OF WOMEN AT
WORK PLACE
 WAFAQI MOHTASIB                   1,527                     1,527
 FEDERAL TAX OMBUDSMAN           430                    430
 TOTAL                         34,555,572    8,883,292   43,438,864

Page 44

  STATEMENT OF OBJECT CLASSIFICATION WISE EXPENDITURE

                                                                       Rs. In million
                                            Budget     Revised     Budget
  Object
                       Description              Estimates   Estimates   Estimates
  Code
                                                2023-24     2023-24     2024-25

A01       Total Employees Related Expenses       1,168,346    1,183,300    1,358,788

A011     Pay                                      215,488      213,624      221,808

 A011-1     Pay of Officer                           71,148       69,722       74,470
 A011-2     Pay of Other Staff                      144,340      143,901      147,339

A012     Allowances                               952,858      969,676    1,136,980

 A012-1      Regular Allowances                     916,400      928,115    1,098,332
 A012-2      Other Allowances (Excluding TA)          36,458       41,561       38,648
A02       Project Pre-investment Analysis              3,713        1,898        3,251
A03       Operating Expenses                      1,209,416    1,214,583    1,500,606
A04      Employees Retirement Benefits            806,075      807,040    1,022,974
A05       Grants, Subsidies & Write off Loans       2,764,835    2,186,512    3,475,111
A06       Transfers                                  13,279       33,495       20,764
A07        Interest Payment                         7,302,534    8,286,549    9,775,005
A08      Loans and Advances                      923,916      993,761    1,141,620
A09       Physical Assets                          497,421      498,685      633,417
A10       Principal Repayments of Loans          33,342,817   26,519,052   24,069,508
A11       Investments                              141,434      450,709       91,364
A12        Civil Works                              272,792      318,520      329,120
A13       Repairs and Maintenance                   12,860       12,973       17,336

             TOTAL EXPENDITURE          48,459,437   42,507,076   43,438,864

Page 45

                            Government of Pakistan
                                 Finance Division
                              (Debt Management Office)
Subject :    STATEMENT OF CONTINGENT LIABILITIES OF THE FEDERAL GOVERNMENT
              Contingent liabilities of Pakistan are primarily guarantees issued on behalf of
Public Sector Enterprises (PSEs). The sovereign guarantee  is normally extended  to
improve financial  viability  of  projects  or  activities  undertaken  by  the  government
entities  with significant social and economic benefits. It allows public sector companies to
borrow money at  lower  costs  or  on  more  favourable  terms  and  in some  cases
allows  to   fulfil  the requirement  where  sovereign  guarantee   is  aprecondition   for
concessional  loans  from  bilateral/multilateral  agencies  to  sub-sovereign  borrowers.
2.          The volume of new government guarantees issued during a financial year
is limited  under  Fiscal  Responsibility and Debt  Limitation  Act  which  stipulates  that
the government  shall not give guarantees aggregating  to an amount exceeding two
percent of the GDP  in any  financial year  including those  for rupee  lending,  rate  of
return,  outright purchase agreements and other claims and commitments provided the
renewal  of  existing  guarantees  shall be  considered  as  issuing a new  guarantee.
3.             During Jul-Mar FY24, the government remained within the FRDL Act limit
for issuance  of  new/rollover  of GoP Guarantees which stood  at 0.1%  of GDP.Total
executed guarantees were Rs  3,685  billion  while  outstanding  stock was Rs  3,505
billion at end March2024as per the following details:
Table-1: Summary of Outstanding Government Guarantees (All
figures are Rs in billion unless otherwise stated)
                                          Outstanding         Total
                                         Guarantees     Guarantees
Domestic                                             1,540           1,707
External                                              1,965           1,978
Total                                                 3,505           3,685
Memo:
External (US$ in million)                                6,971           7,017
Exchange Rate (Pak Rupee/US Dollar)                  278            278

Page 46

4.            Sector-Wise, Entity Wise and interest rate wise share of the guarantees at
end March 2024are as follows:
Table 2: Outstanding Position of GoP Guarantees
                                                         Rsin billion    % Age
                                Sector Wise Breakup
 Total Outstanding Stock                                     3,505         100%
- Power Sector                                               2,457         70%
- Aviation                                                247          7%
- Manufacturing& Mining                                   110          3%
- Financial                                               108          3%
- Oil & Gas                                               111          3%
- Others                                                 472         13%
                                   Entity Wise Breakup
Total Outstanding Stock                                      3,505         100%
- PAEC                                                      1,397         40%
- PHL                                                   765         22%
- PIACL                                                  247          7%
- Sindh Engro                                              81          2%
- NTDC                                                   59          2%
- Others                                                 955         27%
                                    Interest Rate Type
Total Outstanding Stock                                      3,505         100%
                                                             45%- Floating Rate                                               1,582
                                                             55%- Fixed Rate                                                  1,923
Note: The original maturities of major portion of Guaranteed Debt Stock were 5 years and above

Page 47

5.            Presently, Guarantees issued against commodity operations are not
included  in the above  table. These guarantees issued against the commodity
financing operations undertaken by TCP, PASSCO, and provincial governments.
The outstanding stock of commodity operations was Rs 1,133 billion at end March
2024.
6.         The estimates of guarantees to be issued from April 2024 till June 2025
are as follows:
Table 3: Estimated Guarantees Issuance and Position (Q4 FY 24 and FY 25) (Rs in billion)

   A     Opening Guaranteed Debt Position (31-03-2024)                     3,685

   B    New Guarantees to be Issued (Q4 FY 24 & FY25)                     711
               - REKO DIQ                                                   230
               - C-5                                                        143
               - PPP                                                        106
               - PSO                                                        100
               - SNGPL                                                       50
               - PIAIL                                                        40
               - Exim Bank                                                    10
               - PIACL                                                         6
               - NAVTTC                                                       1
               - Misc/Contingencies                                            25
   C     Estimated Repayments against Existing Guaranteed Loans             308

 D=B-C   Net Issuance of Guarantees (Q4 FY 23& FY24)                       403

  A+D    Estimated Closing Guaranteed Debt Position (30-06-2025)             4,088

Note
(i)  Expected external guarantees are converted intoPKR at exchange rate of 295/USD
(ii) The estimates are developed based on requests received so far from different PSEs and issuing wings
during the ongoing Fiscal Year
(iii)   The guarantees of which LoCs have already been issued before March 2024are incorporated in
Opening Guaranteed Debt Position as at End March 2024
(Iv)  The above table excludes Guaranteed Debt Position and expected guarantees for commodity
operations.

Page 48

                 STATEMENT OF FISCAL RISKS

1.      Fiscal risks may lead to potential threats or uncertainty in fiscal forecasts presented in the
Medium-Term Budgetary Statement, as defined in section 5 of the Fiscal Responsibility and Debt
Limitation (FRDL) Act 2005.

2.     Higher Interest Rate: Any increase in the interest rate on external and domestic debt can
lead to a rise in federal expenditures and subsequently, the federal fiscal deficit and total debt of
the government. If this possibility is realized, the overall effect will be substantial without additional
measures.

3.     Lower Non-Tax Revenue Collection: A significant reduction  in non-tax revenue
collections leads to a substantial decrease in net federal revenue and a consequent increase in
fiscal deficit. Additionally, the higher deficits contribute to an increase in debt stock over the
forecasted period.

4.     Higher Subsidies: An increase in subsidies leads to an increase in expenditure, the effect
on fiscal deficits and debt stock is relatively limited. Higher subsidies support the targeted sectors
or programs but may also strain government finances  if not accompanied by corresponding
revenue measures or expenditure controls.

5.     Combination of the  first three Scenarios: This scenario demonstrates the most
significant impact on fiscal variables across the board. The combination of reduced revenues,
increased expenditure on subsidies, and potential financing needs due to higher interest rates
leads to substantial fiscal deficit and higher debt stock. It underscores the interconnectedness of
fiscal policy and the need for comprehensive approaches to address fiscal challenges.

6.     Lower GDP Growth: This involves lowering the projected GDP growth rate by a quarter
(in each fiscal year). While this scenario does not directly affect fiscal policy measures,  it has
implications for revenue generation and expenditure planning. The lower GDP growth rate leads to
a decrease in net federal revenue due to subdued economic activity. Consequently, there is
pressure on fiscal deficit and debt accumulation, as the government may need to maintain or
increase expenditures to stimulate growth amid lower economic performance.

7.     Exchange Rate Depreciation: More-than-expected depreciation of the Pakistani Rupee
can significantly impact fiscal sustainability by increasing the cost of servicing external debt, as
repayments and interest on foreign-denominated loans become more expensive in local currency
terms. Additionally, a weaker rupee can lead to higher import costs, fueling inflation and putting
pressure on public expenditure, particularly if subsidies on essential goods like fuel and food are in
place. The combined effect of these factors can lead to a higher fiscal deficit and an increased debt
burden, exacerbating fiscal vulnerabilities. Moreover, the depreciation could undermine investors’
confidence, leading to capital outflows and further currency depreciation, creating a vicious cycle of
financial instability.

7.     Climate change and natural disasters pose increasingly significant threats to global
economic  stability and  fiscal  sustainability. As  these phenomena  intensify,  governments,
worldwide, are compelled to reevaluate their fiscal strategies for managing the associated risks

Page 49

effectively. Despite being an almost negligible contributor to global warming, the costs of climate
change to Pakistan are substantial and continuously increasing as the country faces severe
economic challenges. The accelerated impacts of climate change have added a new layer of
pressure on the economy, including the exogenous shock of severe climate disasters, which in
2022 exerted significant losses on GDP. Rising inflation, high indebtedness, low growth, currency
depreciation, and depleted foreign currency reserves have added to the scale and multitude of
challenges.

8.     Stringent climate change mitigation can significantly raise government expenditures
and resultantly, the federal fiscal deficit. However, it will also yield economic and climate benefits in
the medium and long term, restricting the average degree temperature to increase significantly. As
such,  it is critical to highlight that climate change is a long-term phenomenon, requiring climate
justice by the international community to join hands with Pakistan to make joint efforts for climate
change mitigation.

9.     Under no or lower efforts to climate change mitigation, the loss in GDP will be greater
than the stringent mitigation scenario. On the fiscal side, the decreased revenue collections due to
less economic activity and lower productivity may yield a higher fiscal deficit. Furthermore, climate
change mitigation along with efforts for more revenue collections are more promising in the long
term for fiscal sustainability in line with the baseline scenario.

10.    Natural disasters can significantly challenge fiscal sustainability. The 2022 floods have
shown  Pakistan’s  high  vulnerability  to  climate change as  the  disaster has demonstrated
vulnerability for the people of the country. Establishing a Natural Disaster Fund (NDF) can help to
mitigate fiscal deficit, at least to some extent. Furthermore, including improved tax collections
alongside NDF in certain instances shows promise in alleviating fiscal risks, resulting in slight
improvements in deficit levels.

11.     Pakistan’s  State-Owned  Enterprises  (SOEs)  are   pivotal   for  socio-economic
development by providing essential goods and services to the public in areas where private sector
investment was hindered due to various factors, such as significant capital requirements, limited
profitability, trade restrictions, market size constraints, and a lack of competitive market dynamics.
However, the financing requirements of SOEs and the interplay between the Government of
Pakistan and its SOEs render fiscal accounts at risk. Severe weather conditions due to climate
change led to shifts in water availability and energy generation, while major precipitation events,
extreme temperatures, and  wildfires disrupted  transportation  infrastructure and transmission
systems. SOEs like GENCOs, WAPDA, DISCOs, and other power sector entities face significant
exposure. Such risks include those associated with hydropower and thermal power plants, as well
as transmission and infrastructure risks.

12.    Under Public Private Partnership, there is only one project, Sialkot - Kharian Motorway,
which has a VGF of only PKR 10.94 billion and is in the construction phase. Moreover, there is no
liability on the part of the government under this PPP project that can be materialized as a
consequence of any climate change-related event. However, there is a valid sovereign guarantee
of PKR 6.9  billion, which has been issued against the operational VGF of this project. The
guarantee

Page 50

will expire on the completion of the debt service period, which is 10 years starting after 2 years of
construction period.
Mitigation Measures

     •   Stable macroeconomic policies prevent excessive exchange rate fluctuations and attract
       long-term investments, contributing to overall economic resilience and minimizing fiscal risk.

     •   Accumulating foreign exchange reserves provides a financial cushion against exchange
        rate  volatility. During periods of economic  stability and favourable trade balance, the
       government can build foreign currency reserves and manage these reserves through
       investments in safe and liquid assets.

     •   Developing policies that support export-driven sectors increases foreign currency earnings
      and improves the trade balance. A stronger export sector enhances foreign exchange
        inflows, reducing pressure on the domestic currency and helping to stabilize it.

     •   Creating a conducive environment for FDI boosts foreign currency inflows and supports
       economic growth. Ensuring  political and economic  stability, improving ease  of doing
       business, offering tax incentives, and protecting investors' rights are key strategies for
         attracting FDI.

     •  By supporting sectors that are less vulnerable to climate impacts and promoting new
        industries that contribute to a greener economy, the fiscal base becomes more robust and
        less susceptible to climate-related disruptions. Investments in research and development
         for sustainable technologies can also spur economic growth, create jobs, and reduce
      dependency on sectors prone to climate risks.

     •   Diversifying energy sources by accelerating the transition to renewable energy can reduce
      dependency on imported fuels and mitigate exchange rate and price volatility risks.

     •   Implementing energy efficiency measures can help to control overall demand and capacity
       charges. Utilizing financial instruments to hedge fuel prices and exchange rate volatility can
       provide more predictable cost structures.

     •   Strengthening  regulatory frameworks and  incentives  for  private sector investment  in
       renewable energy is crucial to reducing the fiscal burden and ensuring sustainable energy
       development.

     •   Ensuring  priorities  in investment on climate  resilient  infrastructure  is  critical, making
        structures such that they survive natural disasters. This means that roads to be constructed
       should meet improved drainage levels, use better materials, and better engineering designs
      and principles to remain resilient.

     •   Measures such as early warning flood control measures should be taken proactively to
        reduce the extent of the problems so that rehabilitation costs may decrease in the long run.

Page 51

     STATEMENT OF ESTIMATED TAX EXPENDITURE

         Section 8 of the Public Finance Management Act, 2019 provides
that the Federal Government shall, in respect of every financial year cause
to be  laid before the National Assembly, Finance  Bill consistent  with
Article 73  of the  Constitution  including a statement  of estimated tax
expenditure of the Federal Government.

2.      A Tax Expenditure Report 2024 providing the details of tax
expenditure in FY 2024- 25 which involves tax expenditure in Sales Tax of
Rs. 2,858.721 billion, a tax expenditure in Income Tax of Rs. 476.960
billion, and tax expenditure  in Customs Duty  of Rs. 543.521  billion,
arriving at a total estimated tax expenditure of Rs. 3,879.202 billion is

being laid before the Parliament.

                                                       (Malik Amjed Zubair Tiwana)
                                                      Chairman FBR
Dated: 12th June, 2024

Page 52

                 Medium-Term Budgetary Statement
                           (2024-25 TO 2026-27)

The Federal Government includes Medium-Term Budgetary Statement, consistent with
the principles of sound fiscal and debt management, in the Annual Budget Statement to
be laid before the National Assembly each year as per requirement under section 5 of
the Fiscal Responsibility & Debt Limitation Act, 2005.

2. Pakistan’s economy witnessed a moderate  recovery  in FY2024which  laid a
foundation for further strengthening the growth prospects in FY2025 and over the
medium term.The government has been able to stabilize the economy through various
short-term policy measures and initiate the long-term sustainable growth agenda.

3. The growth trend in tax collection is indicative of improving economic conditions,
gradual  recovery  in  business  activities,  and  effective  enforcement  measures.
Consequently, the revenue landscape presents a promising outlook. On the other hand,
higher markup payments are putting significant pressure on expenditure. However, the
government's persistent efforts to curtail non-markup expenditures through austerity
measures have facilitated a continuous improvement in primary surplus in FY2023-24.

4. Resource mobilization and increasing revenues to an optimum level over medium-
term is a critical challenge to meet escalating expenditures. Government is focusing all
its efforts to optimize tax collection through robust measures such as revamping of FBR,
supporting  digitization  and  IT  base  solutions,  removing  Tax  distortions  and
implementing tax regulation effectively. Similarly, realizing the importance of non-tax
revenues (NTR), the Government is exploring all avenues to increase inflows and has
been able to achieve its NTR targets in FY 2023-24. Going forward, government is
committed to maintain this growth.

Page 53

5. On the expenditure side, the Government is ensuring the support to the social
sector  development  through  health,  education,  youth  and  gender  sensitive
allocations. For social inclusion and pro-poor interventions, spending on BISP,
Pakistan  Bait-ul-Mal  and   Utility  Stores  Corporations  have  been  increased
exponentially. At  the same  time,  austerity measures  will remain  in place  for
rationalization of non-essential spending.Stable financial growth and maintaining
fiscal discipline over medium-term will ensure the Government's to create a balance
between providing relief to the common man and meet other essential expenditures.
The development portfolio of the Government has been increased which will ensure
the sustainable development over medium term.

Page 54

Climate Budget Statement

The daunting challenge of climate change posing socioeconomic risks to Pakistan
demands urgent  attention. The  federal government  is  cognizant  of  macro-fiscal
implication of climate change and looking forward to bring economic diversification to
strengthen  fiscal resilience by focusing on  greener economy  through  introducing
climate  resilience  infrastructure and new industries. Therefore, federal government
has adopted climate budget as a governance system to mainstream the climate
considerations  into  policy  decision  making.  The  green  budgeting   will  enable
government in prioritizing climate by integrating  it into budgeting process and fixing
responsibility   for  implementation,  monitoring,  evaluation  and  reporting  across
the  line ministries and departments. Ministry of Finance has taken the major initiative
of tagging climate-sensitive budgetary and expenditure data based on the National
Climate Change Policy. Through a consultative process involving  all stakeholders,
more than  of 5000  cost  centers  of the Federal Government under three major
classifications (adaptation, mitigation, and other supporting areas) and forty minor sub-
classifications have been tagged  successfully. These  interventions  will  allow the
Federal Government to make targeted allocations to respond climate change risks.

The Budget Tagging exercise this year focused on three types of data, BE 2023-24, RE
2023-24, and BE 2024-25. The BE 2023-24 has indicated allocation of 8.1% and 15.7%
of  the  Running  of  Civil Government (ROCG) and  Public  Sector Development
Programme (PSDP) respectively on climate sensitive areas. According to the RE
2023-24, the government was only able to spend 7.7% of the ROCG and but spent
substantially more (19.3%) as percentage of the PSDP, in comparison with the original
target, on climate sensitive areas. For the next FY 2024-25 in which ROCG and PSDP
are substantially bigger, the government has allocated funds to tackle climate change
as 7.7% of the ROCG and 15.3% of the PSDP will be spent on climate sensitive areas.
In the medium term, the government plans to ensure that climate sensitive budget does
not falls below 8% of the ROCG and 16% of the PSDP over medium term.

Page 55

Gender budget Statement

The Article 25 states Constitution of Pakistan, 1973 provides that there  will be no
gender discrimination while, Article 35 directs the state to ensure full participation of
women in all spheres of national life. However, despite major improvements, gender
inequality  is a cause of concern in Pakistan. Domestic and international data and
indices suggest the wide gap between Pakistani men and women in terms of education,
health, employment and economic opportunities etc.Pakistan’s economic development
will remain halted without closing the gender gap considering the women constituting
the 50% of population of this country.

As the Government of Pakistan works to reduce gender inequality and provision of
equal  rights to  all  citizens, one of the major impediments  is the lack of gender-
disaggregated data. As a  first step,  the  government  is  trying  to  identifygender
disaggregated on  public  expenditure. The federal government segregated gender
sensitive  budgets and  expenditures  of  all  ministries, divisions and departments,
thereby, allowing policymakers to have a better insight on gender responsive policies
and strategies. The public expenditure ofmore than 5000cost centers of the federal
budget has been segregated under six major gender classifications (equality & quality
of education,  health &  well-being,  governance &  data  systems, employment &
economic opportunity,   safety  &   security,  and  agency,   political   participation
&   meaningful engagement).This major development  will assist  in  effectively and
efficiently  spending  meagre  financial  resources  to  tackle  gender  inequality.
The Budget Tagging exercise  this year focused on three types  of data, budget
estimates budget estimates (BE) financial year (FY) 2023-24, revised estimates (RE)
FY 2023-24, and BE FY 2024-

25. The BE 2023-24 has indicated allocation of 10.1% and 9.5% of the Running
of  Civil Government (ROCG) and Public Sector Development Programme (PSDP)
respectively on gender sensitive areas. According to the RE 2023-24, the government
was able increase the spending to 11.3% of the ROCG and 10.1% of the PSDP on
gender sensitive areas. For the next FY, 2024-25 in which ROCG and PSDP are
substantially bigger, the government has allocated 9.8% of the ROCG and 7.4% of the
PSDP to gender sensitive areas.

Page 56

Disaster Budget Statement

Disaster risk is a combination of extreme natural events and vulnerability. Due to its
diverse geographyand climate change, Pakistan is prone to a large number of extreme
natural disaster triggered by natural hazards. According to World Risk Report 2023,
Pakistan has been ranked as the 11th highest disaster risk prone worldwide. The
Government of Pakistan  is aware of the high disaster risk and has passed laws,
instituted disaster management authorities at the federal and provincial levels, and
established disaster fundsto manage and mitigate the risk. However, data onpublic
expenditure on disaster preparedness, recovery, and rehabilitation was not available in
past. Each year, the Federal Government budgets and spends millions of rupees in
diverse areas  to  deal  with  disasters.  Tagging and  tracking  this  expenditure  is
necessary for evidence-based policy-making and accountability. In 2024, the federal
government decided  to tag more than 5000 cost centers on  four major  disaster
classifications (preparedness, response, recovery & rehabilitation, and reconstruction)
through a consultative process. All ministries and divisions of the Federal Government
have  participated  in the tagging  of  their respective  cost  centers,  increasing  this
exercise’s outreach, transparency, and ownership. This tagging and tracking of budget
and expenditure on disaster sensitive areas  will assist the Federal Government in
effectively mitigating risk and managing disasters.

The Budget Tagging exercise this year focused on three types of data, BE 2023-24, RE
2023-24, and BE 2024-25. The BE 2023-24 has indicated allocation of 4.5% and 1.9%
of  the  Running  of  Civil Government (ROCG) and  Public  Sector  Development
Programme (PSDP) respectively on disaster sensitive areas. According to the RE
2023-24, the government was able to spend 4.4% of the ROCG and 1.9% of the PSDP
on disaster sensitive areas. For the next FY 2024-25 in which ROCG and PSDP are
substantially bigger, the government allocated 4.3% of the ROCG and 1.8% of the
PSDP to disaster sensitive areas.

Page 57

     EMPLOYEES RELATED DATA AND IMPLEMENTATION OF
          ORGANIZATIONAL MANAGEMENT MODULE

       Human Resource Data in the domain of public administration provides valuable
insights on a government’s workforce composition and on the government’s ability to recruit,
retain and manage its human resource capital. From fiscal point of view Human Resource
information serves as an important decision-making tool to help Government rationalize
its allocation of resources more efficiently and economically in its employees related data.

          In the Budget Call Circular (2024-25) a serious attempt has been made to compile
federal  government  employees’  data,  with  vacancy  positions,  and  redundant  posts
separately for bringing greater visibility to the size of the Federal Government employees
with specific emphasis on identification of posts that have remained vacant for more than
three (03)years. The exercise intends  to assess  the  financial  liability involved  in the
continuation of redundant posts and to rationalize the size of the governments in terms of
allocation of funds and resources on to the current side of expenditure.Besides conversion
of  employees  related  data on  Organizational Management (OM) Module has been
intensely pursued to stop manual input of data in the system, eliminating the risk for errors
through creation of an Employee Record Management database for better management
and administer salary plans and process annual pay raise.In this way OM Module is the most
critical feature  in maintaining personal information of Employees, by processing payroll
entries more efficient to generate salary slips, to deduct taxes from employee payroll while
strengthening the government’s working through automated work flows.

Page 58

                       Government of Pakistan
                             Finance Division
               STATEMENT OF RESPONSIBILITY

        Stated that all policy decisions with material economic or fiscal implications that the
Federal Government has made before 12th June 2024, the day on which the contents of the
economic policy statements were finalized and all other circumstances with material economic
or fiscal implications of which I was aware before that day, have been communicated to the
Secretary of Finance in terms of Section 10(1)(a) of Fiscal Responsibility and Debt Limitation Act,
2005.
   The statement to the best of my knowledge provides
    for: -
          a)   the integrity of the disclosures contained in the economic policy
               statement;
               the consistency with requirements of the Act of the information contained          b)
                  in the economic policy statements; and
               the omission from the economic policy statement of any decision or           c)
              circumstance specified in sub-section (3) of section 8 of the Act.

                                             (Muhammad Aurangzeb)
                                                                Minister for Finance and Revenue

Page 59

                          Government of Pakistan
                                Finance Division

                 STATEMENT OF RESPONSIBILITY

       Stated that the Finance Division, in terms of Section 10(1)(b) of Fiscal Responsibility and
Debt Limitation Act, 2005, has supplied to the Minister for Finance and Revenue, using its
best professional judgment on the basis of economic and fiscal information available to  it
before 12th June 2024, the day on which the contents of the economic policy statements
were  finalized, an economic and  fiscal statement incorporating the  fiscal and economic
implications of those decisions and circumstances, but any decisions or circumstances that the
Minister for Finance and Revenue has determined under Sub-section (3) of Section 8 of the
Fiscal  Responsibility and Debt  Limitation Act 2005 have not been incorporated  in the
statement.

                                        IMDAD ULLAH BOSAL
Finance Division,
                                               Secretary to the Government of Pakistan
Islamabad, the 12th June, 2024