Pakistan Federal Budget – 2023-24 (Key Highlights)
The size of the Annual Development Program is fixed at PKR 1,150 billion, which includes PSDP
amounting to PKR 950 billion and net lending amounting to PKR 190 billion. IT sector recognized as SME (limit enhanced from PKR 250M to 800M)
* Exemption of custom duty on import of raw material for batteries, solar panels and inverters
* Duty free IT related imports up to 1% of export proceeds
* A progressive super tax regime has been introduced in the range of 1 to 10%, previously it
was capped at 4%
* GST raised on Tier-1 retailers of leather and textile from 12% to 15%
* Withholding tax on overseas payments made through debit/credit cards is raised to 5/10% for
filers/non-filers from 1%
* Minimum Turnover tax reduced from 1.25 to 1% for PSX listed firms
* 0.6% tax has been imposed on cash withdrawal by non-ATL
* The Dasu Hydropower Project has been allocated the maximum of PKR 58.59 billion.
* PKR 17 billion have been allocated for the Karachi Greater Water Supply Scheme
* PKR 14.86 billion have been allocated for the Karachi Coastal Power Project
* PKR 16 billion will be spent on the Pakistan-Tajikistan transmission line
* For the rehabilitation of flood-affected areas, PKR 6 billion have been earmarked
* PKR 5.70 billion have been allocated for the Hyderabad-Sukkur Motorway project and PKR 5
billion for the New Gwadar International Airport
* PKR 107 billion have been allocated for the Ministry of Water Resources
* The Higher Education Commission is set to get PKR 59.71 billion
* Re-imposition of 10% final withholding tax on issuance of bonus shares by a company
* 50% tax on unexpected earnings arising from exchange gain
* 50% reductions in tax liability for three years for youth entrepreneurship (maximum limit of
PKR 2 million for Individual/AOP and PKR 5 million for a company)
* Imposition of additional tax at the rate not exceeding fifty percent on income profit and gains
of a person or class of persons on account of extraordinary gains due to exogenous factors
* Increase in Benazir Income Support Programme allocation from PKR 400 billion to PKR 450
billion
* Salaries of government employees increased by 35% & 30% of Grade 1 to 16 & Grade 17 to
22 in order to improve their purchasing power
* Upward revision in pensions and increase in minimum pension to PKR 12,000
Courtesy: Yousuf Adil Chartered Accountant
