Prime Minister Shehbaz Sharif on Saturday stressed that a stable political environment is necessary for “direly needed” economic reforms, reiterating the need for a Charter of Economy amongst all political parties for Pakistan’s prosperity.
“The economy direly needs reforms, which, in turn, can be undertaken in a stable political environment, for economic development is intrinsically linked to political stability,” he wrote in a statement on Twitter, a day after the incumbent government tabled its budget for fiscal year 2023-24. “It is here that the Charter of Economy appears to be the only way forward for our political parties to achieve prosperity for our people,” he added.
He also acknowledged that it had been particularly difficult to frame the Finance Bill amidst “persistent challenges arising out of floods-related relief and rehabilitation, global supply chain disruptions and geostrategic upheavals.” Adding on to the challenges, he said, were the “never-ending headwinds of political instability created by Imran Niazi,” which had damaged the economy and created uncertainty.
“Budget (FY23-24) represents the beginning of the process to fix the economy’s long-term ailments,” he said, maintaining that the ruling coalition had prioritized the “right areas” with the potential to spur economic growth, attract investment and put the economy on a path of self-sufficiency.
“Mindful of the impact of inflation, the government has provided relief to public sector employees and pensioners in the form of pay raise of up to 35% and 17.5%, respectively, and increased minimum wage to Rs. 32,000,” he said, regretting that a “more balanced budget” with no additional taxes was not possible amidst the prevailing constraints. “I commend all those who remained part of this exercise and played their role in this budget-making exercise,” he added.
The budget tabled by Finance Minister Ishaq Dar envisions a total outlay of Rs. 14.46 trillion, with an economic growth target of 3.5%. However, this includes Rs. 13,320 billion for current expenditures and Rs. 7,303 billion for debt servicing against total budgeted revenue of Rs. 12,163 billion of which provincial transfer is Rs. 5,276 billion, leaving just Rs. 6,887 billion net revenue for the federal government. The overall fiscal deficit—the difference between total expenditures and revenue—has been budgeted at Rs. 6,923 billion, 82 percent higher than last year’s Rs. 3,797 billion.