Pakistan unveils $67.76 billion budget for fiscal year 2024-25 eyeing IMF bailout

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Updated 12 June 2024
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Pakistan unveils $67.76 billion budget for fiscal year 2024-25 eyeing IMF bailout

  • Finance Minister Muhammad Aurangzeb presents federal budget amid opposition’s sloganeering
  • Analysts say budget broadly in line with IMF conditions, will help in fiscal consolidation

KARACHI: Finance Minister Muhammad Aurangzeb on Wednesday unveiled the much-awaited Rs18.877 trillion ($67.76 billion) federal budget for the fiscal year 2024-25, which is expected to play a pivotal role in Pakistan’s negotiations with the International Monetary Fund (IMF) to unlock yet another loan from the international lender. 

Last year, Pakistan received $3 billion from the IMF under a Stand-By Arrangement (SBA) to stabilize its economy in the short term, including addressing immediate financial needs like debt repayments and supporting economic reforms.

However, given ongoing economic challenges like low foreign reserves and substantial fiscal deficits, Pakistan continues to need external financial support to meet its long-term goals and sustain structural reforms.

Speaking on the floor of the National Assembly while presenting the federal budget, Aurangzeb said Pakistan’s economy is expected to grow by 3.6% during the next fiscal year. He credited Prime Minister Shehbaz Sharif for fulfilling the conditions of Pakistan’s SBA agreement with the IMF, noting that the country’s economic indicators were showing a positive trend. 

“Mr. Speaker, I think despite political and economic challenges, our progress on the economic front in the past year has been impressive,” Aurangzeb told lawmakers amid loud slogans from the opposition benches. 

He said Pakistan’s improved economic conditions indicated that a “successful future” awaited the country. 

“Mr. Speaker, we need to increase the speed of our progress and achieve the destination of economic independence,” the minister said. 

“But this is not something that can be done overnight. For this, we need to work hard and work with all institutions and the people on a homegrown economic reform plan.”

The minister said the government has estimated total expenditures for the new fiscal year at Rs18.877 trillion ($67.76 billion), adding that the budget deficit is projected to be 6.9% of the GDP while the primary surplus is expected to be at 1.0 percent of GDP. 

“The estimated revenue for FBR is Rs12.97 trillion ($46.55 billion) which is 38 percent more than the current fiscal year,” Aurangzeb said.

He added that the share of the provinces in revenue will be Rs7.438 trillion($26.7 billion), while the government’s target for the federal non-tax revenue has been kept at Rs3.587 trillion ($12.87 billion). 

The minister said the net income of the federal government is expected to be Rs9.119 trillion ($32.72 billion). 

Aurangzeb said the Public Sector Development Program (PSDP) plays a vital role in a country’s development, prosperity and social welfare. 

“The government has devised the history’s biggest PSDP for the fiscal year 2024-25, which is worth Rs1,500 billion ($5.3 billion) and its volume is 101% larger than the previous year’s revised volume,” the finance minister noted. 

SALARIES, TAX SLABS

He announced the government would raise the salaries of employees below grade 17 by 25 percent and 20 percent for employees in the 17-22 grade range. The minister also announced a 15 percent increment in the pension of retired government employees and said that the minimum wage was being increased from Rs32,000 ($115) to Rs37,000 ($133). 

Aurangzeb said tax slabs for Pakistan’s salaried group will change while for the non-salaried individuals, the income tax rate can go as high as 45 percent. However, he clarified that the minimum tax slab will remain the same at Rs600,000 ($2,153) per year. 

He said the gain on capital tax (CGT) on securities for non-filers would be kept as high as 45%, while it would remain at 15 percent for filers. However, he proposed that the tax on CGT on real estate for both filers and non-filers be kept at the rate of 15 percent. 

The minister stressed the need for Pakistan to move toward a market-driven economy from a government-driven economy. 

“We must transition from a government-controlled economy to a market-driven one, aligning our economic system with global standards, boosting exports, and prioritizing a savings-and-investment-based economy over a consumption-based model,” he said. 

‘HIGH TAX COLLECTION TARGET’

Pakistani analysts said the budget will help in fiscal consolidation, saying it is broadly in line with the IMF’s guidelines. 

“Though the tax collection target is high, we believe that considering new taxation measures Pakistan may be able to reach closer to the primary and fiscal deficit estimates,” Muhammed Sohail, chief executive officer of Topline Securities, told Arab News. 

“Though no major reforms were seen on the exports, energy and other sectors, many tax exemptions have been removed,” he observed. 

Sohail said that by increasing the tax on petroleum products to Rs80 per liter, will help the government collect around Rs350 billion ($1.26 billion). 


Pakistan extends deadline for Hajj applications under government scheme by one day

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Pakistan extends deadline for Hajj applications under government scheme by one day

  • More than 110,000 Hajj applications received in 12 days, with only 7,000 seats remaining
  • Online portal closed at midnight on Aug. 16, but banks will accept applications on Monday

ISLAMABAD: Pakistan announced on Saturday it has extended the deadline for receiving Hajj applications under the government scheme by one day, with designated banks set to accept forms on Monday, as authorities reported receiving more than 110,000 applications over the past 12 days.

The country has a Hajj quota of 179,210 pilgrims, of which 129,210 seats have been allocated to the government scheme and the rest to private tour operators.

The religious affairs ministry said earlier the State Bank of Pakistan had accepted its request and ordered 14 designated banks to keep branches open for Hajj applications on the final day, which fell on Saturday, though the deadline was later extended in the evening.

“The receipt of Hajj applications has been extended by one day,” a ministry spokesperson said in a statement.

“Designated banks will continue receiving applications on Monday, Aug. 18," it added. "More than 110,000 applications have been received in the last 12 days, with only 7,000 seats left under the government scheme.”

The ministry said the extension was on a “first-come, first-served basis” and that applications would close as soon as the quota was filled.

It clarified that no extension would be granted for the ministry’s online portal, which would stop accepting applications at midnight on Aug. 16.

Pakistan began receiving applications on Aug. 4. Applicants were advised to obtain computerized receipts and verify their details through the ministry’s portal or the Pak Hajj 2026 app.

Under the government scheme, pilgrims can choose between a long package (38-42 days) and a short package (20-25 days), with costs ranging between Rs1,150,000 and Rs1,250,000 ($4,050–4,236).

Applicants are required to deposit a first installment of Rs500,000 or Rs550,000 depending on the package, while the remaining dues will be collected in November.

Saudi Arabia had approved the same quota for Pakistan in 2025, though private tour operators last year struggled to utilize their share, saying they faced technical and financial delays, even as the government filled its quota of over 88,000 pilgrims.


Pakistan army says not interested in mass evacuations for Balochistan operations

Updated 16 August 2025
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Pakistan army says not interested in mass evacuations for Balochistan operations

  • ISPR chief stresses focus on intelligence-based operations and cooperation with local communities
  • Army spokesman says Balochistan will always remain part of Pakistan amid separatist insurgency

ISLAMABAD: Pakistan’s army is not interested in evacuating entire areas in the restive southwestern province of Balochistan to launch operations against militants, the top military spokesman said Saturday, insisting the region will always remain part of the country.

Balochistan, Pakistan’s largest but most impoverished province, has been the site of a long-running insurgency that has intensified in recent months, with separatist militants attacking security forces, government functionaries and non-local residents.

Intelligence-based operations have been launched in response, though outfits such as the Balochistan Liberation Army (BLA) and its Majeed Brigade faction have carried out increasingly coordinated strikes, including a passenger train hostage-taking earlier this year and an attack on a school bus that killed and injured several children.

“We are not interested in evacuating an entire area, sending in troops, clearing all the localities and then declaring that peace has been restored because you cannot station the army permanently,” Inter-Services Public Relations (ISPR) Director General Lt. Gen. Ahmed Sharif Chaudhry said while addressing students in a military internship program in Rawalpindi.

The ISPR shared portions of his remarks in a video released on its Facebook page.

“Once the army leaves, the terrorists would return,” he added. “That is why we need to work in a very intelligent manner. We need to work with the population, with the local administration, and we need to identify the terrorists, their sympathizers and their facilitators. That is what we are doing.”

Chaudhry emphasized that the military has no interest in falsely accusing or targeting innocent civilians.

“However, if someone facilitates terrorism, if someone keeps explosives in their house or gives shelter to terrorists, then they will have to face the consequences,” he continued.

The military spokesperson also underlined that Balochistan would “always remain part of Pakistan,” noting the province’s ethnic and demographic diversity and its connections with other parts of the country.

The comments came as violence in the mineral-rich province has intensified in recent months.

Earlier this week, the United States designated the BLA and the Majeed Brigade as “foreign terrorist organizations.”

Separatist groups accuse Islamabad of exploiting Balochistan’s resources to fund development elsewhere, while the federal government denies the charge, saying it is working to uplift local communities.


Pakistan’s disaster agency restricts mountain tourism as 308 killed in northwest floods in two days

Updated 16 August 2025
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Pakistan’s disaster agency restricts mountain tourism as 308 killed in northwest floods in two days

  • The nationwide monsoon death toll likely exceeds 600 after accounting for the latest surge in casualties
  • Khyber Pakhtunkhwa administration has declared emergency in nine flood-hit districts until August 31

DIR, Khyber Pakhtunkhwa: Pakistan’s National Disaster Management Authority (NDMA) on Saturday issued an advisory to limit tourism in mountainous areas after the death toll from torrential rains and floods in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province in the last 48 hours increased to 308, according to an official statement.

The NDMA put the nationwide monsoon death toll at 507 on Friday, reporting 194 casualties in the preceding 24 hours, with 180 in KP, five in Gilgit-Baltistan and nine in Azad Kashmir.

In the last 48 hours, raging hill torrents swept away dozens of people in KP’s Swat, Buner, Bajaur, Torghar, Mansehra, Shangla and Battagram districts, with a fresh Provincial Disaster Management Authority (PDMA) update recording at least 308 confirmed deaths during the period, suggesting that the overall nationwide toll has likely exceeded 600.

Rescuers, backed by boats and helicopters, worked for hours in KP and other areas to save stranded residents and tourists as ambulances transported bodies to hospitals.

“On the Prime Minister’s directive, the National Disaster Management Authority has issued an advisory to limit tourism in mountainous areas due to the intensity of the monsoon,” the NDMA said in a statement.

“Public movement should be restricted in high-risk areas during monsoon spells,” it continued. “If necessary, tourist restrictions may be imposed under Section 144, with law enforcement agencies in tourist areas ensuring compliance with these restrictions.”

Section 144 of the Criminal Procedure Code (CrPC) empowers local authorities to prohibit gatherings of four or more people and impose restrictions on movement or activities in a specific area to prevent unrest or ensure public safety.

The NDMA also urged the public to avoid traveling to affected areas.

Separately, the KP Department of Relief, Rehabilitation and Settlement declared an emergency in districts affected by rains and flash floods.

“A notification has been issued stating that the emergency will remain in effect from August 15 to August 31, 2025, in the vulnerable districts,” the PDMA said in a statement.

“The emergency will be enforced in the districts of Swat, Buner, Bajaur, Torghar, Mansehra, Shangla, Lower Dir, Upper Dir and Battagram, which have been affected by rains and flooding,” it added.

The Pakistani authorities have said the current spell of heavy rains in the region is likely to continue intermittently till August 21, with the KP PDMA issuing directives to intensify relief activities in all the affected districts and provide immediate relief to those affected.

The NDMA also said on Saturday that its team has reached Peshawar to supervise relief work.

Deputy PM Ishaq Dar expressed sorrow over the tragic loss of life and property caused by the cloudbursts and flash floods in KP and other parts of Pakistan.

“Our hearts go out to the families who have lost loved ones, to those who are injured, and many whose homes and livelihoods have been swept away,” he said on X. “The Government of Pakistan is mobilizing all available resources to provide relief and conduct rescue operations.”

The deluges have evoked memories of 2022 when catastrophic monsoon rains and glacial melt submerged a third of the country, killing more than 1,700 people and causing over $30 billion in damages.

Pakistan, which contributes less than 1 percent of global greenhouse gas emissions, is among the countries most vulnerable to climate change.

Scientists say rising temperatures are making South Asia’s monsoon rains more erratic and intense, increasing the risk of flash floods and landslides in mountainous regions like KP and Gilgit-Baltistan, where at least 20 people have died in similar incidents and several are missing.

A study released this week by World Weather Attribution, a network of international scientists, found rainfall in Pakistan from June 24 to July 23 was 10 percent to 15 percent heavier because of global warming.


Body of Chinese climber killed during K2 summit descent retrieved by rescue team

Updated 16 August 2025
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Body of Chinese climber killed during K2 summit descent retrieved by rescue team

  • Guan Jing was hit by falling rocks while descending the mountain after a successful summit
  • Her body has been flown to Skardu and will be sent to Islamabad after official coordination

GILGIT, Pakistan: A rescue team from Pakistan and Nepal has retrieved the body of a Chinese climber who was killed on K2, the world’s second-highest peak in northern Pakistan, a regional government spokesman said Saturday.

Faizullah Faraq, spokesman for the Gilgit-Baltistan government, said the body of Guan Jing was airlifted by an army helicopter from K2’s base camp after a team of mountaineers brought it down.

Jing died Tuesday after being struck by falling rocks during her descent, a day after she had reached the summit with a group of fellow climbers.

Faraq said her body was taken to a hospital in Skardu city and would be sent to Islamabad after coordination with her family and Chinese officials.

Karrar Haidri, vice president of the Pakistan Alpine Club, said the body was retrieved after days-long efforts, during which one of the rescuers was injured and airlifted by a helicopter.

K2, which rises 8,611 meters (28,251 feet) above sea level, is considered one of the world’s most difficult and dangerous peaks to climb.

Jing’s death comes more than two weeks after German mountaineer and Olympic gold medalist Laura Dahlmeier died while attempting another peak in the region.


Prominent religio-political leader’s children killed, wife injured in northwestern Pakistan home shooting

Updated 16 August 2025
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Prominent religio-political leader’s children killed, wife injured in northwestern Pakistan home shooting

  • Mufti Kifayatullah of JUI-F sustained serious injuries after his son opened fire on the family and fled
  • The motive behind the incident remains unclear, though it may have stemmed from a domestic dispute

PESHAWAR: A shooting at the residence of a prominent religio-political party leader, Mufti Kifayatullah, in Pakistan’s northwestern Khyber Pakhtunkhwa province left his son and daughter dead and his wife critically wounded on Saturday, while he himself sustained serious injuries, according to an official statement.

A former provincial lawmaker from Malakand division and district chief of the Jamiat Ulema-e-Islam-Fazl (JUI-F) party, Kifayatullah was attacked inside his residence in Batkhela, Levies officials said in a statement.

“A shooting incident took place at the house of Mufti Kifayatullah, district chief of JUI-F in Batkhela,” the statement said. “As a result of the firing, Kifayatullah was seriously injured, his daughter and son were killed, and his wife was also critically wounded.”

Authorities said the assailant was the JUI-F politician’s own son, who managed to escape after the attack.

The bodies and the injured were taken to the District Headquarters Hospital in Batkhela, where doctors later said Kifayatullah’s condition was out of danger.

The motive behind the shooting was not immediately clear, though the incident appeared to be linked to some domestic dispute.

The JUI-F, a major religio-political party with deep roots in northwestern Pakistan, has long exercised influence in the area.

However, it struggled in the 2024 general elections, with leaders blaming security threats for their inability to run a full campaign.