he budget for fiscal year 2024-25, presented by Minister for Finance and Revenue Muhammad Aurangzeb on June 12, purportedly aims at transformative growth focusing on key macroeconomic and fiscal priorities. The government’s stated objectives include fiscal discipline, privatisation, stimulating investment and reorienting exports. The key priorities involve optimal revenue mobilisation, addressing energy sector imbalances and enhancing the social protection system.

The finance minister has emphasised that the Federal Board of Revenue will undergo digitisation and AI integration to meet its ambitious revenue targets. Austerity measures and improved governance of state-owned enterprises are expected to create fiscal space for pro-poor spending, climate change mitigation and quality public services. The Public Sector Development Programme has been allocated Rs 1,400 billion, the largest in history, to ensure development in energy, water, IT and special interest sectors.

While stressing the government’s commitment to fiscal discipline, economic revival, and stability, the minister has outlined strategic directions for revenue generation, spending priorities and fiscal consolidation by reducing inflationary pressures, strengthening external accounts and improving the balance of payments.

However, the minister’s priorities and strategy to put the country on the track to sustainability do not align with the country’s financial situation. The fiscal deficit for FY2024-25 stands at a staggering Rs 8,500 billion, highlighting a significant imbalance between federal revenue and expenditure; the net federal revenue is projected at Rs 10,377 billion and the federal expenditure at Rs18,877 billion, including a current expenditure of Rs 17,203 billion.

The development and net lending are projected at Rs 1,674 billion. The gap is undeniable. Despite the Public Sector Development Programme allocation of Rs 1,400 billion aimed at fostering growth, the deficit highlights the government’s financial constraints. To address this, the government plans to secure........

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