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Fiscal Budget 2019-20

Key figures:

  • Budget size is Rs7,036bn
  • Current account deficit to be reduced to 6.5pc
  • Govt's running expenses slashed to Rs437bn from Rs460bn
  • Defence budget to be kept static at Rs1.15tr
  • National Development Programme total size: Rs1,800bn
  • Federal revenues to be Rs6,717bn
  • Net federal reserves to touch Rs3,462bn
Jun 13, 2019
11:50 AM

END OF LIVE UPDATES ON BUDGET 19-20

Jun 12, 2019
12:21 PM

What about the defence budget?

11:58 AM

Health levy missing in budget despite cabinet decision

11:56 AM

HEC development schemes get Rs29bn

11:47 AM

Foreign borrowing to increase this year

11:45 AM

Sports sector neglected in budget

11:42 AM

PM Imran vows to go after 'thieves who left the country badly in debt'

Jun 11, 2019
8:43 PM

History will record how Imran danced as our economy burns: BBZ

7:57 PM

Net revenue receipts

7:57 PM

Development spending over the years

7:55 PM

Sector-wise growth over the years

7:55 PM

Inflation over the years

7:54 PM

GDP growth trend over the years

7:41 PM

'Incompetent Khan is wounding the country': Maryam Nawaz

7:26 PM

Trends in govt's current expenditures over the last ten years

7:19 PM

Protest by opposition mars budget speech in NA

7:18 PM

Size of the budget compared to previous years

7:10 PM

Prime Minister Imran Khan to address nation

6:59 PM

Fawad Chaudhry thankful for 'highest ever' budget allocation for his ministry

6:47 PM

Hammad Azhar moves finance bill, speaker adjourns session till Friday

6:41 PM

Property can't be registered in the name of nonfilers

6:40 PM

Tax on services to be introduced

6:40 PM

Taxation on CNG to be increased

6:38 PM

Federal excise duty on cars

6:33 PM

Increase in federal excise duty on cigarattes advised

6:32 PM

Duties will be reduced to boost non-traditional exports

6:31 PM

Textile machinery and parts will be exempt from duties

6:31 PM

Sugar tax advised to be increased to 17pc

6:29 PM

Tax measures

6:23 PM

'Go Niazi go' chants continue during budget speech

6:04 PM

GST to remain unchanged at 17pc

6:00 PM

Opposition members tear budget copies

5:55 PM

Budget 2020: Headline figures

5:53 PM

Opposition raises ruckus in NA

5:49 PM

Salient features

5:46 PM

Minimum wage increased to Rs17,500

5:44 PM

Development budget: key features

5:43 PM

'Say no to IMF budget': opposition members carry placards

5:43 PM

Creating livelihoods

5:37 PM

Increasing taxes our fundamental priority: Hammad Azhar

5:36 PM

Opposition protests for not being provided with budget speech copies

5:31 PM

If budget is anti-people, we will protest: Sherry Rehman

5:28 PM

PPP Chairperson Bilawal Bhutto Zardari arrives

5:27 PM

PM Imran arrives in NA

5:26 PM

Salient features (continued): Civil and military budgets to see austerity

5:23 PM

Salient features of the Budget FY2020

5:23 PM

PML-N leaders arrive in NA wearing black armbands

5:23 PM

'It was govt's duty to take steps to bring situation under control'

5:16 PM

Opposition no-show as NA session begins

5:12 PM

Hammad Azhar presents budget with overview of economy

Show More
12th Jun, 12:21 PM

What about the defence budget?

Defence budget is proposed to grow nominally in the next financial year by 4.74 per cent as compared to the outgoing year, but its share in the total outlay and the gross domestic product (GDP) is set to decline, according to the budget documents laid before the National Assembly.

The government has proposed to allocate Rs1.15 trillion for ‘Defence Affairs and Services’ for 2019-20 as compared to the original allocation of Rs 1.1tr for the outgoing year.

Read more here.

12th Jun, 11:58 AM

Health levy missing in budget despite cabinet decision

Health advocates were shocked to learn that despite a decision of the federal cabinet to impose “health levy” on cigarettes and fizzy drinks, it was not included in the proposed budget for 2019-20.

On June 3 the federal cabinet had approved the health levy and directed the secretaries of finance, health and revenue divisions to implement it. As per a memorandum available with Dawn, the health levy of Rs10 on each packet of cigarettes and Re1 (one) on each bottle of 250ml fizzy drinks had to be imposed in the proposed budget. Moreover, it stated that revenue generated through the health levy would be earmarked for the health sector development.

Read the details here.

12th Jun, 11:56 AM

HEC development schemes get Rs29bn

The federal government has allocated Rs29 billion for the development projects of Higher Education Commission (HEC) in the fiscal year 2019-20.

According to the budget documents, the Rs29.046bn have been earmarked for 120 ongoing and 17 new schemes of the HEC.

Read the details here.

12th Jun, 11:47 AM

Foreign borrowing to increase this year

The incumbent government plans to increase foreign borrowing for budgetary support by threefold in the next fiscal year compared to the proposals in the budget 2018-19.

The budget document released on Tuesday announced that the government is likely to obtain foreign loans worth Rs3.003 trillion compared to Rs1.087tr during the final budget presented by the PML-N government in 2018.

Read the retails here.

12th Jun, 11:45 AM

Sports sector neglected in budget

The federal government, in the budget for fiscal year 2019-20, has completely ignored new development schemes in the sports sector of the country.

According to budgetary documents an allocation of Rs339.958 million has been made for ministry of Inter Provincial Coordination (IPC) — the parent ministry of Pakistan Sports Board (PSB) — for seven ongoing sports-related development schemes.

Read more here.

12th Jun, 11:42 AM

PM Imran vows to go after 'thieves who left the country badly in debt'

In a late night address after the budget proposal was announced, Prime Minister Imran Khan vowed to go after the "thieves who left the country badly in debt".

The premier announced that after putting to rest the initial focus of the government to stabilise the economy, his attention would be more targeted towards bringing the ones to task who had caused the country to fall into such dire straits.

Read the story here.

11th Jun, 8:43 PM

History will record how Imran danced as our economy burns: BBZ

"Today the PM of Pakistan danced on the floor of the house as his ministers introduced a PTIMF budget that increases taxes, inflation & unemployment. History will record how Imran danced as our economy burns," said PPP Chairperson Bilawal Bhutto Zardari.

11th Jun, 7:57 PM

Net revenue receipts

11th Jun, 7:57 PM

Development spending over the years

11th Jun, 7:55 PM

Sector-wise growth over the years

11th Jun, 7:55 PM

Inflation over the years

11th Jun, 7:54 PM

GDP growth trend over the years

11th Jun, 7:41 PM

'Incompetent Khan is wounding the country': Maryam Nawaz

Maryam Nawaz, a vice-president of the PML-N, berated the "incompetent government" over the proposed "IMF budget" and said: "The government that raised the prices of food and other commodities has burdened the poor people — who are already suffering because of the incompetence of the administration — with its ineptitude. Every day of the Incompetent Khan is wounding the country."

11th Jun, 7:26 PM

Trends in govt's current expenditures over the last ten years

11th Jun, 7:18 PM

Size of the budget compared to previous years

11th Jun, 7:10 PM

Prime Minister Imran Khan to address nation

Prime Minister Imran Khan will address the nation after 9pm, a senior PTI leader has said.

11th Jun, 6:59 PM

Fawad Chaudhry thankful for 'highest ever' budget allocation for his ministry

Minister for Science and Technology Fawad Chaudhry expressed gratitude towards the government for proposing to allocate Rs43bn for his ministry in this year's budget. This is the "highest ever" amount that has been allocated to the Ministry of Science and Technology, he said.

11th Jun, 6:47 PM

Hammad Azhar moves finance bill, speaker adjourns session till Friday

Minister for Revenue Hammad Azhar has moved the Finance Bill 2019 in the National Assembly.

Speaker Asad Qaiser has adjourned the assembly session till Friday.

11th Jun, 6:41 PM

Property can't be registered in the name of nonfilers

  • Property can't be registered in the name of nonfilers.
  • Those who will provide jobs to new graduates will be given tax rebates; those passing out after 2017 to be considered as new graduates
  • Rs1.2mn was legal limit for income tax exemption — it will be reduced to Rs0.6mn for salaried persons and Rs0.4mn for others
  • The loophole of income declared as gifts will he closed as such gifts will be treated as income from other sources.
  • Super tax to be imposed on those with income above Rs0.5bn.
  • Withholding tax to be imposed on purchase of properties irrespective of the value of the property
11th Jun, 6:40 PM

Tax on services to be introduced

  • Tax on marble to be increased to 17pc
  • Tax on services to be introduced
  • Tax on sugary beverages to be increased to 13pc
  • Edible oil taxation to Rs40 per kg; FED on it to be increased
  • 17pc sales tax on ghee, oil etc
  • Rs2 per kg on cement
  • ON CARS: FED not only on 1700c and above, but 2.5pc upto 1000cc, 7.5 on more than 2000cc
  • Rs5,200 tax per one thousand cig sticks, Rs117bn target of revenue from this measure
  • Refund bonds: FBR will settle tax refunds by issuing promissory notes
  • Active tax payer list issue will be resolved
11th Jun, 6:40 PM

Taxation on CNG to be increased

  • Cotton etc will be slapped with 10pc tax
  • Taxation on CNG to be increased
  • Sugar now taxed at 8pc and Rs18bn revenue is obtained from it, it is advised to increase to 17pc
  • Cottage industry: new definition is advised to include only those industries earning less than Rs2 million turnover per annum
11th Jun, 6:38 PM

Federal excise duty on cars

The minister for revenue says that the budget recommends that cars of upto 1000 CC see a federal excise duty of 2.5 per cent.

It is further recommended that cars which are more than 2000CC in capacity see a federal excise duty of 7.5pc imposed.

11th Jun, 6:33 PM

Increase in federal excise duty on cigarattes advised

Hammad Azhar announces that the budget recommends a federal excise duty of Rs5,200 on every 10,000 cigarettes be imposed.

11th Jun, 6:32 PM

Duties will be reduced to boost non-traditional exports

  • To boost non-traditional exports like wooden furniture, duties will be reduced
  • To save Pakistan's forests while safeguarding the furniture industry, duty on imported wood will be reduced from 100pc to 3pc
  • Steel duties will also be reduced to 5pc to help razor exporters
  • Duties will also be reduced on several domestic goods, printing and solar panels and chemical industry
  • Hydrocracker plant machinery to also be exempted from duty
  • Medicinal ingredients will be given a 3pc import duty exemption
11th Jun, 6:31 PM

Textile machinery and parts will be exempt from duties

  • Textile machinery and parts will be exempt from duties. Duty will also be lowered on flexible fibers and non-woven materials
  • Paper scrap and pulp will be exempted from custom duty as paper is an important input in the educational sector
  • On different types of paper, duty to be reduced from 20pc to 16pc. This will bring down prices of paper and books, and printing presses will get a boost
11th Jun, 6:31 PM

Sugar tax advised to be increased to 17pc

Sugar prices are likely to go up as it has been recommended that the sales tax, which previously stood at 8.5 per cent, now be increased to 17 per cent.

Sugary drinks will also see an increased tax duty of 13.2 pc versus the previous figure of 11.25 pc.

11th Jun, 6:29 PM

Tax measures

  • Tax to GDP ratio is 12pc right now — among lowest in world. Will be brought to 20pc
  • Agenda for tax reform created that will give macroeconomic stability and help future generations
  • This agenda is part of the government's medium term policy framework
  • The government has been foregoing Rs972.4bn in tax breaks to different sectors
  • Likewise, the present customs duty regime is losing the country Rs20bn in annual revenue
  • Govt giving final shape to a corrective customs tariff that will be implemented phase wise
11th Jun, 6:04 PM

GST to remain unchanged at 17pc

The minister for revenue has announced that the general sales tax on goods will remain unchanged and will stand at 17 per cent for FY2019-20.

Food items supplied to bakeries and restaurants will be taxed at 4.5 pc.

11th Jun, 6:00 PM

Opposition members tear budget copies

Mayhem in the parliament continues despite National Assembly Speaker Asad Qaiser's instructions for opposition members — who have gathered around the speaker's dais — to return to their benches. Some members of the opposition have torn copies of the budget.

11th Jun, 5:55 PM

Budget 2020: Headline figures

Headline figures for Budget 2020

  • Budget outlay to be Rs7,022bn — 30pc higher than last year
  • Federal revenues to be Rs6,717bn — 19pc higher than last year
  • FBR tax target set at Rs5,550bn
  • Tax to GDP ratio to be increased to 12.6pc
  • Rs3,255bn to be disbursed to provinces via the 7th NFC award — 32pc higher than last year
  • Net federal reserves to touch Rs3,462bn, 13pc higher than last year
  • Budget Deficit — Rs3,560bn
  • Provincial surplus budgeted at Rs423bn
  • Total fiscal deficit to clock in at Rs3,137bn — 7.1pc of GDP, compared to 7.2pc of GDP last year
11th Jun, 5:53 PM

Opposition raises ruckus in NA

Opposition members have gathered around treasury benches and are chanting anti-government slogans as Hammad Azhar announces budget in National Assembly. Many are carrying placards saying 'Go Niazi Go' and 'Say no to IMF budget'.

Opposition members carry placards with anti-government slogans during budget session in National Assembly. — DawnNewsTV screengrab
Opposition members carry placards with anti-government slogans during budget session in National Assembly. — DawnNewsTV screengrab

11th Jun, 5:49 PM

Salient features

  • Privatisation of LNG plants to generate $2bn; another $1bn from auction of mobile licenses
  • Campaign to recover Rs80bn in outstanding dues completed successfully over last 6 months; load-shedding reduced from upto 80pc of all meters. Monthly shortfall to be reduced to Rs24bn.
  • Rs152bn to be provided to Fata as part of a 10-year project totaling Rs1tr
  • Strategy being devised to counter money laundering
  • All cabinet members, including prime minister, have agreed to a 10pc cut in salary.
  • Salaries for grades 1 to 16 will be increased 10pc, while salaries for grades 17 to 20 will be increased by 5pc for next fiscal year; no increase in salaries of grade 21, 22 employees
11th Jun, 5:46 PM

Minimum wage increased to Rs17,500

The minimum wage has been increased to Rs17,500, Minister for Revenue Hammad Azhar announces as he presents the budget.

Azhar also announces that federal government employees from Grade 1-16 will see a pay raise of 10 per cent, whereas those from Grade 17-20 will see a pay raise of 5 pc.

Amid thumps of approval, the minister for revenue also declares that the cabinet members will be taking a pay cut of 10 pc in their salaries.

11th Jun, 5:44 PM

Development budget: key features

"Our institutions will be strengthened and 2019-20 will be the year of change," Azhar says. "The govt will avoid taking loans from the SBP to cover shortfalls, while inflation will be targeted to be kept between 5-7pc."

DEVELOPMENT BUDGET:

  • The National Development Programme will have a total size of Rs1,800bn
  • Of this, Rs950bn will be spent by federal
  • Rs70bn on dam projects; Rs15bn and 20bn respectively for Bhasha and Mohmand dam land acquisition
  • Rs55bn for Dasu hydro power project
  • Rs24bn have been earmarked for Havelian Thakot motorway
  • Samrial Kharian motorway to also be constructed
  • Govt has earmarked Rs60bn for human development
  • Higher education will receive Rs45bn
  • Agriculture will receive Rs1.2tr in the federal development budget
  • Rs45.5bn have been set aside for nine projects in Karachi
  • Balochistan development package to get Rs10.4bn and Rs30bn for water projects
11th Jun, 5:43 PM

'Say no to IMF budget': opposition members carry placards

Some opposition members are carrying placards saying "Say no to IMF budget" during the National Assembly session.

11th Jun, 5:43 PM

Creating livelihoods

  • Housing project will provide jobs. Land has been arranged in some cities, while funds are being arranged for others.
  • Rs100bn have been set aside for the 'Sasta Karobar' scheme
  • Rs40bn have been set aside for subsidies for electricity, agricultural development
  • A 5-year programme is being developed with the support of provinces
  • Rs9.3bn have been earmarked for fish farming
  • Electricity to tubewells will be provided at Rs6.85 per unit
11th Jun, 5:37 PM

Increasing taxes our fundamental priority: Hammad Azhar

Minister of State for Revenue Hammad Azhar says that the government's priority for the next fiscal year is to increase the tax revenue, with the target set at Rs5,500bn by the Federal Board of Revenue.

"We will increase our tax net...benami and non registered assets will be brought into the net," he said.

He said that the tax refund system will be improved.

11th Jun, 5:36 PM

Opposition protests for not being provided with budget speech copies

Opposition members protested for not being provided with copies of the budget speech which were distributed later.

PML-N parliamentary leader in the National Assembly Khawaja Asif reads a document during the National Assembly budget session. — DawnNewsTV screengrab
PML-N parliamentary leader in the National Assembly Khawaja Asif reads a document during the National Assembly budget session. — DawnNewsTV screengrab

11th Jun, 5:31 PM

If budget is anti-people, we will protest: Sherry Rehman

PPP leader Sherry Rehman has said that the opposition will attend the National Assembly budget session.

"If the budget is people-friendly, we will listen to it. If it is anti-people, we will protest," she said.

11th Jun, 5:28 PM

PPP Chairperson Bilawal Bhutto Zardari arrives

PPP Chairperson Bilawal Bhutto Zardari has arrived in the National Assembly.

11th Jun, 5:27 PM

PM Imran arrives in NA

Prime Minister Imran Khan in attendance for the budget session in the National Assembly. — DawnNewsTV screengrab
Prime Minister Imran Khan in attendance for the budget session in the National Assembly. — DawnNewsTV screengrab

11th Jun, 5:26 PM

Salient features (continued): Civil and military budgets to see austerity

The government's running expenses will be slashed to Rs437bn from Rs460bn.

The defence budget will be kept static at Rs1.15tr.

"As regards social welfare programs, we are introducing four [main] policies.

"Rs200bn will be allocated to providing power at subsidised rates to low power consumers. One million people will be targeted for ration cards under the government's Ehsas program.

"Eighty thousand people will be given interest free loans under a mother and child nutrition program. Seven hundred thousand disabled persons will be given mobility and functionality aids.

"Under BISP, which has been placed under Ehsas, 5.7m extremely poor households will be given Rs5,000 as income support each month. Rs110bn have been set aside for this."

11th Jun, 5:23 PM

Salient features of the Budget FY2020

Hammad Azhar has delineated the key points for Budget 2020, saying the government's key priorities were public welfare and well being and reducing the external deficit.

The current account deficit will be reduced to 6.5pc in FY19-20.

Exports will be boosted through a revised duty structure.

Power and gas will be cheapened and Free Trade Agreements will be re-evaluated.

Pakistan will be made a part of the international value chain.

"As regards the Federal Bureau of Revenue, taxes will be increased. Our tax to GDP ratio is less than 11pc, the lowest in the neighbourhood. We will need to change our approach to tax payments or we will not be able to progress. We are currently at a point where we need to take loans to pay for past loans and salaries."

11th Jun, 5:23 PM

PML-N leaders arrive in NA wearing black armbands

Leader of the Opposition in the National Assembly Shahbaz Sharif, PML-N parliamentary leader in the National Assembly Khawaja Asif along with some other party members wearing black armbands arrive in the parliament as Hammad Azhar addresses the House.

11th Jun, 5:23 PM

'It was govt's duty to take steps to bring situation under control'

"The immediate steps we took to correct course included increasing the import duty from July to April, due to which imports decreased from $49bn to $35bn and the deficit decreased to $4bn.

"[Thanks to our steps] remittances increased by $2bn and Rs38bn monthly increase in power expenditures was brought down to Rs26bn. To stimulate exports, we issued low-interest loans.

"A $6bn programme with the IMF has been agreed to, and Saudi Arabia has offered deferred oil payments so that there is reduced stressed on our foreign exchange reserves."

"The current account deficit has shrunk by $7bn dollars, and [will shrunk further by] $6.5bn next year. the Fata-KP merger will be given special attention."

11th Jun, 5:16 PM

Opposition no-show as NA session begins

Opposition parties, apart from the MMA, were absent from the National Assembly as budget session got underway, Dawn reported.

11th Jun, 5:12 PM

Hammad Azhar presents budget with overview of economy

"We have a brought a new thought, new commitment and new approach to governance," State Minister of Finance Hammad Azhar says at the start of his speech.

"It is time to lift the people who have been left behind. We are together here at this difficult time. Let us recall the economic situation the government has faced since coming into power."

"Pakistan's total debt has reach Rs31 trillion. We are deeply indebted thanks to high-interest loans. Foreign exchange reserves had dropped below $10 billion. The current account deficit had reached a historic peak of $20bn, while the trade deficit had reached $32bn. The fiscal deficit was more than Rs2.26tr. [These deficits] were attributable to financial mismanagement in an election year."