Development Budget Approved 2024

Hi everyone! I hope you are all doing well. Welcome back to another blog. This article will discuss the topic in detail “Development Budget Approved 2024”. On Friday, Ahsan Iqbal, the Minister for Planning, Development, and Special Initiatives, announced that the government has given its approval to a development budget of Rs. 1,100 billion for the next fiscal year. The main objective of this budget is to accomplish the necessary economic growth targets.

During a press conference in Islamabad, he announced that Rs. 950 billion will be allocated for the Public Sector Development Programme (PSDP 2023-24), while Rs. 150 billion will be used for public-private partnership initiatives to implement various development projects.

At first, he stated that the Finance Ministry had suggested a meager Rs. 700 billion for the PSDP 2023-24, which was highly inadequate. “We sent a letter to Prime Minister Shehbaz Sharif, urging for a boost in the development budget to stimulate economic growth. As a result, the Prime Minister has granted approval for a sum of Rs. 1,100 billion to be allocated towards the development budget.”

GDP Target for FY24 Set at 3.5%

The Annual Plan Coordination Committee (APCC) has established a growth objective of 3.5 percent for the upcoming fiscal year concerning the gross domestic product (GDP). They shared details of their targets for the upcoming year.

According to the upcoming Annual Development Plan, the government aims to decrease the inflation rate from 29.2 percent to 21 percent. They also plan to increase national savings from 12.5 percent to 13.4 percent and raise exports to over $30 billion, compared to this year’s projected $28 billion. Additionally, imports are expected to reach $58.7 billion in the next year. The government intends to reduce the trade deficit from its current level of 1.1 percent to -1.7 percent.

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The Chief Economist informed the participants about the economic performance in FY23 and growth expectations for FY24. He mentioned that FY23 experienced limited economic growth due to high inflation caused by external factors, floods, and import control measures. He emphasized the notable progress in fiscal and current account balances, which he considered a positive indication of the economic recovery in FY24.

The Chief Economist provided an economic forecast for FY24. He mentioned that there will be a balanced adjustment between economic growth, current account balance, and fiscal account balance. However, he expressed concerns about a worldwide economic slowdown, higher interest rates in developed nations, and rising commodity prices, which might impede the country’s economic objectives.


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