Finance Bill 2024, a plan to raise the retirement age for civil servants, members of the armed forces, and public sector employees, was shelved by the federal government.
A national newspaper said that while there is no longer much chance of raising the retirement age for government employees from 60 to 62/63, suggestions for pension reform that would alter pension payout terms are still being considered.
The administration also intends to persuade the provinces to contribute to the cost of social protection programs such as the Benazir Income Support Programme (BISP) and to eliminate several ministries. The conclusions of a powerful committee headed by Finance Minister Muhammad Aurangzeb’s work on suggestions to rein in public spending are anticipated to be released on or around August 14.
The Public Sector Development Program (PSDP) would continue to be funded at a total of Rs. 1,500 billion, despite a reduction in the development budget of Rs. 250 billion announced by the finance minister.
A Rs. 1,500 billion PSDP was approved by the National Economic Council (NEC), of which Rs. 1,400 billion came from budgetary resources and Rs. 100 billion came from public-private partnerships (PPPs). While the PPP component climbed to Rs. 350 billion, the budgetary resources portion was decreased to Rs. 1,150 billion.
The International Monetary Fund (IMF) is being asked for permission by the government to make modifications to the Finance Bill 2024. Among these adjustments are the reinstatement of a fixed tax system for exporters, respite for hybrid cars, GST on stationary,
