In the proposed fiscal year 2024-25 budget, the federal government has unveiled substantial tax relaxations concerning the importation of raw materials for both the solar panel and aquaculture industries. Finance Minister Muhammad Aurangzeb announced these measures during his budget speech in the National Assembly on Wednesday.
To bolster domestic manufacturing of solar panels, the government plans to offer tax exemptions on the importation of machinery, equipment, raw materials, and components essential for producing solar panels, inverters, and batteries.
Likewise, in a bid to foster the expansion of the aquaculture sector, the government has suggested tax relief on the importation of feed and seed for fish and lobster farming. Additionally, the finance minister underscored further tax incentives for importing farming, breeding, feed mill, and processing units specifically tailored for the aquaculture industry. These initiatives aim to enhance productivity and competitiveness within Pakistan’s aquaculture sector, thereby bolstering food security and economic growth.
In pursuit of a new bailout agreement with the International Monetary Fund (IMF), the federal government has set an ambitious tax revenue target of 13 trillion rupees ($46.66 billion) for the upcoming fiscal year, marking a nearly 40% increase from the current year. This target forms a crucial component of the national budget’s strategy.
Key objectives outlined in the budget blueprint include reducing the public debt-to-GDP ratio to sustainable levels and improving Pakistan’s balance of payments position. Additionally, the budget forecasts a notable reduction in the fiscal deficit for the forthcoming financial year to 5.9% of GDP, down from the revised estimate of 7.4% for the current year.
