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Rs722.48b set aside for BISP, Rs10.23b for Poverty Alleviation Division

Rs722.48b set aside for BISP, Rs10.23b for Poverty Alleviation Division

Express Tribune2 days ago

A woman shares her ordeal of illegal deduction from BISP allocations allegedly by officials at a government school in New Karachi. Photo: Express
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The government on Tuesday unveiled the budget for the fiscal year 2025–26, outlining allocations for social protection and governance institutions.
According to official budget documents, the Benazir Income Support Programme (BISP) is set to receive Rs722.48 billion, reflecting the government's continued emphasis on poverty alleviation.
An additional Rs10.23 billion is proposed for the Poverty Alleviation Division, while Rs14.20 billion has been set aside for Pakistan Baitul Mal.
The Ministry of Interior and its subordinate departments will receive Rs343.89 billion, including Rs21.26 billion for the Islamabad Capital Territory (ICT) and Rs274.15 billion for the Combined Civil Armed Forces. The Intelligence Bureau (IB) is set to get Rs19.12 billion, while Rs1.05 billion has been earmarked for NACTA.
Also Read: Finance minister unveils anti-digital, pro-realty sector budget
For the Ministry of Law and Justice, Rs23.42 billion has been proposed. The Supreme Court will receive Rs6.64 billion, and the Islamabad High Court Rs2.17 billion. The Election Commission of Pakistan has been allocated Rs9.86 billion.
Parliamentary institutions are also receiving significant allocations:
• National Assembly: Rs16.29 billion
• Senate: Rs9.05 billion
• MNAs: Rs5.08 billion for salaries and perks
• Parliamentarians' travel expenses: Rs2.50 billion
• Chairpersons of Standing Committees: Rs1.24 billion
• Speaker and Deputy Speaker: Rs393.4 million
• Leader of the Opposition and staff: Rs83.4 million
• Senators' salaries and perks: Rs1.0638 billion
• Chairman and Deputy Chairman Senate and their staff: Rs189.6 million
• Senate Standing Committees' Chairpersons: Rs1.44 billion
The Prime Minister's Office has been allocated Rs896.5 million, marking an increase of Rs1.795 billion from the previous year. The Prime Minister's Office (Internal) will receive Rs857.7 million, up by Rs1.245 billion.
The Prime Minister's Office expenditures are listed at Rs303.5 million, while Rs2.5 billion has been set aside for the President's House, including Rs933.7 million for public office expenses and Rs1.75 billion for personal staff and allowances.
Read More: Defence budget hiked by 20.2% to Rs2,550b
The National Accountability Bureau (NAB) will receive Rs7.41 billion, while the Judicial Commission of Pakistan and the Supreme Judicial Council are allocated Rs500 million and Rs140 million, respectively.
The Railways Division is proposed to receive Rs70.45 billion, underlining the government's focus on infrastructure and connectivity.
(With additional reporting by Razia Khan and Amna Ali)

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Govt hints at Rs500b mini-budget
Govt hints at Rs500b mini-budget

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Govt hints at Rs500b mini-budget

Listen to article Finance Minister Muhammad Aurangzeb on Wednesday cautioned that the government may be compelled to impose up to Rs500 billion worth more new taxes if the National Assembly did not allow it to ban economic transactions by ineligible persons. The minister also made a paradoxical comment where he defended the decision to keep the minimum monthly wage unchanged at Rs37,000 but advocated an annual increase in salaries of the parliamentarians to adjust for the impact of inflation. The warning about a mini-budget before the approval of the new budget came just a day after the finance minister proposed roughly Rs432 billion worth of new taxes, which targeted the digital economy, solar panels, middlemen's cars and fuel, including that used in agriculture. He made the remarks during a post-budget press conference where he expanded upon the federal budget proposed for the new fiscal year. If the law to ban economic transactions is not passed and the enforcement measures are not implemented, we will have to impose Rs400 billion to Rs500 billion worth of new taxes, repeated by the finance minister twice to register his point. "We have two ways — either we ensure enforcement or we introduce additional measures of up to Rs400 billion to Rs500 billion. This is why we will go to the parliament to help us out with the enabling amendments and legislation", he added. He said that the International Monetary Fund has accepted the government's point of view that it can get Rs389 billion additional in the next fiscal year through enforcement measures, which is not possible without new legislation. Transactions to be banned In the budget, the government has proposed restrictions on economic transactions by ineligible persons lacking sufficient financial resources. These restrictions include: a ban on booking, purchasing, or registering motor vehicles; a ban on registering, recording, or attesting the transfer of immovable property; a ban on selling securities — including debt securities or mutual fund units — to ineligible persons; and a ban on opening or maintaining current, savings, or investor portfolio securities accounts. Only individuals holding 130% of the value in cash and equivalent assets — comprising local or foreign currency, fair market value of gold, net realisable value of stocks, bonds, receivables, or any other cash-equivalent asset — will be eligible to buy such assets. Rs37,000 minimum wage appropriate In a surprising statement, the finance minister defended the decision to freeze the minimum wage at Rs37,000 per month — or Rs1,423 per day, excluding holidays. "Go to the industries and get their feedback on the minimum wage. I think we are in a good place," said Aurangzeb. However, he also defended the substantial hike in salaries of the Senate chairman and deputy chairman, and the National Assembly speaker and deputy speaker, raised sixfold to Rs1.3 million per month. He said their salaries were being adjusted after nine years. Like the annual increment in government employee salaries, parliamentarians' pay should also increase, he recommended. Media protests for its rights At the outset of the press conference, reporters voiced concerns over not receiving a technical briefing from the Federal Board of Revenue (FBR) on the Finance Bill 2025 on Tuesday. They walked out in protest and returned only after Information Minister Attaullah Tarar and FBR Chairman Rashid Langrial acknowledged that such a briefing should have been given as per tradition. Finance Minister Aurangzeb later acknowledged the "worry" caused to reporters and said he "regretted if there was anything of the sort". Cash on delivery disparity The government's move to charge 2% tax on online shopping up to Rs20,000 — while charging only 0.25% for purchases exceeding that amount — is likely to further encourage cash-on-delivery for high-value transactions. Dr Najeeb, FBR Member Policy, explained that while the value of goods in such transactions is high, the profit margins are low, hence the proposed lower tax rate of 0.25%. Under the proposed rates, tax on a Rs20,000 transaction will amount to Rs400, but for Rs21,000 it will drop to Rs52. Dr Najeeb noted that grocery items have lower margins but are taxed at higher rates than electrical goods. "We did not follow previous policies where everyone suffered under the same category," he added. Pakistan's East Asia moment Finance Minister Aurangzeb asserted that reducing import duties would move Pakistan toward an export-led economy. He emphasised the significance of tariff reforms under the National Tariff Policy. 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Responding to a question about delinking population statistics from the National Finance Commission (NFC) award, Aurangzeb insisted, "Everything will be done in consultation with provinces." Earlier this week, the finance minister had said that the population should be delinked from the NFC formula to address 2.6% annual population growth. "Nothing will be done without the provinces, including the national fiscal pact," he added. To a question about the impact of reducing the income tax surcharge by 1%, which still leaves it at 9%, on brain drain, Aurangzeb said the government had set a rare direction, one indicating that "anything going up is, within a year, going down". "The things that had never been reversed before have now been put into reversal - but that's not the eventual end state," he said. He clarified that the government is trying to send a message to sectors facing undue burden, particularly the formal sector, that it is "serious". "This is just signalling, from my perspective, in the right direction," he said. When asked about the rationale for imposing an 18% sales tax on imported solar panels, FBR Chairman Rashid Langrial explained that panels were being imported either fully or partially assembled. Those adding value locally were already taxed at 18%, while fully assembled imports were not, putting local assemblers at a disadvantage. "We also closed the door for future local assembly, so this was not an option. We have to create a level playing field," Langrial said, asserting that incentives were no longer needed, given the falling cost of technology. He estimated that the 18% tax on solar panel imports would increase the payback period by only two months, from 18 to 20 months. Eurobond repayments On bond repayments, the finance minister said the first instalment of $500 million worth of Eurobonds is due in September, followed by the next in March. "We are prepared and willing to pay," he said. 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Poverty spike
Poverty spike

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time9 hours ago

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Poverty spike

Listen to article The World Bank's recalibration of global poverty lines has cast a harsh spotlight on Pakistan, estimating that 44.7% of the population, or over 107 million people, live below the lower-middle-income threshold of $4.20/day. Extreme poverty has surged to 16.5% under the revised $3/day line. While blind nationalists may deflect by blaming the worsening statistic on updated benchmarks and revised global calculations, the truth is that the numbers are actually an understatement. The 44.7% figure relies on outdated survey data from 2018-19, before the catastrophic impact of events such as the Covid-19 pandemic, record inflation and economic disarray for the past few years and the 2022 super-floods that submerged a third of the country and displaced millions. You need not be an economist to recognise that, in light of these events, the actual current poverty rate based on the World Bank's metrics is much higher. And even this outdated data tells a story that is relevant today. The restive province of Balochistan, for example, had a poverty rate of almost 70%. Pakistan has also been one of the world's worst performers in combating poverty. India managed to shrink its extreme poverty rate from over 16% in 2012-2013 to under 6% in 2022-2023, despite the increase in the nominal dollar value. Pakistan, on the other hand, saw at least 27 million more people falling under the poverty line. The first step to addressing the problem is getting more reliable data, so that the picture, no matter how brutal, is more accurate. The next step is transformative action, rather than theatrics and name-calling to divert blame for a national failure onto any one party. One of the best ways to address extreme poverty is by strengthening social services, including through cash transfers via BISP, and bolstering human capital via investment in health, nutrition and education. Tax policy reforms are also critical because a social safety net is pointless if it is financed through indirect taxes that squeeze the working poor, rather than the millionaires and billionaires who don't pay their fair share.

Proposed Finance bill moved in Senate
Proposed Finance bill moved in Senate

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ISLAMABAD: Finance Minister Muhammad Aurangzeb, Tuesday, moved a copy of the proposed federal budget in the Senate amidst strong protest by the opposition that dismissed the legislative draft as 'anti-poor.' In the brief Senate sitting, the finance minister laid a copy of the proposed Finance Bill 2025, shortly after presenting it in the National Assembly, in the Senate, in accordance with the relevant constitutional provisions, following which, Chairman Senate Yousaf Raza Gilani directed the senators to share their recommendations, if any, on the bill, latest by Thursday, 12 June, 5 pm. The chairman then referred the bill to the Senate Standing Committee on Finance and Revenue with the direction to finalise its recommendations on the bill by Friday, 13 June. Amidst continued sloganeering against the proposed federal budget, the chairman Senate adjourned the House till Friday. The Upper House of the Parliament can hold extensive debate on the finance bill and devise recommendations accordingly, but it has no significant role in budgetary legislation, since it is completely up to the National Assembly to either completely or partially accept those recommendations or reject them, partially or completely. Article 73 of the Constitution of Pakistan, which deals with parliamentary business with respect to money bills, reads a money bill shall 'originate in the National Assembly: Provided that simultaneously when a money bill, including the finance bill containing the annual budget statement, is presented in the National Assembly, a copy thereof shall be transmitted to the Senate which may, within 14 days, make recommendations thereon to the National Assembly.' Copyright Business Recorder, 2025

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