Latest news with #Rs1.6trn
Business Recorder
22-05-2025
- Business
- Business Recorder
PSDP budget proposals against indicative ceiling reviewed
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal Wednesday chaired a meeting to review PSDP Budget proposals against the Indicative Budget Ceiling Rs1,000 billion allocated to federal ministries and divisions for FY 2025-26 by Finance Ministry. During the meeting, the minister stressed the importance of effective prioritisation in budget allocation in light of the reduction in PSDP budget size for the next year, directing ministries to focus on most critical projects and projects in advanced stages for completion. He said this while emphasising the need to follow Finance Division's indication of Rs1,000 billion for next financial year PSDP as compared to ministries demand of Rs3,000 billion and Planning Ministry's demand of a minimum of Rs1,600 billion. Ministry seeks Rs1.6trn PSDP: FY26 budget on June 2 During the meeting, which was attended by secretaries and senior officers of federal ministries and divisions, the minister emphasised that ministries should ensure full utilisation of funds in the ending year for faster completion of projects, and new projects should be prioritised in order of their significance to national development agenda, URAAN Pakistan. 'With a shrinking development budget, it is now more important to prioritise effectively and save every penny released by Planning Ministry from being misused.' During the meeting, the minister also hinted at the current challenges faced by Pakistan's masses, stressing on the ongoing water shortage as an urgent problem that needs to be solved with foremost priority. He underscored the importance of completing the Diamer-Bhasha Dam project within the stipulated time to fulfil the water security needs of the country. Calling it a vital project for Pakistan's economic growth, water management, and energy security, the minister said that it will not only contribute significantly to Pakistan's water reservoir capacity but also help mitigate flood risks and ensure a steady water supply for irrigation and domestic use. Directing officials from Water Resources Division to prioritise early completion of the Diamer Bhasha Dam, he said that its construction will play a transformative role in Pakistan's long-term development and sustainability as it will generate 4,500 megawatts of electricity. Furthermore, the minister directed officials from all ministries to prepare a list of important and critical projects which risk suffering at the cost of reduction in development budget. Copyright Business Recorder, 2025
Business Recorder
10-05-2025
- Business
- Business Recorder
Federal budget 2025-26: Cut in taxation rates for salaried people likely
ISLAMABAD: The revenue impact of the taxation measures to be taken in the coming budget 2025-26 would be neutralised through tax relief measures including at least 2.5 percent reduction in income tax slabs for salaried individuals and reduction in withholding tax rates and corporate income tax rate. Sources told Business Recorder here on Friday that if the government proposes taxation measures of Rs500-600 billion, the net impact of the revenue measures should be minimised through tax relief measures. The government will try to cover the revenue impact of the taxation measures with the relief measures in the coming budget. Ministry seeks Rs1.6trn PSDP: FY26 budget on June 2 However, the government is also exploring other avenues to overcome shortfall as a result of relief to salaried class etc. 'If revenue measures are with the tax relief measures, there might be zero net revenue impact of overall measures for next fiscal year,' the official quoted an example. Sources said that the revenue collection from the salaried class is much high as compared to projected revenue during the outgoing fiscal year. Therefore, the government is committed to reduce tax by 2.5 percent in each higher slab of salaried individuals. In this regard, working is underway. Another proposal is to reduce corporate tax rate as well as 'Super Tax' in the upcoming budget. The proposal is to raise the income tax exemption threshold from Rs0.6 million up to Rs1 million under the Income Tax Ordinance, 2001. This is a relief measure for the general public to considerably enhance exemption threshold of income tax, the sources added. Copyright Business Recorder, 2025
