The Business and Finance Weekly: Budget FY24 and Business Community Reactions
The recently announced budget for fiscal year 2024 has sparked mixed reactions from the business community in Pakistan. The government, facing pressure to manage the country within means and contain the fiscal deficit as desired by the International Monetary Fund (IMF), has opted to mobilize higher revenues rather than reduce the budget size. This decision has led to a 25% increase in the budget size, totaling Rs18.8 trillion, with a revenue target of Rs12.9 trillion, a 46% increase from the previous year.
However, the business community has expressed concerns over the proposed taxation measures, deeming them unfair and potentially harmful to businesses. Despite government claims of engagement with industry leaders, the community fears that the measures may paralyze businesses and hinder economic growth. Key figures in the community have voiced their opposition through various platforms, media campaigns, and threatened protests if their demands are not met.
Former finance minister Miftah Ismail and industry leaders like Ehsan Malik and Abdul Aleem have highlighted the need for dialogue and reforms to avoid negative implications on foreign direct investment and economic growth. As stakeholders navigate the complexities of the budget, the business community remains hopeful for constructive engagement with the government to address their concerns.
