KARACHI:
Sindh Chief Minister Murad Ali Shah is slated to present the province’s
budget for fiscal year 2024-2025 on June 14, Geo News reported
quoting sources.

According
to the sources, in its upcoming budget for the next fiscal year, the provincial
government will propose at least 10% to 15% increase in the salary of Sindh’s
government employees.No money, they added, will be allocated for new
development schemes in Sindh’s budget and that funds for development projects
will be released for ongoing projects.

The
federal government, on the other hand, will unveil the upcoming budget for the
next financial year, 2024-2025, today.As per analysts, the budget sets
ambitious fiscal targets as it looks to strengthen the case for a new bailout
deal with the International Monetary Fund (IMF), Reuters reported.

The
budget comes a day after the government said economic growth of 2.4% expected
in the current year would miss a target of 3.5%, although revenues were up 30%
over last year, and the fiscal and current account deficits were under control.

Pakistan
is in talks with the IMF for a loan estimated to range from $6 billion to $8
billion, as it seeks to avert a default for an economy growing at the slowest
pace in the region.But a recent economic uptick, following stabilisation
measures and falling inflation, as well as Monday’s interest rate cut by the
central bank, has made the government optimistic about prospects for growth.

The
key policy rate could fall further this year and economic growth would continue
to rise, Finance Minister Muhammad Aurangzeb, set to present his first budget,
told reporters.

Markets
will watch the budget for a target for proceeds from privatisation, as Pakistan
looks to make its first major sale in nearly two decades with the disposal of a
stake in its national airline, kicking off a series of such moves.

But
concerns remain about the government’s ability to pursue reform, since it is
vulnerable to the quirks of coalition politics in the face of rising public
pressure against inflationary reform measures.

Tapping
under-taxed sectors such as agriculture and retail for additional revenues
would prompt protests by farmers and small traders.