Budget 2024-25: Pakistan is planning about increasing taxes on imported mobile phones in its federal budget for the fiscal year 2024-25.
Sources from the Federal Board of Revenue (FBR) have shared this information, suggesting there might be higher Pakistan Telecommunication Authority (PTA) fees, Federal Excise Duty, and Goods and Services Tax (GST) on these imported phones.
Despite proposals for additional GST, challenges arise due to the existing 25% GST structure. With the coalition government set to unveil fiscal targets in the budget presentation, analysts speculate a budget aimed at strengthening Pakistan’s position for a new bailout deal with the International Monetary Fund (IMF).
Pakistan’s economy is in a weak state, and the country is negotiating a loan of $6 billion to $8 billion from the IMF to avoid economic collapse. Last year, Pakistan avoided default by getting a short-term $3 billion bailout from the IMF, but this led to lower growth, less industrial activity, and high inflation.
Next year, the growth target is expected to increase to 3.6%, up from 2% this year. Prime Minister Shehbaz Sharif has promised to make changes since he was elected, but there are still big problems with high prices, unemployment, and few job opportunities.
The government has made a detailed plan for the next five years from 2024 to 2029. It covers many areas like the economy, energy, budget, farming, and improving how the country is run. This plan will likely be approved soon, showing that Pakistan is taking steps to tackle its economic issues.
