The budget document summarizes the Pakistan national budget for 2017-2018. It outlines key figures such as the total budget amount of Rs. 4.75 trillion and development expenditures of Rs. 1,340.1 billion. Major allocations include Rs. 1,001 billion for the Federal PSDP, with largest allocations to infrastructure, transport, and energy sectors. The budget aims to achieve economic growth targets including 6% GDP growth and reducing the fiscal deficit and poverty rate.

2. Budget 2017-18
Pakistan

3. Prof. Faisal Javaid
Instructor of Principles of Macro-economics
Presented to:

4. Aasia Afzal
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Presented by:

5. Introduction
Budget 2017-18
• A summary of intended expenditures along with proposals for how to meet them.
• The National Economic Council (NEC) in its meeting held on 19th May, 2017
approved national development outlay for 2017-18 at Rs. 2,113 billion, including
provisional ADPs at Rs. 1,112 billion.
• The budget 2017-18 is an opportunity to capitalize on the newfound economic
growth and step up the efforts towards structural reforms.
• The size of Federal PSDP for 2017-18 is set at Rs. 1,001 billion including foreign
assistance of Rs. 162 billion.
• For the first time in the history of Pakistan, the development outlay of both the
Federal Government as well as provinces has crossed Rs. 1000 billion mark.
• It is widely acknowledged that Pakistan has immense economic potential.

6. Economic performance
2016-17 vs. 2012-13
• GDP growth registered an increase of 5.28%
compared to 3.7%.This is the highest in the last ten
years and above the world average of 3.5%.
• Federal development spending is budgeted at Rs.
1,001 billion – an increase of over three times from
Rs. 324 billion
• Per Capita Income has increased to $1,629 from
$1,334, showing that economic growth has picked
up pace considerably
• Inflation has remained moderate around 4% as
compared to 7.4%.
• FBR Revenues was Rs. 1,946 billion And tax to GDP
was 10.1%
• Fiscal deficit was in 8.2% and now its 4.2%
• Foreign exchange reserves was $6.3 billion
• Exchange Rate, which had depreciated to Rs.109/$
in December 2013 has now stabilized at Rs.105/$.
• On 3th June, interbank dollar rate was Rs. 99.66
(9.5%) which becomes Rs. 111 after few months and
in December 2014, the rate was Rs. 104.80

7. Estimations
for 2017-18
• Budget Rs 4.75 trillion
• The net revenue receipts Rs 2.92 trillion
• The provincial share in federal taxes Rs 2.38 trillion
• The net capital receipts Rs 552.5 billion
• The external receipts Rs 837.8 billion
• The overall expenditure Rs 5,103.8 billion, out of which the
current expenditure is Rs 3,763.7 billion and development
expenditure is Rs 1,340.1 billion.
• The expenditure on General Public Services Rs 2,553.6 billion
which is 67.8% of the current expenditure.
• The development expenditure outside PSDP Rs 152.2 billion
• The size of Public Sector Development Programme (PSDP) Rs
2,113 billion. Out of this, Rs 1,112 billion has been allocated to
provinces.
• To meet expenditure, bank borrowing has been estimated for
2017-18 at Rs 390.1 billion, which is significantly lower than
revised estimates of 2016-17.
• FBR tax collection Rs. 3,521 billion and the tax to GDP is
expected to 13.2%

8. • Federal PSDP has been estimated at Rs 1,001 billion, which is divided as following:
o Rs 380.6 billion for Corporations
o Rs 30 billion for Prime Minister’s SDGs ( Sustainable Development Goals) Achievement Programme
o Rs 40 billion for Special Federal Development Programme
o Rs 12.5 billion for Energy for All
o Rs 12.5 billion for Clean Drinking Water for All
o Rs 7.5 billion for Earthquake Reconstruction and Rehabilitation Authority (ERRA)
o Rs 5 billion for Special Provision for Competition of CPEC Projects
o Rs 45 billion for Relief and Rehabilitation of lOPs
o Rs 45 billion for Security Enhancement
o Rs 20 billion for Prime Minister’s Initiative (PM Youth Program)
o Rs 25 billion for Gas Infrastructure Development
o Rs. 2.96 billion for Education system
o Rs. 35.66 billion for Higher Education
o Rs. 42.9 billion for Railways Infrastructure
Estimations
for 2017-18
(cont.)

9. PSDP
Public Sector Development Programme
2017-18
• The majority of the Rs. 1,001 billion Federal PSDP has been allocated for roads and
communications, infrastructure and energy. Infrastructure has been allocated 67% of the
development outlay.
• The transport and communication sector has been allocated Rs. 411 billion, including Rs.
320 billion for national highways, Rs. 43 billion for railways and Rs. 44 billion for other
projects including aviation schemes.

12. • agriculture sector 3.46%
• Industrial production 5.02%
• Services sector 5.98%
• Income of each Pakistani has increased by 22% since fiscal year 2012-13. Per capita income today
stands at $1,629 as compared to $1,334 four years ago.
• Inflation – 12% (2008-13) and expected to be around 4.3%
• Fiscal deficit reduced from 8.2% to the current year’s 4.2%
• FBR Revenues was Rs.1,946 billion and targeted now Rs.3,521 billion
• The tax collection increased 81% in the last 4 years with average annual growth of 20%
• Imports $37.8 billion
• Exports $20 billion (1.28% decrease instead of 7.8% in 10 months)
• Foreign Exchange reserve $16 billion
• State bank policy rate is now 5.75%
Growth Rate
2017-18

13. BudgetTarget andVisions
2017-18
• Real GDP Growth of 6%
• Economic growth at above 7%
• Sustainable economic environment
• Poverty alleviation (current 29% to less than 10%)
• Investment to GDP ratio of 17%
• Inflation below 6%
• Energy, Food andWater Security
• Export competitiveness (around 12%GDP ratio)
• CPEC (regional activity)
• Regional disparity
• Budget deficit at 4.1% of theGDP
• Tax to GDP ratio at 13.7%
• Development expenditure of Rs. 2.1 trillion
• Foreign Exchange Reserves level to cover a
minimum of 4 months’ imports
• Net Public Debt to GDP ratio below 60%
• Elimination of load shedding by addition of 10,000
MW of electricity to the National Grid by Summer
2018.
• FBR revenues are targeted to increase by 14% while
the Federal expenditures will grow by 11%

14. • 10% adhoc relief allowance ( civil & armed forces
employees)
• 10% increase in pensions
• BPS-5 employees exempted from house rent 5%
• Daily allowance - domestic - is being increased by
60%
• Orderly allowance is being revised from Rs.12,000
to Rs.14,000
• Transportation dead bodies (Rs. 5,000 to Rs. 15,000)
• Constant attendant allowance (Rs. 3,000 to Rs.
7,000)
• withholding tax on cars of engine capacity up to 850
CC is reduced from Rs. 10,000 to Rs. 7,500, on 851
CC to 1,000 CC from Rs. 20,000 to Rs. 15,000 and on
between 1001 CC to 1300 CC from Rs. 30,000 to
25,000.
• No change for non filers in withholding tax
• No cancelation of license for Non-
Profit Organization (NPO) if failed to spend 75% of
their earning on social work. 10% tax charged on
the surplus revenue. NOPs must reduce
administrative expenses to 15%
Relief Measures &Taxation
Budget 2017-18

15. • Poor people will be granted Rs 50,000 for conducting
business
• New IT companies would be given a tax break for up to
three years. I.T soft park to be established with cost of Rs.
6 Billion with help of South Korea
• MinWage (Rs. 14,000 to Rs. 15,000) per month.
• Rs 121 billion have been allocated for Benazir Income
Support Program
• Rs 920 billion have been allocated for defence
• 2 percent quote for jobs of the children of government
institutions has been recommended
• Custom duty on Smart phones is reduced from Rs. 1,000 to
Rs. 650
• Excise duty on Mobile phones is reduced from 18.5% to
17% and withholding tax is reduced from 14% to 12.5%.
• Dividend form Mutual Funds increased from 10% to 12%
• Tax on Machinery of poultry business to be reduced to 7%.
SalesTax on Poultry machinery reduced from 17% to 7%
• SalesTax on steel sector electricity increased from Rs. 9 to
Rs. 10.5
Relief Measures &Taxation
Budget 2017-18
(cont.)