Planning Ministry has authorised 80% of Development Budget— Aims Full Utilization by June 2025. Federal Minister Ahsan Iqbal
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At the launch of the Monthly Development Update (May 2025), Planning Minister Prof. Ahsan Iqbal informed that out of the PKR 1,100 billion for the development Budget, PKR 900 billion, almost 80%, has already been authorized. The government is now aiming to fully authorise the development budget by the end of FY25.
Prof. Iqbal emphasized the strategic importance of development spending in driving long-term growth. However, he noted the constraints imposed by IMF-mandated fiscal discipline, compounded by historic debt repayments, at one point consuming over 52% of the government's expenditure.
Despite a declining policy rate, Pakistan continues to allocate a significant portion of its revenues to debt servicing. While interest rates are gradually declining, the government continues to spend a substantial portion of its revenues on past debts.
The Minister stressed that without higher tax compliance, the country risks persistent deficits, inflation, and compromised economic stability.
🔹 Pakistan remains among countries with the lowest tax-to-GDP ratios globally.
🔹 The government is focusing on increasing domestic resource mobilization to reduce reliance on external borrowing.
The Minister also underscored that paying taxes is not merely a financial obligation but a national responsibility. He urged every eligible citizen, across all sectors, to contribute their due share, stating that sustainable development and economic resilience depend on collective civic duty.
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