Here Are 13 Of The Biggest Ways The New Budget Will Affect You, An Average Pakistani

By Noor | 12 Jun, 2019

The progress towards an economically stable state is contingent on strong budget decisions. Budgeting on a national level helps to effectively utilize the available resources which eventually enable the country to meet the financial objectives for a certain period of time. It also controls the income via directing the expenditures. While the latest budget is controversial, it is also the only option we have… for now.

So, the budget for the year 2019 was just announced by the PTI government and here are all the main pointers you should definitely know:


1. The minimum salary has been increased to PKR/- 17,500

The amount of minimum wage has been increased from PKR/- 16,500 to 17,500.

Source: @dawn_com/Twitter


2. A 10% increase in the salary of all the government employees from grade 1 to 17 has been announced

There is a 10% increase and a 5 % increase in the salaries of the workers from grade 1 to 16 and grade 17 to 20 respectively. No increase in salary has been granted to the ones from grade 21 and 22.


3. The salaries of all the cabinet members including PM have been cut by 10 %

Source: Success Stories/YouTube


4. Minimum taxable salary in Pakistan is now going to be PKR/- 50,000 or PKR/- 600,000 per annum

Increasing the tax rate on the salaried class is the easiest way to generate more tax revenue and this is what the PTI government is doing, burdening the salaried class.

Source: @shahrookhh/Twitter


5. Goods and services tax is going to remain 17% which is the same as it was in the PML-N tenure



6. An increased tax duty of 13.2 % has been levied on the sugary drinks

The previous figure of the tax duty was 11.25%.

Source Sajuma/ Flickr


7. Sales tax on sugar has been increased from 8% to 17%

8. The defense budget of the country will remain unchanged

Basically, the officials serving in the military voluntarily refused to accept the annual increases thus the budget allocation for defense remains unchanged.

Source: @dawn_com/Twitter


9. Higher Education Commission has been allocated an amount of over Rs 28,646 million for the ongoing and new schemes



10. PKR/- 70 billion has been allocated for water reservoirs

Considering the threat of water scarcity in the region, conservation of water via suitable methods is being proposed.



11. PKR/- 40 billion subsidies will be provided on gas and electricity

12. Withdrawal of 3% value-added tax on petroleum products and mobile phones has been announced

13. Federal excise duty on vehicles is announced too

So, 5.2 percent federal excise duty on 1000 CC locally developed vehicles and 5 percent federal excise duty on the 1001 to 2000 CC locally developed vehicles has been levied.


So, what are your thoughts regarding the new budget? Let us know in the comments below.


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