The federal government has proposed significant tax relaxations on importing raw materials for solar panels and the aquaculture industry as part of the fiscal year 2024-25 budget. Finance Minister Muhammad Aurangzeb announced during his budget speech in the National Assembly on Wednesday.
To boost local manufacturing of solar panels, the government has decided to provide tax exemptions on the import of plants, machinery, raw materials, and parts used in the production of solar panels, inverters, and batteries.
Similarly, to support the growth of the aquaculture industry, the government has proposed tax relaxations on the import of feed and seed for fish and lobster farming. The finance minister also highlighted additional tax incentives for the import of farming, breeding, feed mill, and processing units specific to the aquaculture sector. These initiatives are designed to enhance the productivity and competitiveness of Pakistan’s aquaculture industry, contributing to food security and economic growth.
The federal government has set an ambitious tax revenue target of Rs. 13 trillion ($46.66 billion) for the fiscal year starting July 1, representing a nearly 40% increase from the current year. This target is part of the national budget’s strategy to secure a new bailout deal with the International Monetary Fund (IMF).
Key objectives outlined in the budget document include reducing the public debt-to-GDP ratio to sustainable levels and improving Pakistan’s balance of payments position. The budget also projects a significant reduction in the fiscal deficit for the upcoming financial year to 5.9% of GDP, down from the revised estimate of 7.4% for the current year.
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