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Qanoon Digest

Annual Budget Statement

The Annual Budget Statement is part of the federal budget for FY 2023-24. This page reproduces the text of its 55 PDF pages, extracted automatically from the official PDF published by the Finance Division, Government of Pakistan.

This text was extracted automatically from the PDF's text layer. Tables may lose their column alignment, and a page with no text layer is marked rather than guessed. Check the official PDF before relying on any figure.

Page 1

FEDERAL BUDGET
2 0 2 3   - 2 4

   ANNUAL
   BUDGET
 STATEMENT

     GOVERNMENT OF PAKISTAN
          FINANCE DIVISION
           ISLAMABAD

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                 PREFACE

              Article 80 of the Constitution of Islamic Republic of Pakistan 1973 pertains
to the Annual Budget Statement. The statement containing estimated  receipts and
expenditure is to be laid before the National Assembly of Pakistan for financial year
2023-24 in terms of Article 80(1) and transmitted to the Senate of Pakistan as required
under Article 73(1). Article 80(2) of the Constitution obligates that the statement shows
separately the charged expenditures and other expenditures to be made from the Federal
Consolidated Fund.  It also distinguishes expenditure on revenue account from other
expenditure.

             Section 4 of the Public Finance Management Act, 2019 states that the
Annual Budget Statement shall include statement of the purpose, statement of contingent
liabilities of the Federal Government and statement of  fiscal  risk. A statement of
estimated tax expenditure of the Federal Government is also part of Annual Budget
Statement in terms of Section 8 of the Public Financial Management Act, 2019. Sections
5 and 10 of the Fiscal Responsibility and Debt Limitation Act, 2005 require a Medium-
Term Budgetary Statement and Statements of Responsibility to be laid before National
Assembly. All these statements have been made part of the Annual Budget Statement for
Financial Year 2023-24.

                   It is further added that Explanatory Memorandum of Federal Receipts and
Demands for Grants and Appropriation constitute explanatory part of Annual Budget
Statement for FY 2023-24.

                                IMDAD ULLAH BOSAL
                                               Secretary to the Government of Pakistan

Finance Division,
Islamabad, the 09th June, 2023

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CONTENTS                                          PAGE

I.    Summary of Receipts ……………………………………………………………………….      1

II.    Revenue Receipts  ………………………………………………………………………  2  - 4
III.    Capital Receipts   ……………………………………………………………………… .      5
IV.    External Receipts  ……………………………………………………………………… .      6
V.     Public Account Receipts ……………………………………………………………………  7  - 10

VI.   Summary of Expenditure ………………………………………………………………… .      11
VII.   Current Expenditure on Revenue Account ……………………………………………… 12  - 14
VIII.   Current Expenditure on Capital Account ……………………………………………… .      15
IX.    Development Expenditure on Revenue Account ……………………………………… 16  - 17
X.    Development Expenditure on Capital Account ………………………………………….      18
XI.    Capital Expenditure  ……………………………………………………………………….      19

XII.   Public Account Expenditure ……………………………………………………………… 20  - 24

XIII.   Estimated Charged and Other Expenditure
     met from Federal Consolidated Fund ………………………………………………… .      25
XIV.   Statement of Purpose………………………………………………………………………….      26
XV.  Demand for Grants and Appropriations for Expenditure 2023-24
     Demand-Wise Expenditure  ……………………………………………………………  27  - 34
XVI.   Statement of object Classification wise Expenditure............................................        35
XVII.  Statement of Contingent Liabilities………………………………………………......    36  - 38
XVIII. Statement of Fiscal Risks…………………………………………………………......    39  - 41
XIX.   Statement of Estimated Tax Expenditure…………………………………………………     42
XX.   Medium Term Budgetary Statement 2023-26……………………………….............    43  - 44

XXI.   Green Budget Statement...............................................................................           45

XXII.  Gender Budget Statement.............................................................................           46

XXIII.  Employees Related Data and Implementation of O.M Module.......................           47
XXIV. Statements of Responsibility.................................................................................  48   - 49

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              SUMMARY OF RECEIPTS
Federal receipts are categorized as Revenue Receipts, Capital Receipts, Public Account Receipts
and External Receipts. All these receipts, except Public Account Receipts become part of the the
Federal Consolidated Fund.
As  per  Section 22  of  the  Public  Finance Management  Act,  2019,  the  operation  of  the
Federal Consolidated Fund and the Public Account of the Federation vests in the Finance Division.
                                                                       (Rs in million)
                                                 Budget   Revised     Budget
  Object
                         Description                Estimates   Estimates   Estimates  Code
                                                     2022-23    2022-23     2023-24
         A-Revenue Receipts - Federal
          Consolidated Fund
B      1  Tax Revenue Receipts                      7,470,000    7,200,000     9,415,000
        FBR Taxes                                 7,470,000    7,200,000     9,415,000
                  Direct Taxes                           3,039,000    2,851,000     4,255,000
                   Indirect Taxes                          4,431,000    4,349,000     5,160,000
C      2  Non-Tax Revenue Receipts                 1,934,897    1,618,157    2,963,164
B03            Levies and Fees                          35,151       22,457       29,433
C01           Income from Property and Enterprise       279,647     305,407      398,054
C02            Receipts from Civil Administration etc       354,045     403,802    1,168,492
C03            Miscellaneous Receipts                 1,266,053     886,491    1,367,185
       3  Total Revenue Receipts (1+2)               9,404,897    8,818,157   12,378,164
E      4  Capital Receipts                           2,375,059    3,419,559    2,531,119
E02           Recovery of Loans and Advances          253,576     322,656      632,200
               Domestic Debt Receipts (Non Bank)-E03               Net                                    2,121,483    3,096,903    1,898,919
       5  Total Internal Receipts (3+4)               11,779,956   12,237,717   14,909,283
       6  External Receipts                          5,546,338    3,323,950     7,169,136
              Loans                                 5,293,535    2,959,234     6,541,063
               Grants                                    3,398        4,667        3,689
                 Project Loans & Grants (Others)           249,404     360,049      624,384
       7  Total Internal and External Receipts
            (5+6)                                     17,326,294   15,561,667   22,078,419
        B - Public Account of Federation Net
          Receipts
       8  Public Account Receipts                      (125,196)    (389,378)        7,210
                Deferred Liabilities (Net)                   (128,865)    (438,271)      (38,396)
                Deposit and Reserves (Net)                 3,669       48,893       45,606
       9  Gross Federal Resources (7+8)            17,201,097   15,172,289   22,085,629
      10 Less Provincial Share in Federal Taxes      4,372,565    4,129,001     5,399,001
      11  Net Federal Resources (9-10)             12,828,532   11,043,288   16,686,628
      12  Cash Balance Surplus by the Provinces       750,000     459,000      600,000

      13  Privatization Proceeds                        96,410        1,269       15,000
      14  Credit from Banking Sector                   93,180    3,490,460     2,259,769
      15  Total-Resources (11+12+13+14)            13,768,123   14,994,017   19,561,397

Page 8

                REVENUE RECEIPTS
Revenue Receipts constitute major component of total Federal resources. Revenue Receipts may
be categorized as Tax Revenue Receipts and Non-Tax Revenue receipts, which are largely derived
from the following sources:-
                       Tax Revenue
Tax Revenue is administered by the Federal Board of Revenue (FBR), which comprises Customs
Duty and Inland Revenue i.e Direct Taxes, Sales Tax and Federal Excise Duty. FBR taxes may also
be categorized as Direct Taxes and Indirect Taxes. Direct Taxes comprise Income Tax,  Capital
Value Tax, WWF (Ordinary Collection) and Contribution under Compnies Profit (WPPF). Indirect
Taxes include Sales Tax, Federal Excise Duty and Customs Duty. A snapshot of Budget Estimates
is as under;
                                                                       (Rs in million)
                                                 Budget   Revised     Budget
  Object
                         Description                Estimates   Estimates   Estimates  Code
                                                     2022-23    2022-23     2023-24
B        Tax Revenue
           FBR Taxes                            7,470,000    7,200,000     9,415,000
B01              i.Direct Taxes                          3,039,000    2,851,000     4,255,000
 B011           Taxes on Income                     3,024,076    2,816,514     4,203,531
  B017-18          Capital Value Tax (CVT)                  515         620         925
 B01501     WWF (Ordinary Collection)               6,947       10,497       15,666
 B01502         WPPF(Contribution under
                Companies Profit)                        7,462       23,369       34,878
B02               ii.Indirect Taxes                       4,431,000    4,349,000     5,160,000
  B020-22        Customs Duties                      953,000    1,084,000     1,211,000
 B023            Sales Tax                           3,076,000    2,808,000     3,411,000
  B024-25         Federal Excise                       402,000     457,000      538,000
       1  Total Tax Revenue (i+ii)                     7,470,000    7,200,000     9,415,000

Page 9

                REVENUE RECEIPTS
                     Non-Tax Revenue
As per Section 2(a) of the Public Finance Management Act, 2019 (amended), Non-Tax Revenue
means revenues received by the Government in terms of clause (1) of Article 78 of the Constitution
and the recurring income of the Government from investments and provision of services but does
not include those mentioned in clause (3) of Article 160 of the Constitution. Non-Tax Revenue of
the federal government is administered by various Ministries  / Divisions/ Departments. Budget
Estimates are as under;

                                                                       (Rs in million)
                                                 Budget   Revised     Budget
  Object
                         Description                Estimates   Estimates   Estimates  Code
                                                     2022-23    2022-23     2023-24
C       Non Tax Revenue
       a)  Levies and Fees                             35,151       22,457       29,433
             Mobile Handset Levy                         10,000        8,000       10,000
             Receipts of ICT Administration                25,098       14,404       19,380
               Airport Fee (CAA)                             53          53          53
C01    b) Income from Property and Enterprise         279,647     305,407      398,054
 C01008  Surplus Profit of PTA                            9,000        1,628        1,628
 C01008  PTA (License Renewal Fees)                   50,000       74,000       72,597
 C01012  Regulatory Authorities (Surplus Profit)             695         438        7,203
  C012-18 Mark up Receipts                            139,652     147,652      195,201
   C012       Mark up Receipts (Provinces)               39,652       39,652       77,201
 C013-18      Mark up Receipts ( PSEs & Others)        100,000     108,000      118,000
 C019     Dividend                                     80,300       81,688      121,425
C02    c)  Receipts from Civil Administration
                                                      354,045     403,802    1,168,492
         and Other Functions
 C021-24      General Administration Receipts            13,622        2,605        7,613
 C02211       Surplus Profit of State Bank of                                                      300,000     371,186    1,113,000                Pakistan
 C025        Defence Services Receipts                 30,222       25,222       41,256
 C026       Law and Order Receipts                     3,850        1,453        2,016
 C027        Community Services Receipts               3,847        2,160        2,629
  C028-29       Social Services                            2,504        1,177        1,977
                                                                                             Contd.....

Page 10

                                                                       (Rs in million)

                                                 Budget   Revised     Budget
  Object
                         Description                Estimates   Estimates   Estimates  Code
                                                     2022-23    2022-23     2023-24
C03    d) Miscellaneous Receipts                    1,266,053     886,491    1,367,185
 C031-35      Economic Services Receipts               25,971       12,939       15,806
 C036         Foreign Grants (Budgetary Support)         25,000       25,000       25,000
 C03897        Nationalization, Passport and Others        35,000       32,003       59,004
 C03901       Petroleum Levy                         855,000     542,000      869,000
 C03902       Natural Gas Development Surcharge        40,000       14,000       40,000
 C03905       Royalty on Crude Oil                      46,000       54,000       50,000
 C03906       Royalty on Natural Gas                    70,000       65,000       75,000
 C03910       Discount Retained on Local Crude
                 Price                                    20,000       20,000       20,000
 C03915       Windfall Levy against Crude Oil             10,000       30,000       35,000
 C03916      Gas Infrastructure Development Cess       30,000        9,000       50,000
 C03917       Petroleum Levy on LPG                     8,000        3,450       12,000
               Others (Details in "Explanatory
             Memorandum" Book)                    101,082       79,099      126,374
C      2  Total Non-Tax Revenue (a+b+c+d)           1,934,897    1,618,157    2,963,164

        3  Total Revenue Receipts (1+2)               9,404,897    8,818,157   12,163,164

Page 11

                  CAPITAL RECEIPTS
Capital receipts comprise Recoveries of Loans and Advances from Provinces and other entities and
Public Debt which includes Permanent Debt and Floating Debt. The net capital receipts so realized
by the federal government generally constitute the available resources for the financing of its Public
Sector Development Programme. Budget Estimates are as under;
                                                                       (Rs in million)
                                                 Budget   Revised     Budget
  Object
                         Description                Estimates   Estimates   Estimates  Code
                                                     2022-23    2022-23     2023-24
E02     I.   Recoveries of Loans and Advances          253,576     322,656      632,200
 E021         Provinces                              243,576     312,656      621,700
  E022-27     PSEs and Others                         10,000       10,000       10,500

E03     II.   Total Domestic Debts Receipts (a+b)       21,775,851   28,196,506   30,796,958

 E031  a) Permanent Debt Receipts                   4,394,622    3,980,471    5,242,306
                Pakistan Investment Bonds (Bank)        1,584,556    2,282,542    2,985,455
                Pakistan Investment Bonds (Non
               Bank)                                 1,580,066     414,937      426,851
             Premium Prize Bonds (Registered)          30,000       13,000       30,000
                    Ijara Sukuk Bonds                      1,200,000     901,000    1,800,000
             ICBC (Foreign Currency Denominated
               Domestic Loan)                                              -        368,992                -
 E032  b)  Floating Debt Receipts                    17,381,229   24,216,035   25,554,653
                 Prize Bonds                              25,516       19,035       18,653
                Treasury Bills Through Auction          17,355,713   24,197,000   25,536,000

E      4  Capital Gross Receipts (I+II)               22,029,427   28,519,162   31,429,158

          Domestic Debt Receipts (i+ii)              21,775,851   28,196,506   30,796,958

          Domestic Debt Repayment (page-19)       19,654,368   25,099,603   28,898,040

          Net Domestic Debt Receipts                2,121,483    3,096,903    1,898,919

       5  Total Federal Internal Gross Receipts
            (3+4)                                     31,434,324   37,337,320   43,592,323

Page 12

                EXTERNAL RECEIPTS
External Resources comprise loans and grants received from multilateral,  bilateral and other
sources for approved projects, programmes and other initiatives. Budget Estimates are as under;
                                                                       (Rs in million)
                                               Budget     Revised     Budget
                         Description                Estimates   Estimates   Estimates
                                                   2022-23     2022-23     2023-24
                 I Loans                                     5,293,535    4,290,901     6,541,063

                Project Loans (PSDP)                    56,602     151,373       68,312

                   Federal                               13,329       12,719        8,926
                Autonomous Bodies                    43,273     138,654       59,386
             Programme Loans                     1,243,141     876,314      788,171
              Other Loans                           3,993,792    3,263,215     5,684,580
                    Islamic Development Bank             223,200       40,089      145,000
                  Saudi Arabia (Oil Facility)              148,800     194,788                -
                  Saudi Arabia (Import of Petrol)                     -         99,600       174,000
                  Saudi Arabia (Time Deposit)            558,000     747,000      870,000
                 Euro Bond/International Sukuk          372,000               -        435,000
            ECO Oil Facility                                          -         25,398       29,580
              New Deposits KSA                                      -                  -        580,000
              New Deposits UAE                                     -                  -        290,000
                 China Safe Deposits (Bilateral)          744,000      996,000    1,160,000
                 Commercial Banks                   1,389,792     871,500    1,305,000
                IMF Loan for Budgetary Support         558,000     288,840      696,000

                II Grants                                        3,398        4,667        3,689

                Project Grants (PSDP)                     3,398        4,667        3,689

                   Federal (PSDP)                         3,398         223        1,544
                Autonomous Bodies                                    -          4,444        2,145
         a.  External Receipts  (I +II)                    5,296,933    4,295,568     6,544,752
         b.      Project Loans & Grants (Others)         249,404     361,064      624,384
                Loans                               222,842     320,459      566,115
                  Grants                                26,563       40,605       58,270
      6   Total External Receipts (a +b)              5,546,338    4,656,633    7,169,136

Page 13

              PUBLIC ACCOUNT RECEIPTS
Article 78(1) of the Constitution of Islamic Republic of Pakistan provides that all revenues received
by the Federal Government, all loans raised by that Government and all moneys received by it in
repayment of loan, shall form part of the Federal Consolidated Fund. Article 78(2) provides that
all other monies received by or on behalf of the Federal Government shall be credited into
the Public Account of the Federation. Therefore, all the monies received by or on behalf of the
Federal Government in terms of Article 78(2) are Public Account receipts which are not revenues in
terms of Article 78(1) of the Constitution. However, such Public Account receipts cannot be
operated without  establishment of Special Purpose Funds, deposits, reserves etc under the
authority of an act of the Parliament or with the approval of the Federal Government. Moreover, as
per Section 32 of the Public Finance Management Act, 2019, special purpose funds, in which
monies have been appropriated by the National Assembly shall be established under any law or
with the approval of the Federal Government. There are two sources of Public Account Receipts as
under;
                      National Savings Schemes
National Savings Schemes include Savings bank accounts, Defence Savings Certificates, Special
Savings Certificates, Pension Benefit Accounts, Behbood Savings Certificates etc.

                                                                       (Rs in million)
                                                    Receipts   Revised     Receipts
  Object
                         Description                Estimates   Estimates   Estimates
  Code
                                                     2022-23    2022-23     2023-24

i. G111    Investment Deposit Accounts (Savings
         Schemes)                                  1,095,660    1,499,659    1,694,078

 G11101       Savings Bank Accounts                  421,167     649,549      681,697

 G11106      Defence Savings Certificates               50,317       58,715       70,140
 G11111       Special Savings Certificates
                 (Registered)                             54,215       62,956       93,952
 G11112       Special Savings Accounts                  77,816     290,196      169,399
 G11113       Regular Income Certificate                115,580     123,020      119,002
 G11126      Pension Benefit Accounts                  82,544       81,951       95,491
 G11127      Behbood Saving Certificates              219,002     192,235      219,356
 G11130      Shuhada Welfare Account                   20          36          40

 New         Sarwa Islamic Saving & Term Accounts      60,000               -        200,000

 G11129       Short Term Savings Certificates             15,000       41,000       45,000

ii. G061    Provident Fund                              45,311       47,802       51,945

       1  Gross Public Account Receipts ( i+ii )       1,140,970    1,547,461    1,746,023
         Gross Public Account Expenditure
           (Page-20)                                  1,269,836    1,985,732    1,784,419

          Net Public Account Receipts                 (128,865)    (438,271)      (38,396)

                                                                        Contd…..

Page 14

              PUBLIC ACCOUNT RECEIPTS
                    Deposits and Reserves
Deposits and Reserves represent all monies forming part of the Public Account of the Federation as
per Article 78(2) of the Constitution of Islamic Republic of Pakistan. Budget estimates of receipts in
the following table are however subject to  fulfillment of following  stipulations;  (i) The funds
appropriated by the National Assembly out of Federal Consolidated Funds in terms of Articles 80 to
84 of the Constitution for a particular financial year (being lapsable) shall be utilized as per Cash
Management and TSA Rules 2020 and shall not be deposited under these deposits and reserves
heads of account (being non-lapsable) under the Public Account.  (ii) The maintenance and
operation of all these funds, deposits, reserves etc shall be subject to their due establishment either
under the authority of an act of Parliament or with the approval of the Federal Government, as the
case may be. (iii) Revenues in terms of Article 78(1) of the Constitution shall not be deposited in
these deposits and reserves heads of account under the Public Account. The revenues shall only
be deposited in the respective heads of account of tax revenue and non tax revenue. (iv) Receipt of
funds into these deposits and resreves heads of account shall only be allowed by the Accounting
Offices subject to compliance of the stipulations at (i) to (iii) above and to the extent of reconciled
available balance under the respective head of account.

                                                                       (Rs in million)
                                                    Receipts   Revised     Receipts
  Object
                         Description                Estimates   Estimates   Estimates
  Code                                                     2022-23    2022-23     2023-24
   G     Deposits and Reserves

        FGE Benevolent Funds                         1,501        1,922        2,018
 G06202            Civil                                    1,347        1,824        1,915
 G06205          Pakistan Post Office Deptt.                 87           4           4
 G06206        Pak PWD                               47          60          63
 G06209          National Saving                          13          25          26
 G06210          Pakistan Mint                             2           3           3
 G06212          Geological Survey of Pakistan                5           6           7

         Group Insurance Fund                         430         477         501
 G06401       PAK PWD                                5           6           6
 G06404          National Saving                           5           6           6
 G06405          Pakistan Mint                                 0.1           0.2           0.2
 G06407          Geological Survey of Pakistan                2           2           3
 G06409            Civil                                  414         463         486
 G07104         Fed. Govt. Empl. Group Insur.
                Fund PPO                               4           1           1
          Defence                                        2,880        7,482        7,856
G06203          F,G Employees Benevolent Fund
                  (Defence)                               2,690        4,105        4,310
 G06410        Group Insurance Fund (Defence)           190         216         227
 G11224         Deposits Accounts with Defence                        -        3,161        3,319

           Federal Pension Fund                         10,000       10,000       10,000
 G12803         Federal Pension Fund Receipts           10,000       10,000       10,000

                                                                                              Contd.....

Page 15

                                                                     (Rs in million)

                                                  Receipts   Revised     Receipts
Object
                       Description Code                                           Estimates   Estimates   Estimates
                                                   2022-23    2022-23     2023-24
         Pakistan Post Office Department                 48                  -                   -
G07101         Post Office Renewal Reserve Fund                                                      25                  -                   -

G07102         Post Office Welfare Fund                   23                  -                   -
        Pak PWD                                    62,896       81,672       85,756
              Pak PWD Receipts & CollectionG10101                                              639         894         938                Account
G10113        Pak PWD Deposits                      62,257       80,778       84,817

         Arts                                           2,000               -           2,000

                     Artist Assistance Fund (Information)                                  -                                                        1,000
                 Film Finance Fund                       1,000               -           1,000

Page 16

              PUBLIC ACCOUNT RECEIPTS
                    Deposits and Reserves
                                                                       (Rs in million)
                                                    Receipts   Revised     Receipts
  Object
                         Description                Estimates   Estimates   Estimates  Code
                                                     2022-23    2022-23     2023-24

G         Deposits and Reserves                        30,813       74,300       79,938
      Miscellaneous Funds
 G06304         Workers Welfare Fund                   13,506       30,796       32,336
 G06315           Judicial Officers Welfare Fund                3         3.50           4
 G12140      PM Flood relief Fund 2010                  0.10         0.12          0.13
 G12150      PM Relief Fund for IDPs 2014              2,017        1,796        1,886
 G12157      PM COVID-19 Pandemic relief
                Fund 2020                              81         344         361
 G12164         PM's Relief Fund Flood,
                  Earthquake Other Cal.                                     -       10,029       10,530
 G12166         PM's Relief Fund for Turkiye &
                    Syria Earthquake                                      1,080        1,134
 G12205          Pakistan Minorities Welfare Fund            57         0.32          0.34
 G12206          Special Fund for Welfare & Uplift of
                     Minorities                               72         0.31          0.33
 G12226         Federal Govt. Artists Welfare Fund
                    (Heritage)                                 0.14                  -                   -
 G12305          Export Development Fund                                -       15,185       16,703
 G12308         Reserve Fund for Exch. Risk on                                                                                    5,529                   Foreign Loans                          223        5,266
 G12412          Pakistan Oil Seed Development
                Fund                                  153         238         249
 G12419         Research and Development Fund          2,349        2,100        2,349
 G12421       SCP Diamer Basha and Mohmand Dam       0.24          7           8
 G12612        Fund for Urdu Science Board                 1           1           1
 G12712          Trust Interest Fund(Charitable
                Endowment)                              3           4           4
 G12738          National Fund for Control of Drug
                Abuse                                  34          13          14
 G12783          Universal Service Fund                    7,100        7,100        7,200
      Miscellaneous Deposit and Reserve Accounts
 G10104          Mint Receipt and Collection Account          60          50          60
 G14100          Pakistan Mint                            1,570         288        1,570
                  Other                                   3,582                  -                   -
       2        Gross Receipts (Deposits and
                 Reserves)                            110,567     175,853      187,069
                 Exp. Deposit and Reserves
                  (page-24)                            106,898     126,960      141,462
                 Net Deposit and Reserves
                 Receipts                                3,669       48,893       45,606
       3        Gross Receipts (1+2)                 1,251,538    1,723,314     1,933,091
                Gross Expenditure                   1,376,734    2,112,692     1,925,881
               PUBLIC ACCOUNT NET
       7                                                (125,196)    (389,378)        7,210
              RECEIPTS

Page 17

       SUMMARY OF EXPENDITURE (Current & Dev)
In this table, the Budget Estimates of current expenditure (on revenue and capital account) and
Budget Estimates of Development expenditure (on revenue and capital accounts) have been
mentioned as per Article 80(2) of the Constitution of Pakistan.
                                                                       (Rs in million)
                                                 Budget   Revised     Budget
 Function
                         Description                Estimates   Estimates   Estimates  Code
                                                     2022-23    2022-23     2023-24
      Current Expenditure
             a.   Current Exp. on Revenue Account      8,707,973   10,527,616   13,344,395
   01         General Public Services                 6,248,481    7,843,592   10,444,266
   02         Defence Affairs and Services             1,566,698    1,591,183    1,809,467
   03           Public Order and Safety Affairs            209,161     209,178      237,215
   04         Economic Affairs                        183,803     311,372      210,835
   05         Environment Protection                     749         660        1,226
   06         Housing and Community Amenities           7,850        7,367       22,986
   07          Health                                   19,582       22,459       24,210
   08          Recreation, Culture and Religion            10,990       13,528       16,782
   09          Education Affairs and Services             90,556       91,777       97,098
   10           Social Protection                        370,103     436,501      480,309
            b.   Current Exp. on Capital Account        4,036,273    3,419,844    4,608,359
      011 Foreign Loans Repayment                   3,792,401    2,988,301     4,398,068
      011 Repayment of Short Term Foreign Credits       142,772      330,625       46,690
      011 Federal Misc. Investments and Other Loans
          and Advances by the Fed. Govt.                             -           1                   -
      014 Transfers                                   101,101      100,917      163,601
       1  Total Current Expenditure (a + b)          12,744,246   13,947,460   17,952,753
      Development Expenditure
             c.   Dev. Exp. on Revenue Account          491,190     449,206      632,350
            d.   Dev. Exp. on Capital Account            532,686     597,351      976,294
       2  Total Development Expenditure (c+d)       1,023,877    1,046,558     1,608,644
         Grand Total - Expenditure (1+2)            13,768,123   14,994,017   19,561,397
       3  Break-up of Expenditure
             Revenue Account (a+c)                9,199,163   10,976,823   13,976,745
                Capital Account (b+d)                  4,568,960    4,017,195     5,584,653
           Total Expenditure:                        13,768,123   14,994,017   19,561,397

Page 18

            Current Expenditure on Revenue Account
                                                                       (Rs in million)
                                                 Budget   Revised     Budget
 Function
                         Description                Estimates   Estimates   Estimates
  Code
                                                     2022-23    2022-23     2023-24

01    General Public Service                          6,248,481    7,843,592   10,444,266
      011 Executive & Legislative Organs,
           Financial & Fiscal Affairs, External
            Affairs                                     5,227,252    6,874,899     9,225,234
          Debt Servicing                             3,950,062    5,520,456    7,302,524
                 Servicing of Foreign Debt                 510,972     725,370      872,219
                 Servicing of Domestic Debt              3,439,090    4,795,086    6,430,305
           Superannuation Allowances & Pensions         609,000     609,000      801,000
           Others (Details are in "Demands for
           Grants" books.)                              668,190     745,443     1,121,711
      012      Foreign Economic Aid                       2,289        2,312        4,399
      014      Transfers                              956,616     868,701     1,133,905
                  Provinces                             188,700       59,600      295,300
               Others (Details are in "Budget in                                                      767,916     809,101      838,605                   Brief" book.)
      015     General Services                         15,528       31,306       23,328
      016      Basic Research                            7,643        7,478        8,784
      017     Research & Dev. General Public
                Services                                 21,002       20,491       24,716
      018     Admn. of General Public Service             6,292       27,043        7,786
              Gen. Public Services not elsewhere      019                                              11,860       11,362       16,113                defined
02        Defence Affairs and Services               1,566,698    1,591,183    1,809,467
      021  Defence Services                          1,563,000    1,586,884    1,804,000
        A01   Employees Related Expenses             607,494      610,984      705,054
        A03   Operating Expenses                     368,915      380,475      442,232
        A09   Physical Assets                         411,157      414,621      461,195
        A12    Civil Works                             175,434      180,803      195,520
      025  Defence Administration                         3,698        4,300        5,467
03         Public Order and Safety Affairs               209,161     209,178      237,215
      031    Law Courts                                9,256        9,117       11,708
      032      Police & Civil Armed Forces               190,265     193,002      214,055
      033      Fire Protection                            309         305         338
      034      Prison Administration and Operation           44          46          50
      035    R&D Public Order and Safety                 56          60          60
      036      Administration of Public Order                9,231        6,649       11,004

                                                                        Contd…..

Page 19

            Current Expenditure on Revenue Account
                                                                       (Rs in million)
                                                 Budget   Revised     Budget
 Function
                         Description                Estimates   Estimates   Estimates
  Code
                                                     2022-23    2022-23     2023-24

04       Economic Affairs                           183,803     311,372      210,835
  041         Gen. Eco., Commercial & Labour
                   Affairs                                   38,744     101,801       53,038
  042            Agri., Food, Irrigation, Forestry &
                 Fisheries                                16,907       16,817       32,704
  043          Fuel and Energy                          71,926     135,159       51,943
  044          Mining and Manufacturing                   2,290        2,368        2,884
  045          Construction and Transport                30,241       30,782       40,513
  046         Communications                          20,836       21,615       26,811
  047          Other Industries                            1,658        1,652        1,741
  048         Research & Development Economic Affa      1,201        1,176        1,200

05        Environment Protection                       749         660        1,226
  053           Pollution Abatement                                        -                  -           200
              Research & Development  054                                                187          99         300               Environment
  055           Administration of Environment
                 Protection                               562         561         726
06        Housing and Community Amenities             7,850        7,367       22,986

  061         Housing Development                      969         564        1,001

  062         Community Development                    6,881        6,803       21,985

07         Health                                       19,582       22,459       24,210
  071          Medical Products, Appliances and
               Equipments                               31          31          32

  073           Hospital Services                         14,857       15,060       16,567

  074           Public Health Services                      1,001        4,442        3,110

  076          Health Administration                       3,692        2,926        4,501
                                                                        Contd…..

Page 20

            Current Expenditure on Revenue Account
                                                                       (Rs in million)
                                                 Budget   Revised     Budget
 Function
                         Description                Estimates   Estimates   Estimates
  Code
                                                     2022-23    2022-23     2023-24

08         Recreation, Culture and Religion              10,990       13,528       16,782
      081  Recreational and Sporting Services                         -                  -           200
      082  Cultural Services                              1,215        1,166                                                                                    1,433
      083  Broadcasting and Publishing                    8,002       10,629                                                                                 11,120
      084  Religious Affairs                               1,210        1,201                                                                                    1,780
      086  Admn. of Information, Recreation &
              Culture                                    563         531        2,249

09        Education Affairs and Services                90,556       91,777       97,098
             Pre-Primary and Primary Education
      091   Affairs and Services                           3,786        3,806        4,468
            Secondary Education Affairs and      092                                                8,863        8,907       10,778             Services
      093  Tertiary Education Affairs and Services          74,609       75,341       76,589
      094   Education Services Not definable by
             Level                                      140         105         180
      095  Subsidiary Services to Education                219         217         346
      096  Administration                                 2,010        2,430        3,698
      097   Education Affairs & Services not
            Elsewhere Classified                         928         970        1,040

10         Social Protection                           370,103     436,501      480,309
      107  Administration                                 2,072       20,040        2,892
      108  Others                                       1,411        1,476        2,127
      109   Social Protection (Not elsewhere
                classified)                                 366,620     414,985      475,289
         a.  Current Expenditure on Revenue
          Account                                   8,707,973   10,527,616   13,344,395
 Revised Estimates 2022-23 as of 25th May, 2023 based on SAP System

Page 21

             Current Expenditure on Capital Account
                                                                       (Rs in million)
                                               Budget     Revised     Budget
 Function
                         Description                Estimates   Estimates   Estimates
  Code
                                                   2022-23     2022-23     2023-24

01    General Public Service                          4,036,273    3,419,844    4,608,359
      011 Foreign Loans Repayment                   3,792,401     2,988,301    4,398,068
      011 Repayment of Short Term Foreign Credits       142,772      330,625       46,690
           Federal Misc. Investments and Other      011          Loans and Advances by the Fed. Govt.                     -             1               -
      014 Transfers                                   101,101     100,917      163,601
           Federal Misc. Investments and Other
          Loans and Advances by the Fed. Govt.          101,101     100,917      163,601
         b.  Current Expenditure on Capital Account
                                                      4,036,273    3,419,844    4,608,359
              I.  Total Current Expenditure (a+b)            12,744,246   13,947,460   17,927,738

Page 22

        Development Expenditure on Revenue Account
                                                                       (Rs in million)
                                                 Budget   Revised     Budget
 Function
                         Description                Estimates   Estimates   Estimates
  Code
                                                     2022-23    2022-23     2023-24

01        General Public Service                      232,450     238,703      308,471
  011     Executive & Legislative Organs, Financial
        & Fiscal Affairs, External Affairs                   5,426       19,012        6,382
  014       Transfers                                  204,806     204,376      254,750
  015      General Services                             11,003        7,632       24,898
  016      Basic Research                               9,380        6,749  15,963
  017            Research & Dev. General Public Services                                                     611         369         341
  019       General Public Services not elsewhere
             defined                                      1,225         564        6,136
02        Defence Affairs and Services                   3,914        4,044        3,467
 021       Defence Division                              1,714        1,714        1,343
 024     R & D Defence                                                       -                  -         124
 025       Defence Administration                         2,200        2,330        2,000
03         Public Order and Safety Affairs                 4,245        2,463        3,928
  031     Law Courts                                   1,814        1,140        1,400
  032       Police and Civil Armed Forces                   2,268        1,154        1,736
  036       Administration of Public Order                  162         169         792
04       Economic Affairs                           168,922     124,849      183,399
  041      Gen. Eco. Commercial and Labour Affairs        1,569         636        1,297
  042         Agri., Food, Irrigation, Forestry &
              Fisheries                                 101,046       97,114      131,761
  043      Fuel and Energy                               8,509        8,542        6,199
  044       Mining and Manufacturing                     808         115        1,115
  045       Construction and Transport                    55,231       15,998       39,144
  046      Communications                               1,760        2,443        1,807
  047      Other Industries                                                  -                  -            22
  048      Research & Development Economic
                Affairs                                                              -                  -            55
05        Environment Protection                        9,600        4,071        4,050
  055       Administration of Environment Protection         9,600        4,071        4,050
06        Housing and Community Amenities             4,794       10,590        6,504
  062      Community Development                       4,794       10,590        5,894
  063      Water Supply                                                      -                  -           610

                                                                        Contd…..

Page 23

        Development Expenditure on Revenue Account
                                                                       (Rs in million)
                                                 Budget   Revised     Budget
 Function
                         Description                Estimates   Estimates   Estimates  Code
                                                     2022-23    2022-23     2023-24

07         Health                                       12,701       12,110       13,270
      073    Hospital Services                             6,295        6,058        6,906
      074    Public Health Services                        2,894        1,960        3,424
      076   Health Administration                         3,512        4,092        2,941
08         Recreation, Culture and Religion                4,966        2,942        7,881
      081   Recreation and Sporting Services               3,472        1,789        6,900
      082    Cultural Services                            161           3                -
      083   Broadcasting and Publishing                   1,333        1,151         981
09        Education Affairs and Services                48,327       47,781       82,391
      091   Pre-Primary & Primary Edu. Affairs &
             Services                                     9           7                -
      092 Secondary Edu. Affairs & Services                  7           5                -
      093    Tertiary Edu. Affairs & Services               45,779       45,889       73,850
      095   Subsidiary Services to Education               746         349        1,196
      097   Education Affairs & Services not
            Elsewhere Classified                           1,786        1,532        7,345
10         Social Protection                              1,273        1,654       18,989
      107   Administration                              750        1,225       18,467
      108   Others                                      23           8          23
      109   Social Protection (Not elsewhere
                classified)                                  500         422         500
         c.  Dev. Exp. on Revenue Account               491,190     449,206      632,350
   Revised Estimates 2022-23 as of 7th June, 2023 based on SAP System

Page 24

         Development Expenditure on Capital Account
                                                                       (Rs in million)
                                               Budget     Revised     Budget
 Function
                         Description                Estimates   Estimates   Estimates
  Code
                                                   2022-23     2022-23     2023-24

01        General Public Service                      508,766     576,922      916,068
      014    Transfers                                482,486     550,681      889,818
      017    Research and Dev. General Public
              Services                                    26,280       26,241       26,250
04       Economic Affairs                             23,820       20,429       59,954
            Gen. Eco., Commercial and Labour
      041   Affairs                                     300         125         598
      043   Fuel and Energy                              1,181         461         902
      044   Mining and Manufacturing                      2,850        2,171       13,000
      045   Construction and Transport                   16,963       16,145       43,395
      046  Communications                              2,526        1,528        2,058
06        Housing And Community Amenities                      -                  -           272
      063  Water Supply                                                      -                  -           272

       d.  Dev. Expenditure on Capital Account         532,686     597,371      976,294

            II.   Total Development Expenditure (c+d)       1,023,877    1,046,558     1,608,644

            III.  Total Exp. (Current+Development)         13,768,123   14,994,017   19,561,397

Page 25

                 CAPITAL EXPENDITURE
The expenditure incurred on repayment of domestic debt receipts is termed as Capital Expenditure.

                                                                       (Rs in million)
                                                 Budget   Revised     Budget
  Object
                         Description                Estimates   Estimates   Estimates  Code
                                                     2022-23    2022-23     2023-24

A101  i.     Domestic Permanent Debt                2,424,356    2,433,332    3,542,996

                Pakistan Investment Bonds (Bank)        1,584,556    2,282,542    2,985,455
                Pakistan Investment Bonds (Non
               Bank)                                  832,206     134,220      182,049
                Foreign Exchange Bearer Certificates           5           1           5
                Foreign Currency Bearer Certificates            5           1           5
           US Dollar Bearer Certificates                  3         0.10           3
                Special US Dollar Bonds                     50          40          50
             Premium Prize Bonds (Registered)           5,000       14,000        5,000
                    Ijara Sukuk Bond                                            -                  -        368,430
                Pakistan Banao Certificate (3-years)          2,150        2,294         694
                Pakistan Banao Certificate (5-years)          308               -           651
                Foreign Assets (D and R) Act, 2018
             (FADRA)                                 73         235         654
                Special Drawing Rights Debt (SDRs)                  -                  -                   -

A104  ii.     Floating Debt                           17,230,011   22,666,271   25,355,043

                 Prize Bonds                               8,219        8,479        8,043

                Treasury Bills Through Auction          17,198,000   22,634,000   25,347,000

                 Bai-Maujjal Ijara Sukuk Bonds              23,792       23,792                -

A10    IV.  Total Public Debt Repayment (i+ii)         19,654,368   25,099,603   28,898,040
       V.   Total - Federal Consolidated Fund
          Disbursement (III+IV)                      33,422,491   40,093,620   48,459,437

Page 26

             PUBLIC ACCOUNT EXPENDITURE
                    National Savings Schemes
The expenditure incurred on repayment of National Savings Schemes is termed as Public Account
Expenditure.
                                                                       (Rs in million)
                                                 Expenditure   Revised   Expenditure
  Object
                         Description                Estimates   Estimates   Estimates
  Code
                                                   2022-23     2022-23     2023-24
i. G111    Investment Deposit Accounts (Savings
         Schemes)                                  1,209,396    1,908,572    1,707,209
   G11101     Savings Bank Accounts                  414,100     647,050      669,937
   G11103    Khas Deposit Accounts                       5           5           5
   G11104    Mahana Amadni Accounts                   70         110         130
   G11106     Defence Savings Certificates               60,671       97,268       96,171
   G11108     National Deposit Certificates                   1           1           1
   G11109    Khaas Deposit Certificates                    1           1           1
   G11111     Special Savings Certificates
                 (Registered)                            154,892     271,106      134,039
   G11112     Special Savings Accounts                214,867     376,079      185,939
   G11113     Regular Income Certificate                 88,573     216,363      274,689
   G11126     Pensionery Benefits                       61,521       69,749       71,910
   G11127    Behbood Saving Certificate               189,688     210,823      214,368
   G11130    Shauhda Welfare Account                    7          16          20
   New       Sarwa Islamic Saving & Term Accounts       5,000               -         40,000
                Short Term Savings Certificates (STSC)     20,000       20,000       20,000
ii. G061     Provident Fund                             60,440       77,160       77,210
       1  Total Expenditure ( i+ii )                    1,269,836    1,985,732    1,784,419
                                                                    Contd….

Page 27

             PUBLIC ACCOUNT EXPENDITURE
                    Deposits and Reserves
Deposits and Reserves represent all monies forming part of the Public Account of the Federation as
per  Article 78(2)  of the  Constitution  of  Islamic Republic  of Pakistan. Budget estimates  of
Expenditure (withdrawal of funds) from the Deposits and Reserves as depicted in the following table
are however subject to fulfillment of following stipulations; (i) The maintenance and operation of all
these funds, deposits, reserves etc shall be subject to their due establishment either under the
authority of an act of Parliament or with the approval of the Federal Government, as the case may
be.  (ii) Withdrawal of funds from these deposits and resreves heads of account shall only be
allowed by the Accounting Offices subject to compliance of the stipulations at (i) above and to the
extent of reconciled available balance under the respective head of account. (iii) There shall be no
authority of directed access to Central Account No.1 (Non Food) in SBP. (iv) Withdrawal of funds
from these Deposits and Reserves head of accounts shall be in accordance with the provisions of
Public Finance Management Act, 2019, Cash Management and Treasury Single Account Rules
2020 and the Special Assignment Account Procedure for the Public Account of the Federation
2021. Personal Ledger Accounts shall not be used for withdrawal of funds.

                                                                       (Rs in million)
                                                 Expenditure   Revised   Expenditure
  Object
                         Description                Estimates   Estimates   Estimates
  Code
                                                   2022-23     2022-23     2023-24
 G       Deposits and Reserves
        FGE Benevolent Funds                         1,382        1,351        1,418
 G06202            Civil                                    1,233        1,264        1,328
 G06205          Pakistan Post Office Deptt.                 88                  -                   -
 G06206        Pak PWD                               42          54          57
 G06209          National Saving                          12          24          25
 G06210          Pakistan Mint                             2           3           3
 G06212          Geological Survey of Pakistan                4           6           6
         Group Insurance Fund                         427         408         429
 G06401       PAK PWD                                4           5           5
 G06404          National Saving                           3           6           6
 G06405          Pakistan Mint                                 0.1           0.2           0.2
 G06407          Geological Survey of Pakistan                2           2           2
 G06409            Civil                                  415         395         415
 G07104         Fed. Govt. Empl. Group Insur.
                Fund PPO                               3                  -                   -
          Defence                                        2,523        6,176        6,485
 G06203       FG Employees Benevolent Fund
                  (Defence)                               2,350        3,231        3,393
 G06410        Group Insurance Fund (Defence)           172         160         168
 G11224         Deposits Accounts with Defence                        -        2,785        2,925

                                                                                              Contd.....

Page 28

                                                                     (Rs in million)
                                               Expenditure   Revised   Expenditure
Object
                       Description                Estimates   Estimates   Estimates
 Code
                                                 2022-23     2022-23     2023-24
G       Deposits and Reserves
         Federal Pension Fund                         10,000      10,000       10,000
G12803         Federal Pension Fund                   10,000       10,000       10,000
         Pakistan Post Office Department                 30                  -          25
G07101                Post Office Renewal Reserve Fund                                                      25                  -          25
G07102         Post Office Welfare Fund                    5                  -                   -
        Pak PWD                                     48,416       54,623       57,354
G10101        Pak PWD Receipts & Collection                                                    639         825         866                Account
G10113        Pak PWD Deposits                      47,777       53,798       56,488
         Arts                                           2,000               -           2,000
                     Artist Assistance Fund                    1,000               -                   -
                 Film Finance Fund                       1,000               -           1,000
                                                                      Contd…..

Page 29

             PUBLIC ACCOUNT EXPENDITURE
                    Deposits and Reserves
                                                                       (Rs in million)
                                                 Expenditure   Revised   Expenditure
  Object
                         Description                Estimates   Estimates   Estimates
  Code
                                                   2022-23     2022-23     2023-24
G         Deposits and Reserves                        42,121      54,402       64,751
          Miscellaneous Funds
G06304          Workers Welfare Fund                   13,230       15,350       16,117
G06315             Judicial Officers Welfare Fund                 0.1           0.1           0.1
G12140       PM Flood relief Fund 2010                  0.01         245         258
G12150       PM Relief Fund for IDPs 2014              2,017        1,796        1,886
G12157       PM COVID-19 Pandemic relief
                Fund 2020                              40           1           2
G12164          PM's Relief Fund Flood,
                  Earthquake Other Cal.                                     -        8,558        8,986
G12166          PM's Relief Fund for Turkiye &
                    Syria Earthquake                                   466         490
G12205           Pakistan Minorities Welfare Fund            62                  -                   -
                   Special Fund for Welfare & Uplift ofG12206                                                 83                  -                   -                     Minorities
G12226           Federal Govt. Artists Welfare Fund
                    (Heritage)                               27          12          13
G12305           Export Development Fund                 2,934        3,225        7,044
G12308          Reserve Fund for Exch. Risk on                                                                                              -           0.4           0                   Foreign Loans
G12412           Pakistan Oil Seed Development
                Fund                                                            -          76          80
G12419          Reserch & Development Fund             2,000        1,795        3,530
             SCP Diamer Bhasha andG12421                                                                                    -                  -                   -              Mohmand Dam Fund
G12612          Fund for Urdu Science Board                 1           0.6           1
G12712            Trust Interest Fund(Charitable
                Endowment)                              3                  -                   -
G12738            National Fund for Control of Drug                                                                                              -                  -                   -                Abuse
G12783            Universal Service Fund                  20,000       22,875       24,775
                                                                        Contd…..

Page 30

             PUBLIC ACCOUNT EXPENDITURE
                    Deposits and Reserves

                                                                       (Rs in million)
                                                 Expenditure   Revised   Expenditure
  Object
                         Description                Estimates   Estimates   Estimates
  Code
                                                   2022-23     2022-23     2023-24
G         Deposits and Reserves
          Miscellaneous Deposits and Reserves Accounts
                   Mint Receipt and Collection                                                                                                                                      -G10104           Account                                                        -                  -
G14100           Pakistan Mint                            1,570                  -        1,570
                  Other                                 155                   -                   -
                  Total Deposits and Reserves            106,898     126,960      141,462
               Total Public Account Expenditure        1,376,734    2,112,692     1,925,881

Page 31

 STATEMENT OF ESTIMATED CHARGED AND VOTED EXPENDITURE

In terms of Article 80(2) of the Constitution of Pakistan, this statement distinguishes charged and
voted expenditure.

                                                                       (Rs in million)
                                               Budget     Revised     Budget
                                                  Estimates   Estimates   Estimates
                    Description
                                                   2022-23     2022-23     2023-24
            I.       Expenditure on Revenue Account      9,199,163   10,976,823   13,976,745
                      Current                          8,707,973   10,527,616   13,344,395
                    Development                      491,190     449,206      632,350
                Total-Authorized Expenditure          9,199,163   10,976,823   13,976,745

                Charged                            7,792,352    5,294,098    7,365,262
                 Voted                               1,406,811    5,682,725     6,611,483
            II.       Expenditure on Capital Account       24,223,328   29,116,798   34,482,692
                   Current                            23,690,641   28,519,446   33,506,398
                 Development                         532,686     597,351      976,294
                Total Authorized Expenditure         24,223,328   29,116,798   34,482,692

                Charged                           20,094,016   28,715,405   34,001,431
                 Voted                               4,129,312     401,392      481,261
            III.
                Total Expenditure met from Federal

               Consolidated Fund                   33,422,491   40,093,620   48,459,437
                   Current Expenditure                 32,398,614   39,047,063   46,850,793
                 Development Expenditure             1,023,877    1,046,558     1,608,644
        IV.      Total-Authorized Expenditure         33,422,491   40,093,620   48,459,437

                Charged - Total                     27,886,368   34,009,503   41,366,693
                 Voted - Total                         5,536,123    6,084,117     7,092,744

Page 32

                   Statement of Purpose

Section 4 of the Public Financial Management Act, 2019 provides that the
Federal Government shall, in respect of every financial year, cause to be laid
before the National Assembly, Annual Budget Statement consistent with
Articles 80 and 81 of theConstitution of the Islamic Republic of Pakistan,
1973, including the statement of purpose and estimates for each demand for
grant.

Pakistan continues to face economic and fiscal challenges for establishing a
solid foundation for recovery and economic growth. Extraneous factors like
continued Ukraine war, high oil and commodity prices and steep international
interest rates pose persistent challenges for FY 2023-24, too. Domestically,
high inflation, low foreign exchange reserves and balance of payment issues
continue to pose policy questions for the economic managers and fiscal policy
makers of the country.

The Annual Budget Statement for FY 2023-24 describes, in a brief form, the
government’s response to the afore-mentioned challenges, in the shape of
substantial pro-poor allocations for marginalized segments of society, austerity
measures curtailing unnecessary government expenditure and investments in
agriculture, industries and IT sectors to cater to the needs of economic
recovery and growth.

The Annual Budget Statement for FY 2023-24 contains estimates for each
demand for grants in respect of debt servicing of domestic and foreign loans
and advances, for expenditure to be incurred on recurrent and development
activities as part of a  fiscal consolidation plan to  re-vitalize sustainable
economic growth.

                          IMDAD ULLAH BOSAL
                                     Secretary to the Government of Pakistan
Finance Division,
Islamabad, the 09th June, 2023

Page 33

     STATEMENT OF DEMANDS FOR GRANTS AND
  APPROPRIATIONS FOR EXPENDITURE MET FROM THE
FEDERAL CONSOLIDATED FUND FOR THE FINANCIAL YEAR
   COMMENCING ON IST JULY, 2023 AND ENDING ON
                 30TH JUNE, 2024

Page 34

No text layer on this page, see the official PDF.

Page 35

          Demand-Wise Expenditure for Budget Estimates 2023-24
                                                                                     (Rs. in million)
Demand                                               Budget Estimates 2023-24
                       Ministries / Divisions
  No.                                            Charged       Voted        Total
   1    AVIATION DIVISION                                               3,381        3,381
   2    AIRPORTS SECURITY FORCE                                   12,296       12,296
   3    CABINET                                                    293         293
   4    CABINET DIVISION                                               2,742        2,742
   5   EMERGENCY RELIEF AND REPATRIATION                        838         838
   6    INTELLIGENCE BUREAU                                        12,247       12,247
   7    ATOMIC ENERGY                                               16,633       16,633
        PAKISTAN NUCLEAR REGULATORY   8                                                                      1,644        1,644       AUTHORITY
       NAYA PAKISTAN HOUSING DEVELOPMENT   9                                                                      1,001        1,001       AUTHORITY
   10   PRIME MINISTER'S OFFICE (INTERNAL)                          625         625
   11   PRIME MINISTER'S OFFICE (PUBLIC)                             635         635
        NATIONAL DISASTER MANAGEMENT   12                                                                700         700       AUTHORITY
   13   BOARD OF INVESTMENT                                       429         429
       PRIME MINISTER'S INSPECTION   14                                                                132         132       COMMISSION
   15    SPECIAL TECHNOLOGY ZONE AUTHORITY                         1,070        1,070
   16   ESTABLISHMENT DIVISION                                        8,237        8,237
   17   FEDERAL PUBLIC SERVICE COMMISSION                          1,207        1,207
   18   NATIONAL SCHOOL OF PUBLIC POLICY                            2,903        2,903
   19    CIVIL SERVICES ACADEMY                                       1,336        1,336
   20   NATIONAL SECURITY DIVISION                                 182         182
       COUNCIL OF COMMON INTEREST   21                                                                130         130        (SECRETARIAT)
   22    CLIMATE CHANGE & ENV CORD DIVISION                        786         786
   23   COMMERCE DIVISION                                            9,260        9,260
   24   COMMUNICATIONS DIVISION                                   252         252
       OTHER EXPENDITURE OF   25                                                                   30,178       30,178       COMMUNICATIONS DIVISION
   26    PAKISTAN POST OFFICE DEPARTMENT                 10       20,425       20,435
   27   DEFENCE DIVISION                                               6,355        6,355
       FEDERAL GOVERNMENT EDUCATIONAL
   28    INSTITUTIONS IN CANTONMENTS AND                           12,516       12,516
       GARRISONS
   29   DEFENCE SERVICES                                          1,804,000    1,804,000
   30   DEFENCE PRODUCTION DIVISION                               998         998
   31   ECONOMIC AFFAIRS DIVISION                                  801         801
                                                                                                                   Contd............

Page 36

          Demand-Wise Expenditure for Budget Estimates 2023-24
                                                                                     (Rs. in million)
Demand                                               Budget Estimates 2023-24
                       Ministries / Divisions
  No.                                            Charged       Voted        Total
       MISCELLANEOUS EXPENDITURE OF   32                                                                    16,424       16,424       ECONOMIC AFFAIRS DIVISION
   33   POWER DIVISION                                             450,566      450,566
   34   PETROLEUM DIVISION                                          51,504       51,504
   35   GEOLOGICAL SURVEY OF PAKISTAN                              1,288        1,288
       FEDERAL EDUCATION AND PROFESSIONAL   36                                                                    26,974       26,974        TRAINING DIVISION
   37   HIGHER EDUCATION COMMISSION (HEC)                        66,300       66,300
        NATIONAL REHMATUL -LIL-ALAMEEN WA   38                                                                211         211       KHATAMUN NABIYYIN AUTHORITY
        NATIONAL VOCATIONAL & TECHNICAL   39                                                                      1,033        1,033        TRAINING COMMISSION (NAVTTC)
        NATIONAL HERITAGE AND CULTURE   40                                                                      2,647        2,647
         DIVISION
   41   FINANCE DIVISION                                               4,233        4,233
       OTHER EXPENDITURE OF FINANCE   42                                                                      6,185        6,185         DIVISION
   43   CONTROLLER GENERAL OF ACCOUNTS                         11,879       11,879
       SUPERANNUATION ALLOWANCES AND   44                                                               4,017      796,983      801,000       PENSIONS
   45   GRANTS SUBSIDIES AND MISCELLLANEOUS          26,400    1,523,513    1,549,913
   46   REVENUE DIVISION                                            76          76
   47   FEDERAL BOARD OF REVENUE                                 40,557       40,557
   48   FOREIGN AFFAIRS DIVISION                                      3,874        3,874
   49   FOREIGN MISSIONS                                    50       43,055       43,105
   50   HOUSING AND WORKS DIVISION                                  7,134        7,134
   51   HUMAN RIGHTS DIVISION                                         2,243        2,243
        NATIONAL COMMISSION FOR HUMAN   52                                                                173         173
        RIGHTS
   53    INDUSTRIES AND PRODUCTION DIVISION                        62,182       62,182
        FINANCIAL ACTION TASK FORCE (FATF)   54                                                                 79          79
       SECRETARIAT
       INFORMATION AND BROADCASTING   55                                                                      4,768        4,768         DIVISION
       MISCELLANEOUS EXPENDITURE OF
   56   INFORMATION AND BROADCASTING DIVISION                   10,260       10,260
       INFORMATION TECHNOLOGY AND   57                                                                      9,953        9,953       TELECOMMUICATION DIVISION
   58    INTERIOR DIVISION                                             13,240       13,240
   59       OTHER EXPENDITURE OF INTERIOR                              9,303        9,303
         DIVISION
   60   ISLAMABAD CAPITAL TERRITORY (ICT)                          18,016       18,016
   61   COMBINED CIVIL ARMED FORCES                             194,701      194,701
        NATIONAL COUNTER TERRORISM   62                                                          819        819       AUTHORITY
                                                                                                                   Contd............

Page 37

          Demand-Wise Expenditure for Budget Estimates 2023-24
                                                                                     (Rs. in million)
Demand                                               Budget Estimates 2023-24
                       Ministries / Divisions
  No.                                            Charged       Voted        Total
        INTER-PROVINCIAL COORDINATION   63                                                                      2,378        2,378         DIVISION
       KASHMIR AFFAIRS AND GILGIT BALTISTAN   64                                                                      1,351        1,351         DIVISION
   65   LAW AND JUSTICE DIVISION                           369        7,208        7,577
   66   FEDERAL JUDICIAL ACADEMY                                  290         290
   67   FEDERAL SHARIAT COURT                                     827         827
   68   COUNCIL OF ISLAMIC IDEOLOGY                                225         225
   69   NATIONAL ACCOUNTABILITY BUREAU                             6,159        6,159
        DISTRICT JUDICIARY, ISLAMABAD CAPITAL   70                                                                      1,261        1,261       TERRITORY
   71    MARITIME AFFAIRS DIVISION                                     2,056        2,056
   72   NARCOTICS CONTROL DIVISION                                  5,123        5,123
   73   NATIONAL ASSEMBLY                                   5,000        3,308        8,308
   74   THE SENATE                                            3,282        1,775        5,057
        NATIONAL FOOD SECURITY AND   75                                                                   12,579       12,579       RESEARCH DIVISION
        PAKISTAN AGRICULTURAL RESEARCH   76                                                                      8,349        8,349       COUNCIL
        NATIONAL HEALTH SERVICES,
   77   REGULATIONS AND COORDINATION                             23,948       23,948
         DIVISION
       OVERSEAS PAKISTANIS AND HUMAN   78                                                                      3,086        3,086       RESOURCE DEVELOPMENT DIVISION
   79   PARLIAMENTARY AFFAIRS DIVISION                             705         705
        PLANNING, DEVELOPMENT AND SPECIAL   80                                                                      8,077        8,077         INITIATIVES DIVISION
       POVERTY ALLEVIATION AND SOCIAL   81                                                                      3,252        3,252       SAFETY DIVISION
        BENAZIR INCOME SUPPORT PROGRAME   82                                                                  471,683      471,683          (BISP)
   83    PAKISTAN BAIT-UL-MAL                                           7,675        7,675
   84    PRIVATIZATION DIVISION                                      310         310
   85   RAILWAYS DIVISION                                            55,384       55,384
        RELIGIOUS AFFAIRS AND INTER-FAITH   86                                                                      1,767        1,767      HARMONY DIVISION
   87   SCIENCE AND TECHNOLOGY DIVISION                          12,969       12,969
   88   STATES AND FRONTIER REGIONS DIVISION                      894         894
   89   WATER RESOURCES DIVISION                                    3,589        3,589
       FEDERAL MISCELLANEOUS INVESTMENTS   90                                                                  163,601      163,601       & OTHER LOANS AND ADVANCES
       DEVELOPMENT EXPENDITURE OF   91                                                                       5,450        5,450        AVIATION DIVISION
                                                                                                                   Contd............

Page 38

          Demand-Wise Expenditure for Budget Estimates 2023-24
                                                                                     (Rs. in million)
Demand                                               Budget Estimates 2023-24
                       Ministries / Divisions
  No.                                            Charged       Voted        Total
       DEVELOPMENT EXPENDITURE OF CABINET   92                                                                    90,065       90,065         DIVISION
       DEVELOPMENT EXPENDITURE OF BOARD   93                                                                       1,115        1,115       OF INVESTMENT
       DEVELOPMENT EXPENDITURE OF SPECIAL   94                                                                  55          55       TECHNOLOGY ZONES AUTHORITY
       DEVELOPMENT EXPENDITURE OF   95                                                                 439         439       ESTABLISHMENT DIVISION
       DEVELOPMENT EXPENDITURE OF   96                                                                       6,900        6,900       SUPARCO
       DEVELOPMENT EXP OF CLIMATE CHANGE   97                                                                       4,050        4,050       AND ENV. COORDINATION DIVISION
       DEVELOPMENT EXPENDITURE OF   98                                                                       1,100        1,100      COMMERCE DIVISION
       DEVELOPMENT EXPENDITURE   99                                                                    12,021       12,021       COMMUNICATION DIVISION
       DEVELOPMENT EXPENDITURE OF  100                                                                      3,400        3,400       DEFENCE DIVISION
       DEVELOPMENT EXPENDITURE OF  101                                                                      2,000        2,000       DEFENCE PRODUCTION DIVISION
       DEVELOPMENT EXPENDITURE OF POWER  102                                                                     5,839        5,839         DIVISION
       DEVELOPMENT EXPENDITURE OF FEDERAL  103                                                                   10,428       10,428       EDUCATION & PR. TR. DIVISION
       DEVELOPMENT EXPENDITURE OF HIGHER  104                                                                   69,700       69,700       EDUCATION COMMISSION
       DEVELOPMENT EXPENDITURE OF
  105   NATIONAL VOCATIONAL & TECHICAL                              8,072        8,072
        TRAINING COMMISSION (NAVTTC)
       DEVELOPMENT EXPENDITURE OF  106                                                                 540         540        NATIONAL HERITAGE & CULTURE DIVISION
       DEVELOPMENT EXPENDITURE OF FINANCE  107                                                                      3,220        3,220         DIVISION
  108   OTHER DEVELOPMENT EXPENDITURE                          164,750      164,750
       DEVELOPMENT EXPENDITURE OF  109                                                                      3,200        3,200       REVENUE DIVISION
       DEVELOPMENT EXPENDITURE OF HUMAN  110                                                                      5,814        5,814        RIGHTS DIVISION
       DEVELOPMENT EXPENDITURE OF  111                                                                 981         981       INFORMATION & BROADCASTING DIVISION
       DEVELOPMENT EXPENDITURE
  112   INFORMATION TECHNOLOGY &                                  11,000       11,000
       TELECOMMUNICATION DIVISION
                                                                                                                   Contd............

Page 39

          Demand-Wise Expenditure for Budget Estimates 2023-24
                                                                                     (Rs. in million)
Demand                                               Budget Estimates 2023-24
                       Ministries / Divisions
  No.                                            Charged       Voted        Total
       DEVELOPMENT EXPENDITURE OF  113                                                                     9,950        9,950        INTERIOR DIVISION
       DEVELOPMENT EXPENDITURE OF  114                                                                     6,900        6,900        INTERPROVINCIAL COORDINATION
       DEVELOPMENT EXPENDITURE OF LAW &  115                                                                      1,400        1,400        JUSTICE DIVISION
       DEVELOPMENT EXPENDITURE OF  116                                                                 150         150       NORCOTICS CONTROL DIVISION
       DEVELOPMENT EXPENDITURE OF
  117   NATIONAL FOOD SECURITY AND                                43,850       43,850
       RESEARCH DIVISION
       DEVELOPMENT EXPENDITURE OF
  118   NATIONAL HEALTH SERVICES,                                   13,100       13,100
       REGULATION AND COORD. DIVISION
       DEVELOPMENT EXPENDITURE OF
  119   PLANNING, DEVELOPMENT AND SPECIAL                        29,897       29,897
         INITIATIVES DIVISION
       DEVELOPMENT EXPENDITURE OF  120                                                                 500         500       POVERTY ALLEVIATION DIVISION
       DEVELOPMENT EXPENDITURE OF SCIENCE  121                                                                      8,000        8,000       & TECHNOLOGY DIVISION
       DEVELOPMENT EXPENIDTURE OF STATES  122                                                                 964         964       AND FRONTIER REGIONS DIVISION
       DEVELOPMENT EXPENDITURE OF WATER  123                                                                  107,500      107,500       RESOURCES DIVISION
        CAPITAL OUTLAY ON DEVELOPMENT OF  124                                                                    26,100       26,100       ATOMIC ENERGY
        CAPITAL OUTLAY ON DEVELOPMENT OF
  125   PAKISTAN NUCLEAR REGULATORY                              150         150
       AUTHORITY
  126   CAPITAL OUTLAY ON PETROLEUM DIVISION                       1,500        1,500
        CAPITAL OUTLAY ON FEDERAL  127                                                                 255         255       INVESTMENTS
       DEVELOPMENT LOANS AND ADVANCES BY  128                                                                 157,314      157,314       THE FEDERAL GOVERNMENT
       EXTERNAL DEVELOPMENT LOANS AND  129                                                     658,644       41,879      700,523       ADVANCES BY THE FEDERAL GOVERNMENT
  130   CAPITAL OUTLAY ON CIVIL WORKS                              41,881       41,881
        CAPITAL OUTLAY ON INDUSTRIAL  131                                                                   13,000       13,000       DEVELOPMENT
        CAPITAL OUTLAY ON MARITIME AFFAIRS  132                                                                     2,572        2,572         DIVISION
  133   CAPITAL OUTLAY ON RAILWAY DIVISION                         33,000       33,000
       STAFF HOUSEHOLD & ALLOWANCES OF
                                                          597                     597       THE PRESIDENT(PUBLIC)
                                                                                                   Contd...

Page 40

            Demand-Wise Expenditure for Budget Estimates 2023-24

                                                                                     (Rs. in million)
Demand                                               Budget Estimates 2023-24
                       Ministries / Divisions
  No.                                            Charged       Voted        Total
       STAFF HOUSEHOLD & ALLOWANCES OF
                                                          812                     812       THE PRESIDENT(PERSONAL)
        AUDIT                                               7,561                     7,561
        SERVICING OF DOMESTIC DEBT                  6,430,305                  6,430,305
       REPAYMENT OF DOMESTIC DEBT               28,898,040                28,898,040
        SERVICING OF FOREIGN DEBT                    872,219                   872,219
       FOREIGN LOANS REPAYMENT                    4,398,068                  4,398,068
       REPAYMENT OF SHORT TERM FOREIGN
                                                            46,690                    46,690        CREDITS
       SUPREME COURT                                   3,555                     3,555
       ISLAMABAD HIGH COURT                            1,543                     1,543
        ELECTION                                           7,786                     7,786

       FEDERAL OMBUDSMAN SECRETARIAT FOR
       PROTECTION AGAINST HARRASMENT OF             115                     115
      WOMEN AT WORK PLACE

       WAFAQI MOHTASIB                                  1,250                     1,250
       FEDERAL TAX OMBUDSMAN                        391                     391
                 TOTAL                            41,366,703    7,092,734   48,459,437

Page 41

         STATEMENT OF OBJECT CLASSIFICATION WISE EXPENDITURE
                                                                                Rs. In million
                                                 Budget     Revised      Budget
  Object
                           Description                Estimates    Estimates     Estimates
  Code
                                                      2022-23      2022-23       2023-24

A01        Total Employees Related Expenses             954,060      960,284       1,168,366
A011       Pay                                        147,526      176,611        215,488
  A011-1  Pay of Officer                                   50,721       57,895         71,148
  A011-2  Pay of Other Staff                               96,805      118,716        144,340
A012      Allowances                                   806,534      783,673        952,878
  A012-1   Regular Allowances                            783,697      758,531        916,420
  A012-2   Other Allowances (Excluding TA)                  22,838       25,141         36,458

A02        Project Pre-investment Analysis                  3,935         1,746           3,713
A03        Operating Expenses                          971,094     1,040,017       1,209,396
A04       Employees Retirement Benefits                617,278      617,504        806,075
A05        Grants, Subsidies & Write off Loans            2,056,072     2,006,315       2,764,835
A06        Transfers                                      11,910       30,218         13,279

A07         Interest Payment                             3,950,072     5,526,704       7,302,534
A08       Loans and Advances                          511,583      586,293        923,916
A09        Physical Assets                               451,423      444,329        497,421

A10        Principal Repayments of loans               23,589,550    28,418,538      33,342,817

A11       Investments                                   81,498      217,623        141,434
A12         Civil Works                                   213,360      235,494        272,792
A13        Repairs and Maintenance                       10,656         8,555         12,860

                TOTAL EXPENDITURE            33,422,491    40,093,620      48,459,437

Page 42

    STATEMENT OF CONTINGENT LIABILITIES

              Contingent  liabilities  of  Pakistan  are  primarily  guarantees
issued on behalf of Public Sector Enterprises (PSEs). The sovereign guarantee
is normally extended to improve financial viability of projects or activities
undertaken by the government entities with significant social and economic
benefits. It allows public sector companies to borrow money at lower costs or
on more favorable terms and in some cases allows to fulfil the requirement
where sovereign guarantee  is a precondition for concessional loans from
bilateral/multilateral agencies to sub-sovereign borrowers.
2.          The volume of new government guarantees issued during a
financial year is limited under Fiscal Responsibility and Debt Limitation Act
which stipulates that the government shall not give guarantees aggregating to
an amount exceeding two percent of the GDP in any financial year including
those for rupee lending, rate of return, outright purchase agreements and other
claims and commitments provided the renewal of existing guarantees shall be
considered as issuing a new guarantee.
3.           During Jul-Mar FY23, the government remained within the
FRDL Act limit for issuance of new/rollover of GoP Guarantees which stood
at 0.2% of GDP. Total executed guarantees were Rs 3,860   billion while
outstanding stock was Rs 3,460 billion at end March2023as per the following
details:
Table-1: Summary of Outstanding Government Guarantees
(All figures are Rs in billion unless otherwise stated)
                                                             Total                                      Outstanding
                                      Guarantees                                                     Guarantees
 Domestic                                          1,579          1,771
 External                                           1,881          2,089
 Total                                             3,460          3,860
Memo:
 External (US$ in million)                           6,629          7,360
 Exchange Rate (Pak Rupee/US Dollar)               284          284

Page 43

4.            Sector-Wise, Entity Wise and interest rate wise share of the
guarantees at end March 2023are as follows:
Table 2: Outstanding Position of GoP Guarantees
                                                Rsin billion % Age
                           Sector Wise Breakup
 Total Outstanding Stock                                     3,460  100%
- Power Sector                                                2,541   73%
- Aviation                                                244   7%
- Manufacturing& Mining                                    66   2%
- Financial                                                 46   1%
- Oil & Gas                                                35   1%
- Others                                                  528   15%
                           Entity Wise Breakup
Total Outstanding Stock                                      3,460  100%
- PHL                                                   765   22%
- PAEC                                                      1,458   42%
- PIACL                                                 244   7%
- Sindh Engro                                              89   3%
- NTDC                                                   58   2%
- Others                                                  845   24%
                              Interest Rate Type
Total Outstanding Stock                                      3,460  100%
- Floating Rate                                                1,641   47%
- Fixed Rate                                                  1,818   52%
Note: The original maturities of major portion of Guaranteed Debt Stock were 5
years and above

Page 44

5.            Guarantees  issued  against  commodity  operations  are  not
included in the stipulated limit of 2 percent of GDP as the loans are secured
against the underlying commodity and are essentially self-liquidating. These
guarantees are issued against the commodity financing operations undertaken
by TCP, PASSCO, and provincial governments. The outstanding stock of
commodity operations was Rs 1,112 billion at end March 2023.
6.          The estimates of guarantees to be issued from April 2023 till
June 2024 are as follows:

Table 3: Estimated Guarantees Issuance and Position (Q4 FY 23 and FY 24)
(Rs in billion)

  A     Opening Guaranteed Debt Position (31-03-2023)              3,860

   B    New Guarantees to be Issued (Q4 FY 23 & FY 24)            598
               - GOB / GHPL                                           208
                - Public Private Partnership (PPP)                            110
                - National Transmission and Despatch Company
                                                                  100
         (NTDC)
                - Exim Bank                                              10
                - Misc/Contingencies                                       25
          Others                                                 145
           Estimated Repayments against Existing Guaranteed
  C                                                            310
          Loans

 D=B-C   Net Issuance of Guarantees (Q4 FY 23 & FY24)              288

           Estimated Closing Guaranteed Debt Position (30-06-
  A+D                                                                4,148
           2024)
Note
(i)     Rollover/refinancing against existing allocated limits to PSEs is not included
        in the above information;
(ii)    External guarantees are converted into PKR at exchange rate of 290/USD as
        applicable for budget FY 24
(iii)   The estimates are developed based on requests received so far from different
      PSEs and issuing wings during the ongoing Fiscal Year
(iv).  The guarantees of which LoCs have already been issued before March 2023
are incorporated in Opening Guaranteed Debt Position as at End March 2023

Page 45

             Statement of Fiscal Risks

The Statement of Fiscal Risks for FY2023-24 is prepared in compliance with
Section 4, Sub-Section 3 (b) of the Public Finance Management Act, 2019,
which states that the Annual Budget Statement shall also contain a statement
of fiscal risks.

Fiscal risks are risks that may lead to deviations in fiscal forecasts presented in
the Medium-Term Budgetary Statement, as defined in section 5 of Fiscal
Responsibility and Debt Limitation (FRDL) Act 2005. This Statement applies
the principle of ‘reasonableness’, which means that only those fiscal risks that
have a reasonable chance of materializing over the medium-term are included.

The key factors of fiscal risk are summarized as under:

    1. MACROECONOMIC RISKS

The global economy has entered 2023 with significant challenges, that  is,
persistent supply chain  issues,  inflationary  pressures,  prolonged  Russia-
Ukraine war, and catastrophic disasters (earthquakes and climatic issues).
According to IMF estimates, the global growth is projected to fall from an
estimated 3.4 percent in 2022 to 2.8 percent in 2023, then rise to 3.0 percent in
the following year. As such, the forecast for 2023 is below the historical
(2000-2019) average of 3.8 percent. The rise in central bank’s rates to fight
inflation and Russia-Ukraine war continue to weigh on economic activity. The
recent reopening of China has paved the way for the expected recovery.
Global inflation is expected to remain around 7.0 percent in 2023 and 4.9
percent in 2024, still above pre-pandemic (2017-2019) levels of about 3.5
percent. This situation in the major economies has impacted many developing
economies including Pakistan.

    2. PUBLIC DEBT AND GUARANTEES

Total public debt (TPD) is a measure of government indebtedness. Under the
FRDL  Act, 2005,  "Total  Public Debt" means  debt  of  the government
(including the Federal Government and the Provincial Governments) serviced
out of the consolidated fund and debt owed to the IMF.

Over the last five years, Total Public Debt of the Government has exceeded
the prescribed limit of 60 percent of GDP under the FRDL Act. This is
primarily due to consistent fiscal deficits, averaging 6 percent of GDP since
2010, which have led to a rapid build-up of debt. TPD can increase due to both

Page 46

budgetary and non-budgetary factors, such as unfavorable movements in
interest and exchange rates and the realization of contingent liabilities.

    3. STATE OWNED ENTERPRISES RISKS

Pakistan’s state-owned enterprises (SOEs) provide a wide range of essential
goods and services, and thus play a critical role in Pakistan’s socio-economic
development. Given multivariate financial flows between the Government of
Pakistan and its SOEs, their ongoing financial and operational performance is
a considerable source of fiscal risk.

    4. CLIMATE AND NATURAL DISASTER RISKS

Pakistan’s 2021  Nationally Determined  Contributions (NDC)  has  set  a
conditional target of an overall 50percent reduction of emissions between
2015 and 2030  relative to business-as-usual scenario, with a 15 percent
reduction using the country’s own resources, and an additional 35 percent
subject to international financial support. Furthermore, quantitative targets are
set for energy (by 2030, 60 percent of all energy will be from renewable
resources including hydropower) and transport (by 2030, 30 percent of all new
vehicles sold will be electric vehicles). The Government has also placed a
moratorium on new coal plants and no generation of power through imported
coal will be allowed. Similarly, Pakistan also has announced the National
Adaptation Plan in 2022, which is expected to be released later this year, for
mainstreaming medium and long-term climate change concerns into national
policies, strategies, and programs.

    5. PUBLIC PRIVATE PARTNERSHIP RISKS

To institutionalize PPPs in Pakistan, the Government established the Public
Private Partnership Authority (P3A) through the PPPA Act of 2017 (amended
2022). The Authority operates under the supervision of the Ministry of
Planning, Development and Special Initiatives and has mandates, including
regulating PPP  transactions,  helping  federal  implementing  agencies  in
developing and  procuring  infrastructure  projects  through  private  sector
investment, and approving PPP transactions that offer funding solutions to the
public sector.

The P3A is responsible for ensuring that "qualified projects" are aligned with
national and  sectoral  strategies, conducting value-for-money analysis  for
qualified projects, appraising and assessing project risks, evaluating funding
requirements, advising and supporting implementing agencies at all stages of

Page 47

the project cycle, standardizing contractual provisions, developing sector-
specific provisions and templates, analyzing and assessing financial models,
and collaborating with international agencies.

The Public Private Partnership Working Party (P3WP) has responsibilities
such  as  approving  project  concept  proposals  and  project  qualification
proposals submitted by the implementing agencies to P3A. The Act also
outlines the necessary approvals for qualified projects, which must be obtained
before the PPP agreement is executed by the implementing agency and the
concessionaire. These approvals include those from the P3WP for the project
qualification proposal, the RMU for fiscal analysis, the Board of the Authority
for the  project proposal, and the Executive Committee of the National
Economic Council for projects meeting certain criteria, in addition to any
other prescribed approvals.

Page 48

  STATEMENT OF ESTIMATED TAX EXPENDITURE

              Section 8  of  the  Public  Finance Management  Act, 2019
provides that the Federal Government shall, in respect of every financial year
cause to be laid before the National Assembly, Finance Bill consistent with
Article 73  of  the  Constitution  including  a  statement  of  estimated  tax
expenditure of the Federal Government.

2.       A Tax Expenditure  statement providing  the  detail  of  tax
expenditure in FY 2023-24 which involves tax expenditure in sales tax of Rs.
1,294.04 billion, a tax expenditure in income tax of Rs. 423.89 billion, and tax
expenditure  in Customs Duty of Rs. 521.70  billion,  arriving  at a  total
estimated tax expenditure of Rs. 2,239.63 billion is being laid before the
Parliament.

                                             (Asim Ahmad)
                                               Chairman FBR
Dated: 09-06-2023

Page 49

          Medium-Term Budgetary Statement
                    (2023-24 to 2025-26)
           Section 5 of the Fiscal Responsibility & Debt Limitation Act,
2005requires the Federal Government to include a Medium-Term Budgetary
Statement, consistent with the principles of sound fiscal and debt management,
in the Annual Budget Statement to be laid before the National Assembly each
year.

2.         FY2022-23 witnessed significant external and domestic events
which impacted the economic outlook. The floods of 2022 left a  trail of
widespread  devastation,  with  losses  to  infrastructure,  agriculture  and
livelihoods. On the global front, the war in Ukraine disrupted supply chains
and surged  fuel  prices,  already high  in post-pandemic recovery  phase.
Resultant inflationary pressures and a high policy rate environment pushed the
Government’s borrowing costs to levels that were difficult to sustain. Trust
deficit with major lenders added to the economic difficulties as external
inflows remained below projections.

3.        Major challenge for the Government was to provide relief to the
poor and vulnerable segments of the society. With such economic backdrop,
this was a daunting task. The Government, however, resolved to take this
challenge head on at the cost of  its political capital. Rebuilding the very
foundation of Pakistan’s economy over short to medium- term with renewed
focus on  agriculture,  IT  and  industrial  sectors  are  key  to  improving
competitiveness and creating job opportunities. Strengthening social safety
nets is the primary objective in these testing times.

4.          Increasing  revenues  over  medium-term  is  critical  to  meet
burgeoning expenditures. The Government is, therefore, gearing up its efforts
to optimize tax collection, while ensuring that taxpayers’ facilitation and

Page 50

business friendly policies remain a bedrock of tax policy and administrative
measures. Increased use of IT based solutions at FBR level will not only
facilitate taxpayers but also help in broadening the tax net. Tax distortions are
being  rationalizing,  laws  and  regulations  simplified  to  ensure  better
compliance levels. Similarly, realizing the importance of non-tax revenues, the
Government is exploring all avenues to increase inflows and collecting entities
are being sensitized to renew their efforts.

5.      On   the   expenditure   side,   the  Government   is   ensuring
rationalization of non-essential spending with austerity measures in place.
Cognizance of improved financial management and discipline over medium-
term will ensure that the Government is able to strike a balance between
providing relief to the common man and meet other essential expenditures.
Considerable allocations are being made to protect the vulnerable through
targeted programs of BISP. Similarly, substantial allocations are being made
for  provision  of  subsidized  essential food items  at  Utility  Stores. The
development  portfolio  of  the Government  is  also  being  protected and
rationalized to ensure that public funds are utilized to generate economic
activity, enhance productivity and create job opportunities.

Page 51

               Green Budget Statement
              Pakistan is one of the most vulnerable countries in the world to
climate change risks. The Global Climate Risk Index 2021 ranks Pakistan as
the eight most vulnerable country susceptible to negative effects of climate
change. In view of this challenge, effective measures for climate change
mitigation and  adaptions  are key  to  sustainable  development.  Finance
Division’s initiative of green-budget tagging is a step towards identifying
budgetary allocations which are ‘climate sensitive’, thereby allowing policy
makers to have better  visibility of expenditures directed towards climate
change  mitigation.  International  best  practices recommend implementing
these strategies through the public finance management cycle, an important
component of which is the budget formulation itself starting from the very
first step of the Budget Call Circular. This approach is essential for tracking
and monitoring climate related expenditures. For FY2023-24, a dual approach
is being adopted, whereby climate sensitive cost centers in each demand are
be identified and tagged in the SAP system while  medium-terms goals,
objectives and KPIs on climate change are being identified for development
budget through the Performance-Based Budgeting (Green Book). It is hoped
that this exercise will lend support to the Government’s strategy for climate
change risks mitigation and adaption.

Page 52

               Gender Budget Statement
       For FY2023-24, a major  initiative of Finance Division  is gender
responsive budgeting. This is in line with the Constitution of the Islamic
Republic of Pakistan which enshrines provision of equal rights and equal
treatment to all citizens without any gender discrimination. The objective is to
segregate gender-wise expenditures both in current and development budgets,
thereby allowing policy makers to have a better handle on gender responsive
policies and strategies. This will also support incorporating gender-related
objectives in fiscal policies and their implementation. As a first step, ‘gender
sensitive’ heads of expenditures in current budget are being identified and
tagged in the SAP system. On the development side, goals, objectives and
KPIs  related  to gender  are being  identified through Performance-Based
Budgeting (Green Book). Such tagging will help in tracking, monitoring and
reporting gender sensitive expenditures. Going forward, the gender responsive
goals and objectives of the Government laid out in multi-year and annual
development plans on SDG-5 and other cross-cutting themes like labor, youth,
health, education and poverty alleviation can be supported through this tool.

Page 53

  EMPLOYEES RELATED DATA AND IMPLEMENTATION OF
       ORGANIZATIONAL MANAGEMENT MODULE
Human Resource Data  in  the domain of public administration provides
valuable  insights on a government’s workforce composition and on the
government’s ability to recruit, retain and manage its human resource capital.
From fiscal point of view Human Resource information serves as an important
decision-making  tool  to  help Government  rationalize  its  allocation  of
resources more efficiently and economically in its employees related data.
In the Budget Call Circular (2023-24) a serious attempt has been made to
compile federal government employees’ data, with vacancy positions, and
redundant posts separately for bringing greater visibility to the size of the
Federal Government employees with specific emphasis on identification of
posts that have remained vacant for more than three (03)years. The exercise
intends  to  assess  the  financial  liability involved  in  the  continuation  of
redundant posts and to rationalize the size of the governments in terms of
allocation of funds and resources on to the current side of expenditure.Besides
conversion of employees related data on Organizational Management (OM)
Module has been intensely pursued to stop manual input of data in the system,
eliminating the  risk for  errors through creation of an Employee Record
Management database for better management and administer salary plans and
process annual pay raise.In this way OM Module is the most critical feature in
maintaining personal information of Employees, by processing payroll entries
more efficient to generate salary slips, to deduct taxes from employee payroll
while strengthening the government’s working through automated work flows.

Page 54

                      Government of Pakistan
                           Finance Division

           STATEMENT OF RESPONSIBILITY

              Stated that all policy decisions with material economic or fiscal
implications that the Federal Government has made before 09th June 2023, the
day on which the contents of the economic policy statements were finalized
and all other circumstances with material economic or fiscal implications of
which I was aware before that day, have been communicated to the Secretary
of Finance in terms of Section 10(1)(a) of Fiscal Responsibility and Debt
Limitation Act, 2005.

     The statement to the best of my knowledge provides for

       a)  the integrity of the disclosures contained in the economic
          policy statement;
       b)  the  consistency  with  requirements  of  the Act  of  the
          information contained in the economic policy statements;
         and
       c)  the omission from the economic policy statement of any
          decision or circumstance specified in sub-section (3) of
           section 8 of the Act.

                                      (Senator Mohammad Ishaq Dar)
                                          Minister for Finance and Revenue

Page 55

                      Government of Pakistan
                           Finance Division

           STATEMENT OF RESPONSIBILITY

              Stated that the Finance Division, in terms of Section 10(1)(b) of
Fiscal Responsibility and Debt Limitation Act, 2005, has supplied to the
Minister for Finance and Revenue, using its best professional judgment on the
basis of economic and fiscal information available to it before 09th June 2023,
the day on which the contents of the economic policy statements were
finalized, an economic and  fiscal statement incorporating the  fiscal and
economic implications of those decisions and circumstances, but any decisions
or circumstances that the Minister for Finance and Revenue has determined
under Sub-section (3) of Section 8 of the Fiscal Responsibility and Debt
Limitation Act 2005 have not been incorporated in the statement.

                         IMDAD ULLAH BOSAL
                                    Secretary to the Government of Pakistan

Finance Division,
Islamabad, the 09th June, 2023