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Category: Budget

This is parent category of budgets presented by Pakistan government. Here you will find year-wise federal and provincial budgets.

  • Pakistan decides 10% regulatory duty on petrol import

    Pakistan decides 10% regulatory duty on petrol import

    KARACHI: Pakistan has decided to impose regulatory duty at 10 per cent from July 01, 2022.

    The country presented its federal budget 2022/2023 on June 10, 2022 and proposed increase on regulatory duty on various imported goods.

    READ MORE: Penalty amount revised for late filing income tax returns

    The Finance Bill, 2022 suggested levying 10 per cent regulatory duty on import of motor spirit as against existing rate of zero percent.

    Experts at PwC A.F. Ferguson Chartered Accountants said that the notifications for amendments relating to regulatory duty and additional duty are yet to be issued. “The comments are based on ‘Salient Features’ issued with the finance bill,” they added.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

    The government also proposed increase in regulatory duty from zero per cent to 10 per cent on other paper, paperboard, cellulose wadding and webs of cellulose fibers.

    Furthermore, the government planned to increase regulatory duty from 10 per cent to 20 per cent on optic fiber cables.

    The Finance Bill also proposed amendments in reduction of regulatory duties, which included:

    Regulatory duty has been proposed to be reduced as follows:

    Case hardening steel from 30 per cent to 20 per cent

    Chrome yellow from 15 per cent to 0 per cent

    The Finance Bill proposed reduction / concessions in customs duty:

    Customs Duty (CD) leviable on the import of following categories of items / sectors is proposed to be exempted for incentivizing the respective sectors:

    READ MORE: Pakistan massively increases taxation on motor vehicles

    – Machinery and capital goods for mechanization of farming including machinery pertaining to irrigation, drainage, harvesting, plant protection etc.

    – Specified raw materials used for manufacturing of LED lights, LED bulbs (including parts thereof) and brush ware.

    – 26 Active Pharmaceutical Ingredients for incentivizing Pharmaceutical manufacturers.

    – Raw materials for manufacture of first aid bandages.

    – Membranes for filtering / purifying water.

    – The drug ‘Grafalon’ and gadget ‘Irisvision’.

    – Raw materials of Ivy leaves extract powders.

    – Motor spirit.

    In addition to CD, Additional Customs Duty (ACD) is also proposed to be exempted on import of the following goods:

    – Raw materials imported by paper sizing industry and chlorinated paraffin wax industry and manufacturers of aluminum conductor composite cores.

    – Stamping foils for manufacturing of optic fiber cables.

    – Aluminum paste and powder imported by the Coating industry.

    – Guts, bladders and stomachs of animals.

    READ MORE: New rates of capital gain tax on disposal of securities

    Reduction in Customs Duty and Additional Customs Duty

    CD leviable on import of following goods is proposed to be reduced:

    – Specified categories of other woven fabrics and artificial flowers / foliage of other materials imported by manufacturers of footwear.

    – High-density fiber (HDF) boards of wood or other ligneous materials

    – Specified fibers of polypropylene.

    In addition to CD, ACD, leviable on import of following goods is also proposed to be reduced:

    – Direct and reactive dyes.

    – Glycerol crude and Glycerol for the coating industry.

    – Goods pertaining to Aluminum, polymers of ethylene, Biaxially Oriented Polypropylene (BOPP) used by the packing industry.

    – Adhesive, Epoxide resins, Filter media/ paper, Non-woven fabric media and Steel plates / sheets of prime quality imported by manufacturers of filters, other than automotive.

    READ MORE: Pakistan slaps 45% corporate tax on banks

    – Organic composite solvents and thinners imported by manufacturers of Dibutyl Orthophthalates.

    – Plywood, veneered panels & similar laminated wood, poly (methyl methacrylate) and cyanoacrylate.

    – Flavoring powders for food preparation for snacks manufacturers.

  • Penalty amount revised for late filing income tax returns

    Penalty amount revised for late filing income tax returns

    ISLAMABAD: Penalty amount has been revised for filing income tax returns after due date.

    The Finance Bill, 2022 proposed revision in penalty amount for late filing of income tax returns by salaried persons and other taxpayers.

    The government presented federal budget 2022/2023 on June 10, 2022 and proposed various amendments to tax laws for ensure documentation and broadening of tax base.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

    The Finance Bill, 2022 proposed amendment to Section 182 of Income Tax Ordinance, 2001. According to the amendment penalty amount revised where any person fails to furnish a return of income as required under Section 114 within the due date.

    The proposed amendment is:

    “Such person shall pay a penalty equal to higher of –

    (a) 0.1 per cent of the tax payable in respect of that tax year for each day of default; or

    (b) rupees one thousand for each day of default:

    Provided that minimum penalty shall be —

    (i) rupees ten thousand in case of individual having seventy-five percent or more income from salary; or

    (ii) rupees fifty thousand in all other cases:

    READ MORE: Pakistan massively increases taxation on motor vehicles

    Provided further that maximum penalty shall not exceed two hundred percent of tax payable by the person in a tax year:

    Provided also that the amount of penalty shall be reduced by 75 per cent, 50 per cent and 25 per cent if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law;

    Explanation.— For the purposes of this entry, it is declared that the expression “tax payable” means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under section 120, 121, 122 or 122D.

    The existing amount of penalty is as followed:

    Such person shall pay a penalty equal to 0.1 per cent of the tax payable in respect of that tax year for each day of default subject to a maximum penalty of 50 per cent of the tax payable provided that if the penalty worked out as aforesaid is less than forty thousand rupees or no tax is payable for that tax year such person shall pay a penalty of forty thousand rupees:

    READ MORE: New rates of capital gain tax on disposal of securities

    Provided that If seventy-five percent of the income is from salary and the amount of income under salary is less than five million Rupees, the minimum amount of penalty shall be five thousand Rupees:

    Provided further that if taxable income is up-to eight hundred thousand Rupees, the minimum amount of penalty shall be five thousand Rupees:

    Provided also that the amount of penalty shall be reduced by 75 per cent, 50 per cent and 25 per cent if the return is filed within one, two and three months respectively after the due date or extended due date of filing of return as prescribed under the law.

    Explanation.— For the purposes of this entry, it is declared that the expression “tax payable” means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under section 120, 121, 122 or 122C.

    READ MORE: Pakistan slaps 45% corporate tax on banks

  • Yarn merchants demand removing budget anomalies

    Yarn merchants demand removing budget anomalies

    KARACHI: Pakistan Yarn Merchants Association (PYMA) has urged the finance minister to remove anomalies in the budget 2022/2023.

    In a statement on Friday, Saqib Naseem, Chairman PYMA, Muhammad Junaid Teli, Vice Chairman, Sind & Balochistan region, has drawn attention of Minister for Finance and Revenue, Miftah Ismail over anomalies in Federal Budget 2022-23.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

    PYMA office bearers elaborated that Polyester filament yarn (H.S. CODE 5402.3300, 5402.4600, 5402.4700 and 5402.5200), also known as Man-Made Yarn, is the basic raw material for Pakistan’s textile industry.

    The share of cotton in global fiber consumption has fallen from nearly 70 per cent back in 1960, to only 27 percent by end 2020. Its place has now been captured by synthetic or man-made yarns.

    “A very large SME sector of Pakistan’s textile industry (more than 500,000 looms and knitting machines) consumes Polyester filament yarn. The commercial importers of Polyester Filament yarn act as financiers to this SME sector and entertain the requirements of this SME sector using their own capital and resources,” they said.

    READ MORE: Pakistan massively increases taxation on motor vehicles

    Saqib Naseem, Junaid Teli added that we have seen in the past that whenever the difference in W.H.T is more than 1 per cent on Commercial Imports v/s Industrial Import, majority imports of Polyester Filament yarn shift towards industrial imports which leads to corruption and misuse of this facility and to the exchequer.

    They further said that Polyester Filament yarn falls under the category of Raw Materials (SRO 1125) and in the previous budget FY 2021-22, the G.O.P imposed W.H.T at import stage 1 per cent for industrial importers and 2 per cent on commercial. However, in the Federal Budget 2022-23, the G.O.P has kept W.H.T @1 per cent for industrial imports falling under SRO 1125 whereas commercial importers shall be charged W.H.T @3.5 per cent with M.T.R and @ 4 per cent with F.T.R. Polyester filament yarn tariff already exists in the cascading system of polyester value chain & it is already on the higher side.

    READ MORE: New rates of capital gain tax on disposal of securities

    Saqib Naseem, Junaid Teli requested Minister for Finance & Revenue, Miftah Ismail to kindly continue with 2 per cent W.H.T with FTR on Commercial Imports on items falling under SRO1125. Furthermore, in view of information from Reliable sources, it has been learned that the government may impose ACD & RD on Polyester Filament Yarn (H.S Code: 5402.3300, 5402.4600, 5402.4700 & 5402.5200).

    Since these are basic raw materials of the Textile Industry, therefore we are requesting you not to impose any ACD & RD on these H.S Codes. We would also request you to Rationalize Custom Duty Tariff of POY (5402.4600) & PFDY (5402.4700) @7 per cent instead of present 11 per cent.

    READ MORE: Pakistan slaps 45% corporate tax on banks

  • Punjab announces 15% increase in salary

    Punjab announces 15% increase in salary

    LAHORE: Punjab government has announced an increase of 15 per cent for employees of provincial government.

    The Punjab government on Wednesday announced its budget for fiscal year 2022/2023. The finance minister announced an increase of 15 per cent for employees of provincial government. Besides, the provincial government also increased 5 per cent for pension.

    The finance minister said that provincial government was well aware of high inflation and difficulties of masses.

    About the employees of provincial government, the finance minister said the employees were committed to their jobs.

    The minister also announced a special allowance of 15 per cent to the salary of employees of grade 1 to grade 19.

    Further, the government also increased the minimum wage from Rs20,000 to Rs25,000 per month.

  • Punjab presents Rs3.226 trillion budget 2022/2023

    Punjab presents Rs3.226 trillion budget 2022/2023

    LAHORE: Punjab government on Wednesday presented its budget 2022/2023 with an outlay of Rs3.226 trillion. Presenting the budget, Finance Minister, Sardar Owais Ahmad Khan Leghari said the total volume of the budget is 22 percent more than current fiscal year, out of which Rs1.712 billion have been allocated for Current Expenditures.

    He said that total estimated Revenue for next fiscal year is 2521.29 billion rupees, while the province will get over 2020 billion rupees from the Federal Divisible Pool.

    The Minister said Rs435.87 billion have been allocated for salaries, Rs312 billion for pensions while Rs528 billion for Local Governments.

    The Finance Minister said no new tax has been levied in next fiscal year on account of Sales Tax on Services. He said Stamp Duty ratio has been proposed to enhance from current one percent to 2 percent to raise provincial revenue.

    Owais Leghari said 35 percent of the Annual Development Program amounting to 240 billion rupees has been allocated for South Punjab, which will be spent on development projects.

  • Sindh announces tax relief measures in budget 2022-2023

    Sindh announces tax relief measures in budget 2022-2023

    KARACHI: The province of Sindh has announced sales tax relief measures in the budget 2022-2023 presented in the provincial assembly on Tuesday.

    Sindh Chief Minister Syed Murad Ali Shah announced a number of measures to facilitate taxpayers in payment of sales tax on services.

    READ MORE: Sindh increases salary by 15% from July 1, 2022

    He said relief to public has been provided by extending existing measure to ensure that relief continues to reach common man. For this purpose;

    Exemption from SST is being proposed on toll manufacturing services.

    READ MORE: Sindh unveils Rs1.714 trillion budget for 2022/2023

    5 per cent reduced SST rate for “Recruiting Agents” will continue for next two years i.e. up to 30th June, 2024. This relief is proposed for Pakistanis aspiring to work overseas.

    Services provided by Cable TV Operators are levied at a reduced rate of 10 per cent, the existing relief is proposed to be extended for a further period of two years ending on 30th June, 2024.

    Whereas, the following cable TV operators are proposed to be exempt:

    a) Cable TV Operators in rural areas under PEMRA License of “R” Category to be exempt from SST till 30th June, 2023.

    READ MORE: Khyber Pakhtunkhwa raises salary, pension by 15%

    The rate of SST on commission charges received by food delivery channels (i.e. Foodpanda, Cheetay Logistics, etc.) from Home Chefs is proposed to be reduced from 13 per cent to 8 per cent for a period of two (2) years ending on 30th June, 2024. This relief is proposed in order to encourage small scale businesses. In all other cases, the services provided or rendered by Commission Agents shall continue to be liable to SST at 13 per cent.

    READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    The existing exemption on health insurance services is proposed to continue further for a period of one year till 30th June, 2023.

    GIZ, a German development agency, facilitating development projects in Sindh, is proposed to be granted conditional exemption on Sales tax on services as indirect relief to the Public.

  • Sindh increases salary by 15% from July 1, 2022

    Sindh increases salary by 15% from July 1, 2022

    KARACHI: The Sindh government on Tuesday announced a 15 per cent raise in salary of provincial government employees and 5 per cent increase in pension effective from July 01, 2022.

    Sindh Chief Minister Syed Murad Ali Shah announced raise in pay and pension while presenting the provincial budget 2022-2023.

    READ MORE: Sindh unveils Rs1.714 trillion budget for 2022/2023

    The chief minister announced various relief measures for employees and pensioners during next fiscal year.

    He said Adhoc Relief Allowances 2016, 2017, 2018, 2019 and 2021 at the rates admissible to employees of Federal Government are being merged and Revised Basic Pay Scale 2022 for Civil Servants of Government of Sindh is being introduced on the pattern of Federal Government.

    Adhoc Relief Allowance at the rate of 15 per cent of Basic Pay Scales to Civil Servants of Government of Sindh w.e.f. 1st July 2022 is proposed.

    READ MORE: Khyber Pakhtunkhwa raises salary, pension by 15%

    Disparity Allowance at the rate of 33 per cent of Basic Pay will be paid to Civil Servants in BPS-1 to 16 and at the rate of 30 per cent to Civil Servants in BPS-17 and above in lieu of the differential rate of Ad-hoc Relief Allowances 2013, 2015, 2016, 2017, 2018, 2019, 2020 & 2021, which are being abolished w.e.f 1st July, 2022.

    Pensioners of Government of Sindh were already getting 22.5 per cent more increase in net pension than pensioners of Federal Government till February 2022. Therefore, an increase at the rate of 5 per cent of net pension will be paid to the pensioners of the Sindh Government w.e.f 1st July, 2022.

    READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    Thus, after announcement of 10 per cent increase in net pension by Federal Government in March 2022 and enhancement of the rate of increase to 15 per cent from 1st July 2022, the pensioners of Government of Sindh will still be getting 12.5 per cent more of net pension than the pensioners of Federal Government.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

  • Sindh unveils Rs1.714 trillion budget for 2022/2023

    Sindh unveils Rs1.714 trillion budget for 2022/2023

    KARACHI: Syed Murad Ali Shah, Chief Minister of Sindh on Tuesday presented provincial budget 2022-2023 with total outlay of Rs1.714 trillion.

    The province estimated the deficit budget amounting Rs33.85 billion for the next fiscal year.

    READ MORE: Khyber Pakhtunkhwa raises salary, pension by 15%

    The chief minister said that the total budget outlay for Financial Year 2022-2023 is estimated at Rs.1.714 trillion, as against budget estimate of Rs.1.478 trillion for 2021-2022, showing overall increase of 15.9 per cent.

    The current expenditure of the province is projected at Rs.1.254 trillion, which includes current revenue expenditure of Rs. 1.199 trillion and current capital expenditure of Rs.54.5 billion.

    This is 73.2 per cent of total expenditure of the province and shows an increase of 9.1 per cent in comparison to the current expenditure for last year that was Rs.1.148 trillion.

    READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    The chief minister said that for the next financial year, size of development budget will be Rs459.658 billion as compared to Rs. 329.033 billion in year 2021-2022, that will include Rs. 332.165 billion for Provincial Annual Development Plan (ADP) and Rs.30.00 billion for Districts ADP.

    Foreign project assistance of Rs.91.468 billion from the development partners and Rs.6.025 billion are expected from Federal PSDP grant for schemes being executed by Government of Sindh.

    Murad Ali Shah said shift in federal priorities during last four years caused the people of the second largest province face deprivation due to lack of infrastructure development and non-provision basic health facilities in rural areas.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

    “Despite these difficulties we maintained our resolve towards our development objectives,” he added.

    Hence, next year’s ADP will include schemes to provide basic facilities to the marginalized segments of society. More resources are being allocated for water and sanitation, road network, transport, health and education sectors to provide maximum relief to the common people in the next year’s ADP.

    There are 2,506 ongoing schemes with allocation of Rs. 253.146 billion being 75  per cent of total ADP.

    There are 1,652 new schemes with allocation of Rs.79.02 billion being 25  per cent age of total ADP

    On-Going schemes where more than 70 per cent expenditure is made, have been fully funded for completion by June, 2023.

    More than 1,510 schemes have been fully funded and are expected to be completed in next financial year 2022-23.

    READ MORE: Pakistan massively increases taxation on motor vehicles

    Allocation for Education Sector schemes is Rs. 34.22 billion (10.2 per cent of the total size).

    Allocation for Health Sector schemes is Rs. 23.33 billion (6.5 per cent of the total size).

    Allocation for Water and Sanitation Sector (PHE & LG) is Rs. 59.36 billion (18  per cent of the total size).

    Allocation for Agriculture & Livestock sector is Rs 10.2 billion (3  per cent of total size)

    Allocation for Irrigation including lining is Rs. 32.5 billion (12 per cent of the total size).

    Allocation for Transport & Communication (Road under W&S and LG) sector is Rs. 100.64 billion (30  per cent of the total size).

    Allocation for Karachi based schemes is Rs. 118 billion, Rs.72 billion under ADP, Rs. 5 billion under District ADP and Rs. 41 billion through Foreign Project Assistance.

    Keeping in view the above non-development and development expenditure priorities, the major milestones of our objectives are:

    READ MORE: New rates of capital gain tax on disposal of securities

    Provide infrastructure to educational institutions for increased enrolment.

    Improve and Upgrade health facilities and manage available health institutions

    Provide nutrition support, community infrastructure funds, income generating grants, micro assets, and low cost housing for reducing poverty of poorest of the poor.

    Increase agricultural productivity and value chain, Conservation of water for agriculture, industrial and municipal consumption.

    Provide clean drinking water and safe disposal of sewerage.

    Improve connectivity between major cities and towns of province.

    Increase road connectivity and planned mass transit for Karachi city.

  • Khyber Pakhtunkhwa raises salary, pension by 15%

    Khyber Pakhtunkhwa raises salary, pension by 15%

    PESHAWAR: Khyber Pakhtunkhwa on Monday announced 15 per cent increase in salary of provincial government employees and 15 per cent increase in pension as well.

    Finance Minister Taimur Salim Jhagra announced the increase in salary and pension of provincial employees while presenting the provincial budget 2022-2023.

    READ MORE: Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    The minister announced Rs15 percent increase in salaries and pension of all the government employees, Rs15 percent ad-hoc relief allowance, adding the increase for grade1-19 employees besides DRA allowance.

    He said risk allowance of police officials from grade 7-16 have been increased and was brought at par of DRA in line with the police martyrs package.

    The Finance Minister Taimur Salim Jhagra said that Rs447.9 billion would be spent on salaries including Rs372.1 billion in settled districts and Rs75.8 billion through merged tribal districts while Rs107 billion on pension including Rs106 billion in settled districts and Rs one billion in merged tribal districts.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

    He said 100 percent increase in pension expenditure have been witnessed in last couple of years, adding expenditure of pensions, which was only one percent of total KP budget expenditure in 2003-04 ie Rs0.87 billion has jumped to 14.7percent ie Rs90 billion in 2021-2022.

    READ MORE: Pakistan massively increases taxation on motor vehicles

    He said amendment in KP Civil Servant Act 1973 has been made under which contributory and provident fund were increased for newly recruited employees under contributory pension scheme under which either lumsum amount one time or long terms investment offer would be given to retired employees.

    As many as services of 63,0000 employees would be regularized including 675 adhoc doctors from July 1, 2002, regularization of 58,0000 teachers and 4079 employees of 128 projects of erstwhile Fata during 2022-2023.

    READ MORE: New rates of capital gain tax on disposal of securities

  • Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    Khyber Pakhtunkhwa presents Rs1.33 trillion budget 2022-2023

    PESHAWAR: Khyber Pakthunkhwa government on Monday presented Rs1.332 trillion budget for fiscal year 2022-2023.

    The budget included an allocation of Rs1.11 trillion for settled districts and Rs223.1 billion for merged tribal districts.

    Presenting its fourth budget at Khyber Pakthunkhwa Assembly floor, Finance Minister Taimur Salim Jhagra said that the volume of the current budget is Rs913.8 billion including Rs789.8 billion for settled districts and Rs124 billion for merged tribal districts.

    READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

    He said total development budget of Khyber Pakthunkhwa was Rs418.2 billion including Rs319.2 billion for settled districts and Rs99 billion for merged tribal districts.

    Regarding revenue and receipts collection, the minister said that total receipts was estimated at Rs1,332 billion including Rs750.9 billion to be collected from federal taxes receipts and Rs68.6percent as one percent share of divisible pool on war on terror.

    He said Rs31 billion would be collected through oil and gas royalty and surcharge and Rs61.9 billion through net hydel power in accordance of MoU 2015-16 and arrears.

    READ MORE: Pakistan massively increases taxation on motor vehicles

    The minister said Rs85 billion would be collected through provincial tax and non-tax revenue, Rs4.3 billion under the head of foreign program assistance (FPA) for settled districts and Rs208.7 billion grant for merged tribal districts besides Rs212.7 billion receipts through other resources.

    The Finance Minister Taimur Salim Jhagra said that Rs447.9 billion would be spent on salaries including Rs372.1 billion in settled districts and Rs75.8 billion through merged tribal districts while Rs107 billion on pension including Rs106 billion in settled districts and Rs one billion in merged tribal districts.

    Besides salaries, he said Rs247.4billion would be spent on O&M, emergency and district expenditures, Rs111.4 billion on others current expenditures while volume of provincial development program including accelerated development program budget was Rs241 billion including Rs185 billion for settled districts and Rs56 billion for merged tribal districts while volume of total development budget was Rs383.5 billion including 319.2 billion for settled districts and Rs64.3billion for merged tribal districts.

    READ MORE: New rates of capital gain tax on disposal of securities

    Under foreign program assistance, Rs93.2 billion would be spent including Rs88.9 billion for settled districts and Rs4.3 billion for merged tribal districts while 8.3 billion would be received through Public Sector Development Program for settled districts of Khyber Pakthunkhwa.

    The Minister said that Rs26,458 million would be spent on agriculture, Rs4191 on Aukaf, Religious Affairs, Rs73 million on Bureau of Statistics, Rs71653 million on communication and works, Rs227,087 million for elementary and secondary education, Rs29203 million on energy and power,

    Rs4191 million for environment, Rs1607 million for excise and taxation, Rs32,446 million through finance, Rs6433 million through forestry, Rs6655 million through general administration, Rs205,725 million for health, Rs34,191 million through higher education, Rs101,572 million for home and Rs823 million for housing sectors.

    READ MORE: Pakistan slaps 45% corporate tax on banks

    Likewise, Rs4926 million were allocated for industries, Rs1808 million for information and public relations, Rs2990 million for information technology, Rs25725 million for irrigation, Rs1033 million for labour, Rs14377 million for law and justice, Rs22337 million for local government, Rs1426 million for mines and mineral, Rs64372 million for planning and development,

    Rs3616 million for population welfare, Rs23071 million for public health engineering, Rs30003 million for relief, rehabilitation and settlement, Rs3045 million revenue and estate, Rs6068 million for social welfare, Rs22017 million sports, culture and tourism, Rs2849 million through technical education, Rs12151 million for transport and Rs392 million for Zakat and Usher.

    Finance Minister Taimur Salim Jhagra said health department budget has been increased by Rs55 billion, elementary and secondary education by Rs47 billion, police by Rs14 billion and energy and power by Rs11 billion.

    The Minister announced Rs15percent increase in salaries and pension of all the government employees, Rs15 percent ad-hoc relief allowance, adding the increase for grade1-19 employees besides DRA allowance. He said risk allowance of police officials from grade 7-16 have been increased and was brought at par of DRA in line with the police martyrs package.

    Transport monetization and vehicle leasing policy, change of executive allowance to performance allowance, work from home on Fridays and introduction of fleet cards to save fuel and reduce risk of pilferage across all departments announced.

    Taimur Salim Jhagra said 100 percent increase in pension expenditure have been witnessed in last couple of years, adding expenditure of pensions, which was only one percent of total KP budget expenditure in 2003-04 ie Rs0.87 billion has jumped to 14.7percent ie Rs90 billion in 2021-22.

    He said amendment in KP Civil Servant Act 1973 has been made under which contributory and provident fund were increased for newly recruited employees under contributory pension scheme under which either lumsum amount one time or long terms investment offer would be given to retired employees.

    As many as services of 63,0000 employees would be regularized including 675 adhoc doctors from July 1, 2002, regularization of 58,0000 teachers and 4079 employees of 128 projects of erstwhile Fata during 2022-23.

    OPD services under Sehat Card Plus program would soon be launched in all Govt hospitals and patient can available free treatment up to Rs10 million, he said adding Rs25 billion were allocated for Sehat Plus Card through eight lakh patients were benefited during 2021-22.

    Following inclusion of liver transplant, he said five more chronic diseases including bone marrow transplant, sclerosis, cochlear implants, thalassemia and advance cancer coverage would be included in Sehat Card for which Rs2.5billion were allocated. He said that Rs53.6 billion earmarked for MTIs, allied and medical hospitals in Khyber Pakthunkhwa.

    Four new medical colleges at Dir, Buner, Charsadda and Haripur would be established besides setting up of four new MTIs at Fountains House Peshawar, Kohat Institute of Medical and Dental Sciences, DHQ Charassadda and Women Children Hospital and DHQ Haripur.

    As many as Rs3 billion were set aside for revamping of secondary care and service delivery while renovation of rehabilitation of 32 hospitals were completed.
    Besides allocation of Rs2.7 billion for 58 hospitals in 24 districts for secondary care hospital under Public Private Partnership, he said that 3000 more beds would be established while primary care revamping program carrying allocation Rs2125 million was producing excellent results.

    He said renovation of 700BHUs and RHCs costing Rs82.4 billion have been started while renovation of 500 facilities completed. He said Rs2 billion allocated for strengthening of 15 BHUs and RHCs in 15 districts provision of better services to people.

    He said Rs10 billion would be spent on provision of free medicines to people besides allocation of Rs500 million for LHS and LHWs in addition to 3500 additional LHWs recruitment and additional funds of Rs one billion funds for arrangements regarding eradication of polio in Bannu and Dera Ismail and Rs1.3 billion for launching of maternal ambulance service.

    Taimur Jhagra said KP Govt has decided to maintain tax rates of fiscal year 2021-22, adding 20pc relaxation would be provided for re-registration of motor vehicles or first registration and there would be not tax on land with full exemption from capital value tax (CVT) and registration fee.

    He announced students of elementary and secondary education are exempted from fee and exempted library, archives and hostels fees. The Minister claimed that tax rates of Khyber Pakthunkhwa Revenue Authority was minimum than other provinces of Pakistan.

    He said PFM (Public Financial Management) law was being introduced under Article 119 of the Constitution for bringing more transparency in the financial system. Insaf Food Cards program has been introduced under which Rs26 billion targeted subsidy would be provided to one million families of KP.