PTI Government’s Budget 2020-21 [Breakdown by sectors]


Now Reading: PTI Government’s Budget 2020-21 [Breakdown by sectors]

As the coronavirus pandemic has delivered a deadly blow to the country’s already crippling economy, all eyes were set on the PTI government as they announced their third annual budget for fiscal year 2020-21, dubbed the “corona budget”, on June 12. Amidst all the various challenges due to the unprecedented crisis, Federal Minister for Industries and Production – Hammad Azhar – unveiled the federal government’s ‘relief budget’ in a special session of the National Assembly on Friday. Speaker Asad Qaisar chaired the session. Prime Minister Imran Khan also attended the session.

Key Features Of The Budget For Fiscal Year 2020-21

  • The government has set the outlay of the budget at 7,294.9 billion rupees. This size is 11 percent smaller than the size of budget estimates 2019-20.


  • The government introduced NO NEW TAXES in the 2020-21 budget to provide relief to the people. Along with this, no tax will be applicable on coronavirus and cancer test kits. The government also removed all taxes from kids’ food supplements as well as diet food.
  • Government Employees’ salaries and pensions got no increment.
  • The sales tax rate for big retailers got reduced from 14% to 12 %. The government has granted tax exemption to overseas Pakistanis over investment in saving bills. It has also terminated all advance tax on auto rickshaws, motorcycle rickshaws and on motorcycles up to 200cc.
  • The government has allocated 208 billion rupees for the Ehsaas Programme to alleviate poverty and help the needy and poor people.
  • Rs. 180 billion will be allocated to the energy, food and similar sectors. Meanwhile the funds for higher education have been set at 34 billion rupees.
  • Government will grant the railway sector Rs. 40 billion while the federal government-run hospitals in Karachi and Lahore 13 billion rupees.
  • On suggestion of President Arif Alvi, the government will increase welfare funds for the artistes, from Rs. 250 million to Rs. 1 billion.
  • Naya Pakistan Housing Scheme will get funds worth 30 billion rupees, whose aim is to build 10 million houses for the poor.
  • The size of Public Sector Development Programme (PSDP) for 2020-21 is Rs 1,324 billion. Rs. 676 billion out of this got allotted to the provinces while the Federal PSDP is at an estimate of Rs. 650 billion. From this amount, Rs. 418.7 billion are for Federal Ministries and Rs. 100.4 billion are for corporations. On the other hand, ERRA (Earthquake Reconstruction and Rehabilitation Authority) will get Rs. 3 billion.
Industries Minister Hammad Azhar presents budget for FY 2020-21 In The National Assembly on Friday
  • For the health sector, the government has allocated Rs. 20 billion, while science and information projects were given Rs. 20 billion.
  • On e-cigarettes, the federal excise duty will increase. The government increased the FED on imported cigarettes, ‘bidi’ and cigars from 65% to 100%. Aside from this, it also increased the tax on cigarette’s filter rod to Rs. 1 from Rs. 0.75.
  • To discourage their use, the government is also increasing the FED on caffeine-related products from 13% to 25%. It has also imposed FED excise on double cabin pick-ups.
  • For fighting the coronavirus pandemic and other disasters, the government has allotted 70 billion rupees. The government has also allocated Rs. 80 billion for other priority economic zones.
  • The FBR has set its revenue goal at Rs. 3,900 billion this year. To stop the smuggling of products, government has suggested to further decrease regulatory jobs and duties.
  • For various water-related projects, the federal government has also allotted Rs. 70 billion this year.
  • Rs. 1,289 billion are allotted as Pakistan’s Defence budget for 2020-21. This amount is around 12% higher as compared to last year.
  • Now, people will show their CNICs only while making a purchase of over 1 lac rupees. Previously, purchases of over 50,000 rupees had this requirement.
  • The government has decreased the federal excise duty on cement from Rs. 2 to Rs. 1.75 per Kg.
  • To combat against the effects of climate change, the government will spend Rs. 6 billion.
  • The government will also be spending on development tasks in special areas. It will spend forty eight billion rupees on merged districts and 40 billion rupees in Gilgit-Baltistan and Kashmir.

Here’s the full detailed budget statement from the government:


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