Sector Wise Allocation In Budget 2021-22

  • Rs260 billion for the Ehsaas programme.
  • Rs900 billion for public sector development programmes, which has been increased by 40%. The amount will be spent on water distribution, road infrastructure, special economic zones, combatting climate change, among others.
  • Rs12billion for agriculture.
  • Rs23 billion for Diamer and Bhasha dams.
  • Rs14 billion for Neelum-Jhelum hydro-power plant.
  • Rs244 billion for Gwadar airport and highway.
  • Rs25 billion for small dams in Sindh.
  • Rs118 billion for energy and power projects.
  • Rs22 billion for Jamshoro coal power plant.
  • Rs16 billion for KI, KII projects in Karachi and Tarbela power plant.
  • Rs100billion for special development packages for the development of poorer cities.
  • Rs54 billion for the development of KP’s merged districts.
  • Rs14 billion for tree plantation programmes and combatting climate change.
  • Rs739 for Karachi transformation plan.
  • Rs100 billion for covid-19 emergency fund.
  • Rs1.1 billion for the procurement of coronavirus vaccines. The government aims to vaccinate 100 million people by June 2022.
  • Rs12 billion for SME support programmes.
  • Rs10b for Kamyab Naujawan programme.
  • Rs66 billion for HEC and education programmes.
  • Rs60 billion for Azad Jammu and Kashmir, which was previously Rs56 billion.
  • Rs47 billion for Gilgit-Baltistan, which was Rs32 billion before.

Some features of the budget:

  • Pakistan reduces sales tax on locally manufactured electric cars to only 1%. Previously, it was 17%.
  • Pakistan reduces sales tax on locally manufactured cars from 17% to 12.5%.
  • No federal excise duty on 850cc locally produced cars.
  • Action to be taken against those harassing taxpayers. Government to use tax machinery against those not paying taxes and those not filing them.
  • No new tax on salaried people.
  • FBR to form special retail cells to facilitate people.
  • No import taxes on books and magazines.
  • Special technology zones will be formed in the country. Plants, machinery and other equipment will be tax-free in these zones.
  • The government has reduced the Capital Gain Tax from 15% to 12.5%.
  • Sales tax on locally made electric cars has been reduced to 1% from 17%.
  • Withholding tax reduced by 40%. There will be no withholding taxes on banking transactions, margin financing, air travel services, debit card and credit transactions and discovery of minerals.
  • Withholding tax on mobile phones will be reduced by 10%, and then to 8%.
  • No tax on certain locally made heavy motorcycles.
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