Government scraps key programmes in next fiscal year budget

ISLAMABAD: The federal government of Pakistan Muslim League-Nawaz (PML-N) eliminated several key programmes in the upcoming fiscal year (FY) 2024-2025 budget.

Official budget documents reveal that the government decided to discontinue the Naya Pakistan Certificate (NPC) programme. There is no allocation of funds made for it in the next financial year.

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The Naya Pakistan Certificate programme offers US dollar, euro, and the British pound-denominated sovereign instruments. The State Bank of Pakistan (SBP) administers NPC certificates, providing attractive risk-adjusted returns over different maturities.

In the current fiscal year, the NPC program received an allocation of Rs500 million. However, in the upcoming fiscal year, it received no allocation.

Another programme slated for termination in the next fiscal year is the health insurance scheme for artists, as revealed in the budget document. The current financial year saw an allocation of Rs400 million dedicated to this initiative.

The budget document also indicated that no funds have been allocated for the “Film Finance Fund” in the upcoming financial year. The purpose of the fund was to supporting various aspects of production and distribution within the Pakistani film industry.

Rs2 billion were allocated to the Film Finance Fund in the fiscal year 2023-24.

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Pakistan has been grappling with a free-falling inflation that increased by over 50 per cent within a single year. Citizens are also bearing the brunt of successive taxes imposed under stringent conditions set by the International Monetary Fund (IMF). The tax-heavy budget has significantly reduced funding for anything beyond essential necessities.

And yet, amidst these fiscal constraints, the government approved salary increases for government employees.