A Critical Analysis of Pakistan's Budget 2023-24: The Fiscal Challenges


  • Ajmal Khan Research Officer, Balochistan Think Tank Network (BTTN), Quetta, Pakistan Author
  • Mommen Khan Research Assistant, Balochistan Think Tank Network (BTTN), Quetta, Pakistan Author
  • Sikander Azam Khan Research Officer, Balochistan Think Tank Network (BTTN), Quetta, Pakistan Author




Expenditures, Fiscal Deficit, Revenue, FDI, Tax evasion, Strategic Reforms


The paper presents a comprehensive analysis of Pakistan's Budget 2023-24 and its fiscal landscape, sketching the challenges and opportunities within its revenue generation, economic growth, and debt management. The primary challenge facing Pakistan’s economy is the gap between government revenue and expenditures. The country faces hurdles in tax collection, marked by a complex tax system, tax evasion, and discrepancies impacting the middle and lower-income classes. A mixed research method was used in conducting this study, analysis of fiscal data, extensive literature review, and consultations with economic experts. An in-depth analysis of Pakistan's revenue sources, inflationary trends, budget deficits, and global economic conditions was conducted. The results show a complex web of challenges in Pakistan's fiscal framework, the gap between revenue collection and government spending, high inflation rates, the imbalance between exports and imports, encircling tax evasion, and an intricate tax system. The paper offers a sequence of strategic reforms, emphasizing expense reduction, tax simplification policy, political and legislative reforms, and encouraging investment for economic stability. It also highlights the need for coordination among government organizations, strategies to attract Foreign Direct Investment (FDI), and endorsing Human Resource Development (HRD) for a skilled workforce. The analysis highlights the importance of reforms in the governance structure, taxation system, and spending to achieve stability and economic growth in the country.


Agencies. (2023). Massive Debt Servicing to Put Pressure on Investment Spending in FY24.” The Nation, 2023. https://www.nation.com.pk/18-Jun-2023/massive-debt-servicing-to-put-pressure-on-investment-spending-in-fy24.

Bu, Danlu, Chenyu Zhang, and Xiaoyan Wang. (2017). Purposes of Government Subsidy and Firm Performance. 5(1) 100–122.

Din, Idrees Khawaja Musleh ud. (2013). Intergovernmental Transfers: An Evaluation of Mechanism and Design of Transfers in Pakistan on JSTOR. The Pakistan Development Review 52, 45–68.

Finance Division, Government of Pakistan. (2023). Budget in Brief.

Finance, Ministry of Ministry of Finance, Government of Pakistan , 2023.

Gale, William G. (2018). Budget Deficits. The New Palgrave Dictionary of Economics, 2018, 1131–37.

Husain, Ishrat. (2022). Seventy-Five Years of Pakistan’s Economy. The News, 2022. https://www.thenews.com.pk/print/983444-seventy-five-years-of-pakistan-s-economy.

Hussain, Akmal. (2006). Economic Policy, Growth and Poverty in Historical Perspective. The Encyclopedia of Pakistan, 2006.

MacroTrends. Pakistan Inflation Rate 1960-2023 | MacroTrends. 2023. https://www.macrotrends.net/countries/PAK/pakistan/inflation-rate-cpi.

Nadeem Ul Haque, Muhammad Ajmal Khan, Nadeem Khan, Khurram Ellahi Khan, and Hassan Rasool. “Life Time Cost Of Public Servants.” PIDE, 2023. https://pide.org.pk/research/life-time-cost-of-public-servants/.

Perry, George L. “Demand-Pull Inflation.” The New Palgrave Dictionary of Economics, 2008, 1–4. https://doi.org/10.1057/978-1-349-95121-5_39-2.

Poku, Kwasi, Emmanuel Opoku, and Priscilla Agyeiwaa Ennin. The Influence of Government Expenditure on Economic Growth in Ghana: An Ardl Approach. 10, 1 (2022).

Raza, Syed Irfan. Budget 2023-24: Over Rs1tr in Subsidies, but Still Less than Last Year. Dawn, 2023. https://www.dawn.com/news/1758954.

Selvanathan, Eliyathamby A., Saroja Selvanathan, and Maneka Savithri Jayasinghe. “Revisiting Wagner’s and Keynesian’s Propositions and the Relationship between Sectoral Government Expenditure and Economic Growth.” Economic Analysis and Policy 71 (September 1, 2021): 355–70. https://doi.org/10.1016/J.EAP.2021.05.005.

Willingham, Aj. “Maslow’s Hierarchy of Needs: Examples and Explanation.” CNN, 2023. https://edition.cnn.com/world/maslows-hierarchy-of-needs-explained-wellness-cec/index.html.

Yousaf, Kamran. “Defence Budget Jacked up by 16%.” The Express Tribune, 2023. https://tribune.com.pk/story/2421038/defence-budget-jacked-up-by-16.







How to Cite

Khan, A., Khan, M., & Khan, S. A. (2023). A Critical Analysis of Pakistan’s Budget 2023-24: The Fiscal Challenges. Bulletin of Business and Economics (BBE), 12(3). https://doi.org/10.61506/01.00038

Similar Articles

1-10 of 86

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)

1 2 3 4 5 6 7 8 9 10 > >>