KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Wednesday presented a provincial budget of Rs 3.56 trillion for the fiscal year 2026-27, outlining a spending plan focused on development, public welfare and fiscal stability while avoiding the imposition of new taxes.
Presenting the budget in the Sindh Assembly, the chief minister said the government was committed to maintaining fiscal discipline, strengthening public finances and sustaining development activities despite economic challenges.
Political tension was witnessed before the budget session began, as MQM-P lawmakers protested and boycotted the session, alleging that the opposition was not consulted before presenting the budget.
Despite the political disputes, the provincial government presented a budget that includes a 7 percent increase in salaries and pensions of government employees. In addition, the minimum wage for workers has been increased to Rs 43,000, and Grade 1 government employees will also benefit from the revised wage structure.
A major portion of the budget has been allocated for development expenditure, with Rs 720.39 billion earmarked for development projects across the province. The government said these funds will support infrastructure, public services and economic development initiatives.
The health sector emerged as one of the biggest beneficiaries, with an allocation of Rs 402 billion. Local government and service delivery programs have been allocated Rs 347.6 billion, while transport and communication projects will get Rs 185 billion.
Law and order has also been prioritized in the budget, with Rs 222 billion allocated to strengthen security institutions and improve public safety. Rs103 billion has been allocated for irrigation projects, while Rs72.8 billion will be allocated for agriculture, livestock and fisheries to support rural livelihoods and food security.
Murad Ali Shah stressed that every allocation has been planned to deliver maximum social and economic benefits to the people of Sindh. He termed the budget as an investment strategy aimed at improving infrastructure, enhancing water security, boosting economic activities and creating opportunities for future generations.
The provincial government also announced relief measures by reducing sales tax on education support services by 5 percent and reducing tax rates for insurance agents and brokers.
Special allocations have been made for vulnerable communities, including Rs22.8 billion for persons with disabilities and Rs3.5 billion for minority and women development programs.
The Chief Minister also highlighted the government’s response to the tragic Gul Plaza fire, noting that a relief package of Rs8.45 billion has been approved, including a compensation of Rs10 million for the next of kin of each deceased.
With revenue projections and development priorities, the Sindh government hopes that the budget will boost economic growth while ensuring continued support for public welfare and social development.
