The Sindh government on Friday presented a Rs. 3.451 trillion budget for fiscal year 2025-26, marking a 12.9% increase from last year’s outlay.
Chief Minister Murad Ali Shah, who also holds the finance portfolio, unveiled the proposals in the provincial assembly, describing the budget as “progressive, inclusive, and relief-oriented.”
The budget projects a deficit of Rs. 38.458 billion, a potential violation of the country’s IMF program, with anticipated revenues of Rs. 3.411 trillion, including federal transfers, provincial tax and non-tax revenues, and foreign aid. Despite the shortfall, the government emphasized fiscal prudence, while prioritizing key social sectors and post-flood rehabilitation.
Development spending
A record Rs. 1.018 trillion has been allocated under the Annual Development Program (ADP), including Rs. 520 billion for the provincial ADP, Rs. 55 billion for district-level projects, and Rs. 366.7 billion from foreign-funded initiatives. Additionally, Rs. 75 billion is expected from the federal Public Sector Development Program (PSDP).
Notable projects under the ADP include:
– Rs. 25 billion for renewable energy initiatives
– Rs. 12 billion for flood rehabilitation
– Rs. 12 billion for Karachi’s urban infrastructure
– Rs. 33 billion for rice-wheat transformation projects
– Massive expansion in mass transit including electric buses and BRT lines
– Smart governance systems including a blockchain-based land record system and Safe City CCTV surveillance
Education and health
Education received a combined allocation of over Rs. 626 billion, with Rs. 523.7 billion on the revenue side and Rs. 102.8 billion for development. The government plans to convert 12,000 primary schools into elementary schools, introduce 276 STREAM labs, and offer merit-based scholarships for overseas education.
Health spending is projected at Rs. 326 billion, with Rs. 146.9 billion earmarked for grants-in-aid and Rs. 45.4 billion for development projects. Key initiatives include expansion of the Sindh Institute of Urology and Transplantation (SIUT), new oncology centers in Larkana and Sukkur, an upgraded Sindh Institute of Child Health and Neonatology, and additional mobile health units.
Tax relief
The government has proposed abolishing five levies, including the professional tax and entertainment duty, and also introduced simplified tax structures for motor vehicles and services. These measures are expected to provide Rs. 52 billion in annual relief.
Government employees’ salaries have been increased, with 12% hikes for grades BS-1 to BS-16, and 10% for BS-17 to BS-22. Pensions have been raised by 8%, while special allowances for persons with disabilities have been increased to Rs. 6,000 per month.
The agriculture sector has received Rs. 35.3 billion for development, with special focus on mechanization and horticulture. The livestock and fisheries sector has been allocated Rs. 11.25 billion, and energy development has been granted Rs. 72.6 billion, largely targeting solar and green energy adoption.
Over Rs. 204 billion has been allocated for local government and rural development, reinforcing the government’s commitment to inclusive infrastructure expansion.
Despite the deficit, Shah has insisted the budget strikes a balance between economic constraints and developmental ambition. “This is a people-centric budget which addresses social inequality while promoting growth and resilience,” he said.