KARACHI: Sindh Chief Minister Syed Murad Ali Shah presented the Sindh Budget 2026-27 in the provincial assembly, unveiling a budget outlay of more than Rs3.56 trillion aimed at public welfare, infrastructure development, poverty reduction, and economic growth. The budget, which carries a projected deficit of Rs36.9 billion, was announced amid strong opposition protests and a walkout from the assembly.
During his budget speech, Murad Ali Shah emphasized that no new taxes had been imposed, describing the decision as part of the government's commitment to providing relief to citizens and the business community. He noted that the provincial government prepared the budget amid global economic uncertainty caused by geopolitical tensions, inflationary pressures, disruptions in international trade, and regional security challenges.
The chief minister announced a seven percent increase in salaries and pensions for government employees and pensioners, effective from July 1, 2026. The minimum monthly wage in Sindh has also been increased from Rs40,000 to Rs43,000, providing relief to workers facing rising living costs.
The budget allocates Rs2.56 trillion for Current Revenue Expenditure, representing a 20 percent increase compared to the previous fiscal year. However, development expenditure has been reduced to Rs720.38 billion, down from Rs1.018 trillion last year. According to the chief minister, increasing national security expenditures, higher fuel costs, and global energy market volatility have constrained fiscal space for development spending.
Among the major allocations under current expenditure, Rs446.95 billion has been earmarked for school education, while health services will receive Rs354.27 billion. Law and order, policing, and prison services have been allocated Rs216.53 billion, and local government services will receive Rs201.39 billion. Agriculture, irrigation, energy, public health engineering, and information sectors have also received substantial allocations.
Under the Annual Development Programme (ADP) 2026-27, the local government sector emerged as the biggest beneficiary, receiving over Rs121.66 billion for water supply, sanitation, roads, and urban development projects. Transport and communication projects have been allocated Rs39.53 billion, while irrigation schemes will receive Rs30.94 billion. Education and health sectors have been allocated Rs25.86 billion and Rs17.43 billion, respectively.
The Sindh government has also introduced several tax relief measures. The sales tax on education support services, including educational consultancy and testing services, has been reduced to five percent. Relief on overseas employment recruitment services will continue for another two years. Additionally, the agricultural super tax exemption threshold has been increased from Rs150 million to Rs500 million, while the tax rate has been reduced from 10 percent to eight percent.
One of the most significant announcements in the Sindh Budget 2026-27 relates to Karachi's development. The provincial government has allocated Rs100.19 billion for development projects in Karachi, covering infrastructure, transportation, sanitation, water supply, education, and healthcare. The city’s development portfolio includes more than 800 projects with an estimated value exceeding Rs644 billion.
Major infrastructure projects include the extension of Shahrah-e-Bhutto from Qayyumabad to Karachi Port, new flyovers and underpasses, upgrades to key intersections, and expansion of the Malir Expressway network. Significant funding has also been allocated for the K-IV water supply project, rehabilitation of stormwater drains, and improvements to Karachi’s sewerage infrastructure.
The transport sector will receive substantial investment, including Rs13.2 billion for the Red Line Bus Rapid Transit project and over Rs3.5 billion for the Yellow Line BRT corridor. Solid waste management projects, including modern garbage transfer stations and landfill upgrades, are also part of the development agenda.
In the social protection sector, the government has announced a Rs13.2 billion package that includes the Kitchen Garden Initiative, Benazir Hari Card Programme, support for women agricultural workers, and welfare schemes for widows and orphans. The Benazir Housing Programme and Sindh Peoples Support Programme will continue receiving funding.
A major highlight of the budget is the announcement of 275,000 free solar home systems worth Rs18 billion for low-income households. The government will also launch a subsidised solar financing programme through the Sindh Enterprise Development Fund and Sindh Bank to help middle-income families install rooftop solar systems.
The chief minister also unveiled ambitious public-private partnership projects, including the proposed development of Keti Bandar as a maritime, logistics, industrial, and energy hub. Plans were also announced for the establishment of the Sindh International Finance Centre in Karachi and the Sindh Green Data Infrastructure Initiative, aimed at attracting global technology companies, AI firms, and cloud computing investors.
Murad Ali Shah said the budget reflects the Sindh government's commitment to inclusive development, poverty reduction, employment generation, and sustainable economic growth. He reiterated that special measures have been introduced under the guidance of Bilawal Bhutto Zardari to improve living standards, support workers, and strengthen the province’s economic future.
