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KARACHI: Sindh Chief Minister Murad Ali Shah on Wednesday unveiled a Rs3.56 trillion provincial budget for the fiscal year 2026-27, announcing a proposed 7% hike in salaries and pensions for government employees.
Delivering his budget speech, CM Murad expressed gratitude for presenting Sindh's budget for the 12th time.
During the budget session, opposition lawmakers staged a protest in the assembly, raising slogans of "rejected, rejected" as the chief minister continued his address.
The Sindh CM presented a budget worth Rs3.562 trillion for the new financial year, saying the provincial government had imposed no new taxes in the budget.
He also expressed the government's commitment to providing relief to the public and the business community.
In his budget speech, the Sindh chief minister proposed an increase of 7% in salaries and pensions of the government employees.
He also announced the merger of the adhoc relief allowances granted in 2022 and 2025 for provincial government employees.
Further, he said that the minimum monthly wage in Sindh had been increased from Rs40,000 to Rs43,000.
CM Murad also announced plans to establish a Sindh International Financial Centre in Karachi, saying it will serve as a platform for infrastructure finance, Islamic finance and climate finance.
He also reiterated the government's commitment to transforming Keti Bandar into a global maritime, logistics, industrial and energy hub.
Meanwhile, Opposition Leader in the Sindh Assembly Ali Khursheedi rejected the budget, calling it a "one-sided" budget.
"We reject such a budget," he told the media outside the Sindh Assembly, saying that a complete pre-budget session should have been held in accordance with the rules but was not conducted.
"Unfortunately, the current rulers have not upheld democratic norms. A one-sided budget is being presented here," he said.
Khursheedi further said the united opposition was present together and protesting against the budget and the manner in which it was presented.
The budget has been set at Rs3.65 trillion against estimated receipts of Rs3.41 trillion, leaving a projected deficit of Rs242 billion.
The Sindh chief minister said that Rs400 billion has been allocated for the development programme, and Rs13.2 billion for the social protection package.
According to CM Murad, the provincial government had prepared its financial plan amid a challenging global and domestic environment marked by geopolitical tensions, inflationary pressures, climate-related risks and economic uncertainty.
The chief minister said that Sindh's budget strategy for the coming year was guided by four principles: safeguarding the province's constitutional rights, maintaining fiscal sustainability, contributing to national stability and continuing investment in public welfare.
He said that the provincial government had been compelled to reduce its development portfolio from a projected Rs575 billion to Rs400 billion after contributing towards national strategic requirements under a negotiated arrangement with the federal government.
"Even in a difficult fiscal environment, we have protected priority development projects and essential public services that directly affect the lives of our people," he said.
The Annual Development Programme for the fiscal year 2026-27 allocates Rs25.9 billion for education, Rs17.4 billion for health, Rs121.6 billion for local government and municipal infrastructure, Rs40.9 billion for public health engineering, Rs30.9 billion for irrigation, Rs39.5 billion for transport and communications and Rs6.3 billion for agriculture and livestock.
According to CM Murad, the province had achieved the highest development spending in its history during the outgoing fiscal year, releasing more than Rs900 billion for development activities.
The chief minister announced that there would be no new taxes in the coming fiscal year and instead unveiled a series of relief measures aimed at supporting education, agriculture, insurance and employment sectors.
Among the measures announced were a reduction in sales tax on education support services to 5%, continuation of concessional tax rates for overseas employment recruiting agencies and beauty salons integrated with point-of-sale systems, and reductions in taxation applicable to insurance agents and brokers.
The provincial government has also proposed increasing the exemption threshold for agricultural super tax from Rs150 million to Rs500 million and reducing the applicable rate from 10% to 8%.
The chief minister also announced a Rs13.2 billion social protection package comprising the Kitchen Garden Initiative, Benazir Hari Card Programme, Benazir Women Agriculture Workers Programme and support schemes for widows and orphans.
CM Sindh announced the Sindh Green Data Infrastructure Initiative, recognising the growing global demand for artificial intelligence, cloud computing and digital infrastructure.
The project seeks to establish renewable energy-powered technology zones and large-scale data centre parks supported by solar and wind energy resources available across the province, he said.
The initiative aims to attract global technology firms, cloud service providers, artificial intelligence enterprises and digital infrastructure investors by offering environmentally sustainable and cost-effective operating conditions.
Officials believe the programme could create a new technology ecosystem while generating surplus clean energy for industrial estates, desalination plants and special economic zones.
The chief minister also announced a household renewable energy programme under which 275,000 free solar home systems, procured at a cost of Rs18 billion, will be distributed among low-income households.
Additionally, a subsidised solar financing programme will be launched through the Sindh Enterprise Development Fund and Sindh Bank to enable middle-income families to install rooftop solar systems.
The government also announced plans to launch an Integrated Waste-to-Value and Circular Economy Programme under the PPP framework.
The initiative will focus on converting municipal waste into economic resources through recycling, refuse-derived fuel production, methane capture and carbon credit generation.
Officials expect the programme to improve urban environmental management while creating new revenue streams and green employment opportunities.
Highlighting Karachi as the province's economic engine, CM Murad said that the provincial government had accorded special priority to the city's development in the FY2026-27 budget.
Karachi-specific projects include the Greater Karachi Sewerage Plan (S-III), the Lyari Transformation Package, traffic corridor improvements, road rehabilitation schemes and modernisation of fire brigade services.
He said that Karachi's development portfolio comprised 816 schemes with an overall estimated cost of Rs644.3 billion.
For the upcoming fiscal year, Rs100.19 billion has been earmarked for Karachi-based projects, while overall allocations for 822 schemes, including city-wide initiatives, amount to Rs108.1 billion.
The chief minister said that 167 ongoing projects costing more than Rs500 million each and 110 mega projects valued at over Rs1 billion were currently under implementation across the metropolis.
A significant portion of the allocations has been directed towards improving Karachi's transport infrastructure and traffic management.
The budget includes a Rs1.2 billion flyover from Airport Road to Star Gate, a Rs1.5 billion right-turn underpass from Malir Halt to Shahrah-e-Faisal, and a Rs1.65 billion flyover at the Sir Shah Suleman Road crossing over Gujjar Nullah.
Funds have also been allocated for the Shahrah-e-Bhutto-Korangi Causeway junction, the Azeempura Intersection Flyover project, new interchanges linked with the Malir Expressway, and underpasses on Khayaban-e-Ittehad and Khayaban-e-Shahbaz.
To improve urban drainage and flood resilience, the government has allocated funds for the third phase of rehabilitation of major stormwater drains, restoration of Gujjar Nullah and its service roads, and the M-9 to Thaddo Nullah stormwater drainage project.
Allocations have been made for expansion of the K-IV water supply system, upgrading water pumping stations in Karachi East and Central districts, rehabilitation of the city's trunk main network to reduce leakages, and construction of a new water supply line along the Lyari Expressway.
Funding has also been earmarked for the Karachi Water and Sewerage Services Improvement Project (KWSSIP) Phase-II and the Greater Karachi Sewerage Plan (S-III).
In the transport sector, the government has allocated Rs13.2 billion for the Red Line Bus Rapid Transit (BRT) project and over Rs3.5 billion for the Yellow Line BRT corridor, while several road rehabilitation and traffic corridor improvement schemes have also been included in the development programme.
The budget provides funding for six modern garbage transfer stations, the Sindh Solid Waste Emergency and Efficiency Programme, and the upgrading of the Jam Chakro and Gond Pass landfill sites.
The provincial government also plans to advance modern waste management and waste-to-value initiatives under its broader urban sustainability agenda.
The health sector allocations include Rs1 billion for the Sindh Infectious Diseases Hospital and Rs1.4 billion for the Paediatric Cardiology Unit at NICVD Karachi.
In education, funds have been earmarked for a new medical college, the Bilawal Bhutto Engineering College in Lyari, the Shaheed Zulfikar Ali Bhutto Law University, the Karachi Education Complex, and development projects at major public-sector universities including the University of Karachi and Jinnah Sindh Medical University.
The budget further provides for the establishment of a Provincial Civil Services Academy at a cost of Rs1 billion, a new Sindh Revenue Board training academy and office complex, and improvement of commercial centres and markets across the city.
