Major funding package targets infrastructure, water, sanitation and education projects
KARACHI, June 17, 2026 — Sindh Chief Minister Syed Murad Ali Shah on Wednesday announced an allocation of more than Rs100 billion for Karachi’s development as part of the provincial budget for fiscal year 2026-27, focusing on infrastructure, transport, sanitation, water supply and education projects.
The allocation comes within a Rs3.562 trillion provincial budget that also includes a 7% increase in salaries and pensions for government employees, with no new taxes imposed.
The budget projects a fiscal deficit of Rs36.9 billion and earmarks Rs750 billion for overall development spending, highlighting the government’s focus on infrastructure expansion and public welfare.
Murad Ali Shah presented the budget in the Sindh Assembly for the thirteenth time amid protests by opposition lawmakers, who later staged a walkout.
“No new taxes have been imposed in the budget, reflecting the government’s commitment to providing relief to the public and the business community,” he told the assembly.
Karachi Receives Major Development Share
Karachi will receive Rs100.19 billion under the Annual Development Programme, making it one of the largest beneficiaries of provincial development funding.
According to the chief minister, the funds will support a wide range of projects aimed at improving urban infrastructure and public services in the country’s largest city.
The allocation includes road construction, traffic management systems, sanitation improvements, water supply schemes and education-related initiatives.
“Development projects worth billions for Karachi’s infrastructure, traffic, sanitation, water and education sectors have become part of the budget,” Shah said.
Shahrah-e-Bhutto Extension Announced
The government also announced plans to extend Shahrah-e-Bhutto from Qayyumabad to Karachi Port.
Officials said the road currently serves around 25,000 vehicles daily, and the extension is expected to improve connectivity between key commercial areas while easing traffic congestion.
Salary, Pension and Wage Increases
The provincial government proposed a 7% increase in salaries and pensions for public sector employees as part of relief measures for households.
In addition, the minimum monthly wage has been raised to Rs43,000 to support low-income workers across Sindh.
Rs750 Billion Development Outlay
Sindh has allocated Rs750 billion for development projects in FY2026-27, reaffirming its focus on infrastructure development, poverty reduction and improved public services.
The chief minister said the budget was presented amid global economic uncertainty, citing geopolitical tensions, trade disruptions, market volatility and inflationary pressures.
“Recent regional developments have once again demonstrated Pakistan’s role as a voice of peace, stability and principled diplomacy,” he said.
Opposition Raises Concerns
Opposition Leader Ali Khursheedi criticised the budget, arguing that urban Sindh had not received sufficient representation in spending priorities.
“Urban Sindh was not represented in the budget,” he said.
The budget was approved earlier by the provincial cabinet and will now be debated in the Sindh Assembly before being put to a vote for final approval.
