Provincial budget includes salary and pension hikes with no new taxes
KARACHI, June 17, 2026 — Sindh Chief Minister Syed Murad Ali Shah on Wednesday announced an increase in the minimum monthly wage to Rs43,000 while presenting the province’s Rs3.562 trillion budget for fiscal year 2026-27, providing relief to low-income workers amid rising living costs.
The increase forms part of a broader relief package that also includes a 7% rise in salaries and pensions for government employees. The provincial government did not propose any new taxes in the budget.
The budget projects a fiscal deficit of Rs36.9 billion and allocates Rs750 billion for development spending, highlighting Sindh’s focus on infrastructure, public welfare and economic growth.
Presenting the budget in the Sindh Assembly for the thirteenth time, Murad Ali Shah faced protests from 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.
Salaries, Pensions and Minimum Wage Increased
The provincial government has proposed a 7% increase in salaries and pensions for public sector employees as part of measures aimed at easing financial pressure on households.
In addition, the minimum monthly wage has been raised to Rs43,000, providing greater support to workers employed across industrial, commercial and service sectors.
Rs750 Billion Development Programme
Sindh has earmarked Rs750 billion for development projects during FY2026-27, with funding directed towards infrastructure, poverty reduction and improvements in public services.
The chief minister said the budget was being presented against a backdrop of global economic uncertainty, citing geopolitical tensions, disruptions in international trade, 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.
Karachi Receives Over Rs100 Billion
Karachi will receive Rs100.19 billion under the provincial development programme.
The allocation will support infrastructure projects, traffic management initiatives, sanitation improvements, water supply schemes and education-related development across the city.
“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 handles around 25,000 vehicles daily and that the extension is expected to improve connectivity and ease traffic congestion.
Opposition Voices Concerns
Opposition Leader Ali Khursheedi criticised the budget, arguing that urban Sindh had not received adequate representation in spending priorities.
“Urban Sindh was not represented in the budget,” he said.
The budget was approved earlier by the provincial cabinet during a meeting chaired by the chief minister and attended by ministers, advisers and senior officials. It will now be debated in the Sindh Assembly before being presented for final approval.
