Provincial budget of Rs3.56 trillion focuses on relief, development spending and no new taxes
KARACHI, June 17 — Sindh Chief Minister Syed Murad Ali Shah on Wednesday presented a Rs3.562 trillion provincial budget for fiscal year 2026-27, announcing a 7% increase in salaries and pensions for government employees while refraining from imposing any new taxes.
The budget, presented in the Sindh Assembly for the thirteenth time, projects a fiscal deficit of Rs36.9 billion and allocates Rs750 billion for development spending, underscoring the government’s continued emphasis on infrastructure expansion, public welfare and economic stability.
Opposition lawmakers protested during the session and 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,” the chief minister said while presenting the financial plan.
The salary and pension increase is aimed at easing pressure on public sector employees amid rising living costs, while the minimum monthly wage has also been raised to Rs43,000 to support low-income workers.
The provincial government said the measures form part of a broader relief-oriented fiscal strategy that balances social protection with development priorities.
Sindh has allocated Rs750 billion for development projects in FY2026-27, with a major focus on infrastructure, urban services and social sectors.
Karachi, the country’s financial hub, has been allocated Rs100.19 billion for development projects covering roads, traffic management, sanitation, water supply and education.
Officials said the investment aims to improve urban infrastructure and enhance public services in Pakistan’s largest city.
The government also announced plans to extend the Shahrah-e-Bhutto from Qayyumabad to Karachi Port, a project expected to ease traffic congestion and improve connectivity in commercial areas.
The chief minister said the budget was prepared amid global economic uncertainty, including inflationary pressures, geopolitical tensions and trade disruptions.
“Recent regional developments have once again demonstrated Pakistan’s role as a voice of peace, stability and principled diplomacy,” he said.
The budget will now be debated in the provincial assembly before final approval.
