Karachi, June 13, 2025 – The Sindh government, led by Chief Minister Syed Murad Ali Shah, on Friday presented a record-breaking and ambitious budget for the fiscal year 2025-26 with a total outlay of Rs3.45 trillion.
Despite being a deficit budget, it reflects the provincial government’s commitment to expanding public services and upgrading infrastructure, even as financial pressures mount.
The Sindh government estimated revenue for the fiscal year 2025-26 at Rs3.411 trillion, reflecting a deficit of Rs38.46 billion.
The Sindh chief minister, addressing the Sindh Assembly amid loud opposition protests, detailed the province’s financial priorities for the upcoming year. He described the budget as forward-looking and service-oriented, aiming to enhance critical sectors like education, healthcare, transport, energy, and inclusive development.
The total budget outlay for 2025-26 stands at Rs3,450 billion, representing a 12.9% increase from the previous year’s allocation of Rs3,056.3 billion. This rise reflects adjustments for inflation and growing needs across various development and non-development sectors.
Current Revenue Expenditure and Priorities
The budget estimates for Current Revenue Expenditure (CRE) are Rs2,150 billion, a 12.4% increase from the current fiscal year’s allocation of Rs1,912.36 billion. This significant boost accounts for inflation, higher operating costs, salary raises, pensions, and enhanced grants-in-aid for universities, hospitals, and local councils.
Education Receives Massive Boost
One of the flagship components of this year’s Sindh budget is the massive increase in allocations for the education sector, with a proposed Rs523.73 billion – a 12.4% increase from last year. This figure represents 25.3% of the total CRE and includes all levels of education from primary to university.
Key initiatives under the education budget include:
• Enhancement of the Primary Education budget from Rs136.2 billion to Rs156.2 billion.
• Middle Education funding up from Rs36.2 billion to Rs42.7 billion.
• Secondary Education allocation increased from Rs68.5 billion to Rs77.2 billion.
• Rs39.53 billion proposed for College Education, up by Rs5 billion from last year.
• A Rs2.0 billion allocation for the Sindh Educational Endowment Fund (SEEF).
• Rs1.4 billion to upgrade 11 Cadet Colleges.
• Rs500 million reserved for scholarships in foreign universities.
• Rs3.2 billion set aside for exams and merit scholarships.
• Rs18.6 billion earmarked for 34,106 primary schools, each receiving its own cost center to ensure financial autonomy.
To further expand educational access, new IBA community colleges are planned in Sehwan and Bhan Saeedabad, while four additional colleges will be established across Sindh.
Inclusive Development and Social Empowerment
The Department of Empowerment of Persons with Disabilities (DEPD) received increased attention in this year’s Sindh budget. Allocations have grown from Rs11.6 billion to Rs17.3 billion for FY 2025-26.
Special initiatives include:
• Rs1.1 billion allocated for assistive devices, dietary support, and parental stipends.
• Rs1.6 billion for partnerships with NGOs working on inclusive education.
• Rs1.8 billion set aside for the Sindh Institute of Physical Medicine and Rehabilitation (SIPM&R) centers in Karachi, Hyderabad, and Larkana.
Healthcare Sees Progressive Allocations
The healthcare sector is also a major beneficiary in the Sindh budget. The total proposed allocation for FY 2025-26 is Rs326.5 billion, reflecting an 8% increase from last year’s Rs302.2 billion.
Notable allocations include:
• Rs146.9 billion in grants-in-aid to ensure operational continuity across public hospitals and medical institutions.
• Rs16.5 billion for PPHI Sindh.
• Rs19 billion for SIUT Karachi.
• Rs10 billion for the new hospital in Larkana.
• Rs5.2 billion for ambulance and emergency response systems.
• Rs557 million for mobile diagnostic services targeting remote areas.
Infrastructure, Transport, and Strategic Development
The Sindh budget for 2025-26 also places strong emphasis on infrastructure, urban development, and strategic public-private partnership (PPP) projects, with Rs83 billion reserved for viability gap funding.
Key projects include:
• Malir Expressway Phase 1: Connecting Karachi Port traffic with Shahrah-e-Bhutto Expressway.
• Sukkur Water Supply System: Overhaul of existing infrastructure to ensure reliable water access.
• TP-4 Sewerage Treatment Plant: Jointly funded by the World Bank (US$100 million), ADB (US$50 million), and GoS (US$80 million).
• 5 MGD Desalination Plant: Karachi’s first sea water treatment plant for public use.
Agriculture and Rural Development
Projects aimed at boosting agricultural output and mechanization include:
• Rice & Wheat Farming Mechanization Project: To modernize crop harvesting.
• Cluster Farming Development Project: Focusing on horticulture clusters for higher output.
• Livestock Development Farms: Feasibility and investor solicitation beginning in October 2025.
Industrialization and Innovation
The Sindh government also announced plans to establish new industrial enclaves in Hyderabad and Sukkur, with feasibility studies nearing completion.
Additionally, the budget introduces:
• Track & Trace System (TTS): A digital system to monitor production and supply chains.
• Early Childhood Education (ECE) Centers: With RFPs scheduled for launch in July 2025.
• Solarization of Schools: In partnership with UNICEF to ensure sustainable energy for public schools.
EV and Clean Mobility Projects
In line with clean mobility initiatives:
• A project to deploy 1,000 electric buses across Sindh, with 500 dedicated to Karachi, is underway. Full integration is expected by FY 2025-26.
• EV charging infrastructure is also being developed, with transaction advisors to be appointed by the end of 2025.
This comprehensive and expansive Sindh budget underscores the government’s dual strategy of welfare enhancement and economic reform. Despite running a deficit, it aims to improve quality of life, modernize infrastructure, and promote inclusive development across the province.
By focusing on transformative investments in education, healthcare, public transport, and industrial development, the Sindh government hopes to lay a foundation for long-term socio-economic growth, while responding to the immediate needs of its citizens.