By Our Correspondent
KARACHI: The Government of Sindh on Tuesday tabled its budget for the fiscal year 2026-27 in the provincial assembly, presenting a total outlay of Rs3.562 trillion alongside an extensive package of development schemes, welfare measures, and policy initiatives.
Chief Minister Syed Murad Ali Shah, while presenting the budget, stated that no new taxes have been introduced for the upcoming fiscal year. He emphasised that the government’s focus remains on easing financial pressures on citizens and supporting the business sector amid ongoing economic challenges.
Salaries, pensions and wage relief
A major highlight of the budget is a 7 percent increase in salaries and pensions for provincial government employees. The government also merged ad-hoc relief allowances announced in 2022 and 2025 into basic pay, aimed at streamlining compensation structures.
Furthermore, the minimum monthly wage has been increased from Rs40,000 to Rs43,000, a decision expected to benefit low-income workers across industrial and service sectors.
Financial and economic institutions
The Sindh government announced the creation of the “Sindh International Financial Centre,” intended to function as a hub for infrastructure finance, Islamic finance, and climate-focused investments. Officials said the initiative is designed to attract both domestic and foreign capital and strengthen the province’s financial ecosystem.
The government also reiterated its plan to develop Keti Bandar into a major maritime, logistics, industrial, and energy hub, integrated with the Dhabeji Special Economic Zone and the Thar coal corridor to form a connected industrial network.
Chief Minister Murad Ali Shah described Port Qasim and Keti Bandar as key milestones in Sindh’s economic trajectory, stating that the new port project would enhance Pakistan’s integration with global trade routes.
Energy transition and solar expansion
Among the most significant social and energy initiatives is a large-scale solar programme. Under this plan, 275,000 free solar home systems will be distributed to low-income households at a cost of Rs18 billion.
The government will also introduce a subsidised solar financing scheme for middle-income families to promote wider adoption of renewable energy and reduce reliance on conventional power sources.
The chief minister said these measures align with Sindh’s broader vision of becoming a renewable energy hub within Pakistan.
Digital economy and climate infrastructure
The budget introduces the Sindh Green Data Infrastructure Initiative to attract investment in data centres and artificial intelligence infrastructure. Officials said the programme aims to support environmentally sustainable digital growth while strengthening Pakistan’s capacity in emerging technologies.
A “Waste-to-Value” programme has also been launched, designed to convert municipal waste into economic resources, including carbon credit generation, while reducing environmental pollution.
Agriculture and rural development
The provincial government announced major reforms for the agriculture sector, including planned legislation to support small farmers through agricultural collectives. These collectives are expected to improve access to machinery, credit, insurance, and modern farming technologies for small landholders.
Special attention has been given to farmers, with officials highlighting the growing challenges posed by climate change and water scarcity.
A Rs13.2 billion social protection package has also been announced, covering initiatives such as kitchen gardening, the Benazir Hari Card, and support programmes for women agricultural workers.
Development spending and infrastructure expansion
Sindh reported that over Rs900 billion was spent on development projects in the previous fiscal year, reflecting a strong infrastructure-led development approach.
For FY2026-27, the Annual Development Programme (ADP) has been set at Rs400 billion. Major allocations include funds for local government infrastructure, health engineering, transport, irrigation, education, health, and agriculture development projects.
Karachi-focused mega projects
A substantial portion of the budget targets Karachi’s infrastructure upgrade. Work continues on the Greater Karachi Sewerage Plan (S-III), valued at more than Rs32 billion, alongside the Lyari Transformation Package worth Rs5 billion.
The Karachi Traffic Corridor Improvement Programme has received Rs4.17 billion, while Rs5.53 billion has been allocated for inner-city road rehabilitation. Additional funds have been earmarked for road improvements in central municipal areas and upgrades to the city’s fire brigade system.
Public transport expansion
To improve urban mobility, Rs4.8 billion has been approved for 50 modern double-decker buses, with half expected to become operational within three months, serving tens of thousands of passengers daily.
The Pink Bus Service will also be expanded, while the government plans to introduce 100 additional electric buses to Karachi’s fleet. Automated fare collection systems are being implemented across major bus corridors.
Safety and law enforcement improvements
Under the Safe City Programme, more than 1,300 smart surveillance cameras have been installed across Karachi, incorporating facial recognition and number plate tracking systems.
Officials reported a significant decline in vehicle theft and street crime, alongside improved crime detection rates, attributing gains to expanded surveillance and policing systems.
Housing and post-flood rehabilitation
Under the Sindh Peoples Housing Programme, one million homes have been completed for flood-affected families since 2022. International partners have also committed funding for millions of additional housing units.
The programme has also reportedly strengthened women’s property rights by granting ownership in large numbers of rebuilt homes.
Health sector expansion
Major public health institutions including NICVD, SIUT, and JPMC are being expanded, alongside improvements in telemedicine services and emergency ambulance networks.
Officials said these initiatives aim to improve healthcare access across both urban and rural Sindh.
Education and human development
More than 1,300 schools have been built or rehabilitated, alongside ongoing teacher recruitment drives. A targeted relief package has also been introduced across multiple social sectors, including education and employment.
Additionally, sales tax on educational support services has been reduced to ease financial pressure on households.
Fiscal framework and NFC concerns
Murad Ali Shah said the budget is guided by constitutional rights, fiscal sustainability, national stability, and public welfare.
He noted that coordination under the NFC framework led to a reduction in the development portfolio from Rs575 billion to Rs400 billion, while reaffirming that Sindh’s constitutional share remains protected.
The budget presents a broad development and welfare agenda combining infrastructure expansion, social protection, energy transition, and digital investment priorities.
The measures are expected to benefit salaried workers, farmers, low-income households, and urban commuters, though concerns remain about fiscal sustainability and execution capacity.
Future Outlook
Key projects such as Keti Bandar, solar expansion, AI infrastructure, and Karachi transport upgrades will determine the long-term success of the budget’s ambitions.The budget aligns with national priorities in renewable energy, digital transformation, and social welfare, while also highlighting the importance of federal-provincial fiscal coordination under the NFC framework.
