Chief Minister Murad Ali Shah on Wednesday presented Sindh’s budget for the fiscal year 2026-27 in the Sindh Assembly, with a total outlay of Rs3.652 trillion, outlining the provincial government's spending and development priorities for the coming year amid the Opposition's protest and boycott, reported 24NewsHD TV Channel.
According to 24NewsHD TV channel, the budget allocates Rs2.56 trillion for current expenditures, which will cover the government's operational and administrative expenses.
The session was delayed due to a ruckus created by lawmakers of the Muttahida Qaumi Movement-Pakistan (MQM-P). MPA Ali Khurshidi said the party was boycotting the session because the opposition had not been consulted beforehand.
A sum of Rs281.67 billion has been earmarked for current capital expenditure, while Rs385 billion has been allocated for the Provincial Annual Development Programme (ADP), which aims to fund infrastructure and public welfare projects across the province.
Sindh Budget FY2026-27
The budget also includes Rs256 billion for development schemes financed through foreign assistance, reflecting continued support for externally funded projects in key sectors. In addition, the Sindh government has allocated Rs64 billion in federal grants as part of its overall financial framework for the next fiscal year.
Addressing the budget session, Sindh CM said that Rs 2560 billion has been allocated for ongoing expenditure in the new budget; Rs 281 billion 67 crore is allocated for current capital expenditure; Rs 385 billion is allocated for the provincial annual development program; and Rs 256 billion has been allocated from foreign assistance for the annual development program.
The CM further added that Rs 64 billion has been allocated from the federal government as a total grant. Total revenue collection in the new fiscal year Sindh budget is Rs 2263 billion 18 crore, of which Rs 234 billion 6 crore is allocated from provincial tax collection.
No new taxes imposed in the budget; Sindh CM vows to provide relief to the public and business community.
He announced 7% increase in salaries and pensions of Sindh government employees and merger of adhoc relief allowances 2022 and 2025. The minimum wage in the province increased from Rs 40,000 to Rs 43,000 per month.
Syed Murad Ali Shah announced the establishment of the 'Sindh International Financial Centre' in Karachi. He said the financial centre will be a platform for infrastructure, Islamic, and climate finance. Sindh CM pledged to make Keti Bandar a global maritime, logistics, industrial and energy hub.
CM Murad Shah said that after Port Qasim, Keti Bandar will be the next major milestone in Sindh's economic development.
He said Pakistan will be more strongly connected to global trade routes through Keti Bandar.
Sindh Chief Minister hoped that the Keti Bandar project would be connected to the Dhabeji Special Economic Zone and the Thar coal resources. Sindh Chief Minister said, “We will make Keti Bandar Pakistan's new economic and maritime gateway”.
Sindh Chief Minister said that an International Financial Centre is being established in Karachi. He said under the Digital Sindh vision, the foundation of green data infrastructure and AI economy is being laid. According to Bilawal Bhutto's vision, Sindh is being made a centre of renewable energy. The largest solar program in Pakistan's history is being launched, Sindh Chief Minister added.
He said the Sindh International Financial Centre will be a hub for Islamic and climate finance. Syed Murad Ali Shah announced the launch of the 'Sindh Green Data Infrastructure Initiative' for global investment. Investment will be brought in world-class data centres and AI infrastructure. Sindh Chief Minister said 275,000 free solar home systems will be distributed at a cost of Rs 18 billion.
Sindh Chief Minister said the government has provided free solar systems to poor families.
The CM announced the introduction of a concessional solar financing program for the middle class. Under the farmer-friendly vision, new economic power is being given to small farmers through agricultural collectives, Sindh CM added.
According to the budget document, the Sindh government introduced a waste-to-value program to convert waste into fuel and commercial products. The waste-to-value program will generate carbon credits and reduce environmental pollution.
Syed Murad Shah said the Sindh government has decided to enact special legislation for small farmers. He said the legislation will be enacted to establish agricultural collectives for small farmers.
Sindh revenue sources
| Source | Amount |
|---|---|
| Total revenue receipts | Rs2.263tr |
| Sales tax & agriculture tax | Rs456bn |
| Provincial tax revenue | Rs234bn |
| Provincial nominal tax revenue | Rs85bn |
| Federal grants | Rs64bn |
| Cash balance carried forward | Rs90bn |
Sindh Chief Minister said that farmers will be given access to machinery, finance, insurance and modern technology.
“The farmers are meeting the food needs of the country despite climatic challenges; our hardworking people are playing a key role in keeping the wheels of the economy moving”, Syed Murad Ali Shah added.
CM Sindh said record Rs 900 billion was spent on development activities in the past year. Bhutto Highway is the largest urban infrastructure project in Sindh's history, Sindh Chief Minister added. Modern infrastructure and an effective transport system are essential to Karachi's development. Sindh Chief Minister said Bhutto Highway, built at a cost of Rs 60.7 billion, is a great facility for the people.
Sindh Chief Minister said the 39-km-long modern corridor connects Qayyumabad to the M-9 motorway.
Sindh Chief Minister said the completion of Shahrah-e-Bhutto project will further strengthen connectivity between industrial, commercial and residential areas. Shahrah-e-Bhutto will prove to be a historic addition to Karachi's urban infrastructure.
Sindh Chief Minister Syed Murad Ali Shah said 1 million houses were completed under the 'Sindh People's Housing Program' for flood victims of 2022. Funds for another 1.7 million housing units, totalling $1.675 billion, have been obtained through international cooperation.
“More than 1300 school buildings were constructed, and teachers were recruited under the Education Department”, Syed Murad Ali Shah said. The hopes and aspirations of the youth keep us motivated to build a better future. Sindh Chief Minister said Sindh's budget is based on 4 principles: constitutional rights, fiscal sustainability, national stability and public welfare.
Under cooperation with the federation, the development portfolio had to be reduced from Rs 575 billion to Rs 400 billion, Sindh Chief Minister said.
He added Sindh's share in the NFC award has been ensured with the federation. Sindh Chief Minister announced a special relief package for education, agriculture, insurance and employment sectors. He announced sales tax on educational support services reduced to 5 percent.
Sindh Chief Minister said a huge amount of Rs 13.2 billion has been allocated for the social protection package.
Sindh budget 2026-27: Relief measures
Key public relief and incentive steps announced in the provincial budget
7%
Increase in salaries of Sindh government employees
7%
Increase in pensions of retired government employees
Rs43,000
Minimum monthly wage increased from Rs40,000
No new taxes
Government says the budget is tax-free
275,000
Free solar home systems to be distributed
Rs18bn
Allocation for solar home systems programme
8%
Agricultural super tax rate reduced from 10%
5%
Sales tax on educational support services reduced
Sindh Chief Minister said social protection includes Kitchen Garden, Benazir Hari Card and Benazir Women Agriculture Workers Program. Assistance schemes for widows and orphans will also continue as part of the social protection package. Sindh Chief Minister said concessional tax remains in place for beauty salons and overseas employment recruiting agencies connected to Point of Sale (POS).
Sindh Chief Minister announced a reduction in taxes imposed on insurance agents and brokers. The exemption limit of agricultural super tax has been increased from Rs 150 million to Rs 500 million. Sindh Chief Minister said the rate of agricultural super tax has also been reduced from 10 percent to 8 percent.
The volume of the Annual Development Program (ADP) for the new fiscal year has been set at Rs 400 billion. The highest amount of Rs 121.6 billion has been allocated for local government and municipal infrastructure. An amount of Rs 40.9 billion has been allocated for public health engineering. Rs 39.5 billion has been allocated for transport and communication projects.
He said that Rs 30.9 billion has been allocated for irrigation projects. Sindh Chief Minister said more than 1300 school buildings were constructed and teachers were recruited under the Education Department during the previous year. CM Murad Shah said the hopes and aspirations of the youth keep us motivated to build a better future.
He said technology-based policing has reduced vehicle theft and snatching incidents in Karachi by 67 percent.
Sindh Chief Minister said street crime has decreased by 54 per cent in Karachi; there has also been a clear reduction in traffic accidents and deaths.
Murad Ali Shah said the Sindh budget reflects protection of citizens, human development and building a bright future.
Sindh Chief Minister said it is the vision of the PPP to provide education to every child, health to every citizen and opportunities to every youth. Every district will reap the fruits of prosperity and development from the Sindh government budget.
Sindh budget reflects the protection of citizens, human development, and the building of a bright future, said the Chief Minister. The Chief Minister said every district will reap the fruits of prosperity and development from the Sindh government budget.
Sindh Chief Minister said a development budget of Rs 25.9 billion has been allocated for the education sector.
Syed Murad Ali Shah said that a development budget of Rs 17.4 billion has been allocated to the health sector. Sindh Chief Minister said that a sum of Rs 6.3 billion has been allocated for agricultural and livestock development works.
Work is underway on mega development projects for Karachi city. Work is underway on Greater Karachi Sewerage Plan (S-3) at a cost of more than Rs 32 billion. Rs 5 billion has been allocated for Lyari Transformation Package. Rs 4.17 billion has been allocated for Karachi Traffic Corridor Improvement Program and Rs 5.53 billion will be spent on Karachi's internal roads rehabilitation project, Sindh Chief Minister added.
He said Rs 3.18 billion was allocated for road improvement in five town municipal committees of Karachi Central. Sindh CM said Rs 7.69 billion has been allocated for the upgradation of KMC Fire Brigade Services on modern lines.
Karachi mega projects in Sindh budget 2026-27
Major allocations announced for Karachi’s infrastructure and civic services
Opposition staged a protest during Sindh CM's budget speech in Sindh Assembly. The Opposition leader claimed that the Sindh government once again ignored Sindh citizens in the budget.
He said a budget that robs Sindh citizens of their rights is unacceptable. Opposition members protested by holding placards, “Roti, kapra, and house in Dubai are not approved”. Opposition claimed that the government budget was Babu’s budget. Opposition demanded that, “Give Karachi rights, give Sindh citizens their share”. Opposition members said that the budget is against the aspirations of the people; Sindh citizens are being continuously ignored.
He said that revenue of Rs 456 billion is expected from sales tax on services and agricultural tax. An amount of Rs 85 billion is allocated from provincial nominal tax revenue. An amount of Rs 68.34 billion has been allocated from existing capital revenue. The CM said that Rs 328 billion has been allocated in the new fiscal year budget from other sources.
The previous cash balance of Rs 90 billion is also included in the income. Revenue of Rs 3525 billion has been allocated in the new fiscal year's Sindh budget. Sindh presents a budget with a deficit of Rs 36.93 billion.
According to budget documents, total revenue receipts for the new financial year are estimated at Rs2.263 trillion. Provincial tax collection is expected to remain a key source of revenue, although detailed figures were not immediately available.
The budget was presented amid ongoing discussions on economic management, development spending and fiscal sustainability, with provincial authorities expressing confidence that the proposed allocations will support growth and improve public services across Sindh. Opposition boycotted the budget session after registering their protest at the start.
Earlier, the Sindh cabinet on Wednesday approved the provincial budget for the 2026-27 financial year, which Chief Minister Murad Ali Shah would present during the provincial assembly’s budget session later in the day.
According to a statement issued by the Chief Minister’s House, CM Murad chaired the provincial cabinet’s budget meeting, which was attended by provincial ministers, advisers, special assistants, the chief secretary, secretaries and senior officials. “The cabinet approved the Sindh Budget 2026-27, reaffirming its commitment to inclusive development, poverty reduction and public welfare. Special measures have been introduced under the guidance of Chairman Bilawal Bhutto Zardari, including support for workers through an increase in the minimum wage,” the statement said.
According to Chief Minister’s Spokesperson Abdul Rasheed Channa, the cabinet also praised CM Murad’s efforts to carry out record development work during the current 2025-26 financial year.
“We will continue to serve the people under the guidance of the PPP leadership. God willing, we will undertake even more work for the people of Sindh in the new financial year,” CM Murad said.
Reporter: Ashraf Khan