Sindh Budget 2025–26: Rs 3.45 Trillion Provincial Budget Unveiled
Sindh Chief Minister Syed Murad Ali Shah presented a Rs 3,451.87 billion budget for FY 2025–26, marking a 12.9% increase over last year’s Rs 3,056.3 billion allocation. The budget, presented amid opposition protests in the assembly, includes a deficit of Rs 38.458 billion.
Development Focus
An Annual Development Program (ADP) worth Rs 1,018 billion was announced, including Rs 520 billion for the Provincial ADP and the rest from District ADP, Foreign Project Assistance, and Federal PSDP. The plan focuses on infrastructure, rehabilitation, social services, and inclusive growth.
Salary and Pension Increases
The budget provides a 12% adhoc relief for BPS 1–16 employees, and 10% for BPS 17–22. Pensions will increase by 8%. Conveyance allowance for differently-abled employees has been enhanced, and all outstanding pension dues of retirees up to June 30, 2025, have been cleared.
Revenue Projections and Expenditures
Provincial receipts are estimated at Rs 3,411.5 billion, with federal transfers (75% of revenue) projected at Rs 1,927.3 billion. Additional grants and transfers bring the total federal inflow to Rs 2,095.6 billion. Current Revenue Expenditure is set at Rs 2,149.4 billion—up 12.4% due to inflation, increased grants, salary, and pension adjustments.
Sector-Wise Allocations
- Education: Rs 523.73 billion (↑12.4%). New initiatives include hiring 4,400 staff, setting up four IBA community colleges, and empowering 34,100 schools with operational budgets. Rs 2 billion allocated for the Sindh Educational Endowment Fund.
- Health: Rs 326.5 billion (↑8%). Includes Rs 146.9 billion in grants, Rs 19 billion for SIUT, Rs 16.5 billion for PPHI, and Rs 10 billion for a hospital in Larkana.
- Differently-Abled Persons: Budget raised to Rs 17.3 billion from Rs 11.6 billion.
- Grants-in-aid: Rs 702 billion allocated for various institutions.
Infrastructure and Transport
Significant funds will support Karachi’s infrastructure with road rehabilitation, sewerage upgrades, and urban transport expansion. Pakistan’s first 50 electric buses will launch, with 100 more due by August 2025. The Yellow Line BRT is nearing completion and the Red Line is over 50% complete. The Karachi Safe City project is progressing with AI-driven surveillance.
Local Development and Technology
Rs 520 billion has been rationalised for development with 475 new schemes targeting flood recovery, renewable energy, underdeveloped districts, clean water, and sanitation. Major allocations include:
- Education: Rs 99.6 billion
- Health: Rs 45.37 billion
- Irrigation: Rs 73.9 billion
- Local Government: Rs 132 billion
A central KPI dashboard and blockchain-based land reforms will enhance governance and transparency. A digital birth registration system aims for 100% coverage by 2028.
Agriculture and Social Welfare
The Benazir Hari Card will support 200,000 farmers via subsidies and mechanisation aid. The Sindh Cooperative Bank feasibility is underway to offer interest-free loans. Climate-smart initiatives include drip irrigation subsidies and cluster farming. Youth Development Centres will offer training and digital literacy programs across Sindh.
Tax Reforms
The Finance Bill includes removal of five levies—such as Professional Tax and Entertainment Duty—alongside reduced motor vehicle taxes and a simplified sales tax framework. No new taxes were introduced; instead, tax burden relief measures were prioritized.
Vision for the Future
Murad Ali Shah emphasized that the budget lays the foundation for a resilient, inclusive, and economically empowered Sindh. It focuses on social uplift, modern infrastructure, and long-term sustainability, aiming to unlock the province’s full potential.
