Sindh Chief Minister Syed Murad Ali Shah presented the provincial budget for the fiscal year 2025-26 on Friday.
The budget size for FY26 is set at Rs3.45 trillion, representing a 12.9% increase compared to the estimated Rs3.05 trillion for the previous year (2024-25).
“This budget will play a key role in unleashing Sindh’s untapped potential,” Murad Ali Shah said. “It prioritises inclusive, sustainable, and robust development.”
Key highlights of Pakistan budget for 2025-26
The chief minister expressed commitment to social improvement, modernisation of infrastructure, and economic independence.
The provincial government allocated Rs1.02 trillion for development in FY26.
Salaries and pensions
Salaries for employees from Grade 1 to 16 increased by 12%, while Grade 17 to 22 employees to receive a 10% salary increase.
Pensions
Meanwhile, the provincial government increased pensions by 8% for FY26.
Current expenditures
Sindh government allocated Rs2.15 trillion for current expenditures, up 12.4% from last year’s Rs1.92 trillion.
This increase is driven by inflation, hospital and university grants, employee relief allowances, and rising pension obligations, according to a statement from the CM House.
Education
Education budget for Sindh province increased by 12.4% to Rs523.73 billion, making up 25.3% of total current expenditures.
Primary education budget raised from Rs136.2 billion to Rs156.2 billion.
Secondary education budget for the province increased from Rs68.5 billion to Rs77.2 billion.
The provincial government also announced to hire 4,400 new teachers and educational staff.
Other initiatives proposed included establishment of four IBA community colleges, dedicated budgets and expenditures for over 34,100 primary schools, and Rs2 billion for Sindh Educational Endowment Fund to support underprivileged and talented students.
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The budget for differently-abled persons development programme increased from Rs11.6 billion to Rs17.3 billion to provide assistive devices, scholarships, and partnerships with NGOs, the CM announced.
Health
Health budget for the province increased by 8% from Rs302.2 billion to Rs326.5 billion.
As per the details, Rs146.9 billion will be given to health institutions and units as grants, while Rs19 billion has been allocated for Sindh Institute of Urology and Transplantation (SIUT).
Other allocations in the health sector included Rs16.5 billion for Peoples Primary Healthcare Initiative (PPHI), Rs10 billion allocated for a new hospital in Larkana, while ambulance service and mobile diagnostic units to be expanded to rural areas.
Annual Development Programme (ADP)
Sindh government announced to cut the Annual Development Programme (ADP) for FY26 by 20% to Rs520 billion, citing expected reduction in federal transfers.
It also announced 475 new schemes for flood-affected areas, renewable energy, underdeveloped districts, clean water, and sanitation.
ADP allocations include:
- Rs99.6 billion for education
- Rs45.37 billion for health
- Rs73.9 billion for irrigation
- Rs132 billion for local governments
Karachi
Sindh government announced “special focus” on Karachi’s development, vowing to bring improvement in major projects related to infrastructure, roads, sewerage, and water supply.
The provincial government also announced expansion of urban transport, with introduction of 50 electric buses along with 100 more electric buses by August 2025.
Regarding the progress in BRT projects in the metropolitan city, the government informed that Yellow Line was nearing completion, while Red Line was over 50% complete.
Other announced for the city included expansion of Karachi Safe City Project with AI-enabled CCTV cameras, upgrades to Korangi Causeway Bridge and Shahrah-e-Bhutto, and new schemes for restoration of historic sites, improvement of business areas, and construction of major roads.
Digital governance
Sindh government also announced initiatives for digital governance, including the launch of a central KPI monitoring dashboard for real-time project tracking; land records to be moved to blockchain, and enhancing transparency and ease of transactions.
It launched a digital birth registration system, aiming for 100% coverage by 2028.
“The system will be integrated with health and education databases,” the CM House said.
Agriculture
Sindh government announced to launch the Benazir Hari Card that will provide subsidies and modern machinery to over 200,000 farmers.
It also announced subsidies for drip irrigation to promote environmentally safe farming, along with the announcement of cluster farming projects under public-private partnerships.
Feasibility study underway for establishing Sindh Cooperative Bank to offer interest-free loans to progressive farmers, CM Murad said.
Social welfare & empowerment
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Education budget to be decentralised to the school level
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Headteachers to get direct funds for operational expenses
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Improved facilities and increased stipends for persons with disabilities
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New rehabilitation centers to be established
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Announcement of youth development centers across Sindh
“These will offer skills training, career counseling, and digital literacy programme,” the CM said.
Tax relief
The provincial government announced to remove five taxes to reduce citizens’ financial burden, as it also proposed to abolish professional tax and entertainment duty.
It announced reduction in motor vehicle tax, and introduction of negative list system to simplify sales tax.
Other announced relief measures
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Ad-hoc relief allowance of 12% for employees in Grade 1–16
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10% ad-hoc relief for employees in Grade 17–22
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Increase in conveyance allowance for differently-abled employees
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Full payment of pending pensions
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Special grants for lawyers, journalists, and minorities under welfare and development initiatives
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