KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Wednesday presented the Sindh government’s annual budget for fiscal year 2026-27, allocating Rs 160 billion for local government grants and district councils, up from Rs 120 billion in the previous fiscal year.
The allocation represents approximately 5.2 percent of the province’s Rs 3.4 trillion plus budget and is aimed at strengthening grassroots governance and improving municipal service delivery across Sindh.
Under the budget, a total Local Councils Grant of Rs 160 billion has been earmarked for local government institutions. In addition, Rs 15 billion has been allocated under the District Development Component for district-level capital projects. The allocation is significantly lower than the Rs 55 billion provided in previous years, reflecting fiscal adjustments made under the National Fiscal Pact and commitments linked to the IMF programme.
The budget also sets aside Rs 78 billion under the Local Government Development Portfolio for ongoing and selected development schemes in municipal and metropolitan corporations, including major infrastructure projects in Karachi and Hyderabad.
The provincial government has identified urban development and fiscal consolidation as key priorities for the coming fiscal year. Operational and cleanliness grants have been increased for the Karachi Metropolitan Corporation, Karachi Development Authority, and Karachi Water and Sewerage Corporation to support improved municipal services.
As part of broader fiscal discipline measures, the provincial government has reduced allocations under the Annual Development Programme (ADP) to help meet federal cash surplus targets. Development spending will be focused on 3,642 ongoing district and provincial projects, with no major new development schemes proposed for FY2026-27.
Copyright Business Recorder, 2026
Comments