Sindh budget debate: Treasury slams FBR for failing to achieve revenue collection target

KARACHI: The treasury took sharp aim at the Federal Board of Revenue (FBR) for failing to meet revenue targets and censured MQM — a key federal coalition partner — for staying silent over falling collections, as the Sindh Assembly held its fifth consecutive day of general debate on the provincial budget for fiscal year 2026-27 on Tuesday.

With Speaker Awais Qadir Shah in the chair, cabinet ministers defended the fiscal plan and praised Sindh’s contribution to federal finances, while opposition lawmakers took turns criticising the budget and the government’s overall performance.

Provincial cabinet members also commended Sindh for extending Rs260 billion in grants to the federal government to help meet national defence and other expenditure obligations. The treasury openly blamed the FBR for failing to pursue its own fiscal targets, arguing that provinces were being forced to compensate for the federal revenue body’s underperformance.

Provincial Planning Minister Jam Khan Shoro opened the debate with sharp criticism of the federal government, saying that for the first time in Pakistan’s history, the federation had taken grants from the provinces. He said Sindh was transferring Rs260 billion to the federal government in the form of grants. “The FBR’s collections are falling continuously, yet the two MQM ministers sitting in the federal cabinet have not said a single word about it,” he said. “The provinces are supporting the federation because of FBR’s underperformance.”

Shoro said the Sindh Revenue Board (SRB) had crossed Rs350 billion in collections and questioned why the FBR could not match that performance. He added that foreign-funded development projects worth Rs1.9 trillion were earmarked for Karachi, and that Sindh had proposed transferring the collection of sales tax on goods to the provinces. He also warned that Sindh faced a 48 percent water shortage, on which the chief minister had written to the federal government, but the opposition had stayed silent. Shoro criticised those who claimed to be sons of Sindh while simultaneously calling for its division.

Education Minister Syed Sardar Shah said Sindh had hired 97,000 teachers and had sustained recruitment drives for three years. He said 32 universities had been established in the province since 2008. He announced that a Student Attendance Monitoring System was being launched in collaboration with the World Bank, and that the government was working with NADRA to obtain B-Form data for all children. “The education department exists to educate, not to be treated as an employment bureau,” he said. He called for responsible use of artificial intelligence in governance and said the number of out-of-school children in Sindh was declining. He also reiterated that Karachi was an inseparable part of Sindh, adding: “Karachi collects tax — it does not generate tax.”

Health Minister Dr. Azra Pechuho said multiple reforms had been introduced in the health department this year, with full results expected within two years. She said providing quality healthcare to disadvantaged communities was a top government priority, with special focus on primary and secondary health services for mothers and children. She presented a detailed breakdown of health expenditure and projects to the assembly. She announced that vascular surgery had been launched at Karachi’s Trauma Centre, and that 50-bed hospitals in Ancholi, Gulberg, and Gulshan-e-Hadeed had been expanded. Efforts were underway to establish a maternity home at the children’s hospital in Korangi No. 5. She said SIUT was delivering strong services in both Karachi and Sukkur, and that chest pain units were being set up across all districts of the province.

Agriculture, Anti-Corruption, Sports, and Youth Affairs Minister Sardar Muhammad Bakhsh Mahar said Sindh had always played a critical role in pulling Pakistan through difficult times. He said agriculture had to be modernised on scientific lines. He announced that the province had recorded a wheat output of 4.9 million metric tons, supported by subsidies on fertiliser and seed. He said the performance of the Sindh Seed Corporation had been improved and that an agricultural university would be established in Ghotki. He also announced the launch of a Sindh Youth Card to provide young people with various services and opportunities. On anti-corruption, he said accountability mechanisms were being strengthened, that the Anti-Corruption Complex building was being expanded to 11 floors, 130 officers had been promoted, and that any official found involved in corruption would face action.

Jails, Works and Services Minister Ali Hassan Zardari said significant road development work had been completed across various districts. He said 80 kilometers of road had been completed in Tando Muhammad Khan, 120 kilometers in Thatta, and 26 kilometers from Naushahro Feroze to Pad Idan, with the Talhaar-Tando Bago road also finished. He said five major development projects had been included in the upcoming budget, with Rs32 billion to be spent on ongoing schemes. He added that prison reforms had been introduced and 34 ambulances provided.

Livestock and Fisheries Minister Muhammad Ali Malkani said Sajjawal remained among the most underdeveloped areas of the province and required accelerated development. He said the Tando Muhammad Khan-to-Sajjawal road had been completed and proposed doubling the Thatta-Sajjawal-Badin road and launching a People’s Bus Service between Sajjawal and Thatta. He said the total livestock population in Sindh had exceeded 60 million, with 23.3 million small animals vaccinated. Dairy animals were being distributed to women under various district programs. He said Sindh had for the first time begun breeding the Kundhi breed of buffalo, and that the Karachi Fish Harbour development scheme would be completed in the coming fiscal year.

Rehabilitation Adviser Gyan Chand Essrani said Rescue 1122 received 24,000 complaints daily and had provided services to 225,000 people over the past year.

From the opposition, MQM’s Rashid Khan said the problems of certain areas of Sindh had persisted for years without resolution. He claimed that development fund commitments from the previous budget had not been fulfilled, and that water and other urban issues remained unresolved due to bureaucratic mismanagement. He also raised the issue of staff shortages at Hyderabad Civil Hospital and said funds for some development schemes had not been released.

Copyright Business Recorder, 2026