KARACHI: Sindh Chief Minister Syed Murad Ali Shah presented a Rs3.56 trillion provincial budget for fiscal year 2026-27 on Wednesday, projecting a deficit of approximately Rs242 billion against estimated receipts of Rs3.41 trillion.
The legislative session was delayed after lawmakers from the Muttahida Qaumi Movement-Pakistan (MQM-P) created a ruckus. MPA Ali Khurshidi announced the party was boycotting proceedings, stating the opposition had not been consulted prior to the budget's unveiling.
The budget proposes no new taxes, a 7% increase in salaries and pensions, and a Rs400 billion development program. It also includes a Rs13.2 billion social protection package and outlines long-term initiatives to position Sindh as a regional hub for trade, finance, technology and renewable energy.
Shah said the government's goal for the upcoming fiscal year is to “maintain fiscal discipline, strengthen public finances, and sustain development momentum during a very challenging year.”
The chief minister also addressed the deadly Gul Plaza fire, noting that the Sindh government had approved one of the largest relief packages in response to the incident, totaling Rs8.45 billion. That package includes compensation of Rs10 million for the family of each deceased victim.
Earlier, the Sindh cabinet approved the proposed budget during a session chaired by Shah, state broadcaster PTV reported. Shah said the budget caters to all socioeconomic classes and includes steps to eradicate poverty in the province, according to PTV.
The cabinet also set a new minimum wage for workers, the report said. During the meeting, provincial ministers praised what the CM House described as “record” development initiatives undertaken in the previous fiscal year. The cabinet reaffirmed its commitment to public service under the leadership of Pakistan Peoples Party Chairman Bilawal Bhutto-Zardari, according to the statement.
A day before the budget presentation, Shah reviewed the performance of major revenue-generating departments and directed officials to strengthen collection mechanisms and improve fiscal efficiency to support the province’s development agenda.
