KARACHI, Jun 13 (APP): Sindh Chief Minister Syed Murad Ali Shah on Friday presented Rs 3451.87 billion provincial budget for the fiscal year 2025-26 with a deficit of around Rs 38.458 billion amid rumpus by the opposition in the provincial assembly.
The next budget estimates represent a 12.9 per cent increase, as compared to the previous year’s budget estimates of Rs. 3056.3 billion for FY 2024-25.
The Chief Minister, who also holds the portfolio of Sindh Finance Minister in his budget speech unfolded Rs. 1,018 billion Annual Development Program (ADP) for the fiscal year 2025-26.
He said that the Provincial ADP had been set at Rs 520 billion, complemented by District ADP, Foreign Project Assistance (FPA), and Federal PSDP grants. This ambitious development plan focused on rehabilitation, infrastructure, social services, and sustainable growth across the province.
The Chief Minister announced a 12 percent adhoc relief allowance for government employees from BPS-1 to BPS-16, and a 10 percent increase for those in BPS-17 to BPS-22, along with an 8 percent increase in pensions. He said that an enhanced conveyance allowance for differently-abled employees will be introduced, and all outstanding pension dues of civil servants, who retired on or before June 30, 2025 have been cleared.
He also announced Rs800 million grant-in-aid for lawyers, journalists, and Rs1 billion for minority groups for welfare and development initiatives.
Murad said that the minimum wage would be consulted with all stakeholders for revision.
He said, “We are introducing a finance bill to abolish and decrease some taxes/levies/cess instead of increasing them,” the Chief Minister said.
He further said that the abolition of five levies including Professional Tax and Entertainment Duty, aimed to relieve financial burdens. There will also be reductions in motor vehicle taxes and a simplification of sales tax through a transition to a Negative List system.
He said that budget emphasised increased allocations for education, health, infrastructure, and social welfare, along with strategic initiatives to modernise governance and stimulate economic growth.
The province’s receipts for FY 2025-26 are projected at Rs.3,411.5 billion marking an 11.6 percent rise compared to the current year, he said adding that Federal divisible pool transfers, which constitute 75 per cent of total revenue, were estimated at Rs. 1,927.3 billion, a 10.2 per cent increase, despite a 5.5 per cent shortfall in the current year’s revised estimates. Additional federal transfers, including straight transfers and grants to offset losses from the abolition of the OZT, are also set to increase, bringing total federal transfers to Rs. 2,095.6 billion.
The Chief Minister said that Current Revenue Expenditure (CRE) had been set at Rs. 2,149.4 billion, reflecting a 12.4 per cent increase from Rs. 1,912.36 billion in FY 2024-25. This rise was due to inflationary pressures, increased grants to non-financial institutions such as hospitals and universities, salary relief allowances for government employees, and higher pension payments.
He said that total expenditure is expected to increase by 12.9 per cent to Rs. 3,450 billion. Current revenue expenditure will grow by 12.4 per cent to Rs. 2,150 billion, driven by salary and pension hikes (6%), grants to local bodies (3%), and substantial increases in key sectors:
Murad said that Grants-in-aid totaling Rs. 702 billion have been allocated for various government and non-financial institutions.
He said that the education sector has received an allocation of Rs. 523.73 billion, which is a 12.4 percent increase from Rs. 458.2 billion last year, representing 25.3 percent of total CRE. Significant increases are observed across all levels: the primary education budget has risen from Rs. 136.2 billion to Rs. 156.2 billion, while the secondary education budget has increased from Rs. 68.5 billion to Rs. 77.2 billion.
He said that new initiatives included the hiring of 4,400 staff members, the establishment of four IBA community colleges, and the empowerment of over 34,100 primary schools with dedicated cost centers and budgets. Rs. 2 billion has been allocated for the Sindh Educational Endowment Fund to support meritorious and underprivileged students.
The Differently Abled Persons Development Program (DEPD) budget has been increased from Rs. 11.6 billion to Rs. 17.3 billion, providing enhanced support for assisting devices, stipends, and partnerships with NGOs.
Murad said that the budget for health has been set at Rs. 326.5 billion, representing an eight per cent increase from last year’s allocation of Rs. 302.2 billion. Of this amount, Rs. 146.9 billion is designated as grants-in-aid for health units and institutions.
Key allocations include Rs. 19 billion for the Sindh Institute of Urology & Transplantation (SIUT), Rs. 16.5 billion for the Peoples Primary Health Initiative (PPHI), and Rs. 10 billion for a new hospital in Larkana. Additionally, there will be an expansion of ambulance services and mobile diagnostic units to enhance healthcare access in rural areas.
The Development Portfolio and Annual Development Program (ADP) has been rationalised to Rs. 520 billion, following a 20 per cent reduction due to anticipated federal transfer shortfalls. The focus will be on 475 new schemes that prioritize flood rehabilitation, renewable energy, development in underdeveloped districts, clean water, and sanitation services.
Major sector allocations include Rs. 99.6 billion for education, Rs. 45.37 billion for health, Rs. 73.9 billion for irrigation, and Rs. 132 billion for local government.
The Chief Minister said that significant infrastructure upgrades are planned for Karachi, including road rehabilitation and improvements to sewerage and water supply across multiple districts.
He said that urban transport in Karachi will expand with the introduction of Pakistan’s first 50 electric buses, with plans to add another 100 by August 2025. Progress on the city’s Bus Rapid Transit (BRT) projects includes the Yellow Line nearing completion and the Red Line being over 50 percent complete.
Murad said that the Karachi Safe City project was making strides with the implementation of AI-integrated CCTV systems and expanded coverage. Progress is also being made on major projects such as the Korangi Causeway Bridge and improvements to Shahrah-e-Bhutto. New ADP initiatives will target heritage restoration, enhance business areas, and facilitate crucial road constructions.
The launch of a centralised Key Performance Indicator (KPI) monitoring dashboard will enable real-time project tracking. Blockchain-based land record reform is aimed at simplifying property transactions and enhancing transparency. Additionally, a digital birth registration system aims for 100 percent coverage by 2028, integrating health and education data, he said.
Speaking about agricultural Reforms, he said that the introduction of the Benazir Hari Card will support over 200,000 farmers with subsidies and mechanisation assistance. Climate-smart agriculture will be promoted through drip irrigation subsidies and public-private partnership-driven cluster farming projects. A feasibility study is currently underway for the Sindh Cooperative Bank to provide interest-free loans to progressive farmers.
Murad, speaking about Social Welfare and Empowerment said that the decentralisation of education budgets will empower school headteachers with operational funds. Support for persons with disabilities will expand, including increased stipends and the establishment of new rehabilitation centres. Furthermore, Youth Development Centres will be set up across Sindh, providing skills training, career counselling, and digital literacy programs.
He emphasised the budget’s role in harnessing Sindh’s untapped potential through inclusive, resilient, and sustainable development. He called for unity and collective effort to guide the province and the nation toward peace, progress, and prosperity. This comprehensive budget reflects Sindh’s commitment to social uplift, infrastructure modernisation, and economic empowerment, positioning the province for a transformative year ahead.
Earlier, the Chief Minister and other MPAs condemned Israeli attack on Iran. The session started with recitation from Holy Quran and Naat Sharif with Acting Speaker of Sindh Assembly Anthony Naveed in the chair.
