Sindh unveils Rs3.5tr budget

June 18, 2026 (MLN): Sindh government presented a Rs3.562 trillion budget for FY2026-27, projecting a deficit of Rs36.9 billion against estimated receipts of Rs3.525 trillion.

No new taxes, a 7% raise in salaries and pensions, a Rs720 billion development programme, and a Rs13.2 billion social protection package, alongside sweeping long-term plans to transform the province into a regional hub for trade, finance, technology and renewable energy, were initiated.

Sindh Chief Minister Syed Murad Ali Shah presented the budget in the Sindh Assembly, framing it around four guiding principles: safeguarding the province's constitutional rights, maintaining fiscal sustainability, contributing to national stability, and continuing investment in public welfare, APP reported.

He acknowledged that the budget had been prepared amid a challenging global and domestic environment marked by geopolitical tensions, inflationary pressures, climate risks and economic uncertainty, noting that ordinary citizens continued to bear the brunt of rising living costs and energy prices despite signs of broader economic recovery.

No New Taxes; Relief Across Key Sectors

The budget introduces no new tax measures.

Instead, sales tax on education support services has been reduced to 5%, concessional rates for overseas employment recruiting agencies and POS-integrated beauty salons will continue, and taxation on insurance agents and brokers has been eased.

The agriculture sector receives relief through an increase in the agricultural super tax exemption threshold from Rs150 million to Rs500 million, with the applicable rate reduced from 10% to 8%.

Salaries, Pensions and Minimum Wage

Public sector employees and pensioners will receive a 7% increase in salaries and pensions effective July 1, with the raise implemented by amalgamating the Adhoc Relief Allowances of 2022 and 2025 into basic pay.

The monthly minimum wage has been raised from Rs40,000 to Rs43,000.

Development Programme

The Annual Development Programme for FY27 has been set at Rs720 billion, though the government disclosed it was compelled to pare back its original development portfolio from Rs575 billion to Rs400 billion after contributing toward national strategic requirements under an arrangement with the federal government. Sectoral allocations are as follows:

Social Protection

The Rs13.2 billion social protection package covers the Kitchen Garden Initiative, the Benazir Hari Card Programme, the Benazir Women Agriculture Workers Programme, and support schemes for widows and orphans.

Flood Reconstruction

On reconstruction following the 2022 floods, one million houses have been completed under the Sindh Peoples Housing for Flood Affectees Programme, with financing secured for approximately 1.7 million units backed by international support amounting to $1.675 billion.

The programme has also transferred land ownership rights to hundreds of thousands of women beneficiaries.

PPP and Keti Bandar

A new generation of large-scale public-private partnership projects forms a centrepiece of the budget's long-term vision.

The flagship initiative is the proposed development of Keti Bandar as a maritime, logistics, industrial and energy hub, incorporating port infrastructure, industrial zones, export-oriented manufacturing clusters, energy projects and multimodal transport connectivity, with planned linkages to the Dhabeji Special Economic Zone, Thar's energy resources and emerging regional trade routes.

 An internationally benchmarked viability assessment will be undertaken to advance the project.

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