Sindh unveils over Rs3tr budget for FY26

June 14, 2025 (MLN): Sindh’s provincial budget for FY2025- 26 was presented in the assembly by Sindh Chief Minister Syed Murad Ali Shah with a total outlay of Rs3.45 trillion.

This marks a 12.9% increase from the previous year’s Rs3.05tr and includes a deficit of Rs38.45 billion.

Receipts and Revenue

Sindh’s projected receipts for FY2025-26 are Rs3.41tr, marking an 11.6% rise over the current year.

Federal divisible pool transfers are expected at Rs1.93tr, a 10.2% increase, contributing 75% to total revenue.

Additional federal transfers, including straight transfers and grants compensating for the abolished OZT, bring total federal receipts to Rs2.1tr.

Expenditure Overview

Total expenditure for the year is estimated at Rs3.45tr, with Current Revenue Expenditure (CRE) set at Rs2.15tr—a 12.4% rise from Rs1.91tr in FY2024-25.

This growth is driven by inflation, salary and pension relief, and increased grants to non-financial institutions such as hospitals and universities.

Grants-in-aid totaling Rs702bn have also been earmarked for various entities under directives from the Chief Minister’s Secretariat and Finance Department.

Education

The education sector received an allocation of Rs523.73bn, up 12.4% from Rs458.2bn.

This represents 25.3% of the total CRE. The primary education budget increased from Rs136.2bn to Rs156.2bn, while secondary education rose from Rs68.5bn to Rs77.2bn.

Key initiatives include hiring 4,400 new staff, establishing four IBA community colleges, and providing over 34,100 primary schools with cost centers and budgets.

Rs2bn has been set aside for the Sindh Educational Endowment Fund to assist underprivileged and meritorious students.

Health

The health sector’s allocation stands at Rs326.5bn, an 8% increase from Rs302.2bn.

Of this, Rs146.9bn is designated as grants-in-aid to health units and institutions.

Notable allocations include Rs19bn for the Sindh Institute of Urology & Transplantation (SIUT), Rs16.5bn for the Peoples Primary Health Initiative (PPHI), and Rs10bn for a new hospital in Larkana.

The government also plans to expand ambulance services and mobile diagnostic units to improve rural healthcare access.

Development Program

The Annual Development Program (ADP) is set at Rs520bn following a 20% rationalisation due to anticipated federal transfer shortfalls.

A total of 475 new schemes are planned, focusing on flood rehabilitation, renewable energy, development in underdeveloped districts, and clean water and sanitation.

Sector-wise allocations include Rs99.6bn for education, Rs45.37bn for health, Rs73.9bn for irrigation, and Rs132bn for local government.

Karachi Development

Key infrastructure upgrades for Karachi include road rehabilitation and improvements to water and sewerage systems across districts.

Urban transport will see the rollout of Pakistan’s first 50 electric buses, with another 100 to be added by August 2025.

The Yellow Line BRT is nearing completion, and the Red Line is over 50% complete. Projects such as the Korangi Causeway Bridge and Shahrah-e-Bhutto improvements are also underway.

New ADP initiatives will support heritage restoration, business area enhancement, and road development.

Digital Governance

The province plans to launch a centralised Key Performance Indicator (KPI) monitoring dashboard for real-time project tracking.

Blockchain-based land reforms aim to streamline property transactions and improve transparency.

A digital birth registration system is targeted for 100% coverage by 2028, integrating health and education data.

Agriculture

The Benazir Hari Card will benefit over 200,000 farmers through subsidies and mechanisation assistance.

Climate-smart agriculture will be encouraged via drip irrigation subsidies and cluster farming through public-private partnerships.

A feasibility study is ongoing for the establishment of the Sindh Cooperative Bank to offer interest-free loans to progressive farmers.

Social Welfare

Education budget decentralisation will empower school headteachers with operational control.

The Differently Abled Persons Development Program’s budget rose from Rs11.6bn to Rs17.3bn to support assistive devices, stipends, and NGO partnerships.

New rehabilitation centres will be set up, and Youth Development Centres will offer skill training, career counselling, and digital literacy programs.

Tax Relief Measures

Five levies—Professional Tax, Entertainment Duty, Drainage Cess, Cotton Fees, and Local Cess—have been abolished.

There will be reductions in motor vehicle taxes and simplification of the sales tax regime via a shift to a Negative List system.

The budget includes a 12% ad hoc relief allowance for BPS-1 to BPS-16 employees and a 10% increase for BPS-17 to BPS-22, along with an 8% pension rise.

Differently-abled employees will receive enhanced conveyance allowances, and all outstanding pension dues will be cleared.

Special grants are allocated for lawyers, journalists, and minorities to support welfare and development programs.