Sindh Chief Minister Presents Rs3.652 Trillion Budget with No New Taxes, 7% Pay Increase

Sindh Chief Minister Syed Murad Ali Shah presented the provincial budget for fiscal year 2026-27, amounting to Rs3.652 trillion. Estimated receipts stand at approximately Rs3.41 trillion, leading to a projected deficit of around Rs242 billion.

The budget proposals include a freeze on new taxes, a 7% increase in government salaries and pensions, a Rs400 billion development program, and a Rs13.2 billion social protection package. The government also outlined long-term initiatives aimed at establishing Sindh as a regional hub for trade, finance, technology, and renewable energy.

Chief Minister Murad Ali Shah stated that the government's objectives for the upcoming fiscal year are to "maintain fiscal discipline, strengthen public finances, and sustain development momentum during a very challenging year." He also highlighted the Sindh government's approval of an Rs8.45 billion relief package in response to the Gul Plaza fire, which includes Rs10 million in compensation for the family of each deceased victim.

Earlier in the day, the provincial cabinet approved the proposed budget in a session chaired by CM Murad. State broadcaster PTV reported that the Chief Minister emphasized the budget's consideration for "every class" and its steps toward poverty eradication. The cabinet also decided on an increase in the minimum wage for workers and appreciated the "record" development initiatives from the previous fiscal year.

The budget presentation session faced delays due to a protest by lawmakers from the Muttahida Qaumi Movement-Pakistan (MQM-P). MPA Ali Khurshidi announced the party's boycott, citing a lack of consultation with the opposition prior to the budget's presentation.

According to Dawn Pakistan, ahead of the provincial budget, CM Murad had reviewed the performance of major revenue-generating departments, instructing them to improve collection mechanisms and fiscal efficiency.