KARACHI – Sindh Chief Minister and Finance Minister Syed Murad Ali Shah on Friday presented a Rs3.45 trillion budget for the financial year 2025-26, announcing a 10–12% ad-hoc relief allowance for government employees and abolishing five provincial taxes to provide relief to the public.
Sindh Govt Employees to Get Relief Allowance, Pensions Increased
While addressing the Sindh Assembly, CM Murad Ali Shah said the new budget aims to unlock the province’s potential and improve social services, infrastructure, and economic independence.
He announced that government employees from grade 1 to 16 will get a 12% ad-hoc relief allowance, while those in grade 17 to 22 will receive a 10% increase.
Pensions will be increased by 8%, and conveyance allowance for differently-abled employees will also be raised. Pending pension payments will be cleared.
| Category | Increase |
|---|---|
| Govt. Employees (Grade 1–16) | 12% Ad hoc relief |
| Govt. Employees (Grade 17–22) | 10% Ad hoc relief |
| Retired Govt. Employees (Pension) | 8% Increase |
Five Taxes Abolished to Ease Financial Burden
To reduce the public’s financial burden, five provincial taxes, including professional tax and entertainment duty, have been abolished. The motor vehicle tax is being reduced, and a new “Negative List” system will be introduced to simplify sales tax collection.
Revenue Collection Expected to Increase
The province expects to collect Rs3.41 trillion in revenue in FY2025-26, showing an 11.6% increase from the current year. Transfers from the federal divisible pool, estimated at Rs1.927 trillion, make up 75% of the total income. With additional grants, including direct transfers and compensation for abolished octroi taxes, total federal transfers are projected to reach Rs2.095 trillion.
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Spending to Increase by 12.9%
Current revenue expenditures are estimated at Rs2.15 trillion, a 12.4% rise from the previous year’s Rs1.912 trillion. The increase is due to inflation, grants to non-financial institutions such as hospitals and universities, salary relief for employees, and higher pension payments.
Sector-Wise Spending Breakdown
Total expenditures are expected to rise by 12.9% to Rs3.45 trillion. Of this:
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Education: Rs523.73 billion allocated – a 12.4% increase.
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Primary education budget increased from Rs136.2bn to Rs156.2bn.
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Secondary education budget raised from Rs68.5bn to Rs77.2bn.
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New initiatives include hiring 4,400 staff, establishing 4 IBA community colleges, and empowering 34,100 primary schools with dedicated budgets.
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Rs2bn allocated for the Sindh Education Endowment Fund.
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Special education budget increased to Rs17.3bn from Rs11.6bn.
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Health: Rs326.5 billion allocated – up 8%.
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Rs146.9bn earmarked as grants to health units.
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Key allocations: Rs19bn for SIUT, Rs16.5bn for PPHI, and Rs10bn for a new hospital in Larkana.
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Mobile units and ambulance services will be expanded in rural areas.
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Annual Development Programme (ADP)
Rs1.018 trillion allocated for the Annual Development Programme (ADP), which includes:
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Provincial ADP: Rs520bn
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District ADP: Rs55bn
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Foreign project assistance: Rs366.72bn
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Federal development grants: Rs76.28bn
Key focus areas:
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Reconstruction of flood-hit schools and infrastructure
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Upgraded healthcare facilities
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Climate-smart agriculture and irrigation systems
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Clean drinking water and sanitation
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Urban infrastructure in Karachi
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Green and renewable energy projects
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Poverty reduction through food aid, community infrastructure, and low-cost housing
Development Schemes and Sector Allocations
A total of 3,642 schemes are included, with Rs400.5bn allocated. Of this, 82.6% is for ongoing projects, and 17.4% for new ones. Key allocations:
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Education: Rs102.8bn
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Health: Rs45.4bn
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Irrigation: Rs84bn
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Local government: Rs132bn
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Works and Services: Rs143bn
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Energy (including Thar coal and renewables): Rs36.3bn
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Agriculture, livestock, fisheries: Rs22.5bn
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Transport & Mass Transit: Rs59.7bn
Karachi-Specific Projects
The CM said several infrastructure projects are planned for Karachi, including road rehabilitation, better water supply, and drainage.
Pakistan’s first 50 electric buses will start running in Karachi, with 100 more by August 2025. The BRT Yellow Line is near completion, and over 50% work on the Red Line has been done. The Safe City project with AI-integrated CCTV coverage is also progressing.
Major projects include the Korangi Causeway Bridge, Shahrah-e-Bhutto improvement, heritage restoration, and road upgrades.
Digital Governance and Reforms
A central KPI monitoring dashboard will help track projects in real time. Blockchain-based land reforms aim to simplify property transactions. A digital birth registration system aims for 100% coverage by 2028, linking health and education records.
Agricultural Reforms
The Benazir Hari Card will support over 200,000 farmers with subsidies and mechanized tools. Climate-smart farming will be promoted through drip irrigation subsidies and PPP-based cluster farming. A feasibility study is underway to provide interest-free loans via Sindh Cooperative Bank.
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Social Welfare Initiatives
School headteachers will be empowered with operational funds. Aid for differently-abled persons will be increased, including stipends and new rehab centers. Youth development centers will be set up across Sindh to offer skills training, digital literacy, and career counseling.
Tax Reforms and Welfare Grants
Professional tax, entertainment duty, and three other levies are being abolished. Sales tax will be simplified with a new system. Special grants will be offered for welfare projects targeting lawyers, journalists, and minority communities.
CM Highlights Health Achievements
CM Murad Ali Shah said that despite IMF restrictions, the government completed record development work and focused on health and education. This year, Rs344bn was spent on health. NICVD treated patients from all over Pakistan and expanded its network.
He noted that 308 liver transplants were done at Gambat Institute this year. The SICVD has become the world’s largest pediatric heart care network. JPMC doubled bed capacity in two years.
Jinnah Hospital offers free cancer treatment via CyberKnife – a global first. SIUT is now South Asia’s largest public health institute, with Pakistan’s largest dialysis center. Construction of Bilquis Abdul Sattar Edhi Breast Radiology Hospital is ongoing.
Performance Review 2024-25
CM Shah said 1,460 development schemes were completed last year — the highest in recent years. Over 400,000 houses were built for flood victims, and more are under construction. Total development spending reached Rs468bn, with 73% fund utilization.
He said the new ADP reflects Sindh’s commitment to sustainable development, improved infrastructure, and better public services.
Opposition Stages Protest
During the budget speech, the opposition staged a loud protest in the Sindh Assembly. Opposition Leader Ali Khurshidi of MQM-Pakistan called it a “feudal-friendly” budget that ignores urban Sindh. He said the budget caters to landlords and feudal lords instead of addressing the needs of common citizens.
