KARACHI — Sindh Chief Minister Syed Murad Ali Shah has presented a Rs 3.56 trillion tax-free budget for the fiscal year 2026–27. The financial blueprint prioritizes human development, infrastructure rehab, and extensive social safety nets amidst a noisy opposition boycott led by the Muttahida Qaumi Movement-Pakistan (MQM-P).
Core Financial Target Allocations
- Total proposed provincial layout reaches Rs 3.56 trillion with zero new taxes.
- Developmental investments receive a major funding boost of Rs 720.39 billion.
- The public health sector dominates non-development spending with a Rs 402 billion share.
- Government employees receive a 7 percent salary increase alongside an upgraded minimum wage.
- Dedicated funding of Rs 8.45 billion was cleared for Gul Plaza fire affectees.
Sindh CM @MuradAliShahPPP presented a Rs 3.652 trillion budget for the fiscal year 2026-27 against estimated receipts of approximately Rs 3.41 trillion, resulting in a projected deficit of about Rs 242 billion with no new taxes, a seven per cent increase in salaries and pensions, pic.twitter.com/HML4DZq4JN
— Sindh Chief Minister House (@SindhCMHouse) June 17, 2026
Departmental Spending and Protected Portfolios
The provincial balance sheet projects current revenue expenditures at Rs 2.56 trillion, while capital outlays are capped at Rs 281.7 billion. To maintain local infrastructure momentum, the administration earmarked Rs 347.6 billion for municipal service delivery, Rs 185 billion for transport networks, and Rs 222 billion to fortify regional law and order.
Sindh Sectoral Funding Targets (Rs Billions)
• Public Health Sector: 402.0
• Local Government & Services: 347.6
• Provincial Law & Order: 222.0
• Transport & Communications Grid: 185.0
• Climate, Energy, & Environment: 84.0
Chief Minister Shah highlighted that critical social portfolios will be fully insulated from austerity cuts. This includes Rs 22.8 billion for empowerment programs assisting persons with disabilities, Rs 26.4 billion for direct social security cushions, and Rs 3.5 billion reserved for women and minority development initiatives.
Poverty Alleviation and Recovery Relief
Before the parliamentary address, the cabinet officially approved the budget framework, noting its alignment with PPP Chairman Bilawal Bhutto-Zardari’s public welfare agenda. The Chief Minister also detailed a massive Rs 8.45 billion relief package for the victims of the recent Gul Plaza commercial fire disaster, guaranteeing Rs 10 million in direct compensation for each grieving family while reviving small trader liquidity.
