Sindh Chief Minister Syed Murad Ali Shah on Wednesday presented a Rs3.562 trillion budget for the fiscal year 2026-27 in the Sindh Assembly, announcing no new taxes and unveiling a series of relief measures aimed at supporting citizens, businesses, farmers and investors.
The chief minister said the budget was based on four principles: constitutional rights, fiscal sustainability, national stability and public welfare. He added that the government was moving from welfare to prosperity and from prosperity towards economic leadership.
Government Employees to Receive 7% Salary and Pension Increase
Murad Ali Shah announced a seven percent increase in salaries and pensions for government employees. He also announced the merger of the ad hoc relief allowances of 2022 and 2025 into the basic pay scales.
The provincial government raised the minimum monthly wage from Rs40,000 to Rs43,000 to provide additional support to workers.
No New Taxes Introduced
The chief minister said the government had not imposed any new taxes in the budget and reiterated its commitment to providing relief to the public and the business community. He said the move reflected the government’s efforts to maintain economic stability while encouraging investment and growth.
Sindh International Financial Center to Be Established in Karachi
Murad Ali Shah announced the establishment of the Sindh International Financial Center (SIFC) in Karachi to position the city as a regional hub for finance, investment and fintech.
The proposed center will serve as a platform for infrastructure finance, Islamic finance and climate finance. The government has identified three potential locations for the project.
He also announced the launch of the Sindh Green Data Infrastructure Initiative to attract investment in world-class data centers and artificial intelligence infrastructure.
Keti Bandar to Become New Maritime and Economic Hub
The chief minister announced plans to transform Keti Bandar into a global maritime, logistics, industrial and energy center. He said the project would become the next major milestone in Sindh’s economic development after Port Qasim and would connect Pakistan more effectively with international trade routes. According to Murad Ali Shah, the project will also be linked with Dhabeji Special Economic Zone and Thar coal resources.
Pakistan’s Largest Solar Program Announced
The Sindh government announced what it described as the largest solar initiative in Pakistan’s history.
Under the Rs18 billion program, 275,000 free solar home systems will be distributed to households. The government also plans to introduce a subsidized solar financing scheme for middle-income families.
Murad Ali Shah said Sindh would become a center for renewable energy under the vision of PPP Chairman Bilawal Bhutto Zardari.
Relief Measures for Farmers
The chief minister announced special legislation to support small farmers through agricultural collectives.
Under the initiative, farmers will gain access to machinery, financing, insurance and modern technology.
The government also increased the exemption threshold for agricultural super tax from Rs150 million to Rs500 million and reduced the tax rate from 10 percent to eight percent.
Education, Health and Social Protection
Murad Ali Shah announced special relief packages for education, agriculture, insurance and employment. The government reduced sales tax on educational support services to five percent.
A total of Rs13.2 billion has been allocated for social protection programs, including kitchen gardens, the Benazir Hari Card and the Benazir Women Agriculture Workers Program. Assistance schemes for widows and orphans will also continue.
The chief minister announced further expansion of major healthcare institutions, including NICVD, SIUT, SICVD and JPMC, while strengthening the 1122 ambulance network and the 1123 telemedicine service.
He said more than 1,300 school buildings had been constructed and new teachers had been recruited.
Annual Development Program Set at Rs400 Billion
The Sindh government allocated Rs400 billion for the Annual Development Program (ADP) for FY2026-27. The largest share, Rs121.6 billion, was allocated for local government and municipal infrastructure projects.
Public Health Engineering received Rs40.9 billion, while transport and communications projects were allocated Rs39.5 billion. The government earmarked Rs25.9 billion for education, Rs17.4 billion for health and Rs6.3 billion for agriculture and livestock development.
Mega Projects for Karachi
Murad Ali Shah said work was continuing on several major projects in Karachi. More than Rs32 billion is being spent on the Greater Karachi Sewerage Plan (S-III), while Rs5 billion has been allocated for the Lyari Transformation Package.
The government allocated Rs4.17 billion for the Karachi Traffic Corridor Improvement Program and Rs5.53 billion for the rehabilitation of internal roads. Another Rs7.69 billion has been earmarked for upgrading KMC Fire Brigade Services.
Expansion of Public Transport
The Sindh government approved the purchase of 50 double-decker buses at a cost of Rs4.8 billion. Twenty-five buses are expected to start operations within the next three months. The buses will serve between 30,000 and 35,000 passengers daily.
The government also announced plans to add 100 more electric buses and expand the Pink Bus Service for women. Automated fare collection systems have already been introduced on Green Line, Orange Line and Peoples Bus Service routes.
Smart Surveillance Reduces Crime
Murad Ali Shah said 1,325 smart cameras had been installed under the Sindh Safe Cities Program in Karachi. He claimed that vehicle theft and snatching incidents had declined by 67 percent, while street crime had fallen by 54 percent.
According to the chief minister, the crime detection rate has reached 81 percent due to the use of facial recognition and number plate identification technology.