The Sindh Prime Minister Syed Murad Ali Shah presented the estimates of the provincial budget for fiscal year 2025-26 at the Assembly by RS. 3,451.87 billion, with a deficit of RS. 38,458 billion representatives of an increase of 12.9 percent compared to the budget estimates of the previous year of RS. 3,056.3 billion for fiscal year 2024-25.
The prime minister announced a 12 percent salary increase for employees in degrees BS-1 to BS-16 and a 10 percent increase for those in degrees BS-17 to BS-22, along with an 8 percent increase in pensions.
“We are presenting a financial bill to abolish and reduce some taxes/taxes/cessation instead of increasing them,” said Prime Minister.
Key features of the Sindh Budget
• 5 taxes: Professional tax, entertainment duty, drainage cessation, cotton rates and local cessation
• Reduction of tax vehicles, simplification of sales tax through change to a negative list system.
• Proposal of 12 to 10% of ad hoc relief for government employees and 8% pension increase.
• Improved transport subsidy for employees with different abilities and the authorization of pending pension quotas.
• RS. 146.9 billion assigned as subsidies for health units and institutions.
• RS. 523.73 billion assigned for the education sector, 12.4% more than the outgoing year
The budget emphasizes the increase in education, health, infrastructure and social welfare allocations, together with strategic initiatives to modernize governance and stimulate economic growth.
Budget 2025-26
The receipts from the province for fiscal year 2025-26 are projected in RS. 3,411.5 billion, marking an increase of 11.6% compared to the current year.
Federal transfers of divisible swimming pools, which constitute 75 percent of total income, are estimated at RS. 1,927.3 billion, an increase of 10.2 percent, despite a 5.5 percent deficit in revised estimates of the current year.
Additional federal transfers, including straight transfers and subsidies to compensate for the losses of OZT abolition, will also increase, which raises total federal transfers to RS. 2,095.6 billion.
Current Income Expenditure (CRE) established in RS. 2,149.4 billion, reflecting an increase of 12.4 percent compared to RS. 1.912.36 billion in fiscal year 2024-25.
This increase is due to inflationary pressures, greater subsidies to non -financial institutions, such as hospitals and universities, salary relief for government employees and higher pension payments.
Sectorial expenses and assignments
It is expected that the total expenditure will increase by 12.9 percent at RS. 3,450 billion. The current income expense will grow by 12.4 percent to RS. 2,150 billion, driven by salary and pension increases (6%), subsidies to local organizations (3%) and substantial increases in the key sectors:
• Police Department: RS. 189.75 billion (15.7%increase)
• Health sector: RS. 336.46 billion (11.3%increase)
• -Sector Education: RS. 518.05 billion (18%increase)
In addition, rs. 20 billion have been assigned for “social protection initiatives and economic sustainability in favor of the poor”, highlighting the government approach in inclusive growth. To improve transparency and efficiency, funds related to education will be directly disburse to schools.
RS subsidies. 702 billion have been assigned for several government and non -financial institutions, based on directives of the Secretariat of the Principal Minister and the Finance Department.
Educational sector
The education sector has received an assignment of RS. 523.73 billion, which is an increase of 12.4 percent of RS. 458.2 billion last year, which represents 25.3 percent of the total CRE.
Significant increases are observed at all levels: the Primary Education Budget has increased from RS. 136.2 billion at RS. 156.2 billion, while the secondary education budget has increased from RS. 68.5 billion at RS. 77.2 billion.
The new initiatives include the hiring of 4,400 staff members, the establishment of four community schools and the empowerment of more than 34,100 primary schools with centers and dedicated cost budgets. RS. 2 billion have been assigned for the EDOWMMENT FLT Sindh EDOWMENT to support meritorious and disadvantaged students.
The Budget of the Personal Development Program (DEPD) has increased from RS. 11.6 billion at RS. 17.3 billion, providing greater support for assistance devices, stipes and associations with NGOs.
Health sector
The health budget is established in RS. 326.5 billion, which represents an eight percent increase with respect to the allocation of RS last year. 302.2 billion.
Of this amount, rs. 146.9 billion are designated as subsidies for health units and institutions.
Key allocations include RS. 19 billion for the Sindh Institute of Urology and Transplant (Siut), RS. 16.5 billion for the primary health initiative of the peoples (PPHI) and RS. 10 billion for a new hospital in Larkana. In addition, there will be an expansion of ambulance services and mobile diagnostic units to improve access to medical care in rural areas.
The development portfolio and the Annual Development Program (ADP) have been rationalized at RS. 520 billion, after a 20 percent reduction due to the Federal Federal Device deficit. The approach will focus on 475 new schemes that prioritize flood rehabilitation, renewable energy, development in underdeveloped districts, clean water and sanitation services.
The main assignments of the sector include RS. 99.6 billion for education, RS. 45.37 billion for health, RS. 73.9 billion for irrigation, and RS. 132 billion for the local government.
Karachi development
Significant improvements for infrastructure for Karachi are planned, including road rehabilitation and improvements in the sewer and water supply in multiple districts.
Urban transport in Karachi will expand with the introduction of the first 50 Pakistan electric buses, with plans to add another 100 in August 2025.
The progress in Rapid Transit (BRT) projects of the city includes the yellow line that is close to the completion and the red line is more than 50 percent complete.
Karachi Safe City:
The Karachi Safe City project is advancing with the implementation of CCTV systems integrated into AI and expanded coverage. Progress are also being made in important projects such as the Korangi Causeway bridge and the improvements to Shahrah-E-Bhutto.
The new ADP initiatives will be directed to the restoration of heritage, improve the business areas and facilitate the crucial road constructions.
Digital governance
The launch of a centralized key performance indicator monitoring board (KPI) will enable the project monitoring in real time. The Blockchain -based land registration reform aims to simplify property transactions and improve transparency. In addition, a digital birth registration system points to a 100 percent coverage by 2028, integrating health and education data.
Agricultural reforms
The introduction of the Benazir Hari card will support more than 200,000 farmers with subsidies and mechanization assistance. Climate-intelligent agriculture will be promoted through drip irrigation subsidies and cluster agriculture projects promoted by the public-private association.
A viability study is currently being carried out so that the Cooperative Bank Sindh provides interesting loans to progressive farmers.
Social welfare and empowerment:
The decentralization of educational budgets will empower school directors with operating funds. Support for people with disabilities will expand, including the increase in stipends and the establishment of new rehabilitation centers. In addition, the youth development centers will be established in Sindh, providing training in skills, professional advice and digital literacy programs.
Tax measures and help
The abolition of five taxes, including professional taxes and the duty of entertainment, aims to relieve financial burdens. There will also be reductions in motor vehicle taxes and a simplification of sales tax through a transition to a negative list system.
The main minister has announced an assignment of 12 percent ad hoc relief for government employees in BPS-1 to BPS-16, and a 10 percent increase for those in BPS-17 to BPS-22, along with an eight percent increase in pensions.
An improved transportation subsidy will be introduced for employees with different abilities, and all pending pension quotas will be eliminated. Special subsidies for lawyers, journalists and minority groups will support well -being and development initiatives.
Murad Ali Shah emphasized the role of the budget to take advantage of the unleashed potential through inclusive, resistant and sustainable development.
He called the unity and collective effort to guide the province and the nation towards peace, progress and prosperity. This comprehensive budget reflects Sindh’s commitment to social elevation, the modernization of infrastructure and economic empowerment, positioning the province for a transformative year ahead.
