Government employees in BPS-1 to BPS-16 will
receive a 12% salary increase BPS-17 to BPS-22
a 10% hike. Pensions have been raised by 8
Staff Reporter
Karachi: Sindh Chief Minister Syed Murad Ali Shah presented the provincial budget for FY2025-26. The total outlay is Rs3,451.87 billion, reflecting a 12.9% increase over the previous year. The budget has a deficit of Rs38.458 billion.
Salaries, Pensions, and Tax Relief
Government employees in BPS-1 to BPS-16 will receive a 12% salary increase, while those in BPS-17 to BPS-22 will get a 10% hike. Pensions have been raised by 8%. Shah announced a finance bill aimed at abolishing or reducing several taxes and levies, instead of imposing new ones.
Budgeted Revenue and Federal Transfers
Sindh expects to receive Rs3,411.5 billion in FY2025-26—an 11.6% rise from last year. Key contributions include:
- Federal divisible pool: Rs1,927.3 billion (75% of revenue, up 10.2%)
- Additional federal transfers: Rs168.3 billion
- Total federal transfers: Rs2,095.6 billion
Current Revenue Expenditure Surges
CRE for FY2025-26 is set at Rs2,149.4 billion, a 12.4% increase over last year. The rise accounts for salary hikes, pension payouts, and grants to non-financial institutions like hospitals and universities.
Sector-Wise Budget Highlights
- Police Department: Rs189.75 billion (↑15.7%)
- Health Sector: Rs336.46 billion (↑11.3%)
- Education Sector: Rs518.05 billion (↑18%)
An additional Rs20 billion has been allocated for pro-poor social protection and economic sustainability programs.
Education Gets Rs523.73 Billion, Focus on Schools and Scholarships
The education sector received Rs523.73 billion, a 12.4% jump from last year, constituting 25.3% of total CRE. Key highlights:
- Primary education: Rs156.2 billion (↑Rs20 billion)
- Secondary education: Rs77.2 billion (↑Rs8.7 billion)
- 4,400 new staff hires
- 4 new IBA community colleges
- Empowered 34,100+ primary schools with cost centers
Rs2 billion is set aside for the Sindh Educational Endowment Fund to support deserving students.
Health Sector Gets Rs326.5 Billion, SIUT and PPHI Among Key Beneficiaries
Sindh allocated Rs326.5 billion for health, up from Rs302.2 billion in FY2024-25. Highlights include:
- SIUT: Rs19 billion
- PPHI: Rs16.5 billion
- New Larkana Hospital: Rs10 billion
- Ambulance & mobile diagnostics to improve rural access
Rs520 Billion ADP Targets Rehabilitation, Renewable Energy, and Mass Transit
Chief Minister Shah also revealed a comprehensive Annual Development Program (ADP) worth Rs1,018 billion, including:
- Provincial ADP: Rs520 billion
- District ADP: Rs55 billion
- Foreign Project Assistance: Rs366.72 billion
- Federal PSDP grants: Rs76.28 billion
The ADP includes 3,642 schemes, with 82.6% for ongoing projects and 17.4% for new initiatives.
Top ADP allocations:
- Education: Rs102.8 billion
- Health: Rs45.4 billion
- Irrigation: Rs84 billion
- Local Government: Rs132 billion
- Transport & Mass Transit: Rs59.7 billion
- Energy (Thar coal & renewable): Rs36.3 billion
Karachi Development: Electric Buses, Safe City, and Mega Infrastructure
Karachi will see:
- 50 electric buses launched; 100 more by August 2025
- Red Line BRT over 50% complete, Yellow Line near completion
- Safe City Project with AI-powered CCTV systems
- Korangi Causeway Bridge and Shahrah-e-Bhutto upgrades
Digital Reforms and Land Record Transparenc
A KPI dashboard will enable real-time monitoring of development projects. Reforms include:
- Blockchain-based land record system
- Universal digital birth registration by 2028
- Education-health data integration
Agriculture & Climate-Smart Reforms
The new Benazir Hari Card will benefit 200,000 farmers through subsidies and mechanisation support. Additional plans:
- Drip irrigation subsidies
- Cluster farming via PPP
- Sindh Cooperative Bank feasibility study for interest-free loans
Social Welfare and Youth Empowerment
- Rehabilitation centers for differently-abled persons
- Youth Development Centres to offer skills training and digital literacy
- Education decentralisation to empower headteachers
Tax Relief and Special Grants
Sindh will abolish five levies, including:
- Professional Tax
- Entertainment Duty
Also planned:
- Reduced motor vehicle tax
- Simplified sales tax system (Negative List model)
- Special grants for lawyers, journalists, and minorities
- Enhanced conveyance allowance for differently-abled employees
CM Calls for Collective Progress
Murad Ali Shah termed the budget a blueprint for inclusive, resilient, and sustainable development, calling for unity and shared responsibility to drive Sindh — and Pakistan — toward economic prosperity and social uplift.
