Sindh budget 2026-27: Development cuts amid employee relief plans

Chief Minister Syed Murad Ali Shah, who also serves as the provincial finance minister, will unveil the budget in the Sindh Assembly following its approval by the provincial cabinet. The presentation

KARACHI: The Sindh government is set to present its budget for the fiscal year 2026-27 today, amid growing financial pressures that have forced significant reductions in development spending while keeping relief measures for government employees under consideration.

Chief Minister Syed Murad Ali Shah, who also serves as the provincial finance minister, will unveil the budget in the Sindh Assembly following its approval by the provincial cabinet. The presentation will mark the 11th provincial budget delivered by Shah, making him the longest-serving budget presenter in Sindh’s parliamentary history.

Facing rising expenditures and limited fiscal space, the government is expected to prioritize non-development spending, particularly salaries, pensions, and other recurring obligations. Proposals being reviewed include a 20 percent increase in the minimum wage, a 10 percent raise in salaries for public sector employees, and an 8 percent increase in pensions. The final decision, however, will depend on cabinet approval.

Budget estimates indicate that non-development expenditures will reach approximately Rs2.56 trillion. Meanwhile, no major new development projects are expected to be launched during the upcoming fiscal year. Instead, the government plans to focus on completing 3,642 ongoing schemes across the province, for which around Rs400 billion has been allocated.

Overall development spending is projected to decline substantially, dropping from over Rs1 trillion in the current fiscal year to nearly Rs720 billion. Provincial development allocations are expected to fall significantly, while district-level development funding is also likely to see a major reduction.

Despite the spending cuts, officials say key sectors such as water management, climate adaptation, healthcare, and education will continue to receive priority attention. The budget also factors in federal development grants and external financing from international financial institutions to support selected projects.

Before the budget session, the provincial cabinet will hold a special meeting to approve financial proposals, supplementary expenditures, and updates related to the Annual Development Programme. The cabinet is also expected to endorse recommendations made by finance committees and ratify previous policy decisions.

Following the budget announcement, the chief minister is scheduled to hold a press conference to explain the government’s fiscal strategy and highlight major budget initiatives. A five-day debate in the Sindh Assembly will then allow lawmakers from both the treasury and opposition benches to discuss and scrutinize the budget proposals.