KARACHI: The Sindh government has increased the minimum monthly wage to Rs. 43,000 while unveiling a Rs. 3.562 trillion Budget 2026-27, with no new taxes imposed on citizens or businesses.
Presenting the provincial budget in the Sindh Assembly, Chief Minister and Finance Minister Syed Murad Ali Shah announced a 7 percent increase in salaries for government employees and a 5 percent rise in pensions for retired public servants.
Sindh Projects Rs. 36.9 Billion Budget Deficit
According to budget documents, Sindh expects total revenues of Rs. 3.525 trillion during FY2026-27, resulting in a projected budget deficit of Rs. 36.9 billion.
The provincial government has allocated substantial resources to key sectors, including:
- Rs. 620 billion for education
- More than Rs. 393 billion for health
- Rs. 222 billion for law and order
- Rs. 155 billion for local government services
- Rs. 41 billion for agriculture
The budget also includes significant development spending aimed at improving infrastructure and public services across the province.
Relief Measures Included in Budget
Alongside the decision not to introduce new taxes, the Sindh government announced several targeted relief measures.
These include:
- Reduced sales tax on educational support services
- Lower tax rates for insurance-related sectors
- Reduction in agricultural super tax rates
- Increase in the exemption threshold for agricultural taxation
Officials said the measures are intended to provide relief to businesses, farmers, and consumers while supporting economic activity.
Rs. 13.2 Billion Allocated for Social Protection
The budget earmarks Rs. 13.2 billion for social protection programs aimed at supporting vulnerable and low-income groups across the province.
The government said the funds will be utilized for welfare initiatives and assistance schemes designed to improve living conditions and strengthen social safety nets.
Rs. 400 Billion Development Program Approved
Sindh has allocated Rs. 400 billion under its Annual Development Programme (ADP) for FY2026-27 to continue ongoing infrastructure and development projects.
Major funding has been set aside for strategic projects, including:
- Karachi Yellow Line Bus Rapid Transit project
- Thar coal development initiatives
- Municipal infrastructure upgrades
- Emergency response and public safety systems
Focus on Economic Stability and Public Welfare
Speaking during the budget session, Chief Minister Murad Ali Shah said the financial plan was prepared with a focus on constitutional rights, economic stability, and public welfare.
He emphasized that the Sindh government has avoided imposing any new tax burden while prioritizing employee relief, social protection, development spending, and investment in essential public services.
