KARACHI: The Sindh Cabinet has approved the provincial budget for fiscal year 2026-27, paving the way for its presentation in the Sindh Assembly with proposed increases in salaries and pensions for government employees.
According to budget proposals approved by the cabinet, the Sindh government has recommended a 7 percent increase in salaries for provincial employees and a 5 percent rise in pensions for retired government servants.
Sindh Budget Expected to Exceed Rs. 2.7 Trillion
Sources said the Sindh Budget 2026-27 is expected to exceed Rs. 2.7 trillion, making it one of the largest budgets in the province’s history.
Officials told the cabinet meeting that the government had initially aimed to grant at least a 10 percent salary increase. However, due to fiscal constraints and limited financial resources, the province was unable to accommodate a larger raise for employees.
Financial Challenges Limit Relief Measures
During the meeting, participants discussed the province’s fiscal situation and the growing pressure on government expenditures. Officials noted that budgetary challenges had restricted the government’s ability to offer more substantial salary adjustments despite inflationary pressures.
The approved proposals are aimed at providing some relief to employees and pensioners while maintaining fiscal discipline in the upcoming financial year.
Murad Ali Shah Says Budget Focuses on All Segments of Society
Chief Minister Syed Murad Ali Shah said the new budget has been designed to address the needs of all sections of society.
He added that the Sindh government is taking special measures to reduce poverty and improve social welfare in line with the vision and directives of Bilawal Bhutto Zardari.
The chief minister emphasized that the provincial government remains committed to supporting vulnerable communities while balancing development needs and fiscal responsibilities.
