KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Monday concluded the provincial assembly’s budget debate for fiscal year 2025–26, outlining a series of development initiatives while defending the government’s allocations.
In his address, Shah also criticized the federal government’s fiscal shortfalls and discussed how Sindh’s development budget is substantially higher than that of other provinces.
The CM announced that nearly 30% of Sindh’s total budget is allocated for development, a higher proportion than Punjab’s 23% and Khyber Pakhtunkhwa’s 25.3%. However, he pointed out that Balochistan’s development budget is even higher, although it is also governed by the PPP.
Shah criticized the federal government for revising Sindh’s share from the promised Rs1.9 trillion to Rs1.796 trillion, resulting in a shortfall of Rs100 billion. He urged Islamabad to immediately release at least Rs237 billion, emphasizing that despite a 13% increase in federal tax collection, Sindh’s own revenue grew by 16%.
The chief minister also called for equitable taxation across urban and rural areas, citing the examples of Dadu and Karachi. He expressed concerns about agricultural tax policies, which he warned could force the import of wheat this year.
To address this, he announced a target of Rs8 billion from agricultural income tax, with a per-acre rate of Rs1,052—much higher than the rates in Punjab (Rs372) and Khyber Pakhtunkhwa (Rs57).
In his speech, Shah highlighted initiatives for social welfare, including 100% birth registration in the province and increased funding for people with disabilities. He also mentioned the expansion of autism centers and the establishment of cost centres in the education sector to improve financial oversight.
The CM also noted that 19 Youth Development Centres are already operational across districts. On healthcare, he referred to the Sindh Institute of Child Health, which now boasts what he claimed to be the largest child emergency network in the world, and the ongoing construction of the Sindh Institute of Urology and Transplantation in Larkana. Other key initiatives included the procurement of new ambulances and support for the fishing community.
Financially, Shah highlighted a 10-12% increase in government employees’ salaries and an 8% rise in pensions. He also announced the abolition of professional and entertainment taxes, along with tax reductions on various vehicle categories.
The Annual Development Programme (ADP) for 2025-26 has been set at Rs520 billion, which includes Rs55 billion for the District ADP, Rs366.72 billion in foreign project assistance, and Rs76.28 billion from the federal Public Sector Development Programme (PSDP).
