KARACHI: Chief Minister Murad Ali Shah introduced the Sindh provincial budget for 2026-27 in the assembly on Wednesday, revealing a comprehensive plan featuring 816 development projects for Karachi, with a total investment of Rs644 billion. The overall budget has a total outlay of Rs3.652 trillion, against estimated revenues of approximately Rs3.41 trillion, projecting a deficit of around Rs242 billion.
The Sindh government has committed to maintaining fiscal discipline by refraining from introducing new taxes, while implementing a 7% increase in salaries and pensions, effective from July 1. The budget also allocates Rs400 billion for development programs and dedicates Rs13.2 billion to social protection schemes aimed at supporting vulnerable communities.
In his speech, CM Shah outlined a strategic vision to position Sindh as a regional hub for commerce, finance, technology, and renewable energy through fostering public-private partnerships. He acknowledged the challenging global environment characterized by geopolitical tensions, inflation, climate risks, and economic uncertainties, which have impacted citizens’ livelihoods amid rising living costs and energy prices.
Key Highlights of the Budget.
Salary and Pension Enhancements
A 7% increase in salaries and pensions for government employees and pensioners, along with a rise in the minimum wage from Rs40,000 to Rs43,000 per month. These measures aim to ease the financial burden on public sector workers and vulnerable groups.
Karachi’s Development Focus
Recognized as the economic backbone of Sindh, Karachi’s development portfolio includes 816 schemes valued at Rs644.3 billion. For FY2026-27, Rs100.19 billion has been allocated specifically for city projects, out of an overall Rs108.1 billion for the entire city.
Major Infrastructure Projects
The budget covers vital transportation infrastructure, including a Rs1.2 billion flyover from Airport Road to Star Gate, a Rs1.5 billion underpass from Malir Halt to Shahrah-i-Faisal, and a Rs1.65 billion flyover at Sir Shah Suleman Road crossing. Additional investments are planned for interchanges with the Malir Expressway and underpasses on Khayaban-i-Ittehad and Khayaban-i-Shahbaz.
Flood Management & Water Supply
Funds have been allocated for stormwater drainage, including the third phase of major storm drain rehabilitation, Gujjar Nullah restoration, and the M-9 to Thaddo Nullah drainage project. Water infrastructure improvements encompass expanding the K-IV water supply system, upgrading pumping stations, and reducing leakages in trunk mains, along with new water lines along Lyari Expressway.
Solid Waste & Urban Sustainability
Over Rs9 billion is designated for the Solid Waste Emergency and Efficiency Program, which includes establishing six modern garbage transfer stations and upgrading landfill sites at Jam Chakro and Gond Pass. The government also aims to advance waste-to-value initiatives to promote urban sustainability.
Healthcare & Education
Allocations include Rs1 billion for the Sindh Infectious Diseases Hospital, Rs1.4 billion for the Pediatric Cardiology Unit at NICVD, and funding for new medical colleges and universities such as the Bilawal Bhutto Engineering College in Lyari, Shaheed Zulfikar Ali Bhutto Law University, University of Karachi, and Jinnah Sindh Medical University.
Civic Development & Governance
The budget plans for a Provincial Civil Services Academy, a new Sindh Revenue Board training center, and upgrades to markets and commercial centers. Investments in sports and youth facilities are also prioritized.
Chief Minister Shah emphasized that these investments across roads, public transport, water, sanitation, healthcare, and education are essential to overcoming Karachi’s longstanding infrastructure challenges, fostering economic growth, and enhancing residents’ quality of life.
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