KARACHI: The Sindh government is expected to propose a 7 per cent increase in salaries and a 5 per cent raise in pensions for public sector employees in the provincial budget for fiscal year 2026-27, according to sources.
Officials familiar with the cabinet deliberations said the provincial administration faced significant fiscal constraints while preparing the budget, limiting its ability to offer a higher pay increase. Although authorities had initially considered a 10 per cent salary hike, financial pressures reportedly forced a downward revision.
During the meeting, cabinet members stressed that employees in lower pay scales should receive comparatively greater relief to help them cope with rising inflation and increasing household expenses.
The proposed salary and pension adjustments are expected to be included in the budget set to be presented by Chief Minister Syed Murad Ali Shah, who also serves as the province’s finance minister.
The total size of the Sindh Budget 2026-27 is estimated at more than Rs3.4 trillion. Budget proposals suggest allocating Rs2.56 trillion for non-development expenditures, while approximately Rs400 billion has been earmarked for development spending.
Rather than introducing new development initiatives, the provincial government plans to concentrate resources on completing 3,642 ongoing projects across Sindh at both provincial and district levels.
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