Visionary budget of Sindh

THE Sindh government on Wednesday unveiled a tax-free Rs. 3.562 trillion budget for the fiscal year 2026-27, estimating total receipts at Rs. 3.525 trillion and showing a deficit of Rs. 36.9 billion. Presenting the budget in the Sindh Assembly, Chief Minister Murad Ali Shah, who also holds the finance portfolio, described it as a budget of hope, development and public trust and said the provincial government had tried to balance fiscal restraint with public welfare amid inflation, fuel-price pressures, global uncertainty and post-flood reconstruction needs. The highlights of the new budget include development allocations of Rs.400 billion, social protection package of Rs. 13.2 billion, 7% increase in salaries and pensions, and a series of long-term but visionary initiatives aimed at transforming Sindh into a regional hub for trade, finance, technology and renewable energy. Reduced allocations for development are understandable in view of contribution to federal security needs but the PPP Government has compromised on its popular perception of being pro-employees as salaries are to be hiked just by 7%, which sounds strange in view of demands being made by the party that the federal government should increased salaries and pensions at least by fifty percent. The figure 7% is even less than 10% that the FG will be giving to its employees. However, the province excelled by increasing the minimum wage from the existing Rs. 40,000 to Rs. 43,000 as against Rs. 40,700 by the Federal Government. It is encouraging that no new tax has been imposed and instead the CM announced a series of relief measures aimed at supporting education, agriculture, insurance and employment sectors. The plan to develop Keti Bandar as a maritime, logistics, industrial and energy hub; establishment of a modern coastal economic corridor; and Sindh Green Data Infrastructure Initiative have the potential to accelerate the pace of socio-economic development in the province.