Sindh presents Rs 38.45 billion deficit budget; increase in salaries and pensions

Sindh has presented a budget with a deficit of Rs 38.45 billion for the upcoming fiscal year. Salaries of government employees have been increased by 10%, and pensions have also been raised by 10%. Rs 102 billion have been allocated for education and Rs 45.40 billion for the health sector. An 8% increase in pensions has also been proposed. Opposition members protested loudly during the budget speech.

The session of the Sindh Assembly was held under the chairmanship of Acting Speaker Naveed Anthony. Chief Minister Sindh Syed Murad Ali Shah presented the provincial budget for the fiscal year 2025–26. The budget includes a notable salary increase for government employees: 12% for employees from grade 1 to 16 and 10% for those in grades 17 to 22. An 8% pension increase has been announced for pensioners.

In the new fiscal year, Rs 102 billion have been earmarked for education and Rs 45.40 billion for health. Projects for the Safe City initiative and road improvement in Karachi are also included.

The Chief Minister said that poverty alleviation, clean drinking water, and green energy projects are among the government's priorities. Five types of taxes have been abolished, motor vehicle tax has been reduced, and many services have been exempted from taxation. Funds have also been allocated for the welfare of lawyers and journalists.

Opposition protests, tears budget copies during speech

During the budget speech, opposition members created a commotion, encircled the speaker’s dais, shouted slogans, and tore up copies of the budget.

MQM tried to table a resolution against Israeli aggression, but the Acting Speaker said that resolutions cannot be presented during a budget session.

Murad Ali Shah’s Budget Speech

Presenting the budget in the Sindh Assembly, Chief Minister Murad Ali Shah said it was an honor for him to represent the people of Sindh. He stated that he draws inspiration from the visions of Zulfikar Ali Bhutto and Benazir Bhutto. Shah said that the Pakistan Peoples Party received a clear mandate in the 2024 general elections and remains committed to serving the people.

Sindh Assembly passes resolution condemning Israel

Murad Ali Shah said the Israeli attack on Iran saddened everyone and was widely condemned. He noted that this is a budget session, and a separate session will be called for other matters. He also expressed deep sorrow over an Indian aircraft crash and urged the global community to take notice of Israeli aggression.

Presenting the upcoming year’s budget, Murad Ali Shah said it was a matter of pride to represent Sindh and reiterated drawing strength from Bhutto's legacy. He said PPP received a clear mandate in 2024, and the country has recently faced challenges. The armed forces bravely countered enemy aggression, and the people of Sindh salute these brave defenders. He emphasized that national security transcends politics and praised the media for its responsible role during the India-Pakistan conflict. He highlighted improvements in healthcare, education, transportation, drainage, irrigation, agriculture, and water supply.

Shah said Sindh’s budget size is Rs 3.45 trillion, with Rs 2.15 trillion allocated for non-developmental expenditures and Rs 1.018 trillion for development. The education budget has been increased by 12% to Rs 523 billion, while the health budget has been increased by 8%.

He proposed Rs 326 billion for health services. Around 1,000 electric buses will be launched in various cities, with 500 for Karachi. Special schools and rehabilitation centers will be established for differently-abled children. He proposed creating an “Inclusion City” for such children. Additionally, 800,000 new homes will be built for flood victims.

Relief for Government Employees

Announcing relief for public servants, Shah said salaries would be increased by 10% to 12%. For grades 1–16, the proposal is a 12% hike; for grades 17–22, a 10% hike. An 8% increase in pensions is also proposed for the next fiscal year.

He said the budget for law and order has been increased, leading to a significant decline in crime. Street crime in Karachi has decreased, successful operations have been carried out in the Kacha area, and the fight against drugs continues with many dealers arrested. AI cameras are being used to monitor highways, and traffic reforms have been introduced.

More than 25,000 new police personnel have been recruited, with improved healthcare facilities for the police and an increase in the martyrs’ compensation package. Police stations have been given funds, and SHOs have been given financial powers. Next year, 35,000 students will receive vocational training.

Investments in Education and Health

Shah said the education budget has been increased this year. The budget for the Sindh Education Foundation has also been raised. With UNICEF’s help, thousands of schools have been repaired. Despite IMF restrictions, record development work has been carried out, with more funds for health and education. Providing better services to the public remains the government’s priority.

He added that Rs 344 billion was spent on health this year. The NICVD treated more patients from across Pakistan than any other institution. The SICVD has a vast hospital network. The Gambat Institute conducted 308 liver transplants this year. Children received excellent healthcare at SICH, the world’s largest network for pediatric care. At JPMC, the number of hospital beds doubled in two years.