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• 12pc salary hike for BS-1 to BS-16 employees
• 10pc raise for BS-17 to BS-22 officers; 8pc jump in pensions
• Education sector allocation increased to Rs523.7bn
KARACHI: Amid noisy protests by opposition lawmakers, Sindh Chief Minister Syed Murad Ali Shah on Friday presented a deficit budget of Rs3.451 trillion for the fiscal year 2025-26 in the provincial assembly — a 12.9 per cent increase over last year’s budget of Rs3.056tr.
The chief minister announced a 12pc salary increase for provincial government employees in grades BS-1 to BS-16, and a 10pc raise for officers in grades BS-17 to BS-22, alongside an 8pc increase in pensions.
He also revealed that the salaries of Sindh Assembly members would be brought in line with those of legislators in other provinces starting in July.
“We are introducing a Finance Bill that abolishes and reduces certain taxes and levies rather than increasing them,” Mr Shah said.
Taxes that will be abolished include professional tax, entertainment duty, drainage cess, cotton fees and local cess.
The chief minister reiterated that the budget focuses on education, health, infrastructure and social welfare, along with strategic initiatives to modernise governance and stimulate economic growth.
Budget at a glance
The Sindh government has projected receipts of Rs3.41tr for FY26, marking an 11.6pc increase over the current year.
Transfers from the federal divisible pool, which account for 75pc of total revenue, are estimated at Rs1.927tr, reflecting a 10.2pc rise despite a 5.5pc shortfall in revised estimates for the outgoing year.
Additional federal inflows, including straight transfers and grants to offset the abolition of the OZT (Octroi and Zila Tax), will bring total federal transfers to Rs2.095tr.
Current revenue expenditure is projected at Rs2.149tr, up 12.4pc from Rs1.912tr in the previous year.
The education sector has been allocated Rs523.7bn, up 12.4pc from Rs458.2bn last year — representing 25.3pc of the total current revenue expenditure.
Significant increases are observed across all levels, with the primary education rising from Rs136.2bn to Rs156.2bn.
Resolution against Israel
At the outset of the budget session, tensions flared when Deputy Speaker Anthony Naveed declined to allow an MQM-P lawmaker to table a resolution condemning the Israeli attack on Iran.
In protest, MQM-P members stood up, chanted slogans and tore up assembly documents as the chief minister began his speech. They were soon joined by members of the PTI-backed Sunni Ittehad Council, and the opposition collectively rejected the budget, accusing the provincial government of neglect and mismanagement.
Despite the disruption, the chief minister continued with his address and completed the budget presentation as opposition members continued their protest in front of the podium.
During his speech, however, the chief minister condemned the Israeli attack on Iran. Regarding the MQM-P’s insistence on debating the resolution before the budget, Mr Shah clarified that the session had been convened specifically for the budget and that the resolution could be taken up after a brief adjournment.
Following the budget presentation, Mr Shah formally tabled the resolution, which was unanimously adopted by the house. The assembly session was then adjourned until Monday.
Published in Dawn, June 14th, 2025
