SINDH BUDGET 2025-26 AT A GLANCE

By DTD- On Jun 13, 2025

KARACHI- June 13, 2025: Annual Budget for Fiscal Year 2025-26 was presented by Sindh Chief Minister Murad Ali Shah on Friday.

During his budget speech, he claimed that this budget aims to steer Sindh’s economy with a focus on public investment, empowerment of all societal segments, rehabilitation of disaster-affected individuals, and a level playing field for the private sector.

Here are the major points and allocations:

I. Economic Outlook & Strategy

Economic Recovery: Sindh has recovered from the 2022 floods, with over 80% of flood-affected schools and hospitals rebuilt, 560,000 houses built or near completion, and 300,000 titles handed over.
Growth Agenda: The focus is on expanding the economy through investment in physical infrastructure, farm mechanization, and agriculture productivity.
Budget Strategy: The government aims to enhance provincial own-source revenues and limit current revenue expenditure to create fiscal space for development spending, particularly in physical infrastructure and human development.

II. Revenue & Expenditure Projections

Total Revenue: Projected to be Rs. 3,111.5 billion for FY 2025-26.
- Federal Transfers: Estimated at Rs. 2,311.5 billion for FY 2025-26 (74% of total revenue).
- Provincial Own Source Receipts: Estimated at Rs. 800 billion for FY 2025-26 (26% of total revenue).
  - Sales Tax on Services (SRB): Budgeted at Rs. 380 billion for FY 2025-26.
  - Excise, Taxation & Narcotics Control Department (ET&NC): Budgeted at Rs. 235.65 billion for FY 2025-26.
  - Board of Revenue (BoR): Estimated to collect Rs. 50 billion for FY 2025-26.
Total Expenditure: Projected to be Rs. 3,450 billion for FY 2025-26.
- Current Revenue Expenditure: Allocated Rs. 2,150 billion for FY 2025-26.
- Current Capital Expenditure: Allocated Rs. 281.7 billion for FY 2025-26.
- Development Expenditure: Allocated Rs. 1,018 billion for FY 2025-26.

III. Major Sectoral Allocations (Current Revenue Expenditure FY 2025-26)

Education and Literacy: Rs. 425.317 billion (highest allocation).
Health: Rs. 336.457 billion.
Home, including Sindh Police & Jails: Rs. 210.873 billion.
Local Government & Rural Development: Rs. 204.260 billion.
Subsidies: Rs. 156.961 billion.
Works and Services: Rs. 19.326 billion.
Agriculture: Rs. 35.258 billion.
Energy: Rs. 72.646 billion.
Irrigation: Rs. 42.078 billion.

IV. Development Program (ADP) 2025-26: Key Highlights

The ADP for FY 2025-26 includes new schemes focusing on high-priority areas:

Rehabilitation of Flood-Damaged Infrastructure: Including schools and irrigation systems.
Healthcare Delivery Systems: Upgrading.
Climate-Smart Agriculture and Value Chains: Promoting.
Clean Drinking Water and Safe Sanitation: Ensuring access.
Road Connectivity & Urban Transport: Enhancing inter-city roads and developing Safe City infrastructure.
Renewable Energy Initiatives: Supporting.
Poverty Alleviation: Through nutrition, micro-assets, and low-cost housing.

V. Significant Projects and Initiatives

Sindh People’s Housing for Flood Affectees (SPHF): A flagship initiative with a total funding of $2 billion, aiming to rebuild 2.1 million houses and provide land titles, focusing on women beneficiaries.
Health Sector Initiatives:
- Sindh Institute of Child Health and Neonatology (SICHN): Expanding services with new hospitals in Jamshoro and Mirpurkhas, and additional satellite centers. Allocated Rs. 6.683 billion for FY 2025-26.
- The Indus Hospital and Health Network (IHHN): Receiving an increased grant of Rs. 8 billion to expand adult oncology, neurology, vascular, behavioral health, cardiothoracic surgery, and maternal health services.
- Sindh Institute of Urology and Transplantation (SIUT): Initiating Rs. 4.5 billion projects for new hospitals and oncology centers in Larkana and Sukkur, with an additional grant of Rs. 2 billion for a new Oncology Centre.
- Specialized Programs: Allocations for HPV vaccine integration (Rs. 0.798 billion), Paracetamol Drops (Rs. 0.440 billion), Infant & Young Child Nutrition (Rs. 0.024 billion), and Thalassemia centers (Rs. 0.123 billion).
- Sindh Integrated Emergency and Health Services (SIEHS): Receiving Rs. 5.218 billion to expand ambulance fleet and establish Cardiac Emergency Centers.
Transport and Mass Transit: Total allocation of Rs. 66.97 billion for FY 2025-26.
- Sindh Intra-District People’s Bus Service: Planning to add 39 new buses (34 Electric Vehicles & 5 Double Decker Buses) and initiate an “Airport Express Route.”
- Electric Scooties for Ladies: Providing 1000 electric scooties to girls for mobility and empowerment.
Agriculture and Food Security:
- Farm Mechanization Package: Aims to modernize agriculture, reduce harvesting losses, and boost production, with initiatives like DRIP irrigation systems and subsidies on agricultural inputs.
- Rice & Wheat Farming Mechanization Project (PPP): Estimated cost of Rs. 33 billion, focusing on reducing harvesting losses and improving grain quality.
- Horticulture Cluster Development Project (PPP): Developing modern storage, processing, and transportation facilities for high-value crops.
Pension Reforms: Introduction of Defined Contribution Pension Scheme (DCPS) for new entrants after July 1, 2024, and proposed amendments for voluntary retirement at 55 years.
Education Sector Reforms:
- Teacher-Led Budgeting: Fiscal decentralization at the school level with Rs. 18.561 billion allocated to 34,106 schools for day-to-day expenditures.
- Reduction in Out-of-School Children: Four-Year Plan to upgrade 12,000 primary schools to elementary level and expand non-formal education centers.
- Learning Environments: Establishment of 120 Middle Tech Labs and 276 STREAM labs in secondary schools.
- Higher Education: Budget for College Education proposed at Rs. 39.530 billion, Rs. 500 million for merit scholarships abroad, and Rs. 2 billion for Sindh Educational Endowment Fund (SEEF).
Empowerment of Persons with Disabilities (PWDs): Budgetary allocation of Rs. 21.717 billion for FY 2025-26 to provide assistive devices, enhance stipends for special school students, and improve financial support to NGOs.
Drinking Water & Sanitation: Projects worth Rs. 2.00 billion for expanding water supply to Shahdadkot City, Rs. 3.100 billion for Hub Canal rehabilitation in Karachi, and planning for a 5 MGD Desalination Project.
Public Private Partnerships (PPP): The GoS PPP portfolio has grown to over Rs. 700 billion in 2025, supporting projects like Shahrah-e-Bhutto Expressway (PKR 54.7 billion), Nabisar Vajihar Water Works Project (PKR 69 billion), Ghotki Kandhkot Bridge (PKR 30.4 billion), and NED Technology Park (PKR 25 billion).

VI. Relief Measures

Salary & Pension: 10% ad-hoc relief allowance for employees (BPS-01 to BPS-22) and 7% increase for pensioners.
Special Conveyance Allowance: Increased from Rs. 4,000 to Rs. 6,000 for differently-abled employees.
Tax/Non-Tax Relief: Removal of five levies (Professional Tax, Cotton Fee, Entertainment Duty, Local Cess, Drainage Cess), reduction in Motor Vehicle Ordinance tax for commercial vehicles, and lowering of Mutation Fee and Sales Certificate Fee.