Sindh Assembly Approves Rs3.652 Trillion FY27 Budget

The Sindh Assembly has approved the Provincial Budget for FY2026-27 with a total financial outlay of Rs3.652 trillion, alongside supplementary grants amounting to Rs165 billion, following detailed budget deliberations.

According to media reports, the Assembly also passed the Sindh Finance Bill, 2026, which introduces no new provincial taxes for the upcoming financial year. During the proceedings, all 1,600 cut motions submitted by opposition members were rejected by the House.

Among the proposed amendments, opposition lawmakers sought reductions in allocations earmarked for the National Games and the Mera Lyari film project. Responding to the motions, the Chief Minister defended both initiatives, stating that the National Games had received national recognition with Chief of Defence Forces General Asim Munir attending as the chief guest, while the Mera Lyari project portrayed a positive image of Sindh. The Assembly subsequently rejected both motions.

MQM-P legislator Sabir Qaimkhani also proposed an amendment seeking the imposition of an 8% super tax on annual agricultural income exceeding Rs50 million. The Chief Minister opposed the proposal, arguing that the federal government had likewise reduced the super tax on agricultural income because such income levels were uncommon within the agriculture sector. The proposed amendment was not approved by the House.

Concluding the budget debate, the Chief Minister defended the provincial government's fiscal strategy, stating that Sindh had maintained fiscal discipline despite facing a budget deficit of approximately Rs344 billion, reduced fiscal transfers from the federation, and additional expenditures exceeding Rs95 billion during the outgoing financial year.

He stated that the provincial government had completed nearly 100 major development projects, achieved wheat self-sufficiency for the first time in Sindh’s history, expanded social protection initiatives, and continued investment in essential public services.

For FY2026-27, the Chief Minister announced an Annual Development Programme (ADP) of Rs720 billion, including Rs206 billion specifically allocated for Karachi. He further stated that more than 1,800 development schemes would be completed across the province during the financial year.

The provincial government also outlined several strategic development initiatives, including the development of Keti Bandar as an economic and logistics hub through public-private partnerships, the establishment of a Sindh International Financial Centre, expansion of a province-wide green energy network, and the introduction of a new agricultural financing framework aimed at supporting small-scale farmers.

According to the Chief Minister, budgetary allocations for the education and health sectors have been increased, while administrative expenditure has been reduced by more than Rs62 billion to redirect financial resources towards development projects, infrastructure, social welfare programmes, and broader economic growth.

Addressing claims regarding Karachi’s historical development spending, the Chief Minister disputed figures presented during the debate. Referring to former Karachi Mayor Mustafa Kamal, he stated that official records reflected development projects worth approximately Rs33 billion rather than the Rs300 billion cited by opposition members.

He also criticised successive federal governments for announcing development packages for Karachi that were not fully implemented, noting that one administration had announced a Rs62 billion package but released little to none of the promised funding.

The Leader of the Opposition criticised the provincial budget, alleging that the Pakistan Peoples Party government lacked a long-term development vision and had failed to adequately address the needs of ordinary citizens, labourers, and the agricultural community.

He also questioned the supplementary budget and objected to an allocation of Rs970 million for an information technology park project in Multan, arguing that Sindh’s financial resources should not be utilised for projects outside the province.

During the session, the Speaker informed the Assembly that 141 out of the House’s 168 members participated in the budget debate, which continued for more than 36 hours.

Following the approval of both the Provincial Budget and the Sindh Finance Bill, the Speaker formally prorogued the Sindh Assembly session.