Sindh Assembly passes Rs3.562 trillion budget for fiscal year 2026–27

The Provincial Assembly of Sindh on Sunday passed the Rs3.562 trillion budget for the financial year 2026–27, while also approving supplementary grants worth Rs165 billion

KARACHI, (APP - UrduPoint / Pakistan Point News - 29th Jun, 2026) The Provincial Assembly of Sindh on Sunday passed the Rs3.562 trillion budget for the financial year 2026–27, while also approving supplementary grants worth Rs165 billion.

During the budget proceedings, the House rejected 1,600 cut motions moved by the opposition.

The Assembly also approved the Finance Bill, under which no new taxes have been imposed; instead, existing taxes have been rationalised and streamlined.

Earlier, the session started with recitation from the Holy Quran and Naat Sharif.

Speaking on the floor of the house during his concluding budget speech, the Chief Minister Sindh Syed Murad Ali Shah defended his government’s Rs3.652 trillion budget for 2026-27, highlighting what he described as prudent fiscal management, record legislative participation, major gains in agriculture, health, education and infrastructure, and an ambitious roadmap aimed at transforming Sindh into a regional hub for trade, finance, renewable energy and investment.

Winding up the budget debate in the Sindh Assembly, the Chief Minister said the province had managed to maintain fiscal discipline despite facing a budget deficit of Rs344 billion, reduced federal fiscal space and additional expenditures exceeding Rs95 billion during the outgoing year. He said the government had nevertheless completed nearly 100 major development projects, achieved wheat self-sufficiency for the first time in Sindh’s history, expanded social protection programmes and continued investing in critical public services.

Presenting what amounted to both a defence of his government’s performance and a vision statement for Sindh’s future, Shah announced plans to develop Keti Bandar as a major economic and logistics hub through public-private partnerships, establish a Sindh International Financial Centre, create a province-wide Green Energy Network and introduce a new agricultural financing framework aimed at empowering small farmers.

The Chief Minister also unveiled an Annual Development Programme (ADP) of Rs720 billion for the next financial year, including Rs206 billion earmarked for Karachi, and pledged to complete more than 1,800 development schemes across the province.

Throughout his address,Shah repeatedly emphasised that Sindh had exercised greater fiscal restraint than other provinces while continuing to protect social-sector spending. He noted that education and health allocations had increased, administrative expenditures had been reduced by more than Rs62 billion and resources had been redirected towards development, social welfare, infrastructure and economic growth initiatives.

The Chief Minister devoted a significant portion of his speech to showcasing the government’s development achievements during FY2025-26. Through a detailed pictorial presentation, he highlighted completed projects in healthcare, education, irrigation, roads, housing, disability inclusion, tourism, sports and urban development, describing them as evidence that the province was continuing to deliver despite financial constraints.

He also pointed to the success of the Sindh People’s Housing for Flood Affectees (SPHF) programme, describing it as the world’s largest owner-driven housing initiative. According to the Chief Minister, one million houses have already been completed for flood-affected families, while another 600,000 are under construction across Sindh.

Shah further claimed that sustained investments in law and order, healthcare, energy and infrastructure had fundamentally transformed the province over the past decade and a half. Citing the success of Thar coal, expansion of free cardiac treatment facilities through NICVD, improvements in public healthcare and the province’s growing renewable energy potential, he said Sindh was now positioned to become one of Pakistan’s leading centres for economic growth and investment.

Calling for greater recognition of Sindh’s contribution to the federation, the Chief Minister reiterated that his government would continue supporting national stability while firmly defending the province’s constitutional, financial and developmental rights.

The Chief Minister also highlighted growing international confidence in Sindh’s development agenda, noting that the World Bank had approved projects worth approximately $1.7 billion for Sindh during the past two and a half months. He described the approvals as a significant vote of confidence in the province’s governance and development strategy.

Shah reiterated his government’s commitment to expanding the Public-Private Partnership (PPP) framework, saying Sindh would take the model to the “next level” by launching larger infrastructure, investment and economic development projects in the coming years.

The Chief Minister also responded to remarks made during the budget debate regarding the legacy of Pakistan’s founding leaders. Referring to Quaid-i-Azam Muhammad Ali Jinnah, he said the founder of Pakistan shared deep historical and familial links with Sindh including Karachi.

Shah noted that Quaid-i-Azam’s family had settled in Karachi in search of better opportunities and that he received part of his education at Sindh Madressatul Islam. He argued that Sindh’s role in the Pakistan Movement and the struggle to separate Sindh from the Bombay Presidency formed an important chapter in the creation of Pakistan.

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He emphasised that the country was built through the collective efforts of people from all regions and communities and called for mutual respect for the historical contributions and sacrifices.

The Chief Minister further maintained that Sindh had welcomed migrants from across the subcontinent following Partition and continued to embody values of inclusion and coexistence. He urged political leaders to avoid divisive rhetoric and instead focus on strengthening national unity and respecting the sentiments of all communities.

Shah said political disagreements were natural in a democratic system but should be conducted responsibly and with due regard for historical facts, public sensitivities and national cohesion.

Responds to Opposition Criticism

Continuing his winding-up speech, the Chief Minister strongly rejected what he described as factual inaccuracies and misleading claims made during the budget debate.

Referring to remarks about the events of 1971, Shah defended the role of Zulfikar Ali Bhutto, saying criticism of his decision to reject a proposed United Nations resolution ignored the historical context. According to the Chief Minister, the resolution effectively amounted to acceptance of Pakistan’s dismemberment and surrender. He said Bhutto had refused to become part of such an arrangement and walked out in protest.

Shah also challenged claims regarding federal transfers and provincial finances, noting that one opposition member had cited a figure of Rs71 trillion allegedly received by Sindh before later admitting that the figure had been deliberately exaggerated.

Defending Sindh’s healthcare system, the Chief Minister rejected assertions that quality medical facilities were concentrated only in Karachi. He presented treatment statistics from hospitals in Gambat and Sukkur and said specialised services, including burn treatment facilities, were available outside Karachi as well, including centres in Gambat and Hyderabad.

Responding to criticism of the government’s Public-Private Partnership initiatives, Shah clarified that the provincial government could not issue sovereign guarantees, contrary to claims made by some opposition speakers.

The Chief Minister also disputed assertions regarding spending on Karachi’s development during previous local government administrations.

Referring to former city mayor Mustafa Kamal, he said records showed projects worth approximately Rs33 billion rather than the Rs300 billion figure cited during the debate. He added that major development works had been undertaken both before and after that period.

Highlighting Sindh’s untapped economic potential, the Chief Minister said the province possessed granite reserves valued at an estimated $500 billion, though much of that potential remained unrealised.

He informed the House that the Munawar Underpass project in Karachi was nearing completion and was expected to be opened during July. He also reaffirmed the government’s commitment to a broader development portfolio for Karachi valued at approximately Rs1.7 trillion.

On energy subsidies, Shah noted that the Sindh government was paying electricity charges for up to 100 units consumed by households in Thar as part of its efforts to support local communities benefiting from the region’s energy development.

The Chief Minister also rejected historical claims that the construction of the Sukkur Barrage had been financed through loans from the Bombay Presidency. He argued that the project had been undertaken under British colonial planning arrangements and that such narratives distorted historical facts.

Highlighting continued investment in public health, Shah said the provincial government was providing more than Rs26 billion to the Sindh Institute of Urology and Transplantation. He added that the Hassan Suleman Hospital project on Karachi’s National Highway was progressing rapidly with provincial support and that discussions had been held to replicate a similar facility in Larkana.

The CM further announced that the paediatric cardiology project at the National Institute of Cardiovascular Diseases was expected to be completed during the current year after obstacles affecting its progress had been resolved.

Responding to allegations regarding the Sindh Solid Waste Management Board, the Chief Minister challenged critics to produce evidence to support claims of corruption and commissions.

He also highlighted the growing national footprint of Sindh-backed welfare institutions. He said the Sindh People’s Housing programme was constructing housing projects in Sohbatpur, Balochistan, while SIUT was expanding healthcare facilities in Rahim Yar Khan, Kot Addu, Bhera, Gujar Khan and Dera Ismail Khan. He added that Sindh-supported initiatives were also helping establish an IT park in Multan.

According to the Chief Minister, several provinces had expressed interest in Sindh’s development models, and the federal government had encouraged the province to share its expertise in implementing social and infrastructure projects elsewhere in the country.

Concluding this portion of his speech, he rejected claims that the provincial government had distributed a Rs40 billion Ramazan package, stating that no such programme had been launched and that criticism on that count was therefore misplaced.