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Business Recorder
6 days ago
- Business
- Business Recorder
Post-budget press conference: Sindh CM unveils fiscal & development roadmap
KARACHI: Sindh Chief Minister Syed Murad Ali Shah on Saturday unveiled an ambitious fiscal and development roadmap for the province, reaffirming a strong commitment to social welfare, infrastructure reform, and digital progress, besides highlighting a shift towards corporate farming. At the same time, he sharply criticized the federal government for persistent financial shortfalls and what he described as discriminatory treatment towards Sindh. At the start of an extensive post-budget press conference, the Chief Minister condemned Israel's recent attack on Iran and criticized opposition lawmakers for their disruptive behaviour during the passage of a resolution against the aggression. He questioned the motives behind their resistance, accusing them of politicizing a humanitarian issue, and underscored the provincial government's firm position against terrorism. Highlighting governance continuity, he noted that the Pakistan Peoples Party has now presented its 17th consecutive provincial budget — an achievement attributed to democratic stability and consistent public service delivery. However, he delivered a sharp rebuke to the federal government for failing to honour financial commitments, revealing that Sindh was informed just a day before the budget presentation that Rs105 billion in expected transfers would be withheld. While the province has received Rs1,478.5 billion from the divisible pool since last year, a substantial Rs422.3 billion remains unpaid. He expressed cautious optimism that the outstanding amount would be cleared by the end of June. Despite the province operating under an IMF programme that enforces strict fiscal discipline, Murad announced that Sindh has allocated Rs590 billion for development spending this year. Out of the Rs3.45 trillion total budget, Rs1 trillion has been designated for development and Rs2.15 trillion for current expenditures. Of the current expenditure, Rs1.1 trillion is committed to salaries and pensions, supporting a 12 percent pay rise for lower-grade employees and a 10 percent increase for those in higher grades. Sectoral allocations have seen notable growth, including an 18 percent increase in education spending and an 11 percent boost in health. Infrastructure development in Karachi will receive Rs236 billion, with a significant share directed through public-private partnership models. Sectors such as agriculture, irrigation, and local governance have also secured sizable increases in funding. Sindh CM Murad presents Rs3.45trn provincial budget for FY2025-26 The Chief Minister drew attention to Sindh's achievements in disaster recovery, noting that 500,000 homes have already been constructed for flood victims, with another 850,000 under construction — bringing the total to 1.3 million. He said this rapid response has earned international recognition, surpassing Nepal's post-earthquake reconstruction efforts. Murad unveiled a Rs600 billion rural water and sanitation programme that will benefit 4.5 million villagers. Designed to be completed during the current government's tenure, the project will adopt a community-led model managed by NGOs. The initiative aims to reduce waterborne diseases, and PPP Chairman Bilawal Bhutto Zardari has described it as revolutionary. Turning to taxation, he confirmed that no new taxes were introduced in the budget. Several levies have either been abolished or reduced, including the entertainment tax and restaurant taxes. Stamp duty on third-party vehicle insurance has been slashed to Rs50, and the insurance tax reduced from 15 percent to 5 percent. In line with IMF requirements, a list of tax-exempt goods will soon be published. Digital governance is also on the agenda. The provincial government is piloting blockchain-based digitisation of land records in Matli and Sukkur to improve access and transparency. Free laser levellers will be distributed to small farmers, while subsidies for larger units will support the adoption of cluster farming techniques. In the social sectors, the province will establish 34,000 new caste centres and expand support for persons with disabilities. Cognitive Remediation Therapy services will be extended, and youth development centres will be set up in every district. The Sindh Institute of Child Health has launched a broad paediatric network, while the Sindh Hari Card programme has been allocated Rs8 billion for direct support to farmers. On water security, Murad offered a detailed update on the K-IV water project, clarifying that the federal government is responsible for sourcing water from Keenjhar Lake, while Sindh will handle distribution. Rs20 billion has been earmarked for the K-IV feeder infrastructure. He also announced plans for a five-million-gallon desalination plant to meet Karachi's growing water needs. Job creation remains a priority. He revealed that 20,000 to 25,000 vacancies in Grades 1 to 4 will be filled, while recruitment for Grades BPS-5 to BPS-7 will be conducted through IBA-administered exams. Senior positions in Grade 16 and above will also be filled. He expressed frustration with the federal government's development priorities, noting that only 18 of 25 Public Works Department projects were transferred to Sindh. He criticized the halving of university funding from Rs4 billion to Rs2 billion, which has triggered widespread protests. On the stalled Sukkur-Hyderabad Motorway, he noted that federal funding had been cut from Rs30 billion to Rs15 billion. While the Islamic Development Bank is supporting three sections, negotiations for international funding to complete the project are underway. Murad regretted the Centre's rejection of Sindh's offer to co-finance the project with Rs25 billion, provided the federal government matched the amount. He also condemned the 18 percent federal tax on solar panels, calling it unjustified. He reiterated that the PPP would withhold support for the federal budget if such regressive measures are not withdrawn. Sindh, in contrast, has allocated Rs25 billion for solarization under its own climate strategy, and has launched afforestation efforts to tackle environmental degradation though he acknowledged these must be scaled up. On the Safe City project, Phase-I is expected to conclude by September or October 2026. Surveillance systems are already active in key areas, including II Chundrigar Road, where security cameras are successfully identifying individuals on watch lists. Funds for Phase-II are secured for 2026 implementation. The chief minister acknowledged delays in operationalizing 150 buses in Karachi, citing funding limitations, but pointed to progress in sanitation and infrastructure development. Though digitisation of land records remains incomplete, he said blockchain-based pilots are already underway. Population growth, he argued, remains Pakistan's most serious challenge. In response, Sindh has merged the health and population welfare departments for improved coordination. Murad also criticized the federal government for failing to fund large dam projects and reaffirmed his province's alignment with the Prime Minister's position to avoid controversial water infrastructure proposals. Responding to criticism over a new helicopter and vehicles for the CM's office, he clarified that the existing helicopter is 36 years old and that the vehicles haven't been updated in years. A ban on vehicle purchases will apply in the next fiscal year as part of cost-cutting measures. On agricultural policy, he noted a shift towards corporate farming while ensuring inclusion of existing farmer networks. Murad acknowledged rising poverty in Sindh, attributing it to constraints under the IMF programme. He stressed the importance of economic growth for poverty alleviation and defended the province's approach to transparent budgeting, saying repeated attempts were made to brief the opposition. He accused opposition members of exploiting humanitarian concerns particularly the Israel resolution for political advantage and derailing efforts at constructive dialogue. He asserted that the PPP-led Sindh government will not be blackmailed by either PTI or MQM. While not a formal coalition partner at the Centre, the province successfully argued its case for long-standing under-funding, resulting in an Rs86 billion allocation to help bridge disparities with other provinces. Copyright Business Recorder, 2025
Express Tribune
7 days ago
- Business
- Express Tribune
Sindh budget focuses on social, urban uplift
Listen to article The PPP's Sindh government on Friday unveiled a Rs3,451.87 billion budget for the fiscal year 2025-2026 — representing a 12.9% increase compared to the previous year's budget of Rs3,056.3 billion and a deficit of Rs38.458 billion. Sindh Chief Minister Syed Murad Ali Shah, who also holds the portfolio of provincial finance minister, presented the proposed budget in the Sindh Assembly, where the PPP holds a two-thirds majority. Shah announced a salary increase of 12% for government employees from grades-1 to grade-16 and a 10% raise for officers of grade-17 through grade-22. He also announced an 8% increase in pensions. "We are introducing a finance bill to abolish and decrease some taxes/levies/cess instead of increasing them," the CM stated amid a round of applause. "The budget emphasizes increased allocations for education, health, infrastructure, and social welfare, along with strategic initiatives to modernize governance and stimulate economic growth," he said. The province's receipts for FY 2025-26 are projected at Rs3,411.5 billion, marking an 11.6% rise compared to the current year. Federal divisible pool transfers, which constitute 75% of total revenue, are estimated at Rs1,927.3 billion, a 10.2% increase, despite a 5.5% shortfall in the current year's revised estimates. Additional federal transfers, including straight transfers and grants to offset losses from the abolition of the Octroi and Zila Tax (OZT), are also set to increase, bringing total federal transfers to Rs2,095.6 billion. The Current Revenue Expenditure (CRE) is set at Rs2,149.4 billion, reflecting a 12.4% increase from Rs1,912.36 billion in FY 2024-25. This rise is due to inflationary pressures, increased grants to non-financial institutions such as hospitals and universities, salary relief allowances for government employees, and higher pension payments. Total expenditure is expected to increase by 12.9% to Rs3,450 billion. Current revenue expenditure will grow by 12.4% to Rs2,150 billion, driven by salary and pension hikes (6%), grants to local bodies (3%), and substantial increases in key sectors. The police department has been allocated Rs189.75 billion, reflecting an increase of 15.7%. The health sector has been allocated Rs336.46 billion, with an 11.3% increase, while Rs518.05 billion has been allocated for the education sector, showing an 18% increase. Additionally, Rs20 billion has been allocated for Pro-Poor Social Protection and Economic Sustainability Initiatives, highlighting the government's focus on inclusive growth. To improve transparency and efficiency, education-related funds will be directly disbursed to schools. Grants-in-aid totaling Rs702 billion have been allocated for various government and non-financial institutions, based on directives from the Chief Minister's Secretariat and the Finance Department.
Express Tribune
7 days ago
- Business
- Express Tribune
CM presents over Rs1tr ADP for 2025-26
Sindh Chief Minister Syed Murad Ali Shah, while unveiling the annual budget in the assembly, presented the Annual Development Programme (ADP) for the fiscal year 2025-26 with a total outlay of Rs1.018 trillion. The ADP is set at Rs520 billion, complemented by District ADP Rs55 billion, Foreign Project Assistance (FPA) Rs366.72 billion, and Federal PSDP grants Rs76.28 billion. The ADP and the development portfolio focus on the rehabilitation of flood-damaged schools and infrastructure to enhance education access, upgradation of healthcare facilities, promotion of climate-resilient agriculture and irrigation system restoration, provision of clean drinking water and sanitation to improve public health, strengthening road connectivity and urban infrastructure including mass transit and Safe City projects in Karachi, implementation of green energy initiatives and renewable energy projects, poverty alleviation through nutrition support, community infrastructure, and low-cost housing. Ongoing and New Schemes The ADP includes 3,642 schemes with Rs400.5 billion allocated - 82.6 per cent for 3,161 ongoing projects and 17.4 per cent for 481 new initiatives. Special development initiatives have been allocated Rs119.5 billion. Sector-wise Allocations Education Rs102.8 billion; health: Rs45.4 billion; irrigation: Rs84 billion; local government: Rs132 billion; works & services: Rs143 billion; energy (including Thar Coal and renewable): Rs36.3 billion; agriculture, livestock, fisheries: Rs22.5 billion; transport & mass transit: Rs59.7 billion. Development Strategy The government emphasises completing ongoing projects by allocating 80 per cent of the budget to them, while 20 per cent is reserved for new schemes. Special priority is given to rehabilitation of flood-hit areas, energy initiatives, Karachi city projects, and sustainable development goals like clean water and sanitation. Implementation and Monitoring The Planning & Development Depart-ment will fast-track approval of SDG-related projects, with strict financial release strategies to ensure timely completion. The government also plans to extend the plan period of schemes expiring in June 2025 by one year to maintain continuity. Review of 2024-25 Performance The outgoing year saw the completion of 1,460 schemes, the highest in recent years, with significant progress in housing for flood-affected people - over 400,000 houses completed and more under construction. The total development expenditure reached Rs468 billion, with 73 per cent utilisation of released funds. This comprehensive ADP reflects Sindh's commitment to sustainable development, infrastructure enhancement, and social welfare, aiming to boost economic growth and improve quality of life across the province.
Express Tribune
7 days ago
- Health
- Express Tribune
Health budget up by eight per cent
As part of the Rs3.45 trillion provincial budget for FY 2025-26, the government has allocated Rs326.5 billion to the health sector, marking an 8 per cent increase from the previous year's Rs302.2 billion. A significant portion of Rs146.9 billion is to be disbursed as grants-in-aid to public health institutions and medical units across the province. Key allocations include Rs19 billion for the Sindh Institute of Urology & Transplantation (SIUT), Rs16.5 billion for the Peoples Primary Health Initiative (PPHI), and Rs10 billion for the construction of a new hospital in Larkana. Further, Chief Minister Syed Murad Ali Shah announced that the government has transformed three major public healthcare institutions, including Jinnah Postgraduate Medical Centre (JPMC), the National Institute of Child Health (NICH), and the National Institute of Cardiovascular Diseases (NICVD), into world-class facilities over the past 13 years. Delivering his budget speech in the Sindh Assembly, Shah highlighted that the combined bed capacity of the institutions has increased from 2,092 to 4,041, reflecting a significant expansion in public healthcare services. He also revealed that the construction of a new 12-storey medical tower, and a seven-storey officers' ward, is nearing completion at JPMC, stating "this will make JPMC not only the largest healthcare facility in the country but also among the largest in the world." Further, the CM stated that patient visits to the three institutions have surged from 1.6 million in 2011 to over four million in the current year. Meanwhile, highlighting advancements in cancer care, Shah said the provincial government, in partnership with the Patients Aid Foundation (PAF-JPMC), has revolutionised radiation oncology services by introducing CyberKnife, Tomotherapy, and PET-CT facilities. He noted "this is the only centre in the world providing free CyberKnife and Tomotherapy treatment regardless of nationality, religion, or ethnicity. Patients from 168 cities and 16 countries have benefited from these services at JPMC Karachi." APP
Business Recorder
7 days ago
- Business
- Business Recorder
Rs3.45trn Sindh budget unveiled
KARACHI: With a deficit of Rs38.458 billion, Chief Minister Sindh Syed Murad Ali Shah unveiled Rs3.45 trillion provincial budget for the fiscal year 25-26 (FY26) in the Sindh Assembly on Friday, proposing a cut in the sales tax on service to 8 percent amid opposition's protest. Speaking at the budget session, the chief minister announced the government's a 'forward-looking development agenda' with scores of 'transformative new initiatives' across the key sectors including education, health, agriculture, infrastructure, social protection, and local governance. 'These initiatives reflect our commitment to equity, innovation, and inclusive growth.' According to the budget documents, the Sindh government budget outlay has been increased by Rs394 billion or 13 percent to Rs3.450 trillion for FY26 compared to Rs3.056 trillion for previous fiscal year. Total receipts of the province are estimated to rise by 12 percent from Rs3.056 trillion in FY25 to Rs3.412 trillion for the next fiscal year. On receipts side, current revenue receipt estimates increased by 10 percent to Rs2.824 trillion including, revenue assignment Rs1.927 trillion, straight transfer Rs116.433 billion, grants to offset losses Rs51.81 billion, provincial tax receipts (excluding GST on services) Rs288 billion and provincial sales tax on services and taxes from agricultural Rs388 billion. In addition, the current capital receipts estimated Rs33 billion, carryover balance Rs100 billion, foreign grants Rs10.838 billion, foreign project assistance RS 366.744 billion and other grants Rs75.58 billion. As per budget estimates, Current Revenue Expenditure (CRE) have been pitched at Rs2.150 trillion, being 12.4 percent higher than budget estimates of Rs1.912 trillion for the FY 2024-25. The increase is mainly due to inflationary impact on the operating expenses, enhancement of grants-in-aid to non-financial institutions including hospitals, public sector universities, local councils, necessary salary raise in shape of relief allowance to the government employees and raise in pension expenditure due to increase in pension. Current capital expenditures estimates; however, increased from Rs184 billion to Rs281.6 billion. The chief minister said that projects under the public health and sustainable development goals are likely to see a budgetary share of Rs45 billion with 50 percent specifically for water sector schemes, supporting clean water access and climate resilience A Rs25 billion of financial allocation is reserved for the home-based solar systems including a portion earmarked to scale decentralised, off-grid solar solutions for household in rural and underserved areas across the province. CM Murad said that the government is set to launch a comprehensive, multi-year agriculture reform program— an ambitious initiative aimed at modernising farming, improving livelihoods, and enhancing food security. He added that the Benazir Hari Card will be the delivery platform for subsidies and services, as so far 200,000 farmers have been enlisted under this program. In next financial year, he said, the number for erecting new homes will rise to around 1.5 million from 1.1 million in the current fiscal year. 'We have opened bank accounts for more than 1.3 million beneficiaries for the rehabilitation of more than 12.3 million flood-affected populations'. The irrigation sector will receive Rs42 billion funds, denoting the Sindh government's commitment to the farmers' community and improvement of irrigation system in the province, he said. The allocation also includes a Rs10 billion block that has been proposed for de-silting of N W Canal and Dadu Canal at the time of Sukkur Barrage closure next year, maintaining irrigation infrastructure and ensuring smooth flow of water into different waterways. The budget estimates for livestock and fisheries sector has been proposed at Rs12.9 billion in a bid along with an amount of Rs120 million earmarked for helping the livestock farmers know about various breeds, modern methods of breeding, fodder cultivations and fishing and aquaculture. In line with the relief measures, the government has proposed 10 percent on an ad-hoc basis allowance for the employees from BPS-1 to BPS-22 so as to equip them to bear the impact of inflation. For the pensioners we have proposed an increase of 7 percent for the next fiscal year. The cumulative impact of these relief measures will be around Rs52 billion per annum, chief minister said. He said that there is a proposal under the government's inclusive policies to scale up the monthly rate of Special Conveyance Allowance from Rs4,000 to Rs6,000 to the differently-abled employees. This measure will have additional financial impact of Rs114.48 million, he added. However, he said that the government's decision about the minimum wage for the labour classis is under consideration keeping view the soaring inflation and rising cost of living. Copyright Business Recorder, 2025
