Sindh Chief Minister Syed Murad Ali Shah on Wednesday presented a Rs3.56 trillion budget for fiscal year 2026-27, proposing no new taxes, a 7 per cent increase in salaries and pensions for government employees, and a Rs400 billion development programme aimed at sustaining growth and expanding social welfare.

The budget, presented in the Sindh Assembly amid a boycott by opposition lawmakers, projects estimated receipts of Rs3.41 trillion and a deficit of approximately Rs242 billion.

CM Shah announced that ad hoc relief allowances granted in 2022 and 2025 would be merged into employees’ salaries, while the minimum monthly wage would be increased to Rs43,000. He said the budget was designed to provide relief to citizens and the business community while maintaining fiscal stability.

The chief minister said the budget was based on four guiding principles: constitutional rights, fiscal sustainability, national stability and public welfare.

The assembly session witnessed noisy protests by lawmakers of the Muttahida Qaumi Movement-Pakistan (MQM-P), who staged a walkout before the budget speech.

Opposition leader Ali Khurshidi said the party was boycotting the proceedings because it had not been consulted and claimed the budget did not adequately represent urban Sindh.

Despite the disruption, CM Shah proceeded with the presentation, noting that it was the 13th time he was presenting the provincial budget and the 11th consecutive budget of his tenure.

The chief minister highlighted the provincial government’s development achievements, saying more than Rs900 billion had been spent on development activities during the outgoing fiscal year.

He said 952 development schemes had been completed, including 337 roads, 179 local government projects and 175 water supply and drainage schemes.

A key feature of the budget is the establishment of the Sindh International Financial Centre in Karachi, which will serve as a platform for infrastructure finance, Islamic finance and climate finance. The government also plans to attract investment in world-class data centres, artificial intelligence infrastructure and green digital technologies.

CM Shah announced an ambitious plan to transform Keti Bandar into a global maritime, logistics, industrial and energy hub linked with Dhabeji Special Economic Zone and Thar. He said the project would connect Pakistan with major international trade routes and emerge as a new economic gateway for the country.

The budget also places significant emphasis on renewable energy. The chief minister announced what he described as Sindh’s largest-ever solar initiative, including the distribution of 275,000 free solar home systems and the launch of a subsidised solar financing programme for households and businesses.

In the social sector, the government allocated Rs13.2 billion for a social protection package that includes kitchen garden schemes, the Benazir Hari Card and the Benazir Women Agriculture Workers Programme. Support programmes for widows and orphans will also continue.

CM Shah announced a special relief package for education, agriculture, insurance and employment sectors. He said sales tax on educational support services had been reduced to 5 per cent, while concessional tax rates for beauty salons and overseas employment recruiting agencies would remain unchanged.

The chief minister said the government had completed one million homes for flood-affected families under the Sindh Peoples Housing Programme, strengthened the 1122 ambulance network and telemedicine services, and constructed more than 1,300 school buildings while recruiting new teachers.

He added that the province had agreed to contribute Rs260 billion towards national stability initiatives and had safeguarded Sindh’s interests in discussions related to the National Finance Commission Award.

The development portfolio for the new fiscal year has been reduced from Rs575 billion to Rs400 billion due to fiscal constraints. However, the government said it would continue investing in infrastructure, industry, trade and employment generation.

Highlighting major infrastructure projects, CM Shah said the Rs60.7 billion Shahrah-e-Bhutto project had significantly improved connectivity in Karachi, reducing travel times to around 25 minutes and serving nearly 25,000 vehicles daily.

The chief minister said the budget sought to lay the foundation for a modern and competitive economy driven by investment, technology, renewable energy and inclusive growth.