KARACHI – Sindh Chief Minister Murad Ali Shah laid out the province’s fiscal and development agenda during a post-budget press conference on Saturday, while sharply criticising the federal government for financial shortfalls. He revealed that Sindh was informed just a day before the budget announcement that Rs105 billion in expected federal funds would be withheld.
The CM stated that although Sindh received Rs1,478.5 billion from the divisible pool, Rs422.3 billion remains unpaid. He expressed hope that the outstanding funds would be cleared by the end of June. Despite the challenges, Sindh has announced a Rs3.45 trillion budget, including Rs1 trillion for development and Rs2.15 trillion for current expenses.
To support growth, the province has earmarked Rs590 billion specifically for development projects. Notably, Rs1.1 trillion is reserved for salaries and pensions, with pay increases of 12% for lower-grade staff and 10% for higher grades. Education and health sectors saw budget increases of 18% and 11%, respectively, alongside major boosts for agriculture, irrigation, and local development.
For Karachi’s infrastructure, the CM announced Rs236 billion in allocations, including public-private partnership projects. He also highlighted social achievements, such as the construction of 500,000 houses for flood victims and another 850,000 underway. Additionally, a Rs600 billion rural water and sanitation plan is set to benefit over 4.5 million people.
Murad Ali Shah said no new taxes have been imposed in the budget. Several taxes have been reduced or abolished, such as the entertainment tax and restaurant tax cuts. The stamp duty on third-party vehicle insurance was lowered to Rs50, and the insurance tax was slashed from 15% to 5%.
The CM also addressed other key initiatives, including digitising land records using blockchain, providing free laser levellers to small farmers, and promoting cluster farming. He criticised the halving of funds for the Sukkur-Hyderabad Motorway and university funding cuts. Shah warned that the PPP would not support the federal budget unless major concerns, including the 18% tax on solar panels, are addressed.