KARACHI: The Sindh cabinet has approved the provincial budget for the fiscal year 2026-27, with proposals to increase salaries and pensions for government employees despite ongoing financial constraints.
According to official sources, the provincial government is expected to present a budget exceeding Rs2.7 trillion for the upcoming fiscal year. The budget includes a proposed 7 per cent increase in salaries for government employees and a 5 per cent rise in pensions.
During the cabinet meeting, officials reportedly discussed the challenges facing the province’s finances and acknowledged that a larger increase had been considered. Sources said the government had aimed to raise salaries by at least 10 per cent but was unable to do so due to budgetary limitations and economic pressures.
Chief Minister Murad Ali Shah said the new budget has been prepared with a focus on supporting all segments of society. He added that the provincial government has sought to balance fiscal discipline with public welfare measures amid challenging economic conditions.
The chief minister also highlighted the government’s commitment to poverty alleviation initiatives, saying special measures have been incorporated into the budget in line with the vision of Bilawal Bhutto Zardari.
Officials said the budget is expected to allocate resources for development projects, public services and social welfare programmes while addressing the province’s financial obligations.
The proposed salary and pension increases come at a time when inflation and rising living costs continue to affect households across the country. Government employees and pensioners had been seeking higher adjustments to help offset economic pressures.
Further details regarding development spending, sectoral allocations and revenue targets are expected to emerge when the provincial budget is formally presented in the Sindh Assembly.