The Sindh government has allocated a historic Rs1.02 trillion for development in the FY26 budget, marking a significant increase of 6% from the previous fiscal year. This budget is set to be the highest-ever development allocation in the province’s history, with a focus on social sectors, resilience, and climate-smart development.
Presenting the budget, Chief Minister Syed Murad Ali Shah highlighted that the new allocation for provincial development expenditure is Rs520 billion for Provincial ADP and Rs55 billion for district ADP. An additional Rs366.7 billion has been earmarked for Foreign Project Assistance, while Rs75.58 billion is allocated for federal PSDP schemes.
Despite fiscal constraints, the government has prioritised the completion of ongoing projects, with a projected 84% of the 1,777 ongoing schemes from FY25 set to be completed. New initiatives introduced in FY26 include projects for flood rehabilitation, renewable energy, Karachi urban infrastructure, and sustainable development goals (SDG)-aligned projects.
The chief minister emphasised that the increased allocation represents a strategic balance between fiscal discipline and development goals, even amid anticipated shortfalls in federal transfers. To this end, only 475 new schemes have been proposed for the upcoming fiscal year, carefully selected to address high-priority areas, including flood recovery, renewable energy, and development in less-developed districts.
Key allocations for major sectors in FY26 include Rs96.7 billion for education, Rs45.4 billion for health, Rs80.6 billion for irrigation, Rs132.79 billion for agriculture, and Rs155.2 billion for energy, with a 20% increase in funding for social and productive sectors.
The Sindh government has committed to continuing its development momentum even in the face of economic challenges, with the highest development expenditure expected for FY25. The Chief Minister also acknowledged the support from PPP Chairman Bilawal Bhutto Zardari in securing Rs41 billion from the federal government for 19 federal PSDP schemes, out of the originally committed Rs52.9 billion.
