Rs3. 45 trillion budget sails through provincial house
Out of the 168 lawmakers of the Sindh Assembly, only 58 were present on Tuesday. PHOTO: ONLINE
The Sindh Assembly on Wednesday approved the Rs3.45 trillion budget for the fiscal year 2025-26 — a 12.9% increase from last year. It also passed a supplementary budget of Rs156.069 billion for the current fiscal year 2024-25.
Presenting the Sindh Finance Bill, Chief Minister Murad Ali Shah highlighted the government's reform initiatives, including digitisation of land records using blockchain, birth registration via mobile apps, farmers' access to loans through the Sindh Cooperative Bank, and the launch of a one-stop land transfer system.
The budget earmarks Rs43 billion for new ad-hoc relief allowances for government employees and Rs16 billion for a 15% pension increase.
A total of 188 demands for grants were presented, with the opposition submitting 2,002 cut motions, all of which were rejected by majority vote - except one joint motion against the special judicial allowance, which was unanimously passed by both opposition and treasury benches.
Key budget allocations include Rs42.2 billion for public universities, Rs10.4 billion for medical education, Rs5.2 billion for ambulance services under the Sindh Emergency Health Services, and Rs5 billion for the "Inclusive City" initiative for persons with disabilities.
Development expenditure has been set at Rs1,018.3 billion (30% of the total budget), with current revenue expenditure estimated at Rs2,150 billion. Salaries account for 39% of the budget, non-salary operations for 19%, and pensions for 13%.
The Sindh government expects to generate Rs3,111.5 billion in revenues during FY2025-26 - a 21.4% increase from the revised estimates of the previous year. Over the next three years, the province anticipates an average annual revenue growth of 12.5%. If the Federal Board of Revenue (FBR) achieves its Rs14.131 trillion target, Sindh is likely to receive Rs269 billion in federal transfers.
The CM also outlined key developmental priorities including, Rs8 billion for Benazir Hari Card (agricultural subsidies); Rs1.8 billion for livestock breeding; subsidies for solar-powered tube wells and drip irrigation; Rs2 billion for low-income housing; Rs2 billion for the Sindh Peoples Support Programme; Rs200 million for orphans and widows, and Rs500 million per project to empower women in agriculture and SMEs
In health, allocations include Rs4.5 billion for an SIUT center in Larkana, Rs21 billion for SIUT, Rs23 billion for NICVD, Rs16.5 billion for PPHI, and Rs10 billion for a new hospital in Larkana.
Another Rs10 billion have been allocated for the Dhabeji-DHA water pipeline and Rs3.1 billion for the Hub Canal. Rs25 billion is earmarked for green energy, and Rs45 billion for SDG-aligned public health projects.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 days ago
- Express Tribune
Credit guarantee for Rs10 billion green funding agreed
Listen to article National Credit Guarantee Company Limited (NCGCL) has agreed to support green financing up to Rs10 billion in a bid to create a conducive ecosystem for climate-smart entrepreneurship, particularly for young innovators and women-led green startups. NCGCL, which has recently been awarded 'AAA' rating by Pakistan Credit Rating Agency (Pacra), will provide support for green financing through a structured guarantee programme. The Ministry of Climate Change has expressed its readiness to striking a Rs10 billion green financing deal with NCGCL to boost green entrepreneurship. Federal Minister for Climate Change and Environmental Coordination Musadik Malik held a high-level meeting with NCGCL CEO Ammar Habib to finalise a major financial collaboration aimed at supporting green development across Pakistan. Under the arrangement, NCGCL will evaluate projects to add a guarantee cover for both convertible bonds and hybrid structures as well as guarantee for credit, loans and to de-risk equity investment through a structured approach, depending on the financial and operational viability of green ventures. This partnership signals the ministry's commitment to creating a conducive ecosystem for climate-smart entrepreneurship, particularly for young innovators and women-led green startups. Malik welcomed the collaboration as a meaningful step towards mainstreaming green finance and mobilising private sector partnerships in Pakistan's climate and sustainability goals. NCGCL issues credit guarantees to financial institutions for unserved segments of the small and medium enterprises (SME) sector. "The SME sector is the backbone of any resilient economy," Ammar Habib, CEO of NCGCL, had told media earlier, adding that credit guarantees are a strategic lever, giving financial institutions the confidence to lend where they currently hesitate. He stressed that NCGCL is not just a credit guarantee company, but a market reform institution. Pakistan has currently witnessed a burgeoning landscape of climate startups and a growing recognition of the need for sustainable solutions. These innovative ventures have emerged across diverse sectors, largely targeting key environmental challenges such as energy transition, resource scarcity and waste management. Initiatives like Climate Innovation Pakistan and the Green Tech Hub, launched by NUST, are climate tech startups aimed at developing their climate-focused technologies and business models. Many of these startups are also directly aligning with Pakistan's ambitious Nationally Determined Contribution (NDC) targets, which include 50% reduction in projected emissions by 2030, a 60% renewable energy target and 30% electric vehicle uptake. Companies like EzBike and Vlektra are working on electric mobility revolution, aimed at decarbonising urban transportation. In the renewable energy sphere, startups such as EcoEnergy have focused on providing affordable solar solutions, particularly to off-grid communities through solar installations nationwide. Pakistani climate startups are also making significant contributions in areas like waste management and sustainable agriculture. Companies such as Trashit and ConceptLoop are innovating in circular economy models, transforming waste into valuable resources or new products. Meanwhile, agritech startups are leveraging data and AI to enhance crop productivity, optimise water use and promote climate-resilient farming practices, directly addressing food security and water scarcity. Funds have been a challenge for such startups and recent deals between the Ministry of Climate Change and NCGCL will give a boost to both startups and entrepreneurs in green technology.
Express Tribune
3 days ago
- Express Tribune
CM announces major tax relief
Chief Minister Murad Ali Shah has announced extensive tax relief measures in the 2025-26 provincial budget aimed at stimulating economic growth and easing financial burdens on citizens. In addition to the reliefs included in the Finance Bill, several incentives have been formalised through amendments to key laws. The measures span both tax and non-tax sectors, targeting agriculture, transport, education, and small businesses. To support farmers amid a 30.7% decline in cotton production, the cotton fee has been abolished. The drainage cess has also been removed to counteract erratic weather effects. A 50% reduction has been approved in fees for property transfers, certified copies, sales, solvency, and inheritance certificates. The annual tax on commercial vehicles has been cut to Rs1,000, and professional tax has been completely abolished. The Sindh Assembly passed amendments to seven laws, including the repeal of the Sindh Entertainment Duty Act 1958, and changes to the Stamp Act, Motor Vehicles Act, and Local Government Act, eliminating the local cess. Stamp duty on third-party motor insurance is now fixed at Rs50, and two-wheelers are exempt from mandatory insurance. The entertainment duty has been removed entirely, benefiting cinemas, theatres, art councils, and cultural venues. The sales tax exemption limit for small businesses has been increased to Rs4 million, and for restaurants and caterers, to Rs5 million, offering Rs400 million in relief. Terming the initiatives as "progressive and people-centric," the CM said the budget reflects a strong commitment to economic revitalisation, equitable taxation, and long-term development in Sindh.
Express Tribune
3 days ago
- Express Tribune
Rs3. 45 trillion budget sails through provincial house
Out of the 168 lawmakers of the Sindh Assembly, only 58 were present on Tuesday. PHOTO: ONLINE The Sindh Assembly on Wednesday approved the Rs3.45 trillion budget for the fiscal year 2025-26 — a 12.9% increase from last year. It also passed a supplementary budget of Rs156.069 billion for the current fiscal year 2024-25. Presenting the Sindh Finance Bill, Chief Minister Murad Ali Shah highlighted the government's reform initiatives, including digitisation of land records using blockchain, birth registration via mobile apps, farmers' access to loans through the Sindh Cooperative Bank, and the launch of a one-stop land transfer system. The budget earmarks Rs43 billion for new ad-hoc relief allowances for government employees and Rs16 billion for a 15% pension increase. A total of 188 demands for grants were presented, with the opposition submitting 2,002 cut motions, all of which were rejected by majority vote - except one joint motion against the special judicial allowance, which was unanimously passed by both opposition and treasury benches. Key budget allocations include Rs42.2 billion for public universities, Rs10.4 billion for medical education, Rs5.2 billion for ambulance services under the Sindh Emergency Health Services, and Rs5 billion for the "Inclusive City" initiative for persons with disabilities. Development expenditure has been set at Rs1,018.3 billion (30% of the total budget), with current revenue expenditure estimated at Rs2,150 billion. Salaries account for 39% of the budget, non-salary operations for 19%, and pensions for 13%. The Sindh government expects to generate Rs3,111.5 billion in revenues during FY2025-26 - a 21.4% increase from the revised estimates of the previous year. Over the next three years, the province anticipates an average annual revenue growth of 12.5%. If the Federal Board of Revenue (FBR) achieves its Rs14.131 trillion target, Sindh is likely to receive Rs269 billion in federal transfers. The CM also outlined key developmental priorities including, Rs8 billion for Benazir Hari Card (agricultural subsidies); Rs1.8 billion for livestock breeding; subsidies for solar-powered tube wells and drip irrigation; Rs2 billion for low-income housing; Rs2 billion for the Sindh Peoples Support Programme; Rs200 million for orphans and widows, and Rs500 million per project to empower women in agriculture and SMEs In health, allocations include Rs4.5 billion for an SIUT center in Larkana, Rs21 billion for SIUT, Rs23 billion for NICVD, Rs16.5 billion for PPHI, and Rs10 billion for a new hospital in Larkana. Another Rs10 billion have been allocated for the Dhabeji-DHA water pipeline and Rs3.1 billion for the Hub Canal. Rs25 billion is earmarked for green energy, and Rs45 billion for SDG-aligned public health projects.
