A day after presenting the province’s 17th consecutive budget under the Pakistan Peoples Party (PPP) government, Sindh Chief Minister Murad Ali Shah criticised the federal government for slashing Sindh’s allocated funds at the eleventh hour, calling the move “incomprehensible” and “a blow to development priorities.”
Addressing a post-budget press conference in Karachi on Saturday, the chief minister said the province had framed its Rs3.45 trillion budget for the fiscal year 2024-25 on the basis of federal commitments amounting to Rs1,900 billion. However, a letter received on June 12 — just a day before the budget presentation — informed the province that it would receive only Rs96.17 billion, while Sindh had already received Rs422.3 billion less than expected this fiscal year.
“This decision came without prior consultation or explanation. Such abrupt financial shifts destabilise provincial planning,” said Mr Shah, who also holds the finance portfolio. “We are already part of the IMF programme and are required to maintain a surplus. We had committed to showing a surplus of Rs299 billion as per IMF terms — how do we meet that when promised funds are withheld?”
Mr Shah said that the federal government’s failure to honour financial commitments has placed pressure on non-development expenditure and will impact developmental schemes the most. “We cannot halt salaries and pensions, so naturally development will suffer,” he added.
Despite the constraints, the Sindh government has earmarked Rs1,018 billion for development, with a target of completing a record 1,460 ongoing schemes during the upcoming fiscal year. Of the total budget, Rs2.15 trillion is set aside for current expenditures, with Rs1.1 trillion alone allocated to salaries and pensions.
The chief minister announced that salaries for government employees in grades 1 to 16 will be increased by 12 per cent, while those in grades 17 to 22 will see a 10 per cent rise.
Rs236bn for Karachi, Rs90bn for water projects
Highlighting allocations for Karachi, Mr Shah said that Rs236 billion had been allocated for the metropolis in the Annual Development Programme (ADP), including schemes related to clean water, transport, and roads.
“We have launched a Rs90 billion programme to improve water availability. Additionally, 1,000 new buses will be introduced in Karachi under a separate scheme,” he said, noting that many of the city’s infrastructure projects are being executed through public-private partnerships and are therefore not reflected in the PSDP.
The chief minister added that Rs86 billion has been allocated for federal development projects in Sindh, primarily focusing on the road network. Ongoing works worth Rs95 billion are underway in Karachi alone.
Responding to media criticism that there were “no mega projects” for Karachi, Mr Shah remarked, “If completing a project within the same year it starts is not mega, then what is?”
Increases in key sectoral budgets
According to the chief minister, the education budget has been raised by 18 per cent, while health and home departments have received increases of 11 and 15.5 per cent respectively. The energy department’s allocation has also been enhanced by 16.5 per cent, with the irrigation budget now standing at Rs43 billion.
