Chief Minister Murad Ali Shah presented the Sindh government’s budget for the fiscal year 2025-26, amounting to Rs 3.451 trillion. In a session marked by protest from opposition benches, including the MQM and PTI, the Chief Minister delivered a comprehensive speech outlining fiscal priorities, tax reforms, and development initiatives.
Pay and Pension Increases
As part of relief measures for government employees, the budget proposes a 12% salary increase for employees in grades 1 to 16 and a 10% raise for officers in grades 17 to 22. Pensioners will receive an 8% hike. Additionally, transport allowances for differently-abled employees will be increased.
Major Tax Reforms
In a significant move aimed at simplifying taxation and reducing the cost of doing business, the Sindh government proposed abolishing five taxes: Professional Tax, Cotton Fee, Internet Duty, Local Cess, and Drainage Cess.
Taxes on commercial vehicles have been reduced by Rs 1,000 under the Motor Vehicle Ordinance. The government has also proposed ending mandatory third-party insurance for motorcycles, reducing stamp duty on insurance to Rs 50, and cutting sales tax on third-party vehicle insurance from 15% to 5%.
Property Fee Reductions
To ease property-related costs, the mutation and sales certificate fees have been proposed to be lowered from Rs 1,000 to Rs 500. Similar reductions apply to inheritance certificate fees.
Support for Small Businesses
Businesses with annual turnover below Rs 4 million will be exempt from sales tax. While the negative list of exempt services will be removed, essential and social services will remain tax-free. The standard sales tax rate on services is proposed to be reduced from 10% to 8%.
For restaurants and catering services, the exemption threshold is proposed to be increased from Rs 2.5 million to Rs 5 million.
Budget Speech Highlights
Calling the budget a reflection of public trust, CM Shah credited the Sindh electorate for the PPP’s electoral success and reiterated the party’s commitment to public welfare. “This budget is a tribute to the resilience of the people of Sindh who supported us through difficult times,” he stated.
He highlighted a significant increase in the security budget, noting a substantial decline in street crimes and successful operations in the riverine areas. Over 25,000 new police recruitments have been made, and healthcare facilities for law enforcement personnel have been enhanced. The martyr compensation package has also been increased.
Surveillance of highways is being strengthened through AI-powered cameras, and traffic reforms are underway. CM Shah emphasized that the province is not only fighting narcotics but also safeguarding its youth.
On the education front, the government plans to train 35,000 students next year and has increased funding for the Sindh Education Foundation. Thousands of schools have been rehabilitated with UNICEF support.
