Sindh govt proposes 7% salary and 5% pension raise in budget 2026-27
The Sindh government has proposed increasing salaries of government employees by 7% and pensions by 5% in the upcoming Budget 2026-27, according to sources.
The proposal was discussed during a provincial cabinet meeting, where officials reviewed the financial situation and budget limitations facing the government in the new fiscal year.
Sources said the government had initially hoped to offer at least a 10% salary increase. However, financial pressures and budget constraints made it difficult to provide a larger raise.
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During the discussions, cabinet members emphasized that lower-grade employees should receive comparatively higher relief, as they are more affected by rising inflation and increasing living expenses.
The proposed salary and pension increases are still under consideration and are expected to be included in the final budget plans.
Chief Minister Syed Murad Ali Shah, who also serves as Sindh’s finance minister, will present the Budget 2026-27 in the Sindh Assembly.
According to budget proposals, the total size of the provincial budget is expected to exceed Rs3.4 trillion. Out of this amount, around Rs2.56 trillion has been proposed for non-development expenditures.
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Sources further revealed that the Sindh government is not planning to launch any new development schemes in the upcoming fiscal year. Instead, it intends to focus on completing ongoing projects.
A total of 3,642 ongoing provincial and district-level development projects are expected to receive funding, with a proposed allocation of Rs400 billion.
Officials believe prioritizing existing projects will help ensure better utilization of resources and avoid delays in already approved schemes.
