KARACHI: The Sindh budget of Rs 3,652 billion was passed by the Sindh Assembly late Sunday night, after the end of a prolonged debate on the budget as the House rejected more than 1,600 reduction amendments from the opposition. The budget is for the fiscal year 2026-27. Besides the budget, the Rs165 billion supplementary grant was also authorized.
Budget of Sindh 2026-27 makes the province a most aggressive spending province of Pakistan amongst the four provinces of the country, as the total budget allocated has seen an increase from the previous budget year.
No New Taxation as Government Rationails the Existing Taxation System
One characteristic of the Sindh budget for 2026-27 is the lack of any new taxation system. The Sindh Finance Bill, introduced in the same period, does not introduce any new taxes that will affect the public and businessmen. However, the government has rationalized and improved the existing provincial taxation system.
This policy highlights the province’s desire to make money by improving compliance and broadening its scope, as opposed to burdening its taxpayers further with increased financial pressures.
Opposition Stands Firm as 1,600 Cut Motions Are All Turned Down
The opposition had made a strong bid against the provincial budget of 2026-27, putting forward over 1,600 cut motions in the budget session. Every single motion was turned down in the assembly.
Defense of ‘Mera Lyari’ Film Budget by CM
Speaking against the proposed cut on the ‘Mera Lyari’ film budget, Chief Minister Murad Ali Shah claimed that what makes Sindh unique among the provinces of Pakistan is that it was the first to create a full-length movie. According to him, the movie presents an optimistic picture of the Lyari locality, which has been considered notorious due to its criminal connections, and therefore deserved the full budget.
ALSO READ: NA Gives Green Light to FBR (Amendment) Bill 2026
MQM Super Tax Amendment Rejected in Assembly
As the Finance Bill was passed, an amendment was presented by Sabir Qaimkhani, a member of MQM, for the imposition of an eight percent super tax on agricultural income above Rs50 million per year. This amendment was meant to impose an extra tax burden on well-paid agricultural land owners.
Murad Ali Shah was against this amendment as he pointed out that the government itself had recently decreased the super tax on the income earned through farming because people who work on farms earn very little money. The MQM amendment was not adopted by the assembly and the tax structure for agriculture remained the same.
End of Session Following Finance Bill
The Speaker put an end to the session following the enactment of the finance bill as well as the budget of the Sindh province. The passing of the bill concludes the legislative process of the province with regards to the budgetary process currently underway, hence giving a mandate to implement the budget of Rs 3.652 trillion.
Without any new taxes, a streamlined revenue structure, and additional grants sanctioned, the Sindh budget for 2026-27 is now poised to pass from the floor of the provincial assembly into implementation – where performance of allocations will decide its real impact upon the 50 million people of the province.
Nayab Fatima is a media professional specializing in fact-based journalism, research, and analytical reporting on technology, telecom, aviation, and automobiles.
