Sindh Budget 2026-27 Proposes 7% Salary and 5% Pension Raise

KARACHI: The Sindh government has proposed a 7% increase in salaries and a 5% raise in pensions for provincial government employees and retired workers in the Sindh Budget 2026-27.

The proposed relief package is part of the province’s annual budget for the next fiscal year. The salary and pension increases are expected to take effect from the start of the new financial year, subject to final approval and official notification.

According to the budget proposals, serving Sindh government employees will receive a 7% salary increase, while pensioners will get a 5% increase in their monthly pensions. The decision comes as employees and retired workers continue to face pressure from inflation and rising living costs.

Sindh Chief Minister Murad Ali Shah presented the provincial budget in the Sindh Assembly while also holding the finance portfolio. The budget has been framed at a time when provinces are under pressure to balance development needs, employee-related expenses, and fiscal discipline.

The provincial budget outlay has been reported at around Rs3.562 trillion for fiscal year 2026-27. The government has also indicated that the budget does not include new taxes, a move aimed at avoiding additional pressure on citizens and businesses.

Key Budget Proposals

 

 

The salary increase will apply to provincial government employees, while the pension raise will benefit retired employees receiving pensions from the Sindh government. Further details, including department-wise allocations and implementation rules, are expected to be clarified through official budget documents and follow-up notifications.

The budget also comes after the federal government proposed salary and pension relief in its own budget for 2026-27. Provincial governments usually announce separate salary and pension measures based on their fiscal space and expenditure priorities.

Employee unions and pensioners had been demanding a higher increase due to continued financial pressure on households. However, the government appears to have kept the relief package limited while focusing on maintaining overall budget discipline.

The final impact of the proposed increase will depend on how the Sindh Finance Department implements the raise, including whether it is issued as an ad hoc relief allowance or adjusted through another mechanism. A formal notification is expected after budget approval.

For pensioners, the 5% increase will provide limited monthly relief, though many retired employees had expected a larger adjustment because of higher utility bills, food prices, and medical expenses.

The Sindh government is also expected to continue spending on development schemes, health, education, local government, and infrastructure projects during the new fiscal year. Detailed allocations will determine how much funding is available for ongoing and new development projects across the province.

The budget will now move through the provincial assembly process before approval. Once passed, the salary and pension increases will be implemented according to the official schedule issued by the provincial government.

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