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%, while those in grades 17 to 22 will see a 10% 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%, while health and home departments have received increases of 11 and 15.5%, respectively. The energy department’s allocation has also been enhanced by 16.5%, with the irrigation budget now standing at Rs43 billion.

The agriculture sector has received an additional Rs16 billion, while Rs132 billion has been earmarked for local government development. “The non-development budget of Works and Services has been rationalised, but the development side has seen a significant boost,” Mr Shah noted.

Housing for flood victims

Highlighting post-disaster recovery, the chief minister said the province has completed 500,000 houses for flood-affected families, with 850,000 nearing completion and another 1.3 million under construction.

“This housing initiative has drawn global appreciation. It’s not just about homes — it’s about restoring lives,” he remarked.

Condemns Israel, opposes tax on solar panels

During the press conference, Mr Shah also condemned what he termed “state terrorism” by Israel against Iran. “We passed a resolution in the provincial assembly against Israel’s aggression, but opposition members disrupted the proceedings. Humanity and peace are universal values — they shouldn’t be politicised,” he said.

The CM further warned that the Pakistan Peoples Party (PPP) would not support the federal budget if an 18% tax is imposed on solar panels, stating, “We strongly oppose the imposition of any such tax.”

He added that the PPP's support for the federal budget is conditional upon the proper implementation of development projects. “If these projects are not executed effectively, we will not back the budget,” he asserted.

Flanked by senior ministers including Sharjeel Memon and Nasir Hussain Shah, the chief minister reiterated his demand that the federal government fulfil its financial obligations to provinces under the NFC award. “Only then can provinces function efficiently and uphold their development commitments,” he concluded.