Government Likely to Raise Employee Salaries by 20%

The Sindh government is preparing its budget for the fiscal year 2025-26, with a proposed increase of up to 20% in salaries for government employees. The development budget is expected to exceed Rs 1,000 billion, reflecting a strong focus on infrastructure and social services.

As part of the new budget, Rs 65 billion has been earmarked for development projects at the district level—up from Rs 55 billion last year. The government has identified health and drinking water as top priorities, emphasizing improvements in essential services for the public.

According to officials, the new fiscal plan includes a 15% increase in allocations across all sectors. “We do not know how much the federal government will give us in the next financial year,” stated Sindh Chief Minister Murad Ali Shah, expressing concern over the uncertainty of federal transfers.

The overall size of the budget is projected to surpass Rs 3.5 trillion, with final allocations to be determined after consultations with relevant stakeholders. “The federal government has not asked Sindh for any suggestions regarding the budget, so they don’t know how much tax the federal government would collect in the next financial year,” Shah added.

Last year’s development budget stood at Rs 959 billion, indicating a steady year-on-year increase. The Sindh government appears committed to expanding its investment in public services, despite limited clarity on federal support.