Sindh 'proposes' 7% salary, 5% pension raise in budget 2026-27

The Sindh government has proposed a 7 per cent increase in salaries and a 5 per cent rise in pensions in the budget 2026-27, ARY News reported on Wednesday, citing sources.

During the cabinet meeting, officials reportedly discussed the financial challenges facing the Sindh Government in the upcoming fiscal year, noting that budgetary constraints have limited its ability to offer a larger increase in employees’ salaries.

Sources said the government had aimed to raise salaries by at least 10 per cent; however, prevailing financial pressures have made such an increase difficult in budget 2026-27.

Cabinet members asserted that lower-grade employees should receive a comparatively higher increase in pay to help offset the impact of rising living costs.

The proposals are currently under consideration and are expected to form part of the province’s budgetary measures for the new financial year.

Chief Minister Syed Murad Ali Shah, who also holds the portfolio of finance minister, will present Sindh budget 2026-27 before the provincial assembly.

The total outlay of Sindh budget 2026-27 is over Rs3.4 trillion.

According to Sindh budget 2026-27 proposals, it is recommended to allocate Rs2.56 trillion for non-development expenditure in the upcoming financial year.

The provincial government has reportedly decided not to include any new development schemes in the budget 2026-27. Instead, funding is expected to focus on 3,642 ongoing projects at the provincial and district levels, for which an allocation of Rs400 billion has been proposed.