KARACHI: Sindh Chief Minister Syed Murad Ali Shah has defended the province’s Rs3.652 trillion budget for the fiscal year 2026-27, citing fiscal constraints, federal revenue shortfalls, and a water crisis, while announcing ambitious development projects under a public-private partnership model. The budget, described by Mr. Shah as a responsible fiscal document, aims to manage economic uncertainty while focusing on large-scale infrastructure initiatives.

According to Chief Minister Sindh, the budget was crafted amid significant federal revenue shortfalls, with Sindh receiving Rs1.644 trillion in federal transfers up to May, resulting in a Rs441 billion shortfall. Despite expecting an additional Rs200 billion before the fiscal year ends, a gap of approximately Rs250 billion remains. The provincial government has set a tax collection target of Rs676 billion but anticipates collecting only around Rs624 billion, leading to a Rs52 billion shortfall. Despite these challenges, the government plans to maintain a robust development program, prioritizing the completion of ongoing projects. Key projects include the Keti Bandar Port, Sindh International Financial Centre, and a Green Energy Data Centre, all under the public-private partnership model. Additionally, the government is addressing the water crisis and pursuing anti-corruption measures while focusing on infrastructure and governance improvements.