Sindh announces Rs. 364 billion development budget prioritizing infrastructure and climate resilience

KARACHI: The Government of Sindh has approved its Annual Development Programme for fiscal year 2026–27, channeling billions of rupees into infrastructure, healthcare, water management, and urban upgrades across the province, with a stated emphasis on completing carry-forward projects amid austerity pressures.

The ADP, which includes federal foreign project assistance, allocates the largest share, Rs. 107.54 billion, to local government, housing and town planning. Education follows at Rs. 50.12 billion, with transport and mass transit at Rs. 43.64 billion, works and services at Rs. 42.69 billion, irrigation at Rs. 40.98 billion, public health engineering and rural development at Rs. 40.86 billion, and health at Rs. 38.88 billion.

Fiscal Strategy

Officials described the budget as fiscally prudent, saying the government has introduced no new schemes for 2026–27. All projects are carry-forwards from the previous fiscal year’s ADP.

“The focus is on completing ongoing projects, safeguarding essential public services, and prioritizing strategically important flagship schemes to maximize development outcomes and ensure fiscal sustainability,” the document states, citing geopolitical uncertainty and domestic fiscal pressures.

Top Projects by Allocation

The single largest line item is the construction of a 600-bed hospital at Larkana Phase-I, allocated Rs. 5 billion as part of the United Nations Sustainable Development Goal No. 3 framework on good health. A medical complex near Razaqabad on the National Highway in Karachi’s Bin Qasim Town received Rs. 705.30 million under the same SDG.

The Lyari Transformation Package, a longstanding urban renewal initiative in Karachi, received Rs. 4.37 billion. The up-gradation of Larkana City’s drainage system was allocated Rs. 4 billion, while Thar Coal Rail Connectivity, including last-mile connections to Port Qasim, received Rs. 10 billion.

Other notable allocations include:

• Greater Karachi Sewerage Plan (S-III): Rs. 1 billion
• Sindh Safe Cities Project Phase-I, covering installation of 1,300 cameras in Karachi’s Red Zone and Airport Corridor: Rs. 900 million
• Improvement and Rehabilitation of Traffic Corridors of Karachi: 1.58 billion
• Modernization of Karachi’s Fire Brigade Department in line with international EN/NFPA standards: Rs. 3.84 billion
• Reconditioning of Internal Roads in Major Karachi Districts: 1.38 billion
• Improvement of Road Infrastructure in Five Town Municipal Corporations in District Central, Karachi: 795.29 million

Water and Drainage

The province committed substantial funds to address recurring flooding and drainage failures. The Rehabilitation of the Karo Gungro Out-fall Drain System and allied structures in Tando Muhammad Khan Division received Rs. 1.05 billion. Drainage network restoration in Shaheed Fazil Rahu, Matli and Tando Muhammad Khan was allocated Rs. 1 billion.

Cement concrete lining of the first two kilometers of the Nara Canal Head Reach received Rs. 1.25 billion. The revival of natural waterways, known locally as Dhoras, across Matiari, Sanghar and Tando Allahyar districts received Rs. 1 billion.

The Farash Complex Irrigation Network improvement, aimed at conserving water for Thar Coal operations and securing the Thar Coal Carrier Channel, was allocated Rs. 600 million.

Road Connectivity

Transport projects span urban and rural Sindh. A dual carriageway from Qamber to Shahdadkot via Behram spanning 31 kilometers was allocated Rs. 2.43 billion, while an additional carriageway from Larkano to Kambar via Beero Chandio at 21.6 kilometers received Rs. 1.49 billion.

A Ring Road dual carriageway from Hero Chowk to Hala Naka via Ghanghra Mori in Hyderabad district was allocated Rs. 709.17 million. Road works in Nawabshah–Saeedabad along Sim Nala received Rs. 4.34 billion for an 18.5-kilometer dual carriageway project.

The ADP also outlines expansion of more than 100 rural link roads across 23 districts and widening of key inter-city corridors including Umerkot–Ratnore (40 km), Thatta–Jhampir (40 km), and Warah–Mehar (29.8 km).

Energy and Social Protection

Off-grid Solar Home Systems for low-income families in Sindh received Rs. 1.78 billion, with on-grid equivalents allocated Rs. 1.89 billion — both under a provincial Special Initiative.

The MAMTA Programme, a maternal and child health cash transfer scheme, is being expanded to seven additional districts. The programme provides conditional cash assistance to pregnant women and mothers of children under two years of age.

Strategic Priorities

The development document outlines 10 guiding principles for the ADP, including promoting climate-resilient infrastructure, consolidating flood-damaged structures, upgrading irrigation systems to conserve water, ensuring clean drinking water and sanitation access, and supporting gender-sensitive development aligned with the SDGs.

The government also cited expansion of Bus Rapid Transit corridors, development of EV charging stations, multi-storey parking, and modern bus terminals as transport priorities under the ADP.

Sector-wide, Sindh plans to expand solar reverse osmosis plants, school-based water, sanitation and hygiene programs across 4,500 government girls’ schools, and rehabilitation of major barrages including Sukkur, Guddu and Kotri under the Sindh Barrages Improvement Programme.