KARACHI: The Sindh government allocated Rs1,018 billion under the Annual Development Programme for 2025-26, with a focus on rehabilitation, infrastructure, Karachi city projects, social services, and sustainable growth across the province.
While unveiling the annual budget for the upcoming fiscal year, Sindh Chief Minister Syed Murad Ali Shah, in his budget speech, said the almost 25pc increase in the development spending from the current year’s revised estimates of Rs817.19bn reflects the government’s commitment to sustaining development momentum while focusing on efficiency, equity, and economic recovery.
“The proposed allocations signal a move towards a climate-smart, inclusive, and regionally balanced development agenda”, he added.
According to the budget documents, the Provincial ADP is set at Rs520bn, complemented by Rs55bn of District ADP, Rs366.72bn of Foreign Project Assistance (FPA), and Rs76.28bn of Federal PSDP grants.
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The ADP included 3,642 schemes with a proposed allocation of Rs400.5bn, of which 82.6 per cent funds were allocated for 3,161 ongoing projects and 17.4 per cent for 481 new initiatives while special development initiatives have been allocated Rs119.5 billion.
In the ADP 2025-26, a significant allocation has been made for the education sector, which will receive Rs102.8bn.
The allocation for health is Rs45.4bn, for irrigation Rs84bn, local government Rs132bn, works and services Rs143bn, energy (including Thar Coal and renewable) Rs36.3bn, agriculture, livestock, fisheries Rs22.5bn, and transport and mass transit Rs59.7bn.
Under the government’s development strategy, special priority is given to flood rehabilitation, energy initiatives, and projects in Karachi city, as well as sustainable development goals such as clean water and sanitation.
The ADP and the development portfolio were primarily focused on the rehabilitation of flood-damaged schools and infrastructure to enhance access to education, the upgradation of healthcare facilities for improved service delivery, the promotion of climate-resilient agriculture, and the restoration of irrigation systems. Additionally, the provision of clean drinking water and sanitation was aimed at improving public health.
Strengthening road connectivity and urban infrastructure, including mass transit and Safe City projects in Karachi, Implementation of green energy initiatives and renewable energy projects, Poverty alleviation through nutrition support, community infrastructure, and low-cost housing are some other major focus areas.
Mr Shah said that the Planning and Development Department will fast-track approval of SDG-related projects with strict financial release strategies to ensure timely completion. The government also plans to extend the plan period of schemes expiring in June 2025 by one year to maintain continuity.
Presenting the performance review of 2024-25, he informed that the outgoing year saw the completion of 1,460 schemes, the highest in recent years, with significant progress in housing for flood-affected people- over 400,000 houses completed and more under construction.The total development expenditure reached Rs468bn, with 73pc utilisation of released funds, he stated.
Key projects
A sum of Rs83bn has been earmarked to support various projects, including Nabisar to Vajihar project, rice & wheat farming mechanisation, sewerage treatment plant, 5MGD desalination, 1000 EV buses, electric vehicle charging infrastructure and solarisation of schools.
Nabisar to Vajihar project: Construction commenced in February 2024, the project is on track to achieve its commercial operations date i.e. August 2025 to supply 45 cusecs of water, through a 60.7km pipeline to the IPPs in Thar Block I.
Rice & wheat farming mechanisation project: RFP has been launched in May 2025 for hiring of transaction advisors. Investor solicitation process is expected to be launched in the month of September 2025. The project will enable private parties to provide farmers with modern mechanised services to improve agricultural efficiency.
Sewerage treatment plant: The feasibility study of the project is currently ongoing and is expected to be launched for investor solicitation in November 2025. World Bank and ADB have committed $100m and $50m, respectively while the GoS will contribute $80m from its own sources.
5MGD desalination project: First sea water desalination project to explore the potential of desalination as a solution to Karachi’s water shortage. It will be launched for investor solicitation in the calendar year of 2025.
EV buses project: It comprises provision of 1,000 electric buses across Sindh through a phased implementation plan. Karachi will get 500 EV buses, with their full integration expected to complete in FY 2025-26.
EV charging infrastructure: The project will ensure strategic placement of EV charging stations at public spaces, enhancing user convenience and accelerating the shift to clean mobility.
Published in media, June 14th, 2025
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