CM Murad Ali Shah delivers speech amid protests by MQM lawmakers, who banged desks and shouted slogans
KARACHI: (UrduPoint/Pakistan Point News-June 13rd, 2025) Sindh Chief Minister Murad Ali Shah presented a Rs3.451 trillion budget for the fiscal year 2025–26 in the Sindh Assembly on Friday, announcing the abolition of five taxes and increases in salaries and pensions.
As the budget session began, CM Murad Ali Shah delivered his speech amid protests by MQM lawmakers, who banged desks and shouted slogans. PTI members also staged a protest while holding up photos of their party founder.
Salary and pension increases
The chief minister announced a 12% increase in salaries for government employees from grades 1 to 16, and a 10% raise for officers in grades 17 to 22. Pensions will see an 8% hike, while conveyance allowance for persons with disabilities has also been increased.
Abolition of five taxes
In a move to simplify the tax structure and reduce business costs, the Sindh government proposed abolishing five levies:
Professional tax
Cotton fee
Internet duty
Local cess
Drainage cess
Relief for vehicle owners
Under the Motor Vehicles Ordinance, the tax on commercial vehicles has been reduced by Rs1,000. The government has proposed ending mandatory third-party insurance for motorcycles and limiting stamp duty on third-party insurance to Rs50. Additionally, sales tax on third-party motor insurance is proposed to be reduced from 15% to 5%.
Lower property, mutation and inheritance fees
Mutation and sales certificate fees have been proposed to be reduced from Rs1,000 to Rs500. Similarly, inheritance and other certification fees have also been proposed to be cut to Rs500.
Small businesses with an annual turnover below Rs4 million will be exempt from sales tax. The government has proposed ending the "negative list" for services sales tax, meaning all services will be brought under the sales tax net — though essential and social services will remain exempt.
The general sales tax on services in Sindh is proposed to be reduced from 10% to 8%. For restaurant and catering businesses, the annual turnover threshold for tax exemption is proposed to be increased from Rs2.5 million to Rs5 million.
CM Shah called it an honour to present the FY2025–26 provincial budget and thanked the people of Sindh for their continued support of the Pakistan Peoples Party (PPP), noting the party received a stronger mandate in the last general elections.
He said that during challenging times, the nation remained united — with Parliament, the armed forces, the public, and the media playing key roles.
Shah said the budget allocation for law and order has been increased, resulting in a notable decline in crime, especially in street crimes across Karachi. Successful operations have been carried out in riverine areas, while several criminal attempts have been foiled and drug dealers apprehended.
The chief minister emphasized the province's war against narcotics, stating it’s not just about arresting criminals, but about protecting the youth.
Reforms and initiatives
He highlighted several reforms:
AI surveillance cameras on highways
Traffic system improvements
Over 25,000 new police recruitments
Enhanced healthcare for police personnel
Increased compensation under the Shuhada Package
Direct financial powers to SHOs and police stations
Education and youth training
The budget for education has been increased. CM Shah said that the government plans to train 35,000 students next year in IT and other skills for employment.
The budget for the Sindh Education Foundation has been enhanced, and with UNICEF’s assistance, thousands of schools have been renovated across the province.
