Pakistan's Sindh slashes development spending while boosting perks for political elite

While the provincial government in Pakistan’s Sindh has cited a revenue shortfall to justify major cuts in development spending, newly released budget documents show a notable rise in executive expenditures -- including luxury vehicles and the purchase of a new helicopter for the chief minister.

The contrast was laid bare as Chief Minister Syed Murad Ali Shah presented the provincial budget for fiscal year 2025–26 in the Sindh Assembly on June 13. The budget proposes a total outlay of PKR 3,450 billion, with a projected deficit of PKR 38.45 billion.

One of the most striking revelations is the rollback in development spending during the outgoing fiscal year. Although PKR 493 billion had been earmarked for the Annual Development Program (ADP) in 2024–25, the revised estimates show actual spending fell to PKR 392 billion -- a shortfall of PKR 100 billion attributed to lower-than-expected revenue generation.

In sharp contrast, expenditures for the provincial executive -- encompassing the Chief Minister’s House, ministers, advisers, and senior bureaucracy -- have surged by nearly PKR 27 billion. The original allocation of PKR 48.64 billion has now ballooned to PKR 75.34 billion in the revised estimates for the outgoing year.

A sizable portion of this increase stems from procurement of transport. According to budget documents, the Services and General Administration Department is purchasing new vehicles and transport equipment worth PKR 7.26 billion -- surpassing the initial allocation of PKR 5.85 billion.

Among the most notable items is the planned acquisition of a new helicopter for the chief minister, costing PKR 5.67 billion. Moreover, PKR 220 million has been set aside for maintenance and repairs of the existing helicopter.

Further allocations include PKR 70 million for new vehicles for the Chief Minister’s House, whose overall revised expenditure has risen from PKR 1.32 billion to PKR 1.62 billion in the outgoing year. For 2025–26, the CM House has been allocated PKR 1.3493 billion.

Spending on vehicles for senior officials has also seen a rise. PKR 1.6 billion is being spent on luxury vehicles for top administrators, while the police administration has been allocated PKR 1.78 billion for new vehicles, in addition to a separate PKR 2 billion budget line for its operational expenses.

While development projects were scaled back due to a funding crunch, the steady increase in executive perks has raised eyebrows over the government’s spending priorities at a time when fiscal space remains tight.