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Balochistan Posts Surplus While Sindh Accepts Deficit and Cuts Development Spending

Federal transfer shortfalls have pushed provinces to protect wages, trim new projects, prioritise ongoing schemes, lean on public‑private deals and introduce governance reforms.

Overview

  • Both provincial budgets were presented in their assemblies on Wednesday, June 17, with Balochistan unveiling a Rs1.089 trillion plan and Sindh tabling a Rs3.562 trillion package.
  • Balochistan projects a Rs45.6 billion surplus, estimates Rs1,134.9 billion in revenues, sets a Rs170 billion provincial revenue target, creates 5,000 government jobs and plans administrative reforms such as a Treasury Single Account and e‑payments to boost transparency.
  • Sindh accepts a near‑term shortfall — official estimates show a roughly Rs37 billion deficit or a larger gap when a Rs260 billion constitutional grant to the federation is treated differently — while cutting its annual development outlay by about 30% to roughly Rs720 billion and prioritising large PPP flagship projects like Keti Bandar and a Sindh International Financial Centre.
  • Both provinces avoided new taxes, approved a 7% rise in salaries and pensions and expanded targeted social relief measures, while officials blamed lower federal NFC transfers and higher FBR targets for squeezed fiscal room.
  • The budgets signal a shift toward protecting recurrent spending and finishing ongoing schemes, which could slow new infrastructure starts, increase reliance on PPP financing, and leave provincial delivery dependent on timely federal transfers and improved revenue collection.