Rs123.62bn earmarked for local government development in FY2025-26

The Sindh government has allocated a total of Rs123.62 billion for the Local Government & Housing, Town Planning (HTP) Department in its Annual Development Programme (ADP) for the financial year 2025–26.

The allocation encompasses a total of 756 development schemes, comprising 696 ongoing and 60 new projects, aimed at enhancing urban infrastructure and basic services. The total outlay includes Rs 45.54 billion received through Foreign Project Assistance (FPA).

Among the key sub-sectors, water supply and sanitation receives the largest share, with an allocation of Rs 68.89 billion, of which Rs 37.34 billion is provided through foreign assistance. This sub-sector comprises 228 schemes, 206 ongoing and 22 newly introduced, emphasizing the government's commitment to enhancing access to clean water and sanitation services throughout the province.

The roads sub-sector follows with a budget of Rs25.67 billion, covering 167 schemes (156 ongoing and 11 new), aimed at upgrading transportation infrastructure. Community support schemes have been allocated Rs10.76 billion for 267 projects, including 10 new ones.

The Sindh Solid Waste Management Board receives Rs8.55 billion, almost entirely funded by foreign assistance, and consists of five ongoing schemes. In contrast, sub-sectors such as buildings and community services are allocated Rs2.99 billion and Rs4.27 billion, respectively. The buildings sector includes 11 schemes, while community services covers 49. Health has been allocated Rs293 million for 12 ongoing schemes, while the livestock & fisheries sub-department receives Rs306.23 million for just two projects.

The housing and town planning sector has a budget of Rs1.49 billion, dedicated to three ongoing schemes, while the environment sector receives a comparatively modest allocation of Rs 57.39 million for two projects.

The Hyderabad package comprises nine schemes and is backed by Rs304.26 million. Information Technology receives Rs30 million for a single scheme. Speaking on strengthening sustainable local government systems in Sindh, the chief minister of Sindh, Syed Murad Ali Shah, during his budget speech, said that their commitment to responsive and empowered local governance has been backed by strategic fiscal support.

In the current financial year, he said, Rs147 billion has been so far disbursed to local councils (including 30% increase in salaries), while Rs24 billion has been given to the Karachi Metropolitan Corporation (KMC), Rs827 million for pensioners of the Sindh Local Government Board, a Rs3.9 billion special grant to the KMC for road infrastructure in Karachi, Rs38.8 billion development funds to districts (for drainage, water, roads), and Rs500 million for intra-city road maintenance in Hyderabad.

He said that they are reconstructing multiple parks across Karachi into inclusive parks to ensure accessibility and recreational spaces for everyone, including persons with disabilities. “With an allocation of Rs80 million, projects are already underway in Clifton Block-5, Saudabad, Malir, Landhi, and North Karachi,” he said.