Karachi: business community leaders say federal, Sindh budgets are ‘discriminatory'
In a joint statement, they expressed serious concerns over the sheer neglect and repeated denial of essential development funds to Sindh including Karachi at large.
They particularly highlighted the gross under-funding of the Sukkur-Hyderabad Motorway, a strategic infrastructure project vital for the economic connectivity of Sindh and Karachi. Despite the project's total cost exceeding Rs400 billion, the federal budget allocates a meagre Rs15 billion. This lacklustre allocation reflects a blatant disregard for Sindh's development priorities, especially considering that Karachi, Pakistan's commercial capital, would directly benefit from the completion of this motorway.
Similarly, they drew attention to the K-IV Water Supply Project, which has been in limbo for years despite being a critical lifeline for water-starved Karachi. Despite multiple promises made at the highest level, including by the Prime Minister himself, the federal government has once again failed to demonstrate commitment to the project, allocating only Rs3.2 billion out of the total required Rs150 billion. This allocation, they noted, is not only insufficient but also raises doubts about the government's sincerity in addressing Karachi's water crisis.
KCCI leaders further expressed their dismay after reviewing the Sindh budget 2025–26, noting that the provincial government, too, has failed to do justice to Karachi's needs. In the provincial development outlay, the Sindh Government has allocated a meagre Rs100 million for the K-IV project and a symbolic Rs15 billion for the Sukkur-Hyderabad Motorway. What's even more alarming is that this marks the third consecutive year in which not a single new mega development project has been announced for Karachi. The only gesture made was the allocation of Rs8 billion for the continuation of previously announced mega projects, most of which have been progressing at a snail's pace.
They said that it was a matter of grave concern that the K-IV project, despite being a vital lifeline for Karachi, continues to face inexcusable delays, even as the megacity's demand for water grows exponentially with each passing day. Shockingly, millions of gallons of water are being wasted and discharged into the sea, while the people of Karachi and its industrial zones remain parched and desperate for a sustainable water supply.
While appreciating the ongoing development of the new canal from Hub Dam, KCCI leaders noted that the project was originally scheduled for completion by August. With barely two months remaining, it is imperative that the government accelerates work on a war footing to ensure its timely execution.
They further recalled that an additional supply of 10 MGD (Million Gallons per Day) was promised for the SITE Industrial Area, and the relevant PC-I had already been approved— a move widely welcomed by the business community. However, the promised supply remains unfulfilled, leaving industries in a continued state of uncertainty.
They emphasized that such chronic underinvestment and budgetary tokenism towards Karachi will only deepen the city's infrastructure decay, worsen civic conditions, and erode business confidence. They stressed that the continuous denial of fair development funding for Karachi is not just a regional injustice but a national threat, as Karachi contributes the largest share of 67 percent revenue to the national exchequer, 90 percent to provincial kitty and 54 percent in terms of exports.
They called on both the federal and provincial governments to urgently revise their priorities and ensure that Karachi receives its fair share of development funding. The time for symbolic allocations and broken promises has long passed. Concrete action, substantial funding, and political will are now required to address the growing frustration of the citizens and business community of Karachi.
The prosperity of Pakistan is inextricably linked with the prosperity of Karachi, they said, adding that neglecting the megacity is akin to sabotaging the national economy. They demanded that before the approval of the federal and Sindh budgets, necessary amendments be made by significantly enhancing allocations for Karachi-centric development projects.
Copyright Business Recorder, 2025
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