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Express Tribune
18 hours ago
- Business
- Express Tribune
Businessmen reject both budgets
Listen to article After condemning both the federal and Sindh budgets for 2025-26, business leaders called for mandatory amendments before their approval. They said neither budget fulfills serious commitments nor offers direct financial relief to micro and small businesses. They demanded substantial revisions to increase allocations for Karachi-centric development projects. The prosperity of Pakistan is tied to Karachi's, they said, warning that neglecting the city amounts to sabotaging the national economy. Businessmen Group (BMG) Chairman Zubair Motiwala and Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani blasted the federal and Sindh budgets for sidestepping Karachi's needs. Condemning the budgets as deeply disappointing and discriminatory towards Karachi, the country's economic hub, they expressed serious concern over the continued neglect and denial of essential development funds to Karachi and Sindh at large. Motiwala and Bilwani warned that chronic underinvestment and token budget allocations will worsen the city's infrastructure, civic conditions, and business confidence. They stressed that Karachi contributes 67% to the national exchequer, 90% to the provincial revenue, and 54% of the country's exports. Denying it fair development funds is not just a regional injustice but a national threat, they lamented. They called on both the federal and provincial governments to revise their priorities and ensure Karachi receives its due share. The time for symbolic allocations is over. Karachi's citizens and business community now demand concrete action, adequate funding, and political will. The two leaders also highlighted underfunding of the Sukkur-Hyderabad Motorway, a key project for Sindh and Karachi's connectivity. Though the project's cost exceeds Rs400 billion, the federal budget allocates only Rs15 billion — an amount they said reflects disregard for Sindh's development priorities. Karachi, Pakistan's commercial capital, would benefit directly from the project's completion, making the lack of funding more concerning. Similarily, they pointed to the stalled K-IV Water Supply Project. Despite being critical for a water-starved Karachi, the project remains in limbo. Though top officials, including the prime minister, have repeatedly promised support, the federal government has allocated only Rs3.2 billion of the Rs150 billion needed. This minimal allocation, they said, casts doubt on the government's seriousness about solving Karachi's water crisis. KCCI leaders expressed disappointment with the Sindh Budget 2025-26, saying the provincial government has also failed to address Karachi's needs. In its development outlay, the Sindh government allocated only Rs100 million for the K-IV project and Rs15 billion for the Sukkur-Hyderabad Motorway — amounts they called meaningless for project execution. Alarmingly, they said, this marks the third year without a single new mega project for Karachi. The only move was an Rs8 billion allocation to continue earlier projects, most of which are progressing at a snail's pace. They criticised the ongoing delay in the K-IV project. Despite growing water demand, the city's main lifeline remains stalled. Meanwhile, millions of gallons are wasted and discharged into the sea, while residents and industries suffer water shortages. Federal B Area Association of Trade & Industry (FBATI) President Shaikh Muhammad Tehseen also criticised the inadequate allocations by both governments for Karachi's industrial sector, infrastructure, and water projects. The budget reflects no serious effort to resolve chronic industrial issues such as crumbling infrastructure, water scarcity, and power instability — all of which undermine productivity and investor confidence, he said. He urged both governments to revisit their budgetary decisions and allocate sufficient resources to support the revival of the industrial sector. Former president of the Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), Muhammad Farooq Shaikhani, said the federal budget includes digital reforms and SME policy initiatives that sound good on paper but offer no direct financial relief for micro and small businesses. He said the new taxes on digital services and cash-on-delivery (COD) are premature and will burden small enterprises. While the Sindh budget includes funds for infrastructure and social sectors, it does not prioritise industrial zones or SME support. Both budgets, he said, focus on macroeconomic goals but ignore grassroots business sustainability. There is a clear gap between the government's documentation drive and the actual incentives offered to small traders and manufacturers. Shaikhani added that both budgets fail to create a conducive environment for small businesses. The federal budget introduces new taxes — on digital services, cash on delivery (COD), and higher withholding rates — without providing simplified schemes or financial support for small enterprises. The Sindh budget also neglects trade infrastructure and offers no tax relief or subsidies for SMEs. It fails to address the rising cost of energy and unaffordable raw materials, he said. Without practical incentives or consultations with affected sectors, both budgets appear more focused on revenue collection than on industrial or trade development, he added.
Business Recorder
19 hours ago
- Business
- Business Recorder
Karachi: business community leaders say federal, Sindh budgets are ‘discriminatory'
KARACHI: Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani have strongly condemned the federal and Sindh budgets, describing them as deeply disappointing and discriminatory towards Karachi, the country's economic nerve centre. 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
