KARACHI — Leading business associations have unanimously rejected the federal and Sindh budgets for 2025–26, describing them as inadequate, discriminatory, and oblivious to the economic and infrastructure needs of Karachi, the country’s financial backbone. They demanded urgent amendments, warning that continued neglect of the metropolis equates to undermining Pakistan’s economy.
In a joint statement, Businessmen Group (BMG) Chairman Zubair Motiwala and Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani strongly criticised both governments for ignoring the pressing needs of the city, especially its small business sector. They expressed deep disappointment over the lack of meaningful allocations for Karachi-focused development and infrastructure projects.
“Karachi contributes 67% to the national exchequer, 90% to Sindh’s revenue, and 54% of Pakistan’s exports. Yet it receives only token allocations. This is not just regional injustice — it’s a national threat,” the statement said.
They stressed that both federal and provincial governments must re-evaluate their priorities, demanding adequate funding, timely execution of projects, and sincere political will.
Inadequate Funding for Key Projects
Business leaders pointed to the gross underfunding of the Sukkur-Hyderabad Motorway, a project crucial for enhancing Karachi’s connectivity. Despite an estimated cost of over Rs400 billion, the federal government allocated just Rs15 billion, which they said was grossly insufficient to ensure progress.
Likewise, the long-delayed K-IV Water Supply Project, intended to address Karachi’s severe water shortage, was once again shortchanged. The federal budget earmarked only Rs3.2 billion out of the required Rs150 billion, despite repeated assurances from top leadership. The Sindh government allocated a mere Rs100 million for the same.
“These token allocations raise serious doubts about the government’s commitment to resolving Karachi’s water crisis,” Motiwala and Bilwani said.
They noted that 2025 marks the third consecutive year without the announcement of a single new mega project for Karachi, with only Rs8 billion set aside for slow-moving ongoing projects.
Concerns Over Industrial Neglect
Federal B Area Association of Trade & Industry (FBATI) President Shaikh Muhammad Tehseen said both budgets fail to address Karachi’s industrial challenges, including deteriorating infrastructure, power outages, and water shortages.
“These persistent issues hurt productivity, discourage investment, and threaten the viability of industries. Yet, both budgets are silent on practical solutions or meaningful support,” he stated.
Tehseen urged the authorities to revise allocations and prioritise the revival of Karachi’s industrial zones, warning that the current trajectory would further erode investor confidence.
SMEs and Traders Left Behind
Criticism also came from Muhammad Farooq Shaikhani, former president of the Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), who argued that neither budget offers tangible relief for micro and small enterprises.
He highlighted that while the federal budget talks of digital reforms and SME policies, it simultaneously imposes new taxes on digital services and cash-on-delivery (COD) transactions, burdening small traders already grappling with inflation and high operating costs.
“These steps are premature and harmful. Without any corresponding support or simplified tax schemes, the policies appear focused on revenue extraction, not growth,” he said.
Shaikhani also criticised the Sindh budget’s lack of provisions for trade infrastructure, noting it failed to offer tax relief, subsidies, or industrial zone development, especially for small manufacturers.
He added that rising energy prices and raw material costs continue to cripple small businesses, and both governments failed to consult stakeholders or offer concrete support mechanisms in their budget plans.
Call for Revisions Before Approval
The business community collectively called for mandatory revisions before the budgets are approved, urging the federal and provincial governments to align their spending plans with economic realities, particularly those affecting Karachi and small businesses.
“The time for symbolic allocations is over. Karachi’s development cannot be sidelined. Without concrete action, the budgets will only widen existing disparities and deepen economic challenges,” the business leaders concluded.
