In a powerful joint statement, Karachi’s top business leaders have rejected the federal and Sindh budgets for FY 2025-26, calling them inadequate, discriminatory, and detached from ground realities. They demand urgent amendments before final approval, warning that continued neglect of Karachi could derail Pakistan’s economic future.
Why the Outrage?
According to Zubair Motiwala, Chairman of the Businessmen Group (BMG), and Muhammad Jawed Bilwani, President of the Karachi Chamber of Commerce and Industry (KCCI), the budgets fail to offer meaningful support to micro and small businesses or to fund Karachi-centric development projects.
“Karachi contributes 67% to the national exchequer, 90% to provincial revenue, and over 50% of exports. Ignoring it is national sabotage,” said Bilwani.
Token Funds for Mega Projects
Leaders expressed frustration over the token allocations for vital projects:
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Sukkur-Hyderabad Motorway: Costing over Rs400 billion, it received only Rs15 billion from the federal government.
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K-IV Water Project: Despite critical need, only Rs3.2 billion has been allocated by the federal government, while the Sindh government allocated just Rs100 million—nowhere near the Rs150 billion required.
Karachi Left Without New Mega Projects
For the third consecutive year, Karachi has seen no new mega development project initiated. The Rs8 billion set aside is merely for dragging on existing projects, many of which are delayed or near deadlock.
Industrial Zones and SMEs Ignored
Shaikh Muhammad Tehseen, President of the Federal B Area Association of Trade & Industry (FBATI), criticized the total lack of direction in addressing Karachi’s industrial decay, power outages, and water shortages.
“Productivity is falling. Investor confidence is shaken. We need solutions, not slogans,” he stated.
“Good on Paper, Useless in Practice”
Muhammad Farooq Shaikhani, ex-President of the Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), added that digital reforms and SME policies in the federal budget are largely theoretical.
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New taxes on digital services and COD are seen as premature.
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No incentives or simplified schemes for SMEs.
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No relief from soaring utility bills or raw material costs.
What Business Leaders Want
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Immediate revision of both budgets to increase development funds for Karachi.
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Inclusion of new mega projects that address infrastructure and industrial needs.
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Real financial relief for micro, small, and medium businesses.
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Concrete plans for water, energy, and transport infrastructure.
Final Thoughts
The federal and Sindh governments must act swiftly. Karachi is not just another city—it is Pakistan’s economic engine. Ignoring its needs risks a nationwide economic crisis. The time for symbolic allocations is over; it’s time for real investment, real reform, and real results.