KCCI slams federal, provincial budgets for ignoring Karachi

KCCI slams federal, provincial budgets for ignoring Karachi

Karachi, June 14, 2025 – The Karachi Chamber of Commerce and Industry (KCCI) has expressed deep disappointment over what it calls the continued neglect of Karachi in both the federal and Sindh provincial budgets for the fiscal year 2025–26.

In a joint statement, Chairman Businessmen Group (BMG) Zubair Motiwala and President KCCI, Muhammad Jawed Bilwani, strongly criticized the budgets as discriminatory and unjust towards Karachi, Pakistan’s economic engine. The KCCI leadership voiced serious concerns over the persistent denial of crucial development funds, describing it as a major blow to the city’s infrastructure and future growth.

One of the chamber’s major objections was the gross underfunding of the Sukkur-Hyderabad Motorway — a critical infrastructure project expected to bolster regional connectivity and directly benefit Karachi. Despite the project’s total cost exceeding Rs400 billion, the federal government has allocated a mere Rs15 billion in the latest budget, a move KCCI considers symbolic and insufficient.

Similarly, the K-IV Water Supply Project, a long-delayed lifeline for Karachi’s water-starved population, has again received inadequate federal support. Only Rs3.2 billion has been allocated out of the Rs150 billion needed, casting serious doubt on the federal government’s commitment to resolving Karachi’s water crisis. The provincial government’s contribution is also disappointing, with only Rs100 million earmarked for the same project.

Adding to the chamber’s frustration is the lack of any new mega development project for Karachi for the third consecutive year. The provincial budget merely includes Rs8 billion for ongoing projects and a symbolic Rs15 billion for the Sukkur-Hyderabad Motorway — both seen as insufficient to meet the city’s growing needs.

While acknowledging progress on the Hub Dam canal project, the KCCI urged the government to expedite work, especially with only two months left before its scheduled completion. They also pointed to the unfulfilled promise of an additional 10 MGD water supply for the SITE Industrial Area, despite approval of the relevant PC-I.

Chairman Zubair Motiwala and President Bilwani emphasized that chronic underinvestment in Karachi is not only unfair but poses a national risk. With Karachi contributing 67% of national revenue, 90% of Sindh’s revenues, and 54% of Pakistan’s exports, the KCCI warned that sidelining the city undermines the country’s economic stability.

They called on both federal and provincial governments to immediately revise their priorities and deliver tangible, well-funded development initiatives that Karachi rightfully deserves.