• For third year, no new mega project announced for the country’s economic hub
• Meagre allocations for Sukkur motorway and K-IV projects deplored

KARACHI: Trade and industry leaders on Saturday strongly criticised the federal and Sindh budgets for the upcoming fiscal year, calling them deeply disappointing and discriminatory towards Karachi, the country’s economic nerve centre.

Businessmen Group (BMG) Chairman Zubair Motiwala and Karachi Chamber of Commerce and Industry (KCCI) President Jawed Bilwani expressed serious concerns over the sheer neglect and denial of essential development funds to Karachi and the province of Sindh as a whole.

In a joint statement, they also demanded that before the approval of budgets, necessary amendments be made by significantly enhancing allocations for Karachi-centric development projects.

Highlighting the gross underfunding of the Sukkur-Hyderabad Motorway, a strategic infrastructure project vital for the economic connectivity of Sindh and Karachi, they said despite the project’s total cost exceeding Rs400 billion, the federal government allocates a meagre Rs15bn for 2025-26, reflecting a blatant disregard for Sindh’s development priorities, especially considering that Karachi would directly benefit from the completion of this motorway.

The K-IV Water Supply Project has been in limbo for years despite being a critical lifeline for the water-scarce city of Karachi. Despite multiple promises made at the highest level, including by prime minister himself, the federal government has once again failed to demonstrate a commitment to the project, allocating only Rs3.2bn out of the total required Rs150bn, thus raising doubts about the government’s sincerity in addressing Karachi’s water crisis.

They stated that the Sindh government has failed to address Karachi’s needs adequately. In the provincial development outlay, the Sindh government has allocated a meagre Rs100 million for the K-IV project and a symbolic Rs15bn for the Sukkur-Hyderabad Motorway, amounts that are practically meaningless in terms of project execution.

Alarmingly, this marks the third consecutive year in which not a single new mega development project has been announced for Karachi, they said, adding that the only gesture made was the allocation of Rs eight billion for the continuation of previously announced mega projects, most of which have been progressing at a snail’s pace.

Despite being a vital lifeline for Karachi, the K-IV project continues to face inexcusable delays, even as the city’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, they deplored.

Appreciating the ongoing development of the new canal from Hub Dam, they noted that the project was initially scheduled for completion by August. With barely two months remaining, the government must accelerate 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 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 67pc revenue to the national exchequer, 90pc to the provincial kitty and 54pc 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.

Published in Dawn, June 15th, 2025