KMC releases Rs60 billion budget amid political storm

Opposition calls plan ‘Karachi’s worst budget’, promises new censorship measure

KARACHI:

The Karachi Metropolitan Corporation (KMC) on Sunday approved its 60 billion rupee budget for the 2026-27 financial year after a heated municipal council session, with the mayor’s lawyer Murtaza Wahab describing it as a roadmap for continued development while the opposition dismissed it as grossly inadequate for Pakistan’s economic hub.

The budget was passed by majority vote after hours of debate, capping a session marked by heated exchanges between the ruling Pakistan People’s Party (PPP) and opposition members over Karachi’s finances, governance and development priorities.

Presenting the third budget of his term, Wahab said the financial plan was prepared with emphasis on infrastructure development, municipal services and employee welfare, despite financial and administrative challenges inherited from previous administrations. “We have tried to present a balanced budget based on the needs of the city while keeping infrastructure improvements and civic services at the forefront,” he told the council. The mayor added that party president Bilawal Bhutto Zardari had prioritized the development of Karachi with the aim of making it an international city.

Defending his administration’s performance, Wahab highlighted the projects completed during the past financial year, including reconstruction of Shaheed-e-Millat Road, Jinnah Bridge, Khalid Bin Waleed Road and Azim Pura flyover, as well as major road repairs, sewerage improvement and pavement works across the city.

He also announced a series of governance reforms for the coming year, including GIS mapping of all KMC properties, a fully digital payment system through e-transfer, introduction of pension cards for retired employees and issuance of municipal bonds – making KMC the first municipal authority in Pakistan to formally approve the financing instrument.

Wahab said the civic body had also expanded employee welfare by shifting salaries and pensions to the SAP digital system, extending health insurance to around 11,500 employees and ensuring that monthly salaries were paid before the first day of every month for the first time in almost 25 years.

He further highlighted the restoration of heritage buildings, expansion of parks and sports facilities, improvement of public hospitals, solarization of public lighting and environmental initiatives including urban forests and mangrove plantations. “The development works speak for themselves,” the mayor said, adding that the projects had improved civic services while preserving Karachi’s historical heritage.

After the budget was approved, Opposition Leader Saifuddin Advocate launched a scathing attack on the financial plan, calling it “Karachi’s worst budget” and arguing that the allocation of 60 billion rupees fell far short of the city’s needs. “The 60 billion rupees budget is a cruel joke. Karachi needs at least 300 billion rupees,” he said, asserting that a city that contributes the lion’s share of the country’s tax revenue could not function with what he called an insufficient allocation. Saifuddin wondered how any significant development could be undertaken when KMC’s projected revenue was only Rs 6.5 billion. He accused the Sindh government of retaining control of Karachi’s key financial institutions and resources, saying the city had been deprived of the funds needed to deal with its deteriorating infrastructure.

He also alleged that opposition members were prevented from fully debating the budget during the council session, describing the debates as having been “bulldozed.”

The Opposition leader further questioned why KMC had failed to recover Rs 850 million in unpaid dues from K-Electric, terming the financial plan “anti-Karachi” and arguing that it offered few solutions to the city’s long-standing civic challenges.

Saifuddin argued that despite contributing the overwhelming share of Sindh’s revenue, Karachi continued to receive insufficient financial allocation, making meaningful development impossible.

Despite a heated debate, the council approved the budget by majority. The opposition said it would again seek to file a no-confidence motion against Mayor Wahab after the budget session once it gets the required figures, signaling that approval of the budget on Sunday is unlikely to end the political fight over Karachi’s finances and governance.

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