The Karachi Metropolitan Corporation (KMC) on Sunday approved its Rs60 billion budget for the 2026-27 financial year after a stormy City Council session, with Mayor Barrister Murtaza Wahab describing it as a roadmap for continued development while the opposition dismissed it as grossly inadequate for Pakistan's economic hub.
Budget Approval and Debate
The budget was passed by a majority vote after hours of debate, capping a session marked by sharp exchanges between the ruling Pakistan Peoples Party (PPP) and opposition members over Karachi's finances, governance and development priorities. Presenting the third budget of his tenure, Wahab said the financial plan had been prepared with a focus 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 according to the city's needs while keeping infrastructure improvement and civic services at the forefront," he told the council. The mayor added that party chairman Bilawal Bhutto Zardari had prioritised Karachi's development with the goal of turning it into an international city.
Completed Projects and Reforms
Defending his administration's performance, Wahab highlighted projects completed during the outgoing fiscal year, including the reconstruction of Shaheed-e-Millat Road, Jinnah Bridge, Khalid Bin Waleed Road and the Azim Pura Flyover, alongside extensive road repairs, sewerage upgrades 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-transfers, the introduction of pension cards for retired employees and the 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 monthly salaries are paid before the first day of each month for the first time in nearly 25 years. He further highlighted restoration of heritage buildings, expansion of parks and sports facilities, improvements at public hospitals, solarisation of street lights 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.
Opposition Criticism
Following the budget's approval, Opposition Leader Saifuddin Advocate launched a blistering attack on the financial plan, calling it "Karachi's worst budget" and arguing that the Rs60 billion allocation fell far short of the city's needs. "The Rs60 billion budget is a cruel joke. Karachi needs at least Rs300 billion," he said, contending that a city contributing the lion's share of the country's tax revenue could not be run on what he described as an inadequate allocation.
Saifuddin questioned how meaningful development could be undertaken when KMC's own projected revenue stood at only Rs6.5 billion. He accused the Sindh government of retaining control over Karachi's key institutions and financial resources, claiming the city had been deprived of funds needed to tackle its deteriorating infrastructure. He also alleged that opposition members were prevented from fully debating the budget during the council session, describing the proceedings as having been "bulldozed."
Financial Disputes and Future Moves
The opposition leader further questioned why KMC had failed to recover Rs850 million in outstanding dues from K-Electric, describing the financial plan as "anti-Karachi" and arguing that it offered little to address the city's longstanding civic challenges. Saifuddin maintained that despite contributing the overwhelming share of Sindh's revenue, Karachi continued to receive an inadequate financial allocation, making it impossible to undertake meaningful development.
Despite the heated debate, the council approved the budget through a majority vote. The opposition announced it would once again seek to table a no-confidence motion against Mayor Wahab after the budget session once it secured the required numbers, signalling that Sunday's approval of the budget is unlikely to end the political contest over Karachi's finances and governance.
