Karachi Metropolitan Corporation Unveils Budget for Fiscal Year 2025–26

By: Aziz Khatri

Karachi: In a significant move aimed at bolstering the city's development and infrastructure, Mayor of Karachi, Barrister Murtaza Wahab, presented the Karachi Metropolitan Corporation (KMC) budget for the fiscal year 2025–26 during a session of the City Council on Tuesday. Joined by Deputy Mayor Karachi Salman Abdullah Murad and Municipal Commissioner S.M. Afzal Zaidi, the mayor outlined the administration's achievements and future objectives.

In his budget speech, Mayor Wahab highlighted the positive outcomes of decisions made over the past two years, focusing on urban improvement, infrastructure restoration, and the eradication of encroachments. He expressed pride in the visible results of these initiatives, emphasizing the commitment to enhance the quality of life for Karachi's citizens.

"The Pakistan People’s Party (PPP) has consistently prioritized public service," Wahab stated. "We have demonstrated a commitment to delivering better services in Karachi. Despite financial challenges, KMC is positioning itself towards stability and sustainable growth."

The 2025–26 budget reflects the extensive efforts undertaken in the previous years, showcasing improved financial management practices and a focus on long-term city infrastructure projects. The budget has been curated in consultation with council members to align with the city's broader interests.

The mayor commended Chairman PPP Bilawal Bhutto Zardari for entrusting local government members with essential responsibilities. "We have made every effort to meet the expectations of both the chairman and the citizens of Karachi," he noted, reiterating the party's dedication to addressing urban issues.

Among the budget highlights, Wahab announced the integration of KMC employee salaries into the World Bank’s SAP system, aimed at ensuring timely payments and secure record-keeping of pensions for retired employees.

In a positive trend for financial self-reliance, the collection of Municipal Utility Charges and Taxes (MUCT) through K-Electric resumed after a hiatus, with Rs. 1.7 billion collected this year and projections of Rs. 3 to 3.5 billion for the upcoming fiscal year earmarked for infrastructure development.

Wahab outlined various development projects, including the construction of a 1.5 km road linking Lyari to the port and shipyard, extensive repair work on Hub River Road, and a 1.4 km overhead bridge on Korangi Causeway.

Notably, the mayor addressed long-standing dues for retired and deceased KMC and DMC employees, disbursing Rs. 600 million to clear all dues up to June 2018 using KMC's own revenues. Furthermore, the corporation has ventured into solar energy, allocating Rs. 220.2 million for the conversion of municipal buildings to sustainable energy sources.

Wahab also announced restoration plans for six historical structures including Empress Market and Muhammad Ali Hothi Market, with completed renovations on notable buildings such as Denso Hall and Frere Hall.

In a move to improve local service delivery, the PPP has increased the grants provided to Union Councils from Rs. 500,000 to Rs. 1.2 million, empowering local leaders to better serve their communities. Additionally, members attending council meetings will now receive a travel allowance of Rs. 2,000 per session.

As Karachi navigates its challenges, Mayor Wahab's budget presentation underscores a strong commitment to enhancing services, revitalizing historical landmarks, and fostering financial stability for the city's future.