KARACHI(National Times)- Muttahida Qaumi Movement-Pakistan (MQM-P) has demanded that Karachi’s Rs450 billion share under the National Finance Commission (NFC) Award be transferred directly to the city in the next fiscal year instead of being routed through the Sindh government.
Presenting the party’s shadow budget alongside business leaders and colleagues on Wednesday, senior MQM-P leader Dr Farooq Sattar said it was time to devise a fair mechanism for the distribution of financial resources among major cities, other urban centres and rural districts, based on their respective contributions to national revenue, population size and the specific needs of their areas.
“We estimate that Sindh is expected to receive around Rs2,100 billion from the Centre in the next fiscal year under its NFC share. Of the Rs2,100bn allocated under the NFC Award, Karachi’s share amounts to approximately Rs450 billion.
“We believe these funds should be transferred directly to Karachi by the federal government, rather than being routed through the Sindh government. The same principle should apply to other urban centres and districts as well.
“The Constitution grants this authority to the President and the Prime Minister. This is clearly stated in Article 107, Clause (2), Sub-Clause (b) of the Constitution,” he said.
He strongly criticised the Pakistan Peoples Party’s (PPP) 18-year rule in Sindh, holding the party responsible for governance failures and demanding an explanation of how the substantial funds the provincial government has received from the federal government over the years were spent.
“The people of this province want to know where the Rs25,000bn received over the past 18 years was spent and how those funds were utilised,” he said.
“We [Karachiites] may have been treated as stepchildren, but the government should also tell the people of Dadu, Thatta, Jacobabad and Larkana what they have received in return. So it’s not about political point scoring; it’s about justified distribution of resources as per requirement and contribution of the areas”, he added.
He said the MQM-P in its shadow budget had proposed 10 major interventions and six policy pillars aimed at reducing the budget deficit while increasing government revenues. He said that the party was advocating for increased tax collection from large industrialists and wealthy landowners rather than placing additional burdens on ordinary citizens.
The MQM-P leader called for the immediate abolition of the petroleum levy, describing it as an extra burden on the common man.
He said that Pakistan’s economic sovereignty was a matter of national survival and criticised “an unequal taxation system”. The urban areas, he said, face significant tax burdens while northern regions enjoy tax exemptions.
Highlighting disparities in the tax structure, he noted that school teachers earning between Rs60,000 and Rs70,000 per month are paying income tax, whereas large landowners contribute little or no tax revenue.
He also stressed the need for greater representation of workers and the middle class in the parliament, arguing that educated young people should represent farmers, labourers and middle-income groups instead of wealthy elites.
The MQM leader said Pakistan must focus on improving water resources, energy production, electricity and gas infrastructure.
To a question, he proposed replacing the Benazir Income Support Programme (BISP) with a “Benazir Income Generation Programme” focused on creating sustainable earning opportunities instead of making people rely on government funds.
Dr Sattar also urged the State Bank of Pakistan to lower the policy rate, saying the MQM’s shadow budget had been designed as a people-friendly financial plan for the country’s 250 million people.
