KARACHI: The City Council voted through the budget for Rs60.45 billion surplus presented by the Karachi Metropolitan Corporation for FY2026-27 in a majority vote, Sunday, with the budget presented by the mayor Barrister Murtaza Wahab. Total revenues are Rs60.451 billion while expenses are estimated to be Rs60.406 billion, resulting in a small surplus of Rs44.905 million.
The hotel tax is a new tax that has been added in the budget of KMC 2026-27 for Karachi, being the only new tax included in this budget with a collection target of Rs1 billion in the current fiscal year. The utility department tax and advertisements are expected to earn Rs5.95 billion in revenues for the budget.
Pensions Account for Majority of Budget Spending At Rs18.21 Billion
Pension payments take up the lion’s share of the KMC budget for 2026-27 Karachi, comprising even a financial rescue package for the retirees of KMC, for which Rs18.21 billion is allocated for. This figure highlights the persistent problem faced by the KMC of having a large number of retirees whose pensions take up an overwhelming share of annual spending before any developmental work can be funded.
Development Budgeting Focuses on Roads, Drains, and Solar Power
According to Mayor Wahab, the budget is designed to tackle the major civic issues facing Karachi. There is Rs8.59 billion of development budget available through the KMC’s own funding, while Rs9 billion comes under the District Annual Development Program.
Important budget allocation from the KMC Budget 2026-27 Karachi includes Rs800 million for drainage and Rs500 million for parks and horticulture. However, the overall development plan focuses on road maintenance, bridge and flyover repair, sewage system construction, urban forest, solar energy generation projects, construction of sports centers and hospitals, heritage buildings, and information technology improvements.
The budget includes development allocation for union councils, minority community grants, and solarization projects which is a sign of distribution of civic development initiatives among the city’s different areas.
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A More or Less Quiet Session with an Exceptional Outburst
As opposed to other years, the budget session for this year was conducted peacefully, devoid of any disturbances caused by shouting from the opposition or any form of protest staged by the opposition when Mayor Wahab delivered his speech.
But the calm did not last forever. At the start of the meeting when the mayor arrived in the council chamber, there was a brief exchange of slogans between treasury and opposition representatives in support of their own parties. Also, the meeting began with prayers for the souls of councilors’ relatives who had died as well as those of Rangers who died on duty.
Opposition: Rs60 Billion Budget Inadequate For a Megacity
This decision was taken in spite of intense opposition from the opposition parties. The leader of the opposition, Advocate Saifuddin of Jamaat-i-Islami, stated that an amount of Rs60 billion is entirely insufficient for such a megacity, and there was a need for at least Rs300 billion for the budget of the local government.
The PTI and JUI-Fazl members further strengthened the criticism by advocating increased financial autonomy to the union councils, special budget allocations to the underdeveloped regions, greater budgetary transparency, and equitable development budgeting among others.
The KMC budget 2026-27 Karachi is done; it has left the council hall and is ready for the tougher task of implementation. Over decades of failed implementation in Karachi, Karachiites know enough not to get too excited about any budget until it shows results.
Nayab Fatima is a media professional specializing in fact-based journalism, research, and analytical reporting on technology, telecom, aviation, and automobiles.
