MQM-P seeks direct federal transfer of Karachi’s NFC share

KARACHI: Muttahida Qaumi Movement-Pakistan (MQM-P) on Wednesday called for Karachi’s share under the National Finance Commission (NFC) Award to be transferred directly by the federal government in the next fiscal year instead of passing through the Sindh government.

Speaking at a press conference while presenting the party’s shadow budget alongside business leaders and other party colleagues, senior MQM-P leader Dr Farooq Sattar said a fair formula was needed for distributing financial resources among major cities, other urban centres and rural districts. He said such a mechanism should reflect each area’s contribution to national revenue, its population and its specific needs.

Dr Sattar said Sindh was expected to receive about Rs2,100 billion from the Centre in the coming fiscal year under the NFC Award, and estimated Karachi’s share at around Rs450 billion. He said MQM-P believed the amount meant for Karachi should be sent straight to the city by the federal government rather than through the provincial administration, adding that the same approach should be extended to other urban centres and districts.

He said the Constitution empowered the president and prime minister to do so, citing Article 107, Clause (2), Sub-Clause (b).

Criticism of Sindh government

Dr Sattar also criticised the Pakistan Peoples Party’s 18-year rule in Sindh and held it responsible for governance shortcomings in the province. He questioned how the large sums received by the provincial government from the federal government over the years had been used.

“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.

Shadow budget proposals

According to Dr Sattar, the MQM-P shadow budget contains 10 major interventions and six policy pillars aimed at reducing the budget deficit while increasing state revenues. He said the party supported raising tax collection from large industrialists and wealthy landowners instead of imposing additional pressure on ordinary people.

He called for the immediate removal of the petroleum levy, describing it as an added burden on the public. He also said Pakistan’s economic sovereignty was a matter of national survival and criticised what he called an unequal taxation system.

Dr Sattar said urban areas were carrying a heavy tax burden while northern regions continued to enjoy tax exemptions. Referring to disparities in the tax structure, he said school teachers earning between Rs60,000 and Rs70,000 a month were paying income tax, while large landowners were contributing little or nothing in taxes.

He also argued for stronger representation of workers and the middle class in parliament, saying educated young people should represent farmers, labourers and middle-income groups instead of wealthy elites.

Responding to a question, Dr Sattar said Pakistan needed to improve its water resources, energy production, and electricity and gas infrastructure. He also proposed replacing the Benazir Income Support Programme with a Benazir Income Generation Programme focused on creating lasting earning opportunities rather than making people dependent on government assistance.

He further urged the State Bank of Pakistan to reduce the policy rate, saying the MQM-P’s shadow budget had been prepared as a people-friendly financial plan for the country’s 250 million people.