MQM-P proposes direct funds for urban districts

In shadow budget, party suggests tax relief for salaried middle class

KARACHI:

Muttahida Qaumi Movement Pakistan (MQM-P) presented its "people-friendly" shadow budget for 2026-27 on Wednesday, demanding direct National Finance Commission funding for Karachi and other urban districts, immediate abolition of petroleum levy, and tax relief for the salaried middle class.

Senior leader and MNA Dr Farooq Sattar unveiled the proposals with members of the Muttahida Business Forum. Dr Sattar said Pakistan's economy remains stagnant and economic sovereignty is critical for national survival.

With purchasing power at record lows, he said families in Orangi and Lyari cannot afford basic medicine or flour. He argued the current tax structure burdens ordinary citizens while large landowners escape taxation, and called for shifting the tax mix to 52% direct and 45% indirect tax.

The budget proposes the federal government allocate Rs300 billion directly to Karachi from the Rs2.1 trillion it transfers to Sindh, citing Article 160 of the Constitution. Similar direct resource transfers were demanded for Larkana, Dadu, Sukkur, Hyderabad, Mirpur Khas and other cities, with Dr Sattar stating that provincial govts have no right over local funds.

Key economic targets include raising agricultural output from Rs2 trillion to Rs5 trillion, generating one million jobs, increasing textile exports, and lifting IT exports from Rs10 trillion to Rs15 trillion.

MQM proposed replacing the Benazir Income Support Programme with a "Benazir Income Generation Programme" focused on livelihood creation rather than cash handouts.