MQM’s opposition leader in the provincial assembly, Faisal Subzwari, alleged that the incumbent government had increased the urban-rural divide by ignoring Karachi, which was the economic hub of the country and contributed 71 per cent to the national exchequer. “Karachi is the capital of Sindh but the provincial government has allocated a meagre amount for it in the budget. They cannot ignore it and divert more development schemes and funds to the rural areas,” he said.
Subzwari also criticised the PPP ministers for calling it a “people’s friendly” budget, claiming that the budget was bureaucratic and would provide no relief to the common man.
PPP responds
Senior minister of the PPP, Nisar Ahmed Khuhro, said that his party had not ignored Karachi. He said the outgoing government had allocated around Rs50 billion for various projects in the city and the amount remained almost the same under the present government.
Khuhro said that the government was planning on a dual-tract system for circular railways with 24 stations in Karachi. The estimated cost of the project was Rs2.6 billion, which would be managed through a soft loan by the Japan International Corporation Agency. The project would be completed within three to four years.
According to the minister, Rs1,040 million had been allocated for the S-III project (sewerage treatment project) in Karachi and another mega project, K-IV, had been approved for which the provincial government had allocated Rs1,000 million to supply drinking water from River Indus to the citizens of Karachi. Moreover, a mass transit project was also being introduced to provide relief to commuters. “Some people are unnecessarily criticising us to gain cheap publicity which is very unfortunate.” He reiterated that the PPP wants to form a coalition government with the MQM and was waiting for their reponse.
MQM on tax generation
The MQM has rejected the provincial government’s decision to impose new taxes under the budget for the fiscal year 2013-14, instead suggesting that land reforms and tax on agriculture income were better avenues to make money.
Addressing a joint press conference at Sindh Assembly building on Wednesday, MQM’s parliamentary leader, Syed Sardar Ahmed, and opposition leader Subzwari said, “The government cannot trim down the budget deficit of Rs21 billion by simply imposing taxes on internet, broadband services, beauty parlours and restaurants. It can, however, generate a huge amount of Rs3 billion by imposing tax on agriculture income in the province. But, the government is deliberately ignoring this.”
Ahmed also expressed his party’s concern over the government’s decision to collect property tax, saying that the provincial government was exceeding its mandate by taking such a decision.
“The district government should collect the property tax.”
Ahmed stressed the need to set up a provincial finance commission comprising notable persons from various districts to distribute resources without discrimination.
Referring to Rs48 billion budget allocated for law and order, he said, “Good governance and law and order can prevail through drastic reforms in the government set -up and not only by allocating funds.”
“If the government is sincere about bringing good governance then it should implement the 60/40 per cent quota system in government jobs and appoint people purely on merit,” he stressed, referring to the constitutional binding according to which 60 per cent jobs are to be given to people living in rural area and 40 per cent to urban dwellers.
Published in The Express Tribune, June 20th, 2013.
COMMENTS (16)
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@moderatist: FBR collects 100% of the taxes so should it claim that all the tax revenue be spent on FBR?? Karachi "causes to collect" ~70% revenue but not contribute that much. Can you get it?
hope by diverting more funds to parts other than Karachi, will get the interior sindh out of the stone ages.
Dear youngster, you are treading exactly the same path that the West Pakistan did with East Pakistan. Do good to the rural people but not at the cost of Karachi. India has 14 metropolitan cities, Pakistan has just, to say, two, Karachi and Lahore. Neglect it and the entire country would appear to be another Uganda.
@Syed: If that were true then Karachi would have 50% seats in national as well as provincial assemblies. Here's a simple math for you Karachi represents around ~10% of total population of pakistan (~20 Million) Sindh Represents around ~27% of total population of Pakistan (48.6) So rest of the sindh still represents around 29 Million which is around 45% more than Karachi.
@moderatist: That is qouted on collection basis. If a company has its HQ in karachi and consolidates the tax ,collected from all over the country over there, it doesn't mean that Karachi actually pays that tax. Why Sindh Government has been objecting to the formula of recognition at point of generation and stressing point of collection formula? I mean if Government should obligate the corporate entities to keep a record of their tax collection from each province, you will get a clear idea how karachi generates "68% of total tax"
@ Mehran, Karachi has around 50% of of Sindhs population contributes i guess more than 80% to the provincial revenue, on any basis the share of Karachi is not less than 50 % in Sindh, so on which criteria has govt been alloting resources ??
The majority of Sindh's population lives in the rural areas. Therefore the majority of the budget should be allocated to them. MQM is crying foul because their control over government funds that can be skimmed off has been reduced.
@moderatist: Karachi is integral part of Sindh, and revenue is gauged in NFC would be the biggest tax paying city of Punjab, Do they cry foul? No, but irony is that some people are living in the biggest city of Sindh but again, they are still not ready to own this beautiful province, which has given them every thing.
This is cheap politics by MQM, when they were sharing power with PPP, they never utter a single word on Budget but now, using Mohajir card to create more hate and divide. This is not good politics. People of Sindh need a reform program, development, peace and progress, not violence and politics of hate. We should not let any party to fool us on the name of race, religion, and class, we should judge party on its service delivery and good governance. This is what Sindh needs the most. United we stand!
The only problem is that MQM is not in federal and/or provincial government. Once MQM get into government, the situation of Karachi may get better.
@aaaaa @Xnain
Karachi contributes 68% to the federal TAX revenue, 70% of the income tax revenue and 62% of the sales tax revenue to be precise. and it's not MQM that claims it, it's a fact and you need to admit it. People in their prejudice against Karachi cant digest that Metro buses in their cities exist because of the taxes that Karachiites pay.
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/09-Apr-2012/karachi-contributes-rs-16-billion-to-gdp-a-day/
http://business.onepakistan.com.pk/news/taxation/1089-karachi-chamber-of-commerce-demands-withdraw-unnecessary-amendments-in-sales-tax-federal-excise-income-tax-return-filing.html
"country and contributed 71 per cent to the national exchequer" who has fed them this 70% fantasy. Imagine a city closed 5 times a week due to strike,having only 10% of total population and contributing 20% of GDP. HOW ON EARTH it contributes 70% of total revenue?
Trust MQM
"....and contributed 71 per cent to the national exchequer."
He\s lying. But the politicians in general and MQM in particular are pretty good at it.
Why not they disclose the billions it needs to appease MQM time to time? But I am sure this year MQM will get lesser than what it used to get in the past 5 years.
Good going MQM.