Zubair Motiwala

Karachi Despite Generating 67% Revenue, Suffers From Crumbling Infrastructure, Water Shortages, Rampant Street Crime, KCCI
Business

Karachi Despite Generating 67% Revenue, Suffers From Crumbling Infrastructure, Water Shortages, Rampant Street Crime, KCCI

KCCI and BMG Demand Urgent Action on Karachi’s Civic Crisis KARACHI: Businessmen Group (BMG) Chairman Zubair Motiwala has called for an urgent, coordinated effort to address Karachi’s worsening civic and economic challenges, questioning why the country’s economic powerhouse continues to struggle with deteriorating infrastructure, water shortages, unreliable utilities, poor sewerage and rampant street crime despite contributing approximately 67% of federal revenue and 54% of national exports. Addressing a high-level meeting attended by trade and industrial association leaders, Motiwala demanded time-bound action, institutional accountability and measurable results. He stressed that Karachi needed practical solutions rather than repeated assurances. He warned that unreliable electricity and gas supplies, inadequate infrastructure and low industrial capacity utilisation were increasing production costs and weakening business competitiveness. Among his key demands were the early completion of the K-IV water project, a fully operational Safe City system, development of a Karachi Bypass to potentially divert 70% of heavy traffic away from the city, mandatory road-restoration guarantees, independent engineering audits, a business-friendly tax regime, transparent electricity billing, automatic consumer compensation for service failures, regionally competitive gas prices, digital land records and faster tax refunds. Motiwala proposed identifying five immediate priorities, assigning responsibility to relevant institutions and establishing clear deadlines and performance indicators. He also called for a unified platform representing Karachi’s trade and industrial associations to pursue corrective action collectively. Business Community Calls for a Unified Karachi Reform Agenda BMG Vice Chairman Anjum Nisar urged trade and industrial bodies to move beyond highlighting problems and develop a joint, actionable plan. He proposed producing a documentary showing Karachi’s ground realities, including alleged corruption, extortion, excessive taxation and deteriorating infrastructure. Nisar called for permanent solutions to water shortages, completion of K-IV and a practical fiscal model that provides local governments with adequate resources. He also recommended joint pre-budget consultations by the Karachi Chamber of Commerce and Industry (KCCI) and trade associations to develop common proposals. He emphasised coordinated representation before federal and provincial authorities, consistent follow-up and, if negotiations failed, collective protest to secure Karachi’s rights. BMG Vice Chairman Jawed Bilwani similarly urged business leaders to unite behind three or four decisive priorities. He called for urgent implementation of the Safe City project, stronger action against street crime and land grabbing, protection of public land, and transparent documentation and allocation of Karachi’s revenues to meet its civic and infrastructure needs. Bilwani also questioned repeated road excavation and reconstruction, alleged resale of public land, missing manhole covers and encroachments along the Lyari and Malir riverbeds. He warned that poor oversight and encroachments could worsen urban flooding risks. He proposed stronger business community oversight of public works contracts to prevent waste of taxpayers’ money and ensure construction quality. He also advocated a coordinated response to serious attacks on traders, including the possibility of a citywide shutdown if a trader was killed. KCCI Seeks Greater Representation in Government Institutions BMG Vice Chairman Mian Abrar Ahmed called for permanent, direct representation of the Karachi Chamber in key government bodies and public-sector institutions responsible for the city’s infrastructure, utilities and economic development. He identified the Sindh Assembly, Karachi Metropolitan Corporation (KMC) and K-IV project as important forums where business community participation could improve decision-making. Ahmed argued that Karachi’s substantial contribution to national revenue was not reflected in its influence over decisions affecting the city. He also highlighted corruption and bribery as persistent obstacles to business operations, maintaining that occasional consultations could not substitute for a formal role in policymaking. Backing a KCCI resolution passed on September 30, he said institutional representation would improve transparency, strengthen accountability and allow business leaders to communicate local challenges directly to policymakers. BMG Vice Chairman Tariq Yousuf also identified corruption and networks facilitating illegal activities as major contributors to Karachi’s deteriorating civic conditions. He questioned how public roads could be occupied by commercial establishments, traffic violations tolerated and illegal electricity connections maintained. Yousuf said the public ultimately paid the price through congestion, inconvenience and unequal access to essential services, including water, gas and electricity. He called for decisive action against the unlawful occupation of public spaces and misuse of civic resources. KCCI Proposes Committees and a Time-Bound Action Plan KCCI President Talat Mahmood proposed forming a representative committee of Karachi’s trade and industrial associations to prepare an actionable reform agenda within 15 days. He recommended issue-specific subcommittees, comprehensive terms of reference, regular progress reports and a united press conference involving industrialists, traders and small businesses to press federal and provincial governments for concrete action. Mahmood also called for a dedicated anti-corruption initiative to investigate complaints involving public offices, including the Sub-Registrar’s Office and Sindh Building Control Authority. He cited allegations of substantial unofficial payments despite prescribed official fees. He stressed that the approximately 91% electoral support received by BMG should translate into tangible results through unity, clear responsibilities and sustained engagement. Concluding the meeting, Mahmood proposed five committees comprising nominees from all participating trade and industrial associations. The committees would be required to finalise actionable recommendations and comprehensive terms of reference within 15 days, followed by regular progress reviews in coordination with KCCI and town associations. Leader of the Pakistan Cloth Merchants Association Ahmed Chinoy supported a more structured implementation framework. He proposed a 100-day action plan under a KCCI-led Implementation Committee, with priorities and responsibilities established within the first 15 days, engagement with government departments and firm commitments by day 30, and systematic monitoring from day 31 to day 90. Former KCCI President Iftikhar Ahmed Vohra also urged trade and industrial associations to adopt a joint resolution outlining shared priorities, practical measures and a coordinated strategy. KATI Highlights Sewerage, Pollution and Revenue Transparency Deputy Patron-in-Chief of the Korangi Association of Trade & Industry (KATI) Zubair Chhaya called for a coordinated, non-political campaign focused on implementation and accountability. He advocated establishing a dedicated authority to manage Karachi’s fragmented sewerage system, accelerating the Safe City project, coordinating road and utility works, digitising land records and taking action against encroachments, illegal parking and corruption. Chhaya warned that untreated municipal and industrial wastewater

Budget 2026 Reaction: Zubair Motiwala Questions Government's Growth Strategy and Tax Targets
Pakistan

Budget 2026 Reaction: Zubair Motiwala Questions Government’s Growth Strategy and Tax Targets

Budget 2026 Reaction from Pakistan’s business community has exposed a widening gap between government promises and industry expectations. Businessmen Group Chairman and former Chief Executive of the Trade Development Authority of Pakistan, Zubair Motiwala, delivered a blunt assessment of the federal budget, arguing that while a few measures deserve appreciation, the overall document fails to provide a convincing roadmap for economic revival. Addressing a press conference, Motiwala questioned whether the budget truly addresses the challenges faced by exporters, industrialists, and ordinary citizens. Budget 2026 Reaction Highlights Lack of Export Incentives Motiwala acknowledged that the Economic Survey indicated improved fiscal space and praised the country’s remittance performance, predicting that overseas Pakistanis could push annual remittances beyond 40 billion dollars. However, he expressed disappointment over the government’s failure to announce meaningful incentives for exports. According to him, the budget does not contain any clear strategy capable of substantially increasing exports, despite repeated official claims that export-led growth remains a national priority. He argued that exporters have once again been left searching for practical support measures. Fixed Tax Regime Still a Major Concern One of the strongest points raised during the Budget 2026 Reaction was the demand for a predictable fixed tax regime. Motiwala reiterated that businesses have consistently sought certainty in taxation. He maintained that authorities should collect taxes under a fixed framework rather than continuously changing policies that create uncertainty and discourage investment. He also criticized the government’s approach of placing additional burdens on existing taxpayers instead of expanding the tax base. According to him, Pakistan’s long-standing problem is not the absence of taxpayers but the failure to bring untaxed sectors into the formal economy. Energy Costs Remain the Elephant in the Room Energy prices emerged as another major concern. Although the government referred to energy-related initiatives, Motiwala argued that no practical details were shared. He questioned how the authorities intend to reduce costs associated with LNG and gas supplies. He also noted the complete absence of any significant discussion regarding electricity prices. For manufacturers already struggling with rising operational expenses, these unanswered questions could determine whether businesses survive or shut down. He warned that industries across the country are operating below capacity, reducing productivity and limiting employment opportunities. Refund Delays Continue to Hurt Industry The BMG chairman urged the government to immediately release pending refunds owed to exporters and businesses. He stated that billions of rupees remain tied up in delayed payments, depriving industries of working capital needed to maintain operations and pursue expansion. At a time when businesses are facing liquidity constraints, refund delays continue to undermine confidence in the economic system. Tax Relief Measures Win Limited Praise Despite his criticism, Motiwala acknowledged several positive decisions. He welcomed the elimination of tax on super tax collections, calling it a sensible move. He also appreciated the reduction in taxes imposed on salaried individuals and described lower taxes for the construction sector as encouraging developments that could stimulate economic activity. Construction, he argued, supports numerous allied industries and generates employment across various skill levels. Can the Government Achieve Its Ambitious Tax Target? Perhaps the most alarming question raised during the Budget 2026 Reaction concerned the government’s revenue ambitions. The federal government has set a tax collection target of 15 trillion rupees. Motiwala openly questioned how authorities plan to generate an additional 1.5 trillion rupees required to meet this objective. Without expanding the tax net and improving compliance mechanisms, he suggested that achieving such targets may prove difficult. The fear within the business community is that shortfalls could ultimately result in heavier taxation on already compliant sectors. Budget 2026 Reaction: Neither Good Nor Bad Summing up his assessment, Motiwala described the budget as neither entirely good nor entirely bad. He acknowledged selected relief measures but stressed that the absence of a comprehensive strategy for exports, energy affordability, industrial competitiveness, and tax expansion leaves many critical questions unanswered. His final message carried a warning policymakers may find difficult to ignore. If industries operate efficiently, people find jobs. When factories slow down, economic hardship spreads beyond boardrooms and factory floors to ordinary households. For Pakistan’s business community, the real test of this budget will not be in the announcements made today but in the results delivered over the coming months.

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