Karachi’s claim to being Pakistan’s industrial and financial heart has long been weakened by shifting federal priorities, a steadily shrinking Public Sector Development Programme (PSDP) footprint, and a persistent political vacuum that leaves the city largely dependent on provincial discretion.
The year was 2021. Monsoon rains had returned, and so had political confrontation. The Pakistan Democratic Movement (PDM) was locked in open conflict with Prime Minister Imran Khan’s PTI government, which critics accused of narrowing democratic space, marginalising dissent and tightening control over the media.
At the centre of this standoff stood opposition leader Shehbaz Sharif. During a high-profile three-day visit to Karachi in August that year, he met industrialists, traders, politicians, intellectuals and journalists, positioning himself as a national leader attuned to the city’s long-standing grievances.
As the visit concluded, Sharif invited a small group of journalists for tea at a local hotel. The conversation ranged widely — from foreign policy to democratic erosion — but it was his unusually candid remarks on Karachi that stood out.
He spoke of neglect, decay and lost potential. He spoke of ownership.
“When I was chief minister of Punjab, I realised that funding has never really been the issue,” Sharif said at the time. “Karachi only needs political will. The federal government would have to invest more in Karachi each year than the Sindh government does — and do so for 15 or even 20 years. Only then can this city be fixed.”
The confidence was compelling. Few questioned the arithmetic or the political feasibility. For many in Karachi, it felt like recognition at last — a promise that the country’s leadership would finally take responsibility for its largest city.
Four years later, that optimism has largely evaporated.
Despite serving 16 months as prime minister between 2022 and 2023, and returning to office again in March 2024, Shehbaz Sharif’s vision for Karachi has yet to translate into meaningful change on the ground. The city’s infrastructure remains fragile, its water crisis unresolved, its transport systems incomplete.
When asked why Karachi’s revival has stalled, Planning Minister Ahsan Iqbal pointed instead to structural shifts in public finances. According to him, the federal government’s share of the national development budget has fallen from 50 per cent to 25pc, while provinces now control the bulk of development spending.
“Despite this, the Centre is still contributing through projects such as the Green Line extension, the SITE area development project and the K-IV water scheme,” he said.
Former ministers involved in Karachi’s planning disagree. For them, the problem has never been fiscal space — it has been political prioritisation.
Asad Umar, who oversaw federal development initiatives during the PTI government, argues that economy-linked projects for Karachi were not only conceived but pushed to advanced stages before being abruptly stalled.
“If a sports stadium in Narowal or a motorway entirely within Punjab can be funded under the federal PSDP, why is there no room for Karachi’s critical projects?” he asked. “Karachi isn’t a provincial favour. It’s the country’s largest revenue base and export hub.”
Umar points to the Karachi Transformation Plan, under which the Green Line BRT’s first phase was completed, road and drainage work was undertaken, and the K-IV water project was taken over entirely by the federal government with a clear completion timeline.
Other projects — a modern, elevated Karachi Circular Railway and a dedicated freight rail corridor to divert cargo traffic from city roads — had reached bidding or advanced design stages before progress stalled.
Budget figures underscore the disconnect between rhetoric and resources. This year, just Rs3.2 billion has been allocated for K-IV, a fraction of the estimated Rs40bn annually required to keep the project on track. Beyond a limited BRT extension, there is little evidence of new federal infrastructure commitments for the city.
This gap has not gone unnoticed.
Even MQM-P, a PML-N ally at the Centre, acknowledges the imbalance. Senior leader Syed Aminul Haq notes that while some flyovers, road rehabilitation and fire tenders were delivered, most were initiated under the previous government.
“Karachi generates around 66pc of federal revenue,” he said. “That alone justifies sustained federal investment. Without it, the city’s problems will keep resurfacing.”
Concern is also growing among Karachi’s business community. A group of leading industrialists and experts has recently formed a committee to propose solutions to the city’s governance and infrastructure breakdown, stressing that federal disengagement threatens national economic stability.
Businessman Hanif Gauhar, who is part of the effort, said their recommendations had been shared directly with Speaker Ayaz Sadiq and the BOI minister.
“This city generates the most revenue, yet even basic infrastructure is neglected,” he said. “An MNA’s constituency gets Rs38bn. Imagine what Karachi could look like if even a fraction of that attention was given here.”
City Council opposition leader Advocate Saifuddin believes the Centre has effectively offloaded responsibility onto Sindh.
“Projects that clearly fall under the federal domain remain incomplete or ignored,” he said, citing the prime minister’s recent Karachi visit, which was limited to inaugurating facilities at a railway station.
Of the Rs1.1 trillion federal PSDP, Karachi receives just Rs40–50bn, he added — far below what population or revenue contribution would justify.
“Lahore continues to receive disproportionate attention, while Karachi suffers systemic neglect,” he said.
Even within PML-N circles, there is quiet acknowledgement that Karachi has slipped down the party’s priority list. Former Karachi chapter general secretary Nasiruddin Mahmood, who quit the party in 2025, describes a steady withdrawal from Sindh politics.
“No senior PML-N leader campaigned seriously in Sindh in 2024,” he said. “Shehbaz Sharif even withdrew from his Karachi seat. The message to party workers was devastating.”
The result was predictable: despite a political vacuum in the city, PML-N failed to win a single seat, while MQM and PPP filled the space.
Karachi’s crisis, then, is not just about budgets or bureaucratic delays. It is about ownership — and the uncomfortable reality that while every government acknowledges the city’s importance, few are willing to commit the political capital needed to fix it.
Until that changes, Karachi’s revival will remain more slogan than strategy.