This is not just another government report filled with dry statistics. It is the story of millions of people living in Karachi\u2014the economic heartbeat of Pakistan\u2014and Hyderabad, Sindh\u2019s second-largest city. It is the story of middle-class fathers who work tirelessly, pay taxes that help keep the country running, and then return home through broken roads to families struggling for something as basic as clean drinking water.<\/p>\n
For years, federal indifference, the provincial government’s obsession with centralized control, and the helplessness of local governments have combined to push these cities into a deep crisis. Today, Karachi and Hyderabad seem to have no real guardians.<\/p>\n
If one looks through Sindh\u2019s development budgets from 2008 to 2026, a disturbing picture emerges. Over these 18 years, hundreds of billions of rupees\u2014some estimates suggest even trillions\u2014have been allocated in the name of Karachi\u2019s development and local government projects.<\/p>\n
Every June, government officials proudly announce massive allocations for Karachi. Television channels flash the figures across their screens, and newspapers publish glowing headlines. Yet a simple question remains unanswered:<\/p>\n
If all that money was truly spent on Karachi, why does the city still depend on international lenders such as the World Bank and the Asian Development Bank (ADB) for buses, sewerage systems, water projects, and waste management?<\/strong><\/p>\n That is where the real tragedy begins.<\/p>\n The taxes paid by millions of citizens appear in budget books as Karachi\u2019s rightful share. Yet much of that money seems to disappear into bureaucratic delays, political favoritism, unreleased funds, and projects that exist only on paper.<\/p>\n Every year, impressive figures are announced for Karachi\u2019s development. However, the results on the ground tell a completely different story.<\/p>\n A significant portion of the provincial budget is spent on non-development expenses rather than actual infrastructure. Years of politically motivated hiring in institutions such as the city administration and water utility have created enormous salary and pension obligations. As a result, only a fraction of available funds remains for improving roads, water systems, and public services.<\/p>\n Projects are approved and funds are allocated on paper, but many allocations are never fully released. By the end of the financial year, funds often lapse or remain trapped in bureaucratic procedures. In some cases, projects exist only in files while citizens continue to suffer deteriorating infrastructure.<\/p>\n The federal government argues that it transfers Karachi\u2019s share through the NFC Award to Sindh. The provincial government, however, distributes these resources according to its own priorities across the province.<\/p>\n Whenever the federal government attempts to directly fund major projects such as Green Line or K-IV, political disputes over provincial autonomy quickly emerge. In the end, it is the people of Karachi and Hyderabad who pay the price.<\/p>\n As provincial resources fail to deliver essential services, authorities increasingly rely on foreign loans to finance major projects.<\/p>\n The irony is painful. Citizens do not receive the full benefit of the taxes they already pay, and they will eventually bear the burden of repaying the loans that are now being taken in their name.<\/p>\n When repayment time arrives, governments will likely turn once again to taxpayers, businesses, fuel consumers, and electricity users to cover the costs. Future generations will inherit not only the infrastructure but also the debt attached to it.<\/p>\n Many Karachi residents remember a different era.<\/p>\n Between 2001 and 2010, the city government operated under a relatively empowered local government system. Water supply, planning, waste management, transport, and development functions were largely coordinated under a single city administration.<\/p>\n Subsequent local government laws and amendments changed that structure dramatically. Many of the most important and resource-rich departments were removed from the authority of elected city representatives and placed directly under provincial control.<\/p>\n The consequences have been severe.<\/p>\n In the past, elected local leaders had to answer directly to voters. Today, many key institutions are managed by bureaucrats whose careers depend more on provincial authorities than on public satisfaction.<\/p>\n The mayor\u2019s office and municipal authorities have increasingly become symbolic institutions with limited control over revenue and development resources. Important taxes and funding streams remain concentrated at the provincial level.<\/p>\n Previously, one administration could coordinate roads, water lines, and other services. Today, one agency may pave a road only for another agency to dig it up weeks later for utility work. The result is wasted public money, endless delays, and frustration for residents.<\/p>\n Many of the visible mega-projects in Karachi and Hyderabad are being financed through foreign borrowing.<\/p>\n Projects such as the CLICK initiative, water and sanitation upgrades, waste management programs, and major Bus Rapid Transit (BRT) systems have relied heavily on loans from international financial institutions.<\/p>\n The Red Line BRT, financed with international support, has faced repeated delays and rising costs. Similarly, the Yellow Line and other major infrastructure projects depend heavily on external financing.<\/p>\n Even critical water projects such as K-IV and Hub Canal upgrades continue to rely on outside funding rather than sustainable local financing.<\/p>\n If Karachi struggles, Hyderabad faces even greater neglect.<\/p>\n Many of Hyderabad\u2019s major water, flood protection, and infrastructure projects rely heavily on externally funded programs. Provincial investment remains limited compared to the city’s growing needs.<\/p>\n For many residents, it feels as though Hyderabad is treated as an afterthought despite being one of Sindh\u2019s most important urban centers.<\/p>\n Karachi and Hyderabad have long been treated as engines of revenue generation. Their citizens pay taxes, fuel the economy, and contribute significantly to national growth.<\/p>\n Yet when it comes to delivering basic services, improving infrastructure, and ensuring accountable governance, these cities are often left behind.<\/p>\n Until Article 140-A of Pakistan\u2019s Constitution is implemented in both letter and spirit, and until meaningful authority, resources, and accountability are returned to elected local governments, Karachi and Hyderabad will continue to struggle under the combined weight of mismanagement, political power struggles, and mounting debt.<\/p>\n The greatest cost, however, will not be paid today\u2014it will be paid by future generations.<\/p>\nWhere Did the Money Go?<\/strong><\/h3>\n
1. Salaries and Political Appointments Consume the Budget<\/strong><\/h4>\n
2. Development Funds That Never Reach the Ground<\/strong><\/h4>\n
3. Politics Over Public Interest<\/strong><\/h4>\n
A Double Burden: Citizens Pay Twice<\/strong><\/h3>\n
The Systematic Weakening of Local Government<\/strong><\/h3>\n
No Real Accountability<\/strong><\/h4>\n
A Mayor With Limited Powers<\/strong><\/h4>\n
A Coordination Disaster<\/strong><\/h4>\n
Development Built on Debt<\/strong><\/h3>\n
Hyderabad: The Forgotten City<\/strong><\/h3>\n
The Core Question<\/strong><\/h3>\n